Fertiliser cooperative major IFFCO today said it plans to invest Rs 500 crore over the next three years to modernise its diammonium phosphate (DAP) plant here in Orissa.
The proposed revamp will enhance production of DAP/NP fertilisers to 25-30 lakh tonnes from the existing installed capacity of 19.2 lakh tonnes.
"We are aiming to invest Rs 500 crore in three years to retrofit the existing DAP plant with pipe reactor technology and increase the output by 30 per cent," IFFCO's Paradeep Unit Executive Director M R Patel told reporters here.
At present, the conventionally designed Paradeep unit, also known as the Paradeep Phosphates Fertiliser Complex, has three streams of DAP/NP fertilisers in operation, he said.
"We are in talks with Hindustan Dorr Oliver for pipe reaction system, which will help meet the challenge of low cost of production, high production volumes and highest possible conversion efficiencies," he said.
The other advantage of the technology is that it lowers energy consumption by 25 per cent and results in lower emission of pollutants like ammonia, he added.
Patel said IFFCO is also working on removing transportation bottlenecks at the Paradeep unit.
"We are planning to increase the railway siding for lifting DAP/NP fertilisers directly from the bagging unit. We are also checking the feasibility to build a water jetty on the Mahanadi river bank to ship gypsum via sea route," he said.
Following its takeover of the Paradeep plant from Oswal Chemicals and Fertilisers in 2005 at Rs 2,080 crore, Indian Farmers Fertiliser Cooperative (IFFCO) has spent Rs 1,500 crore to revamp the unit and resume production.
From production of 30,000 tonnes of DAP/NPK at the time of acquisition, the output of the unit was gradually scaled up to 7.5 lakh tonnes in 2006-07 and 15 lakh tonnes in 2009-10.
