Fertiliser major IFFCO today said it has identified land in Canada for setting up a gas-based urea plant at a cost of $1.2 billion and expects the facility to be operational in the next five years.
Early this year, IFFCO had announced setting up of a urea plant in Canada with a capacity of 1.27 million tonnes via joint venture with a local partner there.
"Much progress has been made in Canada. Land has been ear-marked in Quebec government's Becancour Waterfront Industrial Park. We are hopeful of getting environment clearance in 2-3 years," IFFCO Chairman and Managing U S Awasthi told reporters.
The IFFCO has also tied up with a company for shale gas supply and is doing feasible study for seeking environment approval. After the green nod, production should start from 2017-18, he said.
In July, the IFFCO and and Canadian firm Pacific Gateway Energy, Canada formed a JV firm "IFFCO Canada Enterprise Limited" in Quebec, he added.
The proposed Canada plant will be IFFCO's fifth ammonia urea plant. It has three plants in India and one in Oman. The 2-million-tonne urea plant in Oman called OMIFCO is a joint venture between Oman oil company SAOC, IFFCO and Kribhco.
For the Canada plant, Awasthi said that the IFFCO will invest at least $100-200 million and the rest will be raised through equity and debt.
"There has been good response from investors in India and abroad for the proposed JV company. The cooperative is in talks with some investors," he said.
India imports about 9 million tonnes of urea annually. The domestic companies are looking at joint ventures abroad for getting an assured supply of soil nutrients at an economical cost.
