There is good news for the crisis-ridden fertiliser industry. The Centre would support the revival of closed units of Fertiliser Corporation of India (FCI) and Hindustan Fertiliser Corporation (HFC). The inter-ministerial group has recommended 51% equity control by the PSUs in the revival of the units, with budgetary support from the government. The balance 49% would come from other sources. The Centre has planned the revival of at least five sick units with an investment of Rs 17,000 crore (Rs 3,400 cr each for one million tonnes per annum capacity) in the 11th Plan period. FCI had four units, in Sindri, Gorakhpur, Talcher and Ramgundam, and HFC had three, in Barauni, Durgapur and Haldia. The department of fertiliser (DoF) has submitted the inter-ministerial group's recommendation for Cabinet approval. Sources at DoF and FAI told FE that the group had also considered various options, including a Lease Run Operate Transfer (LROT) model, expansion of the equity base of existing public sector undertakings and raising funds to finance the revival, and disinvestment of the ailing plants after ensuring gas supply and infrastructure support. However, Companies like Rashtriya Chemicals & Fertilisers (RCF), National Fertilisers Limited (NFL) and Krishak Bharati Cooperative Limited (Kribhco) opposed the LROT model as well as an expansion of the equity base, terming them as unviable propositions. The disinvestment route, they said, was impractical in the face of Left opposition to such moves. The inter ministerial group's recommendation is crucial since India has imported around 10 million tonne fertilisers in 2007-08 and this is expected to grow substantially. On gas supply for existing and closed units, the petroleum ministry informed the inter-ministerial group that gas production from Reliance Industries' KG Basin could start the third quarter of 2008. Production is estimated to be 80 million standard cubic meters per day (mmscmd), out of which 40 mmscmd has been earmarked for the East West pipeline (Kakinada-Hyderabad-Uran sector); 20 mmscmd for the pipeline going South from Kakinada to Chennai via Vijayawada; another 20 has been earmarked for the pipeline going north from Kakiriada upto Haldia via Basdevpur.