IFFCO, Tata Chemicals among firms willing to invest in urea sector: Srikant Jena


Companies like IFFCO, Tata Chemicals, RCF are among the 14 fertiliser firms who have shown interest in investing in the country's urea sector.


NEW DELHI: Companies like IFFCO, Tata Chemicals, RCF, KRIBHCO and GSFC BSE 1.84 % are among the 14 fertiliser firms who have shown interest in investing in the country's urea sector, Parliament was informed today. 

Minister of State for Fertilisers and Chemicals Srikant Jena in a written reply to Lok Sabha said fertiliser companies have "shown their willingness in response to a letter dated January 9, 2013 of Department of Fertilisers." 

"In view of the increasing gap in demand and supply of urea in the country, the government has taken steps to facilitate fresh investment in urea sector, government has notified a 'New Investment Policy - 2012 on January 2, 2013," the Minister added. 

According to the data presented by Jena before the house, Uttar Pradesh and Gujarat have received 4 proposals each for investment, while Rajasthan, Maharashtra, Odisha, Kerala, West Bengal and Andhra Pradesh have received one proposal each. 

Indo Gulf BSE 0.00 % Fertilisers (Jagdishpur), Tata Chemicals BSE 1.43 % (Barbala), Kanpur Fertilisers and Cement (KFCL) and KRIBHCO Shyam Fertilisers (KSFL) (Shahjahanpur) have shown interest in investing in expansion, brownfield and greenfield urea projects in Uttar Pradesh, the data showed. 

Farmer fertiliser cooperative IFFCO (Kalol), KRIBHCO (Hazira), Gujarat Narmada Valley Fertilisers BSE 0.87 %and Chemicals (GNVFC) (Bharuch) and Gujarat State Fertilisers & Chemicals (GSFC) (Vadodara) have shown interest in investing in urea plants in Gujarat, it added. 

State-run Fertilisers And Chemicals Travancore BSE 2.96 % (FACT) has expressed interest in setting up a brownfield plant in Kochi, while another PSU, Rashtriya Chemicals BSE 4.22 % and Fertilisers intends to invest in a brownfield ammonia-urea expansion project at its plant in Thal near Mumbai. 

Similarly, Shriram EPCBSE 2.56 % (SEPC) Group has written to the government to set up a coal gasification ammonia-urea plant at Paradip in Odisha, whereas, Nagarjuna Fertilisers and Chemicals BSE -10.94 % (NFCL) wants to expand its urea plant at Kakinada in Andhra Pradesh, it added. 

Likewise, Matix fertilisers and Chemicals has shown interest in setting up a urea plant in Panagarh in West Bengal and Chambal Fertilisers & Chemicals (CFCL) intends to expand their urea plant at Gadepan in Rajasthan, it said. 

India imports about 20 per cent of its domestic requirement for urea. The country produces about 22 million tonnes of the key nitrogenous fertilisers annually and consumes around 30-32 million tonnes every year.