Agreement signed to revive Ramagundam Fertilizer Plant;

The Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chouhan calls on the Union Minister for Chemicals and Fertilizers, Shri Ananthkumar, in New Delhi on January 14, 2015. 
Agreement signed to revive Ramagundam Fertilizer Plant;

Rs 40,000 crore to be invested in the country for revival of old fertilizer plants and setting up new units.

National fertilizers Limited NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India (FCIL) have signed an agreement to form a joint venture company (JVC) for setting up new Ammonia and Urea plants at the existing site of Ramagundam Fertilizer plant in District Karimnagar in Telengana. The joint Venture agreement for the new company named “Ramagundam Fertilizers and Chemicals Limited” was signed today at NOIDA in the presence of Shri Ananth Kumar, Minister of Chemicals and Fertilizers, and Shri Dharmendra Pradhan, Minister of State (I/C) for Petroleum and Natural Gas.

Speaking on the occasion, Shri Ananth Kumar said that in next four years, about Rs 40,000 crore will be invested in the country for revival of the old fertilizer plants, and setting up of new units. He said there is going to be a fertilizer revolution in the country that will make India self-reliant in fertilizer, particularly Urea production. Shri Ananth Kumar said that the initiatives are being taken in pursuance of two mantras of the Government- Make In India, and Good Governance. He said large investments are being made in the sector, and with coordinated efforts and political will, the Government will take steps in a time bound manner that will help our people, and the farmers. He said that steps are also being taken to check the imbalance in usage of fertilizers in the country. On the personal front, the Minister announced that he would forego the subsidized gas cylinder connection henceforth.

Minister of State (I/C) for Petroleum and Natural Gas Shri Dharmendra Pradhan said that with the setting up of new plants and revival of old plants, the supply gap in fertilizers will be reduced. He said that Agriculture is the prime stay of our country, and the interest of the farmers will be safeguarded. Shri Pradhan said that the new plant at Ramagundam will be a boon for the farmers of newly created state of Telengana. He said that the Government will set up a gas grid in the country. The Petroleum Minister also talked about the impressive response of the Governments’ scheme Pahal, the largest subsidiary distribution mechanism in the world. He appealed to the affluent and people belonging to well to do sections of society to give up subsidized LPG connection.

In order to augment the domestic urea capacity, revival of closed fertilizer units of Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizer Corporation (HFC) has been on the top priority agenda of the Government of India. In this direction, Joint Venture Agreements have been signed on 24.12.2014 amongst GAIL, RCF, CIL & FCIL for the revival of Talcher unit of FCIL. Govt. of India has nominated FCIL’s unit located at Ramagundam to the consortium of three state run companies NFL, EIL and FCIL for revival. The Joint Venture (JV) signed today will be primarily responsible for setting up Gas based Ammonia-Urea plants. NFL and EIL will each have 26% equity in the JV. EIL would take up the project construction under EPC model. Pre-project activities have been started. NFL’s expertise would be utilised for the operation and maintenance of the plant

The project comprises of 2200 MTPD Ammonia plant and 3850 MTPD Urea plant. FCIL shall hold a stake in the JV, being the provider of existing infrastructure of Ramagundam Project. Total investment in the project by the PSU promoters is estimated to be in the range of Rs. 5000 crore.

The revival of the Ramagundam unit will trigger a great economic boom in the new born State of Telangana in the southern part of the country, as it will generate opportunities in the form of direct and indirect employment for the people in the region. Execution of construction activities is expected to start in early 2016.
Agreement signed to revive Ramagundam Fertilizer Plant; Agreement signed to revive Ramagundam Fertilizer Plant;  Reviewed by Ajit Kumar on 7:09 AM Rating: 5

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