As the government seeks to revive Sindri fertiliser plant in Jharkhand, state-run NFL has decided to acquire 11 per cent equity stake in the proposed joint venture for revival of this closed urea facility.
In a filing to BSE, National Fertilisers Ltd (NFL) said that the "board of directors of the company accorded in principle approval for equity participation of 11 per cent in the revival of Sindri Unit of FCIL (Fertiliser Corporation of India Ltd)".
The government has decided to revive FCIL's Sindri unit by investing the proceeds of sale of part of its land to Jharia Rehabilitation Development Authority (JHReDA), Jharkhand and by forming JV with other PSUs having relevant experience, it added.
In May last, the Cabinet had approved the revival of closed urea unit of FCIL at Sindri with an investment of Rs 6,000 crore.
This unit was lying defunct and was not in operation since 2002. Therefore, the unit and other associated facilities were lying unutilised.
The annual consumption of urea in the country is about 31 million tonnes, out of which 23 million tonnes is produced indigenously and rest is imported.
