1. Coal India, NTPC form JV for 1.2MT urea at Sindhri and Gorakhpur

Coal India, NTPC form JV for 1.2MT urea at Sindhri and Gorakhpur

State-run miner Coal India today said it has entered into a pact with power major NTPC Ltd for setting up a joint venture firm to revive fertiliser plants at Sindhri and Gorakhpur.

By: | Kolkata | Published: May 16, 2016 8:38 PM
Last year, CIL had entered into a joint venture agreement with GAIL and fertiliser majors RCF and FCIL to incorporate a firm for setting up and operating new ammonia urea complex in Talcher, Odisha. (Source: Website) Last year, CIL had entered into a joint venture agreement with GAIL and fertiliser majors RCF and FCIL to incorporate a firm for setting up and operating new ammonia urea complex in Talcher, Odisha. (Source: Website)

State-run miner Coal India today said it has entered into a pact with power major NTPC Ltd for setting up a joint venture firm to revive fertiliser plants at Sindhri and Gorakhpur.

The two firms will produce 1.27 million tonnes of urea per annum.

CIL & NTPC have signed a joint venture agreement for setting up of a joint venture company at 50:50 shareholding basis for revival of Sindhri & Gorakhpur units of Fertiliser Corporation of India,” Coal India (CIL) said in a regulatory filing.

“The revitalization of these plants would help generate 1.27 million tonnes per annum of urea along with other associated chemicals from each plant, bridging the demand-supply gap of urea which is about 8 million tonnes per annum currently,” the miner said.

“The things, however, are at the initial stage and both the companies will put their heads together in finalizing a detailed roadmap and mapping out other details in a threadbare manner in days to come,” a CIL official said.

The gas would be made available through the proposed Jagdishpur-Haldia pipeline to be constructed by GAIL.

Last year, CIL had entered into a joint venture agreement with GAIL and fertiliser majors RCF and FCIL to incorporate a firm for setting up and operating new ammonia urea complex in Talcher, Odisha.

These agreements are part of the government’s plan to revive loss-making and closed fertiliser plants through JVs of profit-making PSUs with a view to increasing domestic production of the farm nutrient.

Shares of Coal India closed at Rs 282.85 apiece on BSE, up 0.48 per cent from previous close.

Tags: Coal India
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