Fertiliser co-operative KRIBHCO today said it has completed all formalities to set up a phosphoric and potassic (P&K) plant in Andhra Pradesh at an investment of Rs 1,000 crore.
The plant will have an annual capacity of 6 lakh tonnes.
Krishak Bharati Cooperative Ltd (KRIBHCO) said in a statement that it has completed all formalities for setting up of phosphoric and potassic (P&K) fertilizer plant near Krishnapatnam in Andhra Pradesh with total investment of Rs 1,000 crore and incentives from the Andhra Pradesh government.
This will be the first P&K fertiliser plant of the cooperative, which produces urea only.
The plant is being set up in Andhra Pradesh as the state government has offered power at Re 1 per unit for next ten years, VAT exemption for next seven years and host of other incentives, giving benefit to KRIBHCO of about Rs 500 crore, Kribhco Chairman Chandra Pal Singh Yadav said at the 36th annual general body meet today.
“The land has already been allotted by the state government for the fertiliser plant. The annual capacity of the plant will be about 600,000 tonnes and it will require an investment of Rs 1,000 crore,” he said, adding that the capacity would be increased to 12 lakh tonnes per annum later.
The project will be operational in 4-5 years.
At present, KRIBHCO has one urea plant in Hazira in Gujarat having an annual capacity of 2.2 million tonnes.
Besides, the cooperative has one plant in Shajhanpur in Uttar Pradesh in partnership with the Shyam Group having a capacity of 1 million tonnes and one plant in Oman in partnership with IFFCO.
“KRIBHCO has, meanwhile, shelved its plan to set up Hazira Fertilizer Phase II project due to cheaper imports available and prevailing state of affairs of the fertilizer industry in the country,” the Chairman said.
The co-operative also declared a dividend of 20 per cent for member cooperative shareholders. The company made a profit of Rs 275 crore during the year 2015-16.