Rashtriya Chemicais & Fertilizers Ltd (RCF) today said it plans to raise around Rs 550-600 crore through bond issue to part finance its coal based fertilizer plant at Talcher in Odisha.
"The company is spending Rs 900 crore for coal based fertilizer plant at Talcher and 60-70 per cent of this will be raised through bond issue. The company has also tied up for raising Euro 27 million through external commercial borrowings (ECB) for the said project," RCF chairman and managing director Umesh Dhatrak told reporters here.
The financing for Talcher will commence in April-May next year and it will be funded through 70 per cent of debt, he said.
RCF along with Coal India Ltd (CIL), GAIL (India) Ltd and Fertilizer Corporation of India Ltd (FCIL), is contemplating to set up a fertilizer complex, comprising 2200 MTPD ammonia plant and 3850 MTPD urea plant, at Talcher, Odisha based on coal gasification technology.
The project will utilise state of the art coal gasification technology.
A joint venture company 'Talcher Fertilizers Ltd' has been incorporated for establishing and operating the fertilizer complex. Project capital cost is estimated to be approximately Rs 10,000 crore, Dhatrak said.
The company is also planning to undertake major projects sewage treatment plant (STP) at Trombay.
Water supply situation in Mumbai is getting more and more difficult day by day. Ensuring water availability has become critical for the smooth functioning of the Trombay unit given the competing demand for water in the city.
Recognizing this, the RCF is setting up another new Sewage Treatment Plant (STP) adjacent to the existing STP with a capacity to treat 22.75 million litres per day (MLD) of Municipal Sewage to produce about 15 MLD of treated water.
A portion of the treated water will be supplied to Bharat Petroleum Corporation Ltd (BPCL), on mutually agreed terms. Estimated project capital cost is about Rs 209 crore and work is underway, he said.
The company is also setting up two JV projects in Iran and Algeria.
RCF along with Gujarat State Fertilizers Corporation (GSFC) is exploring the possibility of setting up a 1.27 million tonne Urea plant in Chabahar in Iran in Joint Venture with Iranian partner.
The natural gas based project has an estimated investment of USD 1000 million. The company is looking for local partners, Dhatrak said.
On Algeria JV project, he said that India mostly depends on imports for meeting its requirements of phosphatic fertilizers and raw material for phosphatic fertilizer industry.
On the other hand Algeria is blessed with huge reserves of rock phosphate in Algeria. RCF, along with NFL, GSFC and NMDC is exploring possibility of development and beneficiation of rock mines in Algeria and setting up phosphoric acid/DAP plant with buy back arrangement.
RCF has performed reasonably well during FY 17 in spite of sluggish demand due to adverse agro-climatic conditions. The ongoing monsoon season augurs well for the fertilizer industry, Dhatrak added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)