A near $500-million Indo-Tunisian joint venture project to produce 3.6 lakh tonnes of phosphoric acid annually was commissioned in Tunisia on Friday.

Two Indian companies — Coromandel International Ltd and Gujarat State Fertilisers and Chemicals Ltd (GSFC) have tied up with Tunisia’s Groupe Chimique Tunisien (GCT) and Compagnie Des Phosphat De Gafsa (CPG), (both are Government of Tunisia entities) in establishing the plant. 

In a release to the stock exchanges, Coromandel International said that the phosphoric acid plant of ‘Tunisian Indian Fertilisers (TIFERT)’ as the joint venture has been christened, would consume nearly 1.4 million tonnes of Tunisian phosphate rock per year, manufacturing 3,60,000 tonnes of phosphoric acid a year.

Equipped with the latest technology, the plant would meet the international environment efficiency standards. It has already commenced production and the first shipment is expected to reach Coromandel’s facility in Kakinada (Andhra Pradesh) by the end of this month, the company statement said. 

Coromandel International said that its investment is aimed at securing uninterrupted supply of phosphoric acid. Both the Indian companies have entered into an agreement with TIFERT to procure the entire phosphoric acid produced by the plant on a long-term basis.

Coromandel International and GSFC would hold 15 per cent share each in the $498-million project with the balance 70 per cent being held by GCT and CPG. 

Though the plant was initially scheduled to go on stream in 2011, it was delayed due to some local developments in Tunisia but is now running near its full capacity. 

Mehdi Jomma, Minister of Industry, Tunisia, and Srikanta K. Jena, Minister of State for Chemicals & Fertilisers, Government of India, jointly inaugurated the plant at a function attended by Sudhir Mittal, Secretary (Fertilisers), Government of India, and A. Vellayan, Executive Chairman, Murugappa Group, among others. 

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