The Tripartite JV will cost Rs 5000 crore to set up a 2200 tonnes per day (tpd) Ammonia plant and a 3850 tonnes per day (tpd) Urea plant. Under the pact, National Fertilizers Limited (NFL) will provide marketing services for the project and Engineers India Limited (EIL) will provide Engineering, Procurement and Construction Management (EPCM) Consultancy Services for the JV project. The brownfield fertilizer project is expected to be funded in debt:equity of 70:30 per cent. While NFL and EIL are contributing equity of 26 per cent each, EIL will provide 11 per cent equity. The balance equity is in the process of being tied up.
The revived plant will help in increasing the indigenous urea production in the country. The plant with a capacity of 1.27 million tonnes per annum of urea will be based on natural gas as feedstock and is targeted to be completed by 2018. The natural gas supply for the plant is likely from proposed Mallavram-Bilwara pipeline and water from Sripada Yellampally barrage built over Godavari river.
Stay tuned to Fertilizer News for more details on Brownfield Ammonia Urea Plant at Ramagundam !