India’s DFPCL to bring on line greenfield ammonia, TAN lines within two years

MUMBAI (ICIS)–India’s Deepak Fertilisers & Petrochemicals Corp Ltd (DFPCL) is on track to start its 520,000 tonnes/year greenfield ammonia project and its 377,000 tonnes/year technical ammonium nitrate (TAN) line in the next two years, a company source said on Friday.

The ammonia line at Taloja in western Maharashtra state is estimated to cost around Indian rupee (Rs) 43.5bn ($545.4m) and will be commissioned by May 2023.

Once operational, the plant will help the company reduce its dependence on imports, the source added.

Smartchem Technologies, a wholly owned subsidiary of DFPCL expects to begin operations at the TAN line at the Gopalpur Industrial Park in eastern Odisha state by August 2024.

The Rs 22bn plant will become a key supply source for TAN in east India where the company expects to see a growth in the mining sector.

TAN is a key ingredient in pharmaceuticals, with applications in the mining, power, construction, and steel industries.

Once the Odisha facility comes online, DFPCL’s TAN capacity will increase to around 850,000 tonnes/year, the source said.

The company currently produces around 490,000 tonnes/year of TAN at its Taloja complex.

During the April to June quarter of 2022, the company was operating its 70,000 tonnes/year isopropylene (IPA) line at 58% of capacity, it said in a statement to the Bombay Stock Exchange (BSE) on 4 August.

“IPA sales volumes decreased by 42% year on year in the first quarter of financial year 2022-23 due to raw water shortage and inability to pass through the rising cost of propylene raw material and fuel,” DFPCL said in its statement.

Due to these problems, DFPCL had to bring forward its plant maintenance shutdowns it added.

DFPCL had shut down the IPA line from 6 May until 13 June and again on 24 July as per market sources.

DFPCL is a leading producer of fertilizers in India with manufacturing facilities in Maharashtra, Andhra Pradesh, Haryana and Gujarat states.

($1= Rs 79.8)

Focus article by Priya Jestin