Nagarjuna Fertilisers and Chemicals Ltd (NFCL) is making arrangements for the expansion of capacity by setting up the third unit with a capacity of 1.3 million tonnes in addition to the existing two units with a total capacity of 1.6 million tonnes, according to R. Raghavan, the Vice-President in charge of the plant here.
He was speaking to presspersons here on Wednesday after a tree plantation programme in the plant premises. He said NFCL had obtained ecological clearance for the third unit, but other clearances had to be obtained.
“Once we get all the clearances, we will start work on the project and it may be completed in roughly three years. We have to obtain gas linkage as well for the third unit,” he said.
He said the NFCL had already held discussions with the banks and probably a consortium of banks led by the ICICI may finance the project, likely to cost Rs 4,500 crore or so. The debt-equity ratio would be 3:1.
He said the third unit may be ready by 2016 or 2017, if everything went according to plan.
NFCL had developed a huge green belt around the plant and was planting more trees to protect the eco system.