NEW DELHI: Gujarat State Fertiliser and Chemicals (GSFCL) plans to invest Rs 600 crore in capacity expansion of its DAP plant in the state.
"We are planning to expand the Diammonium phosphate (DAP) production facility at Baroda to 15 lakh tonnes per annum from 10 lakh tonnes per annum,"GSFCL Chief Financial Officer V D Nanavaty told PTI.
Asked about the investment, he said the projects cost is estimated at Rs 600 crore.
"Investment on the proposed investment will be met through internal sources," he added.
The company has already got the approval of the Gujarat government and board of directors to increase the production capacity of manufacturing plant, Nanavaty said.
"State government has already given its approval, at present we are seeking clearance from the environment department and others," he said.
During the first quarter of current fiscal, the company has reported sharp decline in net profits by 97 per cent to Rs 5.54 crore net profit of Rs 172.71 crore in the April-June quarter of the 2012-13 fiscal.
"We are optimistic about the coming quarters and would improve our profitability," he said.
The Gujarat government has nearly 38 per cent stake in the company as on June 30. Besides the DAP plant, the company has one plant each of urea, ammonium sulphate and ammonium phosphate sulphate.
GSFC's joint venture manufacturing plant of Phosphoric Acid in Tunisia has also become operational during the quarter.