Rashtriya Chemicals & Fertilizers has formed JV with Gujarat State Fertilizer Corporation (GSFC) and Faradast Energy Falat Company (FALAT) for the development of 1.3 million ton (MT) urea plant at Chabahar in Iran. The project entails investment of 65 billion rupees. The product will be shipped back to India.

RCF CMD Manoj Mishra told Business Standard, “Both RCF and GSFC together have proposed to hold 51% while the balance 49% by FALAT. “However, the talks are currently underway."

Further, the company plans to expand the production capacity at the Thal plant situated in Raigad district with an investment of 55 billion rupees. “RCF will set up one single stream Ammonia plant of 2,200 tons per day and one single stream urea plant of capacity of 3,850 tons per day at the existing site in Thal. The project awaits cabinet approval,” Mishra noted.

According to Mishra, RCF along with Coal India, GAIL India and Fertilizer Corporation of India will set up a fertilizer complex comprising 2,200 tons per day ammonia plant and 3,850 tons per day urea plant at Talcher in Odisha. “Coal gasification route is being explored as feed stock. A joint venture company Talcher Fertilizer Ltd has been incorporated to execute the project which entails an investment of 80 billion rupees. RCF has pricked up 29% equity worth 10 billion rupees,” he said.

Mishra informed that the JV company has engaged Project & Development India Ltd and has issued expression of interest for the selection of coal gasification technology and it hopes to complete the process in next two months.

Moreover, RCF is spending 10 billion rupees on energy efficiency in Trombay and Thal plants. “There will be massive reduction in energy which will make us profitable in future time to come. We expect the benefits of the same should start coming by 2018-19,” he noted.

This apart, RCF is investing 1.98 billion rupees on sewage treatment plant at Trombay plant.

Mishra hoped that RCF with the ongoing expansion in and outside India aims to achieve turnover of 150 billion rupees by 2021-22.

Meanwhile, Mishra said RCF's net profit dipped to 1.912 billion rupees in 2015-16 against 3.226 billion rupees in 2014-15, a 40.62% fall. “Profit has taken a hit as we have made a provision of 1.81 billion rupees as an abundant precaution and responsible accounting for use of ATM gas for non urea purposes. We feel that this is not correct recovery as ours is an integrated unit where urea, PNK and industrial unit produce in a single complex. We have placed our story to them, case to inter ministerial committee, let us see. Had this provision not made our profit would have been same as last year,” he added.

(Source: Business Standard)