Fertilisers and Chemicals Travancore Ltd has chalked out a major expansion-cum-diversification plan at an investment of Rs 5,975 crore for which the company has invited expressions of interest from public sector undertakings to invest in joint ventures or other appropriate business models.
FACT has identified projects such as new sulphuric acid plant, urea plant, NP Complex Fertilizer plant, SSP (single super phosphate) plant and Ammonia urea complex for which substantial investment is required.
The company intends to set up these projects in Kochi and will provide land and available infrastructure facilities to the joint venture as its share of the equity. It will also provide design and consultancy services through its design organisation FEDO. The design and consultancy would also form part of FACT’s equity contribution, the company officials said.
Sulphuric acid plant
The new sulphuric acid plant with a production capacity of 2,000 tpd (tonnes per day) will involve an investment of Rs 265 crore. This plant can cater to the present deficit and also meet the additional requirement on account of the proposed revamp of the phosphoric acid plant. There is a deficit between the production and consumption of sulphuric acid in the Cochin Division of 800 tpd.
Urea plant
The capital investment for the 1,500 tpd urea plant and associated facilities has been estimated at Rs 930 crore. The urea production was suspended from 2003. However, the market survey indicates a demand-supply gap of at least 8 million tonnes by 2020. Recently, the Government has been encouraging fertiliser companies to revive production of urea to meet shortages and reduce exports. Besides, the company requires about 3 lakh tonnes per annum of urea to cater to the market requirements of southern States. Even now, the company is maintaining its presence by trading imported urea consignments.
Integrated complex fertiliser facility
The new integrated complex fertiliser production facility will be capable of manufacturing multiple NP grades. FACT plans to increase the annual complex fertiliser production to 10 lakh tones per annum by installing an additional 1,000 tpd plant using outsourced ammonia, phosphoric acid and sulphuric acid. The estimated investment is Rs 220 crore.
Ammonia-urea complex
As part of its plan to revive urea production, the company intends to set up an ammonia-urea complex, which will consist of an ammonia plant of 2,000 tpd capacity and urea plant of 3,500 tpd capacity. The estimated investment cost towards this will be Rs 4,500 crore.