Public sector Fertilisers and Chemicals Travancore Limited (FACT) has chalked out expansion and diversification plans in its core sector of fertiliser production.
FACT has identified four projects — a new sulphuric acid plant, urea plant, NP complex fertiliser plant and ammonia-urea complex plant — as part of the plan. The total investment in these projects is estimated at Rs 5,986 crore with the ammonia- urea complex seeing the largest investment. Three of them will be set up at the Cochin division and one at the Udyogmandal division.
The company intends to associate with public/private sector undertakings for taking up these projects and has proposed a 50:50 joint venture model. It has invited expression of interest (EoI).
Apart from providing, the company would provide land and infrastructure facilities like water to the JV as a part of its share of the equity. Besides, it would provide design and consultancy services through its design organisation Fedo. The design and consultancy fee would also form part of FACT’s equity contribution.
The ammonia-urea complex will have an installed capacity to produce 2,800 tpd (tonnes per day) ammonia and 3,500 tpd urea and will be set up at the Cochin division. The total investment is estimated at Rs 4,600 crore. The urea plant will come up at the Udyogmandal division with an investment of Rs 858 crore. It will have a capacity to produce 1,500 tpd while the sulphuric acid plant will produce 2,000 tpd of acid and will be set up at the cochin division with Rs 318 crore.
The NP complex will have an installed capacity of 1,000 tpd and will attract an investment of Rs 210 crore. According to sources, the deficit between the production and consumption of sulphuric acid in the Cochin division is around 800 tpd.
The concept of the proposal to set up an additional captive production facility is to meet the entire requirement of sulphuric acid.
The company plans to increase the complex fertiliser production to 1 million tonnes/annum by installing an additional 1,000 tpd NP plant, using outsourced ammonia, phosphoric acid and sulphuric acid.
The production of urea in the Cochin division had been suspended from 2003 as the operation had become economically unviable.
However, a market survey indicates a demand supply-gap of at least 8 million tonnes by 2020. To cater to the southern states of Kerala, Tamil Nadu, Karnataka and Andhra Pradesh, FACT requires about 300,000 tonne urea annually. The Government of India has been encouraging fertiliser companies to revive production in order to meet the shortages and reduce imports. FACT was producing urea till 2004 and is even now maintaining its presence in the market by trading imported urea in the southern states.
