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Tata Chem puts on hold Rs 3,800 cr urea expansion plan

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Press Trust of India New Delhi

Tata Chemicals today said it has put on hold the Rs 3,800 crore expansion plan of its urea manufacturing unit at Babrala, Uttar Pradesh, due to non-availability of gas.

"We have been waiting for gas allocation for our second phase urea expansion plan at Babrala unit, which was scheduled to happen by October-November, this year. As we have not got gas, we are holding our plans," Tata Chemicals Managing Director R Mukundan told reporters, while announcing the launch of the nutrient-based fertiliser "Paras Farmoola".

The company will set up two more units to produce nutrient-based fertiliser with an investment of Rs 55 crore each, he said without giving the details of the location.

 

Last year, the company undertook the debottling exercise of its Babrala urea facility and was awaiting 2.2 mmbtu (Million Metric British Thermal Units) gas allocation.

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First Published: Nov 22 2010 | 2:21 PM IST

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