At present, the government's holding in RCF is 92.5 per cent. According to RCF's chairman and managing director (CMD) DK Varma, the company is concentrating on revamping its units at Trombay in Mumbai and Thal in Raigad district. It has spelt out a five-pronged strategy for the purpose. The revamp process would take at least three years to be completed. So the company had requested the government not to consider RCF for disinvestment now, Varma said.

The strategy, Varma said, while inaugurating a new ammonia-storage facility at Trombay on Friday, was to take steps for making the units environment- friendly, energy efficient, improving productivity, bringing about cost effectiveness, and making it viable and profitable.

As part of the strategy, the company has invested about Rs 30 crore in setting up a15,000-tonne ammonia-storage tank at Trombay. This would reduce the risk level, as earlier, imported ammonia was being transported through a 5km 4-inch diameter pipeline passing through populated areas from Pir-Pau jetty to the RCF factory. Meanwhile, RCF is considering using the facilities at Pir-Pau for liquefied petroleum gas (LPG). There is also a possibility of sub-letting these facilities.

RCF will invest around Rs 2,000 crore in various projects for expansion and modernisation. It is investing Rs 38 crore in a sewage-treatment plant, expected to be commissioned within a year.

The modernisation and revamping includes improving efficiency in packaging and handling of products at its bagging unit. It is investing around Rs 50-60 crore in a synthesis gas compressor. In the formic-acid complex at Thal, which is shortly going to be commissioned, RCF is investing about Rs 110-115 crore.

The Thal unit's expansion would include a capacity addition of 7.26 lakh tonnes of urea per annum at an investment ofRs 1,200 crore.

Varma said there was a need to constantly upgrade, innovate and expand its plant machinery, as the Trombay and Thal plants were as old as 30 years and 12-13 years respectively.