Nagarjuna Fertilizers and Chemicals Limited (NFCL) have embarked on an Rs 4,500 crore expansion plan. It is setting up a third plant at Kakinada in Andhra Pradesh which will enhance the company's urea production by 1.3 million tonnes, taking the total production capacity to 2.9 million tonnes. The cost of expansion will be financed through an appropriate mix of debt and equity. The brownfield expansion is an addition to NFCL’s existing capacity of about 1.6 million tonnes per annum. The proposed increased quantity is already being marketed by the company through imports. It is the first project to be taken up for expansion after the Union government announced its policy on fertilizers. The policy provides floor and ceiling price mechanism with an assured return of 12% to 20% on equity. The policy also envisages compensation for variation in the cost of input gas.
Sunday, 13 January 2013
NFCL setting up third urea plant in Kakinada at Rs 4,500 crore (BS)
Nagarjuna Fertilizers and Chemicals Limited (NFCL) have embarked on an Rs 4,500 crore expansion plan. It is setting up a third plant at Kakinada in Andhra Pradesh which will enhance the company's urea production by 1.3 million tonnes, taking the total production capacity to 2.9 million tonnes. The cost of expansion will be financed through an appropriate mix of debt and equity. The brownfield expansion is an addition to NFCL’s existing capacity of about 1.6 million tonnes per annum. The proposed increased quantity is already being marketed by the company through imports. It is the first project to be taken up for expansion after the Union government announced its policy on fertilizers. The policy provides floor and ceiling price mechanism with an assured return of 12% to 20% on equity. The policy also envisages compensation for variation in the cost of input gas.
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