Agreement Signed to revive Ramagundam Fertilizer Plant

Press Release

                     

Agreement Signed to revive Ramagundam Fertilizer Plant


Noida - January 14, 2015

National Fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India (FCIL) have signed an agreement to form a Joint Venture Company (JVC) for setting  up new Ammonia and Urea plants of 2200 MT per day & 3850 MT per day capacity respectively at the existing site of Ramagundam Fertilizer Plant in Distt. Karim Nagar in Telangana. The new company is named as “Ramagundam Fertilizers and Chemicals Limited”.
The Joint Venture Agreement was signed in the presence of Shri Ananth Kumar, Hon’ble Minister for Chemicals and Fertilizers, Shri Dharmendra Pradhan, Hon’ble Minster of State (I/C) for Petroleum & Natural Gas.

NFL, EIL, FCIL Joint Venture

"C&MD's of NFL, EIL and FCIL exchanging the Joint Venture agreement documents for revival of Ramagundam Fertilizer Plant in the presence of Sh. Ananth Kumar, Hon'ble Minister of Chemicals & Fertilizers and Sh. Dharmendra Pradhan, Hon'ble Minister of State (I/C) for Petroleum and Natural Gas"


As per this joint venture agreement, NFL shall provide marketing services to the Joint Venture Company and EIL shall provide Engineering, Procurement and Construction Management (EPCM) Consultancy Services for the project.
The revived Plant will help in increasing the indigenous Urea production in the country and shall be a step forward in making India self-reliant in terms of urea requirements. The plant having a capacity of 1.27 million tonnes per annum of Urea will be based on Natural Gas as feed stock and is targeted to be completed in the year 2018.  With an investment of around Rs. 5,000 crores, the plant is expected to generate direct and indirect opportunities for the local community in the state of Telangana and shall be a major supplier of urea in the southern region of India. The Natural Gas for the plant shall be coming from proposed Mallavaram – Bhilwara pipe line and raw water will be fed from Sripada Yellampally Barrage already built on Godavari River.
The total capital expenditure of 5,000 crore is being funded in Debt:Equity of 70:30 percentage.

NFL and EIL are contributing equity of 26% each and 11% is from FCIL. The balance equity is in the process of being tied up.


NFL
NFL is India's largest Central Public Sector Enterprise in Fertilizers Sector with an overall annual installed capacity of 35.68 lakh tonnes of Urea. NFL has five Urea plants located at Nangal & Bathinda in Punjab, Panipat in Haryana and Vijaipur I & II plants in Madhya Pradesh. Apart from producing Urea, NFL is also engaged in manufacturing & marketing of Industrial products, trading of fertilizers and other Agro Products.


EIL
EIL, a Navaratna CPSE under the Ministry of Petroleum and Natural Gas is a Total Solutions Engineering Consultancy and EPC Company in the fields of Petroleum Refining, Petrochemicals, Pipelines, Terminals & Storages, Fertilizers, Mining & Metallurgy and Infrastructure projects. The Company is also working in diversified areas of Water & Waste Management, Nuclear, Solar & Thermal Power. EIL has successfully expanded its operations internationally, and has provided a wide range of engineering consultancy services on various international projects, including in the Middle East, North Africa and South East Asia.

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Corporate Public Relations
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