Published On:April 14 2014
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Clearance delays push RCF's project cost by Rs. 500 crore.
Rashtriya Chemicals and Fertilizers's project cost for expansion of its urea plant in Maharashtra is likely to shoot-up by Rs. 500 crore to about Rs. 4,600 crore as the company is yet to receive the government's nod to start the project.
As per the proposal, an ammonia-urea plant will be set up at Thal in Maharashtra with a capacity of 1.27 million tonnes per annum on 200 acres of land.
Rashtriya Chemicals and Fertilisers (RCF) had awarded tender for the project to engineering and construction company Tecnimont ICB (TICB) in 2012 for Rs. 4,112.50 crore, but construction work on the project did not initiate in last two years.
'Last month, the technology partner TICB had opted out of the project as it became unviable for them on the cost at which it was awarded to them two years back,' sources said.
Sources added that only last year the project got pre-Public investment Board (PIB) clearance and presently it is stuck at the PIB level.
'RCF is contemplating to issue new tenders inviting bids for the technology partner of the project and as per the estimations, project cost is likely to increase by Rs 500 crore to Rs. 4,600 crore,' a source said.
The Mumbai-based PSU produces various grades of complex fertilisers at its two manufacturing units in Thal and Trombay in Maharashtra.