RCF to spend Rs 937 crore on upgradation, expansion

Mumbai, Aug 20 (UNI) The state-owned Rashtriya Chemicals and Fertilizers Ltd (RCF) is now set on a high growth trajectory and has emabarked on Rs 937 crore investment to carry out upgradation, expansion and new projects.

Replying to a UNI poser, RCF Chairman&Managing Director Uday Shankar Jha said of the Rs 937 crore investment planned, as much as Rs 357 crore will be spent during the current fiscal, while the remainder will be spaced over the next two to three years. ''Many more new projects are being conceived which will fructify later and investments will be made as and when the projects reach that stage,'' he added.

On the funding of expansion and new projects, Mr Jha said, ''RCF is a debt-free company and as such the company foresees no problem in raising the requisite funds through debt-route as and when we require it.'' With the government's stake in RCF at 92.5 per cent, there is sufficient scope for the company to come out with follow-up public issue. ''We may opt for capital market route only if the government is keen on divesting its stake in the company,'' he said.

During this year, Mr Jha said Ammonia plant at Trombay has been modernized at a cost of Rs 250 crore, while Methanol plant also at the same area is also being modernised and expanded at an investment of Rs 107 crore.

Explaning, RCF CMD said the Company is setting up Argon plant at Thal incurring an investment of Rs 95 crore, while at the same time it is planning to manufacture Load Bearing Gypsum Panels out of Phospho Gypsum, a waste product at Trombay plant, which is expected to cost Rs 75 crore. ''These panels will be substitute of bricks and will come in handy for providing low cost and mass housing,'' Mr Jha added.

A joint venture forged with Rajasthan State Mines&Minerals Ltd (RSMML) to produce about 2.5 lakh metric tonnes of DAP (Di-ammonium phosphate) will involve an investment of Rs 410 crore, he said adding, ''tie-up for raw material has been finalized and work on selection of technology has been undertaken through competitive bidding process.'' More UNI SN KU NV1005