RCF charts Rs 6,000-cr expansion during 11th Plan

{image-Rashtriya Chemicals and Fertilisers_25092008.jpg news.oneindia.in}Mumbai, Sep 25: State-run Rashtriya Chemicals and Fertilisers (RCF) will undertake various projects comprising greenfield and brownfield expansions, with an estimated investment of Rs 5,000-6000 crore during the 11th five year plan period.

Speaking to mediapersons after the 30th Annual General Meeting (AGM) here on Wednesday, Sep 24, RCF chairman and managing director Uday Shankar Jha said this is despite the perpetual gas and feed stock limitations faced by it. He said the major ventures include a foray into power generation through wind mills, a brownfield ammonia-urea complex at Thal at an investment of Rs 4,500 crore and marketing of about 4.5 million tonne fertilizers. RCF is also evaluating a project for coal gasification at Talcher in association with GAIL India and Coal India. The Company will enter into long-term contracts with Reliance Industries and GAIL India for supply of gas, Mr Jha informed. It will also associate with National Fertiliser Limited and Kribhco in a proposed joint venture (JV) company for the revival of a closed fertiliser unit at Barauni.

Among other ventures, RCF is exploring investment opportunities in joint venture projects in countries which have proven natural mineral resources and natural gas reserves, he said.

He said that the joint venture with Rajasthan State Mines and Mineral for setting up a DAP project in the state will cost around Rs 850 crore.

The first panel from the Rapidwall products project is likely to roll out of the Trombay plant in about two months. These panels will substitute conventional bricks and plaster and will help bring down construction costs, he said. RCF has formed a JV with the Fertilisers&Chemicals Travancore Ltd (FACT) for a similar project for production of Rapidwall panels at Kochi, he informed.

The Company will undertake debottlenecking of its ammonia-urea plant on a priority basis. It will add about 2.5 lakh tonne production capacity and enhance energy efficiency significantly to avail advantages under the new Government of India policy, Mr Jha said.

He informed shareholders that RCF has clocked a turnover of Rs 5,228.97 crore and earned a net profit of Rs 158.15 crore in 2007-08. However, the net interest cost rose to Rs 59.32 crore compared to Rs 46.93 crore in 2006-07, he added.

UNI