Government disburses Rs. 1,258 Cr interest free loan to HURL

Government disburses Rs. 1,258 Cr interest free loan to HURL

The repayment of loan would be done in 8 years beginning 2022-23.

  • By Pravin Prashant | September 09, 2020
The Department of Fertilizers and Hindustan Urvarak & Rasayan Limited (HURL) has signed an agreement for disbursement of Interest Free Loan (IFL) of Rs. 1,257.82 crore to HURL to revive fertilizer projects at Sindri, Gorakhpur and Barauni. 
The Interest Free Loan (IFL) agreement was signed by Niranjan Lal, Director, Department of Fertilizers and by Arun Kumar Gupta, MD, HURL in the presence of DV Sadananda Gowda, Minister for Chemicals and Fertilizers; Secretary (Fertilizers); Additional Secretary (Fertilizers); and Managing Director, Hindustan Urvarak & Rasayan Limited (HURL). 
The Government of India has approved grant of IFL to the tune of Rs. 1,257.82 crore to HURL (Rs. 422.28 crore, Rs. 415.77 crore and 419.77 crore to Gorakhpur, Sindri and Barauni projects respectively). The repayment of IFL would be done in 8 years beginning 2022-23. 
Speaking on the occasion, DV Sadananda Gowda, Minister of Chemicals & Fertilisers said, "The approval of IFL to the three units of HURL is culmination of the vision of Prime Minister Narendra Modi to enhance domestic production of urea and reduce import dependency for meeting urea requirements of farmers in India." 
He said that the release of IFL would help the three plants of HURL at Gorakhpur, Barauni and Sindri to start commercial production of neem coated urea by the year 2021. He noted that despite various obstacles being faced by the projects due to the COVID-19 crisis, physical progress of Gorakhpur, Sindri and Barauni plants at 80.3%, 74.2% and 72.8% have been quite satisfactory. 
Successful commissioning of plants would add 38.1 LMT of neem coated urea in indigenous production, and it will reduce dependency of import of urea. It will also help the “AtmaNirbhar Bharat” campaign of the Government of India and will generate direct and indirect employment.

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