RCF to divest 12.5% stake via OFS, issue likely on March 10

As a part of the government's disinvestment initiative, Rashtriya Chemicals and Fertilisers (RCF) plans to offload 12.5% equity through an offer for sale route in the next month. The RCF issue is likely to hit the market on March 10, RG Rajan, chairman and managing director, RCF told CNBC TV18.

In its attempt to bridge the widening gap in the fiscal deficit, the government plans to raise around Rs 40,000 crore through disinvestment of public sector units in 2013-14. In the current financial year the government has already raised Rs 21,500 crore against the target of Rs 30,000 crore. Govt eyes Rs 3,500 cr from SAIL disinvestment by March-end
The state owned RCF also plans to start construction of third phase of its Thal unit in Maharashtra from May 2013. The total cost of the project is around Rs 4,100 crore and funds for the same will be generated internally, Rajan said. The expansion at Thal will help RCF to increase its urea production capacity to 3.3 million tonne from around two lakh tonne.
The fertiliser major plans to spend around Rs 6,300 crore over next five years on various projects. "We have got other projects lined up such as the coal gasification plant at Talcher, in joint venture with Coal India Limited and a 1.3 million tonne urea plant in Ghana also in joint venture mode with a Ghanaina company," Rajan said.
On the subsidiary for the fertilisers sector Rajan said that government may reduce subsidiary amount next year in view of the softening of the prices of the diammonium phosphate (DAP) and muriate of potash (MOP).