NFL to invest ₹1,250 crore in 2 years on new plant, energy-saving projects

TIRUCHI, TAMIL NADU, 24/11/2017: Precariously placed: Farmers sprinkle fertilisers in a paddy field in Painganadu village of Mannargudi taluk in Tiruvarur district. Photo: M. Srinath

TIRUCHI, TAMIL NADU, 24/11/2017: Precariously placed: Farmers sprinkle fertilisers in a paddy field in Painganadu village of Mannargudi taluk in Tiruvarur district. Photo: M. Srinath   | Photo Credit: M_SRINATH

Firm reviving urea plant in Telangana which is estimated to cost over ₹5,300 cr.

State-owned fertilizer firm NFL will invest ₹1,250 crore over the next two years on energy-saving projects in its five existing plants and setting up a new factory in Madhya Pradesh to produce di-nitrogen tetroxide, CMD Manoj Mishra said.

Besides, he said, National Fertilizers (NFL) is reviving a closed urea plant at Ramagundam, Telangana, in a joint venture with EIL, FCIL and the State government at an estimated cost of more than ₹5,300 crore.

DAP plant

NFL is also exploring the possibility of setting up a di-ammonium phosphate (DAP) plant in Algeria through a joint venture and under buyback arrangements, he said.

“We have posted a record turnover of ₹8,928 crore during the last fiscal. Urea production and sales were also at all-time highs,” Mr. Mishra told reporters.

NFL, which has five plants at Haryana, Punjab and M.P., produced a record 38.1 lakh tonnes of urea in 2017-18 fiscal with 118% capacity utilisation. Urea sales stood at 39.16 lakh tonnes.

It imported 4.47 lakh tonnes of non-urea fertilizers like DAP and muriate of potash (MoP) and sold 3.93 lakh tonnes in the domestic market. Total sales of fertilizer was a record 43.09 lakh tonnes.

The company has taken up energy-saving sche me at Nangal, Bathinda and Panipat units at an estimated cost of about ₹650 crore, he said, adding that ₹220 crore would go towards energy saving schemes at two plants —Vijaipur I & II — in M.P. with a capex of ₹220 crore.

Mr. Mishra highlighted that the company achieved the lowest energy consumption at all its plants during the last fiscal and targets to bring energy cost further.

Stating that NFL had bagged an order from ISRO to supply di-nitrogen tetroxide (N2o4), Mr. Mishra said the company would set up a plant at Vijaipur in M.P. at an investment of ₹350 crore. The annual capacity of this plant would be 1,000 tonnes.

The company has received ‘letter of intent’ from ISRO on BOOS (built, own, operate and supply) basis.

On the status of Ramagundam plant, Manoj Mishra said that the company had already contributed ₹218.69 crore towards equity in its joint venture (RFCL) out of the total requirement of ₹343 crore.