Kribhco to set up fertiliser plant in AP; to invest Rs 1000 cr

Fertiliser cooperative KRIBHCO today said it will set up a phosphoric and potassic fertiliser plant at Krishnapatnam in Andhra Pradesh with an investment of Rs 1,000 crore.
This will be the first P&K fertiliser plant of Krishak Bharati Cooperative Ltd (KRIBHCO), which produces urea only.
"The plant is being set up in Andhra Pradesh as the state government has offered power at Rs 1 per unit for next 10 years, VAT exemption for next seven years and a host of other incentives, giving benefit to KRIBCO of about Rs 500 crore," KRIBHCO Chairman Chandra Pal Singh said.
The land has already been allotted by state government for the fertiliser plant. The annual capacity of the plant will be about 6 lakh tonnes tonnes and it will take 4-5 years for the project to become operational.

There are also plans to increase the capacity of this plant in the second phase and take the total annual capacity to 1.2 million tonnes per annum, Singh added.
At present, Kribhco has one urea plant in Hazira in Gujarat having an annual capacity of 2.2 million tonnes. Besides, the cooperative has one plant in Shajhanpur in Uttar Pradesh in partnership with the Shyam group having a capacity of 1 million tonnes.
KRIBHCO also declared a dividend of 15 per cent for member cooperative shareholders.