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Tripura to take 10% stake in ONGC-Tata Chemicals Rs 5,000-cr urea plant

The Economic Times:  November, 2012

Bengaluru: Tripura will pick up 10% stake in the proposed joint venture of ONGC and Tata Chemicals for setting up a Rs 5,000-crore gas-based urea plant in Tripura.

In the project, Tata Chemicals and ONGC will have 50% and 40% stake, respectively. Tripura Chief Minister Manik Sarkar, after the cabinet meeting, said in Agartala that ONGC has sought expression of interest for setting up of the urea plant.

The chief minister said that Rs 2,000 crore of total project cost would be raised from equities. "We will provide land of about 800-1000 acre for the establishment."

He said: "The ONGC has decided to set up a methanol-urea plant using natural gas available in north Tripura. The plant is expected to start using gas deposits of Khubal of Dhalai district, location of the plant is yet to be finalised."

The CM has directed district magistrates of both districts to choose the locations after discussion of forest officials. According to Sarkar, the plant would immensely benefit Bihar, Jharkhand, West Bengal and several other states. Neighbouring Bangladesh is also likely to receive urea from the plant.

The project would take 44-48 months to start operation. ONGC had engaged Noidabased Projects & Development India (PDIL) to study the feasibility of the proposed project. Public sector unit Brahmaputra Valley Fertiliser Corporation (BVFCL), which is the only urea producing unit in the entire Northeast, is witnessing plummeting production. Northeast requires 2.5 lakh tonne urea annually.