MUMBAI: State-run Rashtriya Chemicals and Fertilizers Ltd (RCF) said it has earmarked a capital expenditure in excess of Rs 1,500 crore for two years. This will, however, be bumped up significantly if plans to revive Thalcher Fertilizers Ltd plant picks up steam before the end of the fiscal.
Of the Rs 1,500 crore capex, roughly Rs 780 crore is budgeted for the current fiscal, and another Rs 750 crore for the next financial year.
“Investment decision (on Thalcher plant) is likely to take place in a short time, it’s difficult to guess because we have to get clearances from government at various levels. It can happen in 2-3 months if things go fast,” U V Dhatrak, CMD, RCF told Express.
The Thalcher plant is being revived with an investment of Rs 10,000 crore by a consortium comprising FCI, Gail, Coal India and RCF. This would be the first fertilizer plant in the country to operate on coal gasification technology and will need about 4 mt of coal. It will have a production capacity of 2,200 mt per day of ammonia and 3,850 mt per day of urea. RCF will have 29.6 per cent stake in the project.
According to Suresh Warior, director, finance, RCF, once the Thalcher plant goes live and as other upcoming fertiliser plants start production, the country will be self-sufficient in urea. Currently, the urea demand is about 31 million tonnes, production stands at 24 million tonnes and the rest is being imported. “In four years, we’ll be self-sufficient,” he said.
Meanwhile, RCF is on the lookout for partners for its upcoming urea project in Iran. “We have identified some partners and signed non-disclosure agreements. Due diligence has started,” said Dhatrak adding that the project takeoff will depend on the government. With a favourable monsoon, the market for all of RCF’s products has been good and the company expects prices to pick up.