State-run Rashtriya Chemicals and Fertilisers (RCF) is going to set up a new urea capacity at its Thal plant near Mumbai with an estimated investment of Rs 4,500 crore.
The new plant will have capacity of about 1.27 million tonnes of urea per annum and it will also produce ammonia. The new project will be covered under the new urea investment policy, which has been recently notified by the government.
"We are expected to start this Thal III project in the next financial year and it is estimated that around Rs 4,500 crore would be invested in the project," Rashtriya Chemicals and Fertilisers Chairman and Managing Director RG Rajan told PTI. Rajan added that project is likely to be completed in two years.
The PSU has already got pre-Public Investment Board (PIB) clearance for the project. According to sources, the company will raise about Rs 3,500 crore from the banks to finance the project and the remaining funds will be raised internally.
Meanwhile, RCF is planning to set up a subsidiary 'RCF Videsh' that will specifically focus on ventures and assets abroad where feedstock natural gas is cheap or raw materials like phosphate are available in abundance.
The company is also likely to get the 'Navaratna' status this year, a move that will provide it with greater financial autonomy. RCF, which already has 'Miniratna' status has already made a presentation before the DPE, and is likely to make a final presentation in the coming days, sources added. The government plans to divest at least 5 percent stake in RCF in 2015-16.
RCF had reported net profit of Rs 83.95 crore for the first quarter ended on June 30, on account of higher income. RCF has annual capacity of 2.5 MT of urea and 7 lakh tonnes of complex fertilisers.
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