NEW DELHI, June 18: Oswal Chemicals and Fertilizers has submitted a proposal to the union government to set up a Rs 5,150 crore ammonia/urea fertiliser project at Talcher in Orissa. The coal-based project will have an installed capacity of 2.1 million tonnes per annum. Oswal Chemicals chairman and managing director Abhey Oswal said at a press conference that his company had sought approvals from the ministries of coal and chemicals and fertilisers.The Rs 5150-crore project is in addition to the phosphatic fertilizer complex being set up at Paradeep port also in Orissa at a capital outlay of Rs 1830 crore. Defending the company's decision to go in for a coal-based project inspite of Hanumantha Committee's recommendations for phasing out coal-based plants in five years, Oswal said the industry's bad experience with coal was due to wrong technology and poor quality of coal.
"These deficiencies can be overcome by using latest technology for coal gasification technology and having captive coal mines with owncoal washeries," he added.
Oswal said he hoped the government would be sympathetic towards his proposal to set up a coal-based project while implementing Hanumantha committee's recommendations.
Oswal also announced the company financial results for 1997-98. Net profit has risen two-and-a-half times to Rs 96 crore on a turnover of Rs 744 crore against previous year's figures of Rs 38 crore and Rs 683 crore. The financial results have been drawn up on the basis of ad-hoc retention price as notified by the government for urea produced by the company said, sources said. The board of directors, which met here today, has recommended a dividend of Rs 4 per share on an equity capital of Rs 227.41 crore, in addition to a Rs 11.44 crore dividend to preference shareholders.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
