NFL, EIL & FCIL form JV to revive Ramagundam Fertilizer plant

National Fertilizers Limited NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India (FCIL) have signed an agreement to form a joint venture company (JVC) for setting up new ammonia and urea plants at the existing site of Ramagundam Fertilizer plant in Karimnagar district of Telengana. The joint venture agreement for the new company, named Ramagundam Fertilizers and Chemicals Limited, was signed on January 14, 2015 at Noida in the presence of Ananth Kumar, Minister of Chemicals and Fertilizers, and Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas.
 
In order to augment the domestic urea capacity, revival of closed fertiliser units of FCIL and Hindustan Fertilizer Corporation (HFC) has been on the top priority agenda of the Government of India. In this direction, joint venture agreements have been signed on December 24, 2014 between Gail India, Rashtriya Chemicals & Fertilizers Ltd (RCF), Coal India Ltd (CIL) and FCIL for the revival of Talcher unit of FCIL. Government of India has nominated FCIL’s unit located at Ramagundam to the consortium of three state run companies NFL, EIL and FCIL for revival.
 
The JV signed on January 14, 2015, will be primarily responsible for setting up gas based ammonia-urea plants. NFL and EIL will each have 26% equity in the JV. EIL would take up the project construction under EPC model. Pre-project activities have been started. NFL’s expertise would be utilised for the operation and maintenance of the plant
 
The project comprises of 2200 metric tonne per day (MTPD) ammonia plant and 3850 MTPD urea plant. FCIL will hold a stake in the JV, being the provider of existing infrastructure of Ramagundam Project. Total investment in the project by the PSU promoters is estimated to be in the range of Rs 5,000 crore. Execution of construction activities is expected to start in early 2016.
 
Ananth Kumar said, “In next four years, about Rs 40,000 crore will be invested in the country for revival of the old fertiliser plants, and setting up of new units. There is going to be a fertiliser revolution in the country that will make India self-reliant in fertiliser, particularly urea production.”
 
The initiatives are being taken in pursuance of two mantras of the government – ‘Make in India’ and good governance, he asserted. Ananth Kumar added, “Large investments are being made in the sector, and with coordinated efforts and political will, the Government will take steps in a time bound manner that will help our people, and the farmers. Steps are also being taken to check the imbalance in usage of fertilisers in the country.”
 
Dharmendra Pradhan said, “With the setting up of new plants and revival of old plants, the supply gap in fertilisers will be reduced. The new plant at Ramagundam will be a boon for the farmers of newly created state of Telengana. The Government will set up a gas grid in the country.”