RCF Scouting for Partner to Build Plant in Iran07 October 2014
INDIA - Indian government owned fertilizers company, Rashtriya Chemicals and Fertilisers Ltd (RCF) have said that it is looking for partners to build $800 million fertilizers plant in Iran.
The plant will have a 1.27 million tonnes of urea production which will be developed jointly by the partner.
The Iranian partner will be selected by SBI Capital Markets (SBICAPS), RCF chairman and managing director R G Rajan said recently.
With this project, RCF is planning to tap cheaper gas offered by Iran, which has the world’s second largest gas reserves to produce the farm nutrient and ship it to India.
However, the project can only kickoffs after sanctions are lifted on the country, which it has been facing on nuclear proliferations.
RCF is also exploring possibilities of entering into long-term off take agreements for potash with suppliers in Canada.
The company is also planning to undertake major projects like an additional ammonia urea project at Thal and a coal-based fertiliser plant at Talcher.
The Talchar unit in Odisha is its first diversion from natural gas-based fertiliser plants, since coal is cheaper than LNG whose availability is uncertain.
RCF has drawn up a capital expenditure plan, which includes investment of $50 million in the current year and $162 million in the next year.