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To set up Rs 2,000-cr urea plant in Egypt

(From left) Mr G.C. Gopala Pillai, Managing Director, FACT, Mr Abdul Kareem Adi, Mr Zaki Manna and Mr Fawas Zaarour of Adi Establishment, Syria, at the signing of the Memorandum of Intent.

Kochi , Aug. 10

Fertilisers and Chemicals Travancore Ltd (FACT) and a Syrian Company, Adi Establishment, have signed a memorandum of intent (MoI) for jointly setting up a Rs 2,000-crore ammonia-urea complex in Egypt.

The MoI, which was signed here on Wednesday, states the basic intentions and the split of responsibilities of both the parties and that will form the basis for proceeding further with the proposal, an official press release here on Thursday said.

After getting the required approvals from the board of directors of FACT and the Union Government, the final memorandum of understanding between the two parties would be signed, it said.

FACT had given advertisements in newspapers and business publications, inviting expression of interest from reputed organisations for participation in their joint venture projects forming part of its expansion plan.

Adi Establishment, Syria had responded to the advertisement by proposing a joint venture ammonia/urea complex in Syria or Egypt. The Indian Embassy in Syria had also communicated to FACT the interest of Adi to participate in the joint venture.

A team from Adi - comprising its President, Mr Abdul Kareem Adi, Mr Zaki Mana and Mr Fawaz Zaarour - were here and held discussions with FACT officials from August 7-9.

Though two alternative locations were considered for the project i.e., Syria and Egypt, the latter was selected for setting up the project following confirmation by Adi about "availability of natural gas at a substantially lower price than in Syria".

The proposed complex would have ammonia and urea plant and all the associated facilities with an annual production capacity in the range of 7-10 lakh tonne of urea. Natural gas, land, electricity, water and other infrastructure facilities required for the project would be arranged by the Syrian company.

FACT may have equity participation to the extent of 50 per cent in the project and the details of which would be decided shortly, it said. The fertiliser major with its experience in design, construction and operation of fertiliser and chemical plants would handle all the technical matters related to the project.

According to the release, there is also a proposal that FACT would buy back the product for marketing in India. However, the modalities would be decided after getting the required approvals from the Centre.

More Stories on : Alliances & Joint Ventures | Overseas Investments | Fertilisers

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