IFFCO diversifies into power generation and infrastructure sectors

New Delhi, May 18 (UNI) Fertiliser cooperative major Indian Farmers Fertiliser Cooperative Ltd (IFFCO) is diversifying into power generation and infrastructure sectors by roping in domestic and foreign partners.

In its diversification spree, IFFCO will set up a 1000 MW power generation plant in Chhattisgarh as a joint venture with the Chhattisgarh State Electricity Board (CSEB) with equity holding of 74:26.

In the joint venture, christened as IFFCO Chhattisgarh Power Ltd (ICPL), IFFCO and its associates will put in Rs 1155 crore while CSEB will pitch in Rs 405 crore, said IFFCO Chairman S K Jakhar at a press meet here today.

The debt-equity ratio for the Rs 5200 crore venture has been set at 70:30.

The coal-fire project will source coal from the Tara coal block.

The financial closure of the project would be achieved in 2006-07.

With stabilised tariff of Rs 2.16 per unit, CSEB will buy 90 per cent of the power generated, rest of the generation will go to IFFCO which would trade off the surplus after meeting its requirement of 45 MW.

IFFCO is also foraying in a big way into the infrastructure sector by leading a trans-national consortium to develop Rs 2600 crore Mumbai Trans Harbour Link Project (MTHL).

A 22-km-long bridge across the deep sea connecting Sewri in Mumbai and Nhava in Navi Mumbai will be constructed under the project.

The consortium also includes Italian Thai Development Company Ltd (ITD) of Thailand, MAEDA Corporation of Japan and ITD Cementation India Ltd. It has already pre-qualified for the global tender of the project, which is to be developed on Build, Operate and Transfer (BOT) basis. The contract of project is expected to be awarded in 2007-08.

In its efforts to achieve backward and forward linkages in fertiliser sector, IFFCO has floated a Indo-Egyptian Fertiliser Co, a joint venture with Egyptian Government's El Nasr Mining Co.

The 76:24 JV will set up a plant to produce 4.50 lakh tonnes of phosphoric acid (P2O5) annually. And IFFCO will buyback the entire production, IFFCO Managing Director U S Awasthi said.

Mr Awasthi also informed that IFFCO has switched over from Naphtha to Gas at its Phulpur Unit that has a capacity to produce 14.18 lakh MT of Urea per year.

This switchover will result in reducing the Government subsidy to the fertiliser industry by over Rs 1000 crore annually.

IFFCO has increased its sale by 35 per cent at Rs 9,943 crore registering a net profit of Rs 341 crore during 2005-06.

UNI BBS/JSS CS ND1724