National Fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India (FCIL) had earlier signed an agreement to form a joint venture company (JVC) for setting up two new -- Ammonia and Urea -- plants at the existing site of Ramagundam Fertilizer plant.
The JV formed a new company called Ramagundam Fertilizers and Chemicals Limited.
"After detailed deliberations, the committee recommended the project for environmental clearance and recommended the following specific conditions along with other environmental conditions while considering for accord of environmental clearance," the Expert Appraisal Committee said in the minutes of meeting held last month.
"The Centre has asked to the state Government to pick up some sate in the unit. Currently the proposal is with Finance Department and a decision in this regard will be taken after a series of meetings," the official told PTI.
"The Union government has also asked to pass all the benefits to the plant under the new industrial policy of the State," he added.
The plant which has become defunct for the past decade was originally established a coal-based plant. Subsequently, the plant could not survive due to shortage of raw material such as Phosphate.