Indian Farmers Fertiliser Cooperative Ltd has signed a financing agreement with the International Finance Corporation (IFC) and European Investment Bank (EIB) to raise $336 million (about Rs 1,500 crore) debt for its joint venture phosphoric acid project in Jordan.

IFFCO and Jordan Phosphates Mines Company (JPMC) had formed a joint venture Jordan India Fertiliser Company (JIFCO) in 2008 to set up a phosphoric acid plant at an investment of $625 million.

In the joint venture, IFFCO holds 52 per cent equity, while JPMC holds 48 per cent.

The annual capacity of the plant is 4.75 lakh tonnes. IFFCO would purchase a minimum 70 per cent of the production of phosphoric acid under a long-term agreement for domestic consumption, while JPMC would buy the balance.

“IFFCO signed the project and financing agreements for the phosphoric acid project being implemented by JIFCO,” the company said in a statement.

The agreements were signed by the officials of IFFCO, IFC, EIB, JPMC and JIFCO. “IFC and EIB are the lead arrangers for the debt of $336 million for the project,” it added.

The foundation stone for the project was laid in October 2009, and commercial production is expected to start by mid-2013. JPMC will supply the required quantity of rock phosphate under a long-term supply agreement.

“This joint venture project will provide assured supply of phosphate fertilisers to Indian agriculture for sustenance in foodgrains production,” the IFFCO Managing Director, Mr U.S.Awasthi, said.

To meet the growing demand of fertilisers in India, IFFCO has also established joint ventures in Senegal, Oman, Australia, Peru and Argentina for sourcing a part of its requirement of inputs and finished products.

In India, IFFCO has five plants with an annual capacity of 4.24 million tonnes of urea.

With a focus on farmers’ needs, the company has diversified into insurance, power, value-added services in mobile telephones for farmers and other sectors through various joint ventures.

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