COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Raunaq Singh plans to set up fertiliser unit in Punjab

Onkar Singh in New Delhi

Parkash Singh Badal, chief minister of Punjab, bestowed on Raunaq Singh the honour of Nishan-e-Khalsa for his contribution to the rapid growth of industry in India. The grand old man is now setting up a multi-million fertiliser plant in Punjab.

Incidentally, this would be the first major industrial venture to be set up by the Raunaq Group of Industries in Punjab. Prior to this, Raunaq Singh had refused to set up any industry in Punjab on the ground that it was a waste of time and energy to go in for any venture in Punjab. More so when Punjab was facing militancy in the state.

In an interview with rediff.com, Raunaq Singh denied that he was returning a favour by setting up the fertiliser unit. "I've always been toying with the idea of setting up a couple of industrial ventures in Punjab before as well but somehow this did not work out. Now I've made a proposal to the government of Punjab and told them about my intention to set up a plant and within a week I get a letter from the Punjab government welcoming my plans. I've written to them about my intention to set up a naphtha-based urea / DAP plant based on ammonia and phosphoric acid," said Raunaq Singh.

He had promised Badal to invest Rs 20 billion in the state to help the state economy and reduce the unemployment. According to experts, if Singh goes ahead with his present plan and does manage to set up the fertiliser plant he would be fulfilling the promise he made to the chief minister substantially. "He has two options. Either to set up Rs 16 billion urea/DAP plant or a stand-alone DAP unit costing Rs10 billion," a senior Punjab government official told rediff.com.

Raunaq Singh knows that the task that he is about to undertake is gigantic and he would have to put his best foot forward to carry out his commitments. "My personal choice is to set up the plant in Bhatinda. But I have not made up my mind as yet. The Punjab government has offered me various alternatives and I am in the process of hiring experts to prepare feasibility reports first before I go ahead with investments. I am also in touch with some of the foreign collaborators who are willing to invest money in the venture. Hopefully things should get going soon," said Raunaq Singh.

Singh had earlier tried to set up a newsprint industry in Goindwal Sahib, but he did not get enough support from the financial institutions. According to Singh, he would buy 100 acres of land for this purpose. "The price of the land will depend upon the location as the rates would vary from area to area, depending upon the nature of land and the relative development in the area where land is proposed to be acquired," says D S Guru, director of industries and commerce in the government of Punjab in his offer letter.

The government of Punjab also promised special package incentives by an Empowered Committee for units of special significance with an investment of Rs 1 billion or more.

But those who have been closely watching the developments in the Raunaq Group of Industries doubt his ability to pull through the project. "Unless his son Kanwar Onkar Singh chips in, Raunaq Singh will not be able to fulfil his ambitious projects because it is Kanwar who calls the shots," said a former employee of Raunaq Singh.

The Kargil Crisis

Business news

Punjab