India’s OCFL eyes new ferts facility in Andhra Pradesh state

22 September 2010 08:37  [Source: ICIS news]

MUMBAI (ICIS)--Indian fertilizer producer Oswal Chemicals & Fertilizers Ltd (OCFL) plans to construct a new Indian rupees (Rs) 70bn ($1.54bn) facility in Andhra Pradesh state to meet rising domestic demand, a senior company official said on Wednesday.

The facility would include a 1.2m tonne/year urea-ammonia plant, a 1m tonne/year diammonium phosphate (DAP) plant and a 100MW power plant, he added.

OCFL had earlier submitted a project proposal to the Andhra government, but the company had not finalised the exact location of the facility, he added.

“We expect to begin preliminary fieldwork for the facility by January 2011 and – once the approvals are in place – we should be able to complete construction in 30 months,” he said.

The official told ICIS that India’s Ministry of Petroleum and Natural Gas had assured OCFL of supply of natural gas feedstock for the urea plant.

Meanwhile, feedstock phosphoric acid for the company’s DAP line would come from Syria, where it has a tie-up for phosphate rock supply, said the official.

OCFL’s wholly-owned subsidiary Universal Projects had earlier on 19 August signed an agreement with Syria’s General Company for Phosphates and Mines for the use of rock phosphate feedstock in a new integrated phosphate fertilizer plant.

($1 = Rs45.58)

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By: Priya Jestin

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