The Centre has given green clearance for the setting up of gas—based ammonia urea plant at FCIL’s Ramagundam Fertiliser complex in Karimnagar, Telangana, with an investment of Rs 5,465 crore.

This is part of the government’s initiative to revive the closed units of the state—run Fertilizer Corporation of India Ltd (FCIL) to augment domestic urea capacity.

In January, a consortium of three state—run companies —— FCIL, National Fertilizers Ltd (NFL) and Engineers India Ltd (EI) —— had formed a JV firm to set up new ammonia and urea plants at the existing site of Ramagundam Fertiliser complex.

“Based on recommendations of the Expert Appraisal Committee (EAC), the Environment Ministry has given the environment clearance for the setting up of ammonia urea plant at the existing premise of Ramagundam Fertiliser complex in Karimnagar,” a senior Environment Ministry official said.

The green nod has been given with some specific and general conditions, the official added.

The environment okay was obtained for the existing project in 1999, but the production of urea and ammonia was suspended due to non—viability of economic operations.

As per the proposal, a single stream urea plant with a production capacity of 3,850 metric tonnes per day (MTPD) and ammonia plant (2,200 MTPD) will be installed at the Ramagundam fertiliser Complex.

Apart from buildings which will be refurbished, all plant machinery and equipment would be established from scratch while the existing old plant machinery will be sold as scrap. The project cost is estimated to be Rs 5,465 crore, it said.

Of which, Rs 35 crore and Rs 8.77 crore will be earmarked as capital cost and recurring cost per annum for implementation of environmental management plan, it added.

The plant will be based on natural gas as feedstock coming from proposed Mallavaram—Bhilwara pipeline and raw water will be fed from Sripada Yellampally Barrage already built on Godavari river.

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