NFL EIL and FCIL sign agreement to form JV

National fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India (FCIL) have signed an agreement to revive Ramagundam Fertilizer Plant.
NFL EIL and FCIL sign agreement to form JV

National fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India (FCIL) have signed an agreement to form a joint venture company for setting up new ammonia and urea plants at the existing site of Ramagundam Fertilizer plant in District Karimnagar in Telengana. The joint venture agreement for the new company named “Ramagundam Fertilizers and Chemicals Limited” was signed at Noida in the presence of Ananth Kumar, Minister of Chemicals and Fertilizers, and Dharmendra Pradhan, Minister of State (I/C) for Petroleum and Natural Gas.

Speaking on the occasion, Kumar said that in next four years, about Rs 40,000 crore will be invested in the country for the revival of the old fertilizer plants, and setting up of new units. He said that there is going to be a fertilizer revolution in the country that will make India self-reliant in fertilizer, particularly urea production. He further added that the initiatives are being taken in pursuance of two mantras of the Government’s Make In India and Good Governance. Large investments are being made in the sector, and with coordinated efforts and political will, the Government will take steps in a time bound manner that will help our people, and the farmers. He further informed that steps are also being taken to check the imbalance in usage of fertilizers in the country.

On the personal front, the Minister announced that he would forego the subsidized gas cylinder connection henceforth. Minister of State (I/C) for Petroleum and Natural Gas Pradhan said that with the setting up of new plants and revival of old plants, the supply gap in fertilizers will be reduced. He said that the new plant at Ramagundam will be a boon for the farmers of the newly created state of Telengana. He said that the Government will set up a gas grid in the country. The Petroleum Minister also talked about the impressive response of the Governments’ scheme Pahal, the largest subsidiary distribution mechanism in the world.

In order to augment the domestic urea capacity, revival of closed fertilizer units of Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizer Corporation (HFC) has been on the top priority agenda of the Government of India.

The project comprises of 2200 MTPD ammonia plant and 3850 MTPD urea plant. FCIL will hold a stake in the JV, being the provider of existing infrastructure of Ramagundam Project. Total investment in the project by the PSU promoters is estimated to be in the range of Rs. 5,000 crore.

It is believed that the revival of the Ramagundam unit will trigger a great economic boom in the new born State of Telangana in the southern part of the country, as it will generate opportunities in the form of direct and indirect employment for the people in the region. Execution of construction activities is expected to start in early 2016.

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