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Update: Fertilizer plants being revived

Ramagundam commissioning in FY2019-20


Ramagundam commissioning in FY2019-20



The Ministry of Chemicals and Fertilizers is reviving urea plants at Barauni, Sindri, Gorakhpur, Talcher and Ramagundam.

Gorakhpur, Sindri and Barauni units of Fertilizer Corp of India Ltd (FCIL) are being revived through nominate route by forming a Joint Venture (JV) of nominated Public Sector Units, said the ministry in an update on 8 Jan 2019.

The ammonia-urea fertilizer plants of 1.27 MMTPA capacity each would be gas based.

A JV company, Hindustan Urvarak & Rasayan Limited (HURL), has been formed with shareholding of 29.67% of NTPC, IOCL and CIL each, as well as 10.99% of FCIL/HFCL

The following pre-project activities have been completed:
Environmental clearance obtained;
Gas supply & transportation agreement signed with GAIL (India);
Lump sum turnkey (LSTK) contracts for the 3 plants have been awarded;
State Governments of Uttar Pradesh, Bihar and Jharkhand have waived off stamp duty with respect to Gorakhpur, Barauni and Sindri projects, respectively.

The government has approved interest free loan equivalent to Interest during construction component of Rs.422.28 crore, Rs.415.77 crore and Rs.419.77 crore for Gorakhpur, Sindri and Barauni projects, respectively.
This would cover HURL’s Rs. 1257.82 crores investments.

The repayment to be spread over a period of 11 years.

Construction works have begun in all three projects, which are progressing as per the overall schedule.

These projects are likely to start production in FY 2021-22.

Talcher unit of FCIL in Odisha is also being revived through ‘Nomination Basis’ by forming JV of nominated PSUs.

Talcher Fertilizers Ltd (TFL), a JV company, has been formed with equity of GAIL, RCF & CIL at 29.67% each & FCIL’s 10.99%.

New Ammonia Urea plant of 1.27 MMTPA capacity is to be based on Coal Gasification Technology.

MoU with IOCL for supply of petcoke from Paradip refinery has been signed.

Power Price Parity for Bridge Linkage Coal has been approved by Ministry of Coal.

Captive coal mine has been allotted.

Site preparation work has commenced.

Bids for coal gasification and ammonia-urea project have been opened.

The Talcher Project likely to start production in FY 2022-23.

Ramagundam unit of FCIL is also being revived through nomination route by forming JV of nominated PSUs.

JV: Ramagundam Fertilizers & Chemicals Ltd (RFCL) has been formed.

Equity of NFL & EIL is 26% each and FCIL’s 11%.

RFCL is being revived by setting up a gas-based fertilizer plant of 1.27 MMTPA capacity.

Contract for laying of Gas pipe line has been awarded to GSPL India Transco Ltd (GITL), a subsidiary of Gujarat State Petronet Ltd (GSPL).

Gas Supply agreement has been signed with GAIL.

Water & Power connectivity has been being executed by State Governments at their expense.

Cumulative progress of RFCL project as on 30.11.2018 is 92.6%.

The project is targeted to be commissioned by FY 2019-20.

Elsewhere, a proposal has been received to set up Chambal Fertilizers & Chemicals Limited, a brownfield project with capacity of 1.34 MMT at Gadepan, Rajasthan.

Production has started at Matix Fertilizers & Chemicals Limited (Matix), a Coal Bed Methane (CBM) based Greenfield Ammonia-Urea complex at Panagarh, West Bengal. The 1.3 MMT per annum started production on 1 Oct 2017.

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