Gujarat State Fertilizer restarts ammonia rail tankers

Vadodara based Gujarat State Fertilizers and Chemicals Ltd (GSFC), has restarted its ammonia rail tankers supplying system. The rail wagons will carry liquid ammonia from its GSFC fertilizernagar complex to its Sikka unit in Jamnagar.

The managing director of GSFC, A K Luke said, "With the restart of the ammonia rail tankers supply service, both GSFC and the Indian Railways will be benefited."

"The management has made utmost efforts to put into use the unproductive assets," added Luke.

He further said that the company will save 50 per cent of its transportation costs due to the rail.

The ammonia rail tankers service was terminated in 1994.

They are one of the safest modes of transport of liquid ammonia and are regularly used by reputed fertilizer companies.

It is designed as per stringent norms, according to a company release.

GSFC has put in use the rail wagons which were lying idle for the last one decade due to technical problems in the Ammonia-IV plant, the press release informed.

The rail service has been restarted as the plant is now completely operational and the company has surplus ammonia to feed its Sikka unit.

It will further facilitate in reducing the dependence on imported liquid ammonia and will save foreign exchange, the release added.

The cost of one metric tonne of liquid ammonia is $350 in international market, said Luke.

"The company will save 14 lakh dollars with the start of this facility as now 50 per cent of the ammonia for the Sikka unit will be supplied from here," said Luke.

The company will continue to import the remaining 50 per cent.

"Every month 640 metric tonne of liquid ammonia will be dispatched from here," Luke added. The company will send 40,000 metric tonne per annum to its Sikka unit.

Presently, GSFC imports liquid ammonia from Saudi Arabia, which is about 3000 km away.

Now, it will be made available to Sikka unit from its Vadodara based fertilizernagar facility which is less than 500 km away.

Ammonia, popular among the farmers, is being used to manufacture DAP fertizer at Sikka Unit, Motikhavdi.

This will also help GSFC in utilizing the company's Ammonia manufacturing facility beyond 100 per cent, the company release said.

This will generate Rs 4-5 crore annually for the Indian Railways, it further said. The company is also in the process of setting up a methanol plant at an estimated cost of Rs 250 crore.

"Presently the technical feasibility of the plant is being experimented," said Luke.