Rashtriya Chemicals to set up 1.3-mt urea plant in Iran

Mumbai: Rashtriya Chemicals & Fertilizers (RCF) has formed a venture with Gujarat State Fertilizer Corporation (GSFC) and Faradast Energy Falat Company (FALAT) for the development of a 1.3-million-tonne (mt) urea plant at Chahbahar in Iran. The project entails investment of Rs 6,500 crore. The product will be shipped back to India.

RCF Chairman and Managing Director Manoj Mishra told Business Standard, "Both RCF and GSFC together have proposed to hold 51 per cent while the balance 49 per cent will be held by FALAT. However, talks are currently underway."

Further, the company plans to expand production capacity at the Thal plant in Raigad district with an investment of Rs 5,500 crore. "RCF will set up a single stream ammonia plant of 2,200 tonnes per day and one single stream urea plant of 3,850 tonnes a day at the site in Thal. The project awaits Cabinet approval," Mishra said.

RCF with Coal India, GAIL India and Fertilizer Corporation of India will set up a complex of 2,200 tonnes a day ammonia plant and 3,850 tonnes a day urea plant at Talcher in Odisha. "Coal gasification route is being explored as feed stock. A joint venture company, Talcher Fertilizer Ltd, has been incorporated to execute the project which entails an investment of Rs 8,000 crore. RCF has pricked up 29 per cent equity worth Rs 1,000 crore," he said.

Mishra said the joint venture has engaged Project & Development India Ltd and has issued expression of interest for the selection of coal gasification technology and it hopes to complete the process in two months.

RCF is spending Rs 1,000 crore on energy efficiency in Trombay and Thal plants. "There will be massive reduction in energy which will make us profitable in future. We expect the benefits to start coming by 2018-19," he said.

This apart, RCF is investing Rs 198 crore on a sewage treatment plant at the Trombay plant. Mishra said RCF, with the ongoing expansion in and outside India, aims to achieve turnover of Rs 15,000 crore by 2021-22. RCF's net profit dipped to Rs 191.23 crore in 2015-16 against Rs 322.06 crore in 2014-15, a 40.62 per cent fall. "Profit took a hit as we had made a provision of Rs 181 crore as an abundant precaution and responsible accounting for use of ATM gas for non-urea purposes. Had this provision not made our profit would have been the same as last year," he added.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.