Bharat Fertiliser enters into lease contract with RCFL
Bharat Fertiliser has entered into lease contract with Rashtriya Chemicals & Fertilisers (RCFL) for a period of 5 years.
Bharat Fertiliser Industries Ltd has informed BSE that the Company had entered in to a Long Lease Contract of SSP/GSSP Fertiliser with India's largest Public Sector Fertiliser Unit namely M/s. Rashtriya Chemicals & Fertilisers Limited, (RCFL) Chembur for a period of 5 years with additional 2 years of extension on mutual consent by bothCompanies.Company's entire SSP Fertiliser Production capacity of 1,32,000 TPY and Granulated Capacity of 99,000 TPY is being undertaken for Conversion Basis by M R.C.F.L. by supply of Raw Materials including packing Material with 601 notified ratio of Raw Material Conversion.According to Company's estimates based on 75% quantity in Granular Form and 25% in Powder Form the Companies Annual Turn Over under Conversion Charges will be Rs. 18.38 Crore / year (Rs. 1.53 Cr. per Month) and for 5 years it may reach to minimum Rs. 92.00 Crore.M/s. R.C.F.L. has excellent dealer net work in India having 5000 dealers all over India and there will not be any problem in serving Phosphatic Fertiliser to farmers in present shortage of Phosphatic Fertiliser due to less import of D.A.P. as well as lower production of Phosphatic Fertiliser in Country due to shortage of Raw Material.Both Company had entered into a Agreement dtd. April 25, 2011 and work may commence from May' 2011 as M/s. R.C.F.L. has already issued Letter of Intent and once all administrative clearance is obtained from Department of Fertiliser, New Delhi, Raw Material will be supply by M/s R.C.F.L. before Monsoon to supply SSP/GSSP Fertiliser in Maharashtra and other adjoin states during Khariff-2011.Source : BSE
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