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Zuari Fertiliser and Chemicals Ltd has shelved a proposed Rs 5,000 crore urea plant in Karnataka over land acquisition delays.
"Land acquisition has not happened for this project, so we have shelved this project," a senior official of the company said.
Adventz Group firm Zuari had signed an agreement with the Karnataka government for setting up the urea plant near Belgaum in north Karnataka. The agreement was signed during the tenure of former chief minister B S Yeddyurappa.
The company was planning to set up a 1.15 million tonne per annum (mtpa) gas-based urea project, but from the beginning there were issues with the land acquisition for the project, the said.
He added that as per the proposed plan, the project was expected to go on stream in 2015-16, and around 400 acres of land was required for the project, but from the very initial stages project was in troubled waters.
As of now we have no plans to take this project to any other state, and there are no plans for any new urea project, the official said.
Besides, the company has one real estate project and small scale fertiliser project there are no such plants to shelve them.
The company is also eyeing to take over UB group's Mangalore Chemicals & Fertilisers, it has increased its stake to nearly 16%, where rival Deepak Fertilisers has picked up over 24% equity.
Shares of the company closed higher by 14.67% at Rs 104.35 on BSE today.
