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In a discussion with the government of Iran, it has been also decided that liquefied natural gas (LNG) will be supplied to this project at a price of $3 mmbtu.
This project forms part of the broad plan of the department of chemicals, petrochemicals and fertilizer to set up chemical and petrochemical complex in overseas countries to ensure the availability of primary chemicals raw materials exclusively for the Indian companies.
The feedstock complex will be set in a special economic zone which the Indian government plans to build in these countries, part of which will be utilised for establishing the petrochemical and chemicals feedstock.
The requirement for setting up a consortium to acquire or build projects overseas has arisen due to deficit of indigenously produced fertilizer in the country. While the fertilizer subsidy is a big drag for the Indian economy, it has to rely on imports for non urea fertilizers as most of the domestic units engage in urea manufacturing due to the incentive of assured subsidy in line with the marketing prices. The Indian government has been trying to decrease the overuse of urea in India agriculture and diversify to other nitrogenous fertilizers.
The government of India is also in the process of signing a protocol agreement with Russia with the objective of proceeding towards picking up stake in Russian potash manufacturing company– Acron.
Acron is a Russian group of interrelated companies and one of the leading global mineral fertilizer producers in the world, primarily potash. This is over and above the agreement which Indian Potash Limited has with Uralkali, another potash manufacturing Russian company for import of potash. Acron is a Russian group of interrelated companies and one of the leading global mineral fertilizer producers in the world, primarily potash. This is over and above the agreement which Indian Potash Limited has with Uralkali, another potash manufacturing Russian company for import of potash.
To this effect, the Indian government has formed a consortium of five public sector undertakings led by National Mineral Development Corporation – NMDC with other associates like Rashtriya Chemical Fertiliser (RCF), Krishak Bharti Cooperative (KRIBHCO), Fertiliser and Chemicals Travancore (FACT) and National Fertiliser Ltd (NFL). The potash manufactured through this agreement will be exclusive use in India. It will be mandate of the government of India to export potash out of this facility only after fulfilling the domestic demand, said sources. However these details will be worked out after due diligence is done and manufacturing starts, they added.
