State-run NMDC-led consortium is planning to buy 30 per cent stake in the Russian potash firm Acron, which may result in an investment of around Rs 1,000 crore.
Rashtriya Chemicals and Fertilizers (RCF), National Fertilizers Ltd (NFL), Fertilizers and Chemicals Travancore Ltd (FACT) and fertiliser cooperative Kribhco are the four other entities which are part of this consortium.
Along with purchasing 30 per cent stake, the consortium is also looking to enter into an off take agreement for import of Potash from the Russian firm, a top official of NMDC told PTI.
At present, National Mines Development Corporation (NMDC) is conducting a feasibility study at a cost of Rs 2 crore on this proposal, the official added. The official also said that buying a 30 per cent stake in Acron would cost something around Rs 1,000 crore.
When contacted a senior official in the government confirmed the development and said that final decision would be taken after the final report of feasibility study, and added, “if proposal turned out to be feasible an agreement may be signed during the visit of Russian President to the country this year.”
India imports 100 per cent of its requirement of potash, which was about 3 million tonnes (MT) in 2013-14. In 2013-14, potash was imported at average price of $390 per tonne. In the current fiscal so far the country has imported 2.7 MT of potash at an average price of about $330 per tonne. Indian Potash Ltd is one of the major importers of potash while Russia and Ukraine are major suppliers.
Potash is a decontrolled fertiliser and government pays fixed subsidy on it. It is mainly used in the form of Muriate of Potash (MoP) by farmer as soil nutrient and also used in the manufacturing of complex NPK fertilisers.