NFL, EIL to jointly revive Ramagundam fertiliser plant.

State-run National Fertilizers Ltd. soon will form a joint venture with EIL and FCIL to revive the closed fertilizer plant in Ramagundam and said the total project cost is estimated at Rs. 5,000 crore.

The Ramagundam fertilizer unit is located about 240 kms away from Hyderabad. Production of urea and ammonia has been suspended from 1999 due to non-viability of economic operations.

The project is part of the NDA government's revival plan of Fertiliser Corporation of India Ltd. (FCIL) closed units.

NFL and Engineers India Ltd. (EIL) have been nominated for revival of FCIL's Ramagundam unit by forming a joint venture company, NFL said in a BSE filing.

'The proposed complex shall be consisting of new ammonia and urea plant of 2200 tonnes per day and 3850 tonnes per day respectively and associated offsite and utility facilities,' the filing added.

Project cost is estimated at about Rs. 5,000 crore proposed to be financed with debt equity ratio of 70:30, with NFL's contribution of 26 per cent of the equity. The project is targeted to complete in 2018, it added.

The plant will be based on natural gas as feed stock coming from proposed Mallavaram-Bhilwara pipe line and raw water will be fed from Sripada Yellampally Barrage already built on Goadavari river.

A JV agreement will be entered between NFL, EIL and FCIL on January 14 for the revival of the plant, the filing added.


ET