The Hindu Business Line : Rashtriya Chemicals puts capex plan at Rs 600 cr

Capex plan: Mr U.S. Jha, Chairman & Managing Director, Rashtriya Chemicals & Fertilizers Ltd, and Mr J. Kohareswaran, Director (Marketing), at a press conference in Mumbai on Wednesday. —

Our Bureau

Mumbai, Sept. 25 Fertiliser major, Rashtriya Chemicals and Fertilizers Ltd (RCF) has a capex plan of Rs 600 crore for the financial year 2008-09. It would be used for debottlenecking the fertiliser capacity, Mr U.S. Jha, Chairman and Managing Director of the company, has said.

Interacting with the mediapersons after the 30th AGM on Thursday, Mr Jha said that among the various capex plans, RCF will undertake on a priority basis, freeing up the capacity of urea-ammonia plant at Thal, Maharashtra, which will add 2.5 million tonnes of urea, he said.

Considering the growing need for nitrogenous fertiliser, a proposal for setting up a brownfield additional ammonia urea complex at Thal has been submitted for the consideration to the Department of Fertiliser. The Planning Commission has granted the clearance for technology and preparation of feasibility report. The project is estimated to cost Rs 4,300 crore, he said.

He said that the feasibility report for Rs 2,400-crore surface coal gasification project at Talcher, Orissa which will support an integrated ammonia-urea plant based on coal gas, is awaited. RCF has not taken an investment decision for the project, Mr Jha said.

The company will pursue the project only if the coal gas price works out cheaper than natural gas; a final decision will be taken only by 2010-11.

For the coal gasification project RCF has already signed an MoU with GAIL.

Mr Jha said that for 11th Plan (2007-2012) RCF has planned projects which are estimated to cost Rs 6,000 crore. Government could part-fund the project or financial institutions could take equity. An IPO also cannot be ruled for raising funds at a later date, he said.

RCF is also considering wind power generation venture with an investment of Rs 147 crore and 25 MW capacity. Location for the wind farm is not yet to be finalised, Mr Jha said.

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