Encouraging Indian Companies to Establish Joint Ventures for Fertilizers

Encouraging Indian Companies to Establish Joint Ventures for Fertilizers

 Department of Fertilizers had prepared a proposal for creation of a dedicated "Sovereign Wealth Fund" for acquiring assets to augment supplies of fertilizers and fertilizers input/raw materials for the country. However, the proposal has been shelved as it was not found viable.

Keeping in view the constraints in the availability of Natural Gas in the country, which is the preferred feedstock for production of nitrogenous fertilizers, a near total dependence on imports for Phosphatic fertilizer and its raw materials and full import dependence for Potash, the Government has been encouraging Indian Companies to establish Joint Ventures abroad in Countries which are rich in fertilizer resources for production facilities with buyback arrangements and to enter into long term agreement for supply of fertilizers and fertilizer inputs to India. Further, the Department is also working with the goal of having access to acquisition of the fertilizer raw materials abroad.

The details of Joint Ventures put in place in previous years are given below:-

S. No.	JV Project-Country	JV participants with equity %	Product and the Project status
1.	Oman India Fertilizer Co.(OMIFCO), Oman	Oman Oil Co. (OOC-50%), IFFCO (25%) & KRIBHCO (25%)	16.52 lakh MT Urea & 2.48 lakh MT Ammonia. Production started in the year 2006.
2.	ICS Senegal, Senegal	ICS Senegal and IFFCO consortium	5.5 lakh MT phosphoric acid.  Production already started.
3.	JPMC-IFFCO JV, Jordan	JPMC & IFFCO	4.8 lakh MT Phosphoric acid. Commercial production started in December 2014.
4.	IMACID, Morocco	OCP-Morocco, Chambal & TCL – 33% each	4.25 lakh MT phosphoric acid. Production started in year 1997-98.
5.	Tunisia-India Fertilizer Company (TIFERT), Tunisia	GCT (Tunisia), CFL (Now CIL) & GSFC (India)	3.60 lakh MT of Phosphoric acid.  Commercial production started in April 2014.