Cabinet approves sops to Ramagundam urea plant

Our Bureau New Delhi | Updated on June 09, 2021

All urea plants set up till 2019 will get several incentives

The Cabinet Committee on Economic Affairs on Wednesday decided to provide benefits accruing from the New Investment Policy-2012 to Ramagundam Fertilisers and Chemicals Limited (RFCL) in Telangana, even though the project was commissioned only in 2021, an official statement said.

As per the policy all urea plants set up till 2019 would get several incentives including a minimum post-tax return on capital investment. However, the Ministry of Chemicals and Fertilisers proposed to extend the same to RFCL too, which now received green nod from the Cabinet. RFCL is one of the largest fertiliser manufacturing units of South India.

RFCL is a joint venture Company consisting of National Fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizers Corporation of India Limited (FCIL) which was incorporated in 2015. RFCL is reviving the erstwhile Ramagundam Unit of FCIL by setting up a new gas-based green field neem coated urea plant with the installed capacity of 12.7 lakh tonne per annum. The cost of the RFCL urea project is estimated to be ₹6,165.06 crore. Gas to RFCL plant is supplied by GAIL through the MBBVPL (Mallavaram-Bhopal-Bhilwara-Vijaipur Gas Pipeline) of GSPL India Transco Limited (GITL).

The facility integrates the world’s best technologies aiming to meet the demand for urea in Telangana as well as in Andhra Pradesh, Karnataka, Chhattisgarh and Maharashtra. The urea produced at RFCL shall be marketed by National Fertilizers Limited.

Published on June 09, 2021

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