The State-owned miner Singareni Collieries Company Ltd has been asked to invest in the joint venture of NFL, EIL and FCI, planning to execute Rs 5,000-crore ammonia and urea plants in Ramagundam, as an equity partner.

Representatives of National Fertilisers Ltd, Engineers India Ltd and Fertiliser Corporation of India have met Singareni Collieries CMD N Sridhar, asking the company to join the venture as an equity partner.

The project taken up with an investment outlay of Rs 5,000 crore, has NFL, and FCI contributing equity of 26 per cent equity each and EIL 11 per cent. The joint venture is seeking to tie up the remaining stake. The project is being taken up with debt:equity ratio of 70:30.

It is proposed to run the plant with gas rather than coal which was the preferred fuel option. While the old FCI unit in Ramagundam has a capacity to manufacture 4.95 lakh tonnes of urea, it is now proposed to set up a plant with 12.7 lakh tonnes capacity.

Given the backdrop of a concerted effort to boost manufacturing, the joint venture partners wanted SCCL to invest as an equity partner. As part of the arrangement, Singareni Collieries could provide necessary power of about 30 MW.

Based on detailed investments plans and financial implications, the venture partners were assured that SCCL would take appropriate decision.

The Fertiliser Corporation of India unit in Ramgundam came under BIFR purview 16 years ago. With the Union Government deciding to revive the project and also set up a new plant, new initiatives are now underway.

Related Topics