State-run Rashtriya Chemicals & Fertilisers (RCF) has launched a multi-pronged growth strategy.
RCF would expand its Thal unit by investing Rs 4,400 crore, pursue a joint venture (JV) with GAIL India and Coal India for the development of a coal-gasification based fertiliser project in Orissa, explore formation of JV companies in various countries and streamline operations and marketing of fertilizers.
It has decided not to pursue the di-ammonium phosphate (DAP) project in Rajasthan due to unviability. However, in a JV, it would implement a Single Super Phosphate (SSP) project in Rajasthan, due to increased market potential. RCF sources, who wanted anonymity, told Business Standard the Thal expansion envisaged installation of a 2,200-tonne per day ammonia plant and a 3,500-tonne per day urea plant, along with power generation, offsite, utilities and product handling capacities. All possible options for funding the project, including a special purpose vehicle route, would be explored.
Further, RCF is engaged in talks with Coal India and GAIL India to work out details on equity and project financing for the proposed coal gasification fertilizer project at Talcher in Orissa. The project entails investment of Rs 3,000-4,000 crore. Sources informed that a high-level delegation comprising representatives of the department of fertilizers, RCF, Coal India and GAIL India had visited China to assess the technology’s suitability for Indian coal. The sources said RCF was involved in trying to revive the closed unit of Hindustan Fertiliser Corporation at Barauni. RCF has joined hands with National Fertilizers Ltd and Krishak Bharati Cooperative Ltd to form a special purpose vehicle (SPV). The SPV has asked the Centre for Rs 1,170 crore of equity contribution. The project envisages development of a new ammonia urea fertilizer complex.
RCF is also exploring JV opportunities in South Africa and Mozambique. “These countries are identified due to the easy and cheap availability of raw material like rock phosphate, potash and natural gas. In Mozambique, RCF plans to set up a project in JV with IDC and in South Africa with Foskor. The project is linked to availability of natural gas from new exploration undertaken by Sasol in South Africa.”
“In 2009-10, the company distributed nearly four million tonnes of fertilizer and in the current year, the quantity would remain the same,” the sources noted.
