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As per the records of the now-closed fertilizer plant (FCIL), the name Sindri was the corrupt form of the word Sindoori (Vermilion). Technically the type of soil available in the area is Laterite which has got a vermilion coloured or reddish hue.

The word Sindri is also said to be a part of the Mundari lexicon.

In his inauguration speech, the then Prime Minister of India, Jawahar Lal Nehru said that he was not just inaugurating a fertilizer factory but he was inaugurating a temple of modern India.

The Company Sindri Fertilizers and Chemicals Limited was merged in January 1961 with another fertilizer manufacturing company Hindustan Chemical and Fertilizers Limited floated by the Government of India in July 1959 to form a bigger Company the Fertilizer Corporation of India Limited.

The factory was first in India to produce Ammonium Sulphate (1951), Urea (1959), Ammonium Nitrate-Sulphate, commonly called the Double salt (1959) and was the first fertilizer factory to have its own captive power plant in 1951 and to introduce planning, research and development facilities in 1951.

The raw materials used initially for its final products were gypsum, coal and naptha.

There are three small railway stations/halts in the 27 kilometre long broad gauge line between Sindri Town and Dhanbad Junction namely - Sindri Marshalling Yard, Sindri (Block Hut), Rakhitpur, Pradhan Khanta and Dokra Block Halt.

The Institute has campus spread in nearly 450 Acres, spared by the FCIL Sindri, and operates under the aegis of Department of Science & Technology, Govt. BIT Sindri and was formerly known as Bihar Institute of Technology, Sindri which was renamed as Birsa Institute of Technology (BIT), Sindri after the creation of Jharkhand state in November 2000.

In 1978, the Government of India decided to reorganise the Fertilizer Corporation of India Limited and the National Fertilizer Corporation Limited, which was incorporated for fertilizer projects at Panipat and Bhatinda into five new companies.

The Sindri fertilizer factory continued with the Fertilizer Corporation of India Limited along with aged-old Gorakhpur (Uttar Pradesh) Plant and three coal based fertilizer projects at Talcher (Orissa), Ramagundem (Andhra Pradesh) and Korba (Chhattisgarh) and newer plants and its Planning & Development Division were included in new companies, namely, Rashtriya Chemicals & Fertilizer Limited (RCF), National Fertilizers Limited (NFL), Hindustan Fertilizer Corporation Limited (HFC) and Fertilizer (Planning & Development) India Limited (FPDIL), latter renamed as Projects and Development India Limited (PDIL).

The Sindri fertilizer plant operated consistently in profit till 1967-68 and again in 1969-70.

But in spite of modernisation, the factory could not maintain profit thereafter even after exceeding rated (attainable) capacity mainly because of unscientific division of the company, higher production cost and comparatively lower sale price of fertilizers, mounting wage bills, higher maintenance expenditure due to ageing of plants, availability of raw materials of low specifications/quality large infrastructure cost, and eventually the Government of India decided to close of the factory operation in September 2002.