Indian firms seek consultancies for revival of fertilizer units

28 April 2009 17:08  [Source: ICIS news]

NEW DELHI (ICIS news)--Two Indian companies on Tuesday invited offers from consultancy firms to work as project advisors for the revival of five mothballed nitrogenous fertilizer plants, possibly using joint-venture arrangements.

Fertilizer Corporation of India (FCI) was hoping to revive its plants at Talcher in Orrisa State, Ramagundam in Andhra Pradesh State, Gorakhpur in Uttar Pradesh State and Sindri in Jharkhand State. They stopped production between 1990 and 2002.

Hindustan Fertilizers Corporation (HFC) was offering its plant at Durgapur in West Bengal State, which closed in 1997.

FCI said the setting up of a brownfield project at each site would require an investment of Indian rupees (Rs) 30-40bn ($600-800m). The company was offering all assets at the sites as its contribution to any revival, but would not provide funding.

HFC said it was looking for an investment partner for the setting up of a 12m tonne/year urea plant at its site.

Both companies said they would consider setting up additional plants at their sites.

The project advisors’ mandate for both companies was to formulate a suitable scheme for the selection of investors for the revival, using a JV or any other project funding model.

The last date for submission of offers by India-registered consultancy companies was 27 May.

($1 = Rs50.17)

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By: Naresh Minocha
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