27 September 2016

Kribhco investing Rs 1000 crores to setup P&K plant in Andhra Pradesh

Urea producer, public sector giant Kribhco is all set to stablish a 6 lakh tonnes per annum P&K plant in Krishnapatnam, Andhra Pradesh with an investment of Rs 1000 crores. This project would be completed in next four years. The company would double it's capacity later on to make it 12 lakh tonnes per annum.

Presently Kribhco producing 22 lakh tonnes of urea per annum at Hazira Gujrat. It has one plant in Shahjahanpur U.P. in partnership with Shyam Group to produce urea. Capacity of this plant is 10 lakh tonnes per annum. Besides this Kribhco has one another plant in Oman in partnership with Iffco.

Kribhco wants to tap the incentives AP government offering to new enterant in the state. The government will provide power at Rs 1 per unit for next 10 years. VAT will also not to be charged for next 7 years. Besides this lots of other incentives are being offered by the state government. Kribhco has done the calculations and excepts Rs 500 crores savings by government incentives.

Stay tuned to the "Fertilizer News" for more news on Fertilizer sector.

06 September 2016

Talcher Fertilizer will be functional by 2018, government announced

The Union Government has announced to produce Urea from Talcher Fertilizer by using coal gassification technology from 2018. Once operation is resumed, the plant will annually produce 13 lakh tonne of urea per annum. Government plans to laid foundation stone in November this year.

Union Petroleum Minister Dharmendra Pradhan has informed that Urea produced by this coal gassification technology will cost Rs 2 to 3 thousand less per tonne and farmers will get the benefit from this.

Present NDA Government has decided to revive the sick urea units in Uttar Pradesh(Gorakhpur), Bihar (Barauni), Odisha (Talcher) and Jharkhand (Sindri) by investing Rs 40000 crores. This Talcher Revival Project will cost Rs 9000 crores to the Government.

If we look back to Talcher Fertilizer (Odissa), it started urea production in 1980 with the capacity of 1500 tpd Urea and 900 tpd Ammonia. At that time the company had 1400 permanent employees and 3000 casual workers.

The company declared sick in 1991 by the government and sent it to the Board of Financial and Industrial Reconstruction (BIFR) for making a survival program. Though production continued till 1999, when the NDA government ordered to stop manufacturing urea from the plant. As a result, about 1200 employees were given voluntary retirement from the plant in 2002.

Stay tuned to the "Fertilizer News" for more news on Fertilizer sector.

31 August 2016

Indian Fertilizer Industry is in doldrum, now Birlas want an exit from Fertilizer Business

Indo Gulf Fertilizer, a subsidiary of Aditya Birla Nuvo is planning to exit low margin fertilizer business. Last month only, Tata Chemicals had sold its fertilizers business to Norway's Yara Chemicals for Rs 2670 crores.

Tatas and Birlas are large established players in fertilizer industry and they are leaving the industry means a serious condition. Infact Government is not fulfilling it's promises. There is no guarantee of capital gain which was promised. Subsidy payments get delayed for several months due to which companies faces cash flow problem. Birla fertilizers had earnings of Rs 209 crores on revenues of Rs 2498 crores which comes to a return of 11% in FY16. One can earn this much of money from bank deposit without taking any tension of running a large factory.

Indo Gulf Fertilizer is India's 8th largest Urea producer and they are thinking to leave the industry. As per a banking source, sale would be complete by the next financial year.

On the other hand some of the industrialists are pouring huge amount in the fertilizers industry. Chambal group is investing Rs 5000 crores to set up a plant and a multinational purchasing Tata Chemicals.

Stay tuned to the "Fertilizer News" for more news on Fertilizer sector.