Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL) has announced a revision in the estimated cost for its significant greenfield project involving the setup of a Weak Nitric Acid (WNA) plant and two Concentrated Nitric Acid (CNA) plants at Dahej, Gujarat. The estimated project cost has been revised upwards by approximately 1.68% to ₹1,982.79 crores from the preliminary project cost of around ₹1,950 crores. This adjustment follows the completion of a detailed Techno-Economic Viability (TEV) study, a crucial step undertaken in line with lender requirements for the conversion of an existing bridge loan into a project loan.
The company communicated this development through a regulatory filing with the BSE Limited and the National Stock Exchange of India Ltd. on June 10, 2025, complying with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates disclosure of material events and information.
| Particulars | Details |
|---|---|
| Company Name | Deepak Fertilisers And Petrochemicals Corporation Limited |
| Project Description | Setting up of one Weak Nitric Acid (WNA) plant and two (2) Concentrated Nitric Acid (CNA) plants |
| Project Location | Dahej, Gujarat |
| WNA Plant Capacity | 300 KT PA (Kilo Tonnes Per Annum) |
| Total CNA Plants Capacity | 150 KT PA (Kilo Tonnes Per Annum) |
| Preliminary Project Cost | Approximately ₹1,950 Crores |
| Date of Board Approval for Preliminary Cost | August 9, 2023 |
| Revised Estimated Project Cost | ₹1,982.79 Crores |
| Increase in Project Cost | ₹32.79 Crores |
| Percentage Increase | Approximately 1.68% |
| Reason for Cost Revision | Completion of Techno-Economic Viability (TEV) study undertaken for conversion of bridge loan into a project loan, as per Lender(s) requirements. |
Detailed Project Insight and Cost Adjustment
Deepak Fertilisers And Petrochemicals Corporation Limited is expanding its production capabilities with the establishment of new nitric acid facilities in Dahej, Gujarat. The project encompasses a Weak Nitric Acid (WNA) plant with a planned capacity of 300 Kilo Tonnes Per Annum (KT PA). Alongside this, two Concentrated Nitric Acid (CNA) plants are being set up, which will have a combined total capacity of 150 KT PA. These plants represent a significant investment in enhancing the company's chemical manufacturing portfolio.
The initial financial outlay for this ambitious project was estimated at approximately ₹1,950 crores. This preliminary project cost received approval from the company's Board of Directors at its meeting held on August 9, 2023. However, following a comprehensive Techno-Economic Viability (TEV) study, the estimated cost has been updated. The revised project cost now stands at ₹1,982.79 crores, marking an increase of ₹32.79 crores, or about 1.68%, over the initial estimate.
Rationale for Cost Revision: The TEV Study
The upward revision in the project's financial estimate is a direct outcome of the Techno-Economic Viability (TEV) study. According to the company's disclosure, this study was conducted as a routine exercise mandated by the project's lender(s). The primary purpose of the TEV study in this context was to facilitate the conversion of a bridge loan, typically a short-term financing solution, into a long-term project loan. Such studies are standard practice in project finance, as they provide an updated and more detailed assessment of a project's economic and technical feasibility, often leading to adjustments in cost estimates based on refined scope, updated market conditions for materials and labor, or more detailed engineering assessments.
The TEV study provides lenders with greater assurance regarding the project's viability before committing to long-term financing. The revision to ₹1,982.79 crores reflects the findings of this detailed assessment.
Regulatory Compliance and Meeting Details
This announcement was made in adherence to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation obligates listed companies to disclose any events or information that are material and price-sensitive to investors in a timely manner. Deepak Fertilisers has ensured compliance by intimating the stock exchanges about this project update.
The company's communication also noted that a meeting, relevant to this disclosure, commenced at 11:30 a.m. and concluded at 2:10 p.m. on June 10, 2025. This timing aligns with the subsequent filing of the intimation with the stock exchanges.
Further Information
Deepak Fertilisers And Petrochemicals Corporation Limited has stated that the information pertaining to this project cost revision and other relevant details will also be made available on the company's official website, www.dfpcl.com. Investors and stakeholders can refer to the website for further updates.
The company is listed on BSE Limited under the code 500645 and on the National Stock Exchange of India Ltd. with the ticker symbol DEEPAKFERT. Its registered office is located at Sai Hira, Survey No. 93, Mundhwa, Pune - 411 036, India.
