RCF, DoF plan to revive two India plants for urea

27 June 2008 16:21  [Source: ICIS news]

By Aaron Rodrigues

MUMBAI (ICIS news)--India’s Rashtriya Chemicals and Fertilizers (RCF) along with the Department of Fertilizers (DoF) plan to revive mothballed plants due to rising demand and shortages of fertilizers, a source from the company said on Friday.

“We have been asked to look into and review two plants in the country,” a senior official from RCF told ICIS news.

Urea production in India was about 20m tonnes in 2007, with imports of around 5m-6m tonnes making up for the shortfall in supply.

The state owned firm plans to revive Hindustan Fertilizer Corporation’s Durgapur plant in West Bengal, which was earlier a naphtha plant, and Fertilizer Corporations of India’s coal-based Talcher plant in Orissa, he added.

“We are in the first stage of our feasibility study which will be ready in one month’s time,” the source said.

Each of the plants is expected to produce 100,000 tonnes/year of urea, he added.

The revival for each of the plants would cost roughly Indian rupees (Rs) 45bn ($1.1bn), the source said.

The cabinet's approval committeev would take its decision after six months, after gaining support from both house of the government, he said.

“As soon as we get the government approval, which is expect to be completed in 2009, we would begin construction and be completed by the beginning or in the middle of 2012,” he added.

The source said that RCF and DoF have been assured by the Petroleum Ministry of natural gas supplies within three-to-four years for manufacturing urea.

He added that there could be a possible joint venture between RCF and DoF, where RCF would source the technology and DoF would provide funds for the revival of the facilities.

($1 = Rs42.58)

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By: Aaron Rodrigues
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