Iffco to invest Rs 300 cr afresh in Oswal unit

The Indian Farmers Fertilizer Cooperative (Iffco), which took over the DAP fertilizer plant of Oswal Fertilizer and Chemical at Paradip in Orissa, will reopen the unit within months. At present, the division is closed due to pollution-related issues.

"We will reopen the unit after taking necessary pollution control measures," said Surinder Kumar Jhakhar, chairman. Jhakhar was here to preside over formal handover of the unit by Abhay Oswal to Iffco.

Iffco had purchased the 20 lakh tonne per annum of DAP (di-ammonium phosphate) plant-one of the largest phosphatic fertilizer unit in the world-from Oswal group on a payment of Rs 2,180 crore last month. However the plant is closed for last few months on pollution grounds.

Ever since its inception in late 90s, the unit has been accused of spreading pollution in and around Paradip area due to inadequate environment safeguard mechanism. It had been shut down on several occasions in the past as per the rulings of both Central and state pollution control boards.

"Taking care of the pollution issue is one of the priority area of the new management", Jhakhar pointed out. He said, experts had already been put on the job to study the problem and suggest remedial measures.

He said, Iffco will invest another Rs 200 to Rs 300 crore before reopening of the unit. "Most of it will go to setting up the pollution control mechanism", he added.

Besides, the new owners intended to set up a farmers training institute, soil testing lab, demonstration farms and a bio fertilizer unit at Paradip. For all these facilities additional land of about 1700 acre is required for which the state government has been approached.

The bio fertilizer unit, with a capacity to produce 200 tonne of fertilizer per annum, will cost about Rs two crore. The farmers' training institute will mainly train the farmers of the state in use of balanced fertilizer and advanced technology in agriculture. "We have similar training centres in Gujurat and Uttar Pradesh", said U S Awasthi, managing director of the company.

With the acquisition of Oswal unit, Jhakhar said Iffco had emerged as the largest producer of DAP in the country controlling about 60 per cent of the production capacity. "We intend to rebuild the Paradip unit as a world class facility," he added.