NFCL begins work on third plant at Kakinada
Nagarjuna Fertilizers and Chemicals Ltd ( NFCL) has started work on its third manufacturing plant at Kakinada in Andhra Pradesh.
This new facility taken up with an outlay of Rs 4,500 crore will enhance the overall urea production of NFCL by 1.3 million tonnes ( mt) taking capacity up to 2.9 mt.
As part of the equipment, procurement and construction ( EPC) contract, the company has awarded early work order to Technimont of Italy estimated at Rs 3,000 crore.
“We have decided to go ahead with the project having secured all mandatory clearances, including environmental clearance for expansion project. We are awaiting gas linkage and once this is done, we will be able to achieve financial closure for the project,” said R. N. Deshpande, Vice- President.
This new facility taken up with an outlay of Rs 4,500 crore will enhance the overall urea production of NFCL by 1.3 million tonnes ( mt) taking capacity up to 2.9 mt.
As part of the equipment, procurement and construction ( EPC) contract, the company has awarded early work order to Technimont of Italy estimated at Rs 3,000 crore.
“We have decided to go ahead with the project having secured all mandatory clearances, including environmental clearance for expansion project. We are awaiting gas linkage and once this is done, we will be able to achieve financial closure for the project,” said R. N. Deshpande, Vice- President.
He told Business Line that, “It is proposed to complete the
expansion project in 2016 with a debt equity ratio of 3: 1. We hope to
close finances soon and have mandated ICICI Bank to handle the debt
issue. The equity will be through our own resources.”
The brownfield expansion will help serve customers now being supported by the company through imports.
The new policy provides floor and ceiling price mechanism with an assured return of 12 per cent to 20 per cent on equity. The policy also provides compensation for variation in the cost of input gas.
“We are in discussions with GAIL and expect to be allocated gas on priority basis as the Government policy provides for priority allocation of natural gas to the fertiliser sector,” he said.
The brownfield expansion will help serve customers now being supported by the company through imports.
The new policy provides floor and ceiling price mechanism with an assured return of 12 per cent to 20 per cent on equity. The policy also provides compensation for variation in the cost of input gas.
“We are in discussions with GAIL and expect to be allocated gas on priority basis as the Government policy provides for priority allocation of natural gas to the fertiliser sector,” he said.
No comments:
Post a Comment