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RCF mulls Rs 900-crore capex plan to fund expansion in FY20
Sep. 26, 2019
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IndiaRashtriya Chemicals & Fertilizers (RCF) has set aside a capex of Rs 900 crore for this financial year for implementation of major projects, including the Talcher Fertilizer in Odisha, and revamping of existing projects, a senior company official has said.
"We have Rs 900 crore capex for FY20, which will be spent towards our joint venture project Talcher Fertilizer, the revival of Brahmaputra Valley Fertilizer Corporation, revamping of other existing projects, exploring joint venture opportunities in Syria and Jordan among others," RCF chairman and managing director Umesh Dhatrak told reporters here.
The funds for the investment will be raised through internal accrual and NCDs, he added.
Talking about the Talcher Fertilizer, he said, the estimated project cost is Rs 13,277 crore, which is a JV with Coal India, GAIL and Fertilizer Corporation of India.
"Our share in the project is around Rs 1,100 crore, of which we have already spent around Rs 150 crore. The rest we will put in this financial year," he added.
The success of this project will be a game-changer and will pave a way forward to the production of chemicals and fertilizers from abundantly available coal resulting in less dependency on gas imports, he said.
"It will also help in meeting much-needed urea production capacity for the eastern part of the country," he added.
The current overall market share of the company is 8-9 per cent and after the production begins in the Talcher plant in four years, the market share is expected to go up by another 3-4 per cent to around 12-13 per cent, he added.
The total urea market in the country in 320 lakh tonne, of which RCF has a share of 25-26 lakh tonne.
Talking about overseas opportunities, Dhatrak said, RCF is exploring investment opportunities for the development of rock phosphate mines and production of phosphoric acid in Syria and Jordan.
"We are still in the due diligence phase and are exploring opportunities with the help of the Ministry of External Affairs and the Department of Fertilizer. Our team will visit Syria and Jordan this December to see the feasibility of the project," he added.
Source: Moneycontrol.com
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