• PAGE ONE
• INDEX
• HOME

RCF awaits nod for Thal plant capacity expansion

Our Bureau

BANGALORE, Jan. 18

RASHTRIYA Chemicals & Fertilisers (RCF) is awaiting final approval from the Union Government for the capacity expansion of its urea plant at Thal in Maharashtra.

Addressing newspersons in Bangalore on Tuesday, the RCF Chairman and Managing Director, Mr. D.K. Varma, said: ``The Government has already given clearance, in principle, and the final approval is expected any moment.''

RCF is expanding its urea plant at Thal in Raigad district at a cost of Rs. 1,332 crores over the next three to four years. The urea output at Thal is expected to go up from the present 15 lakh tonnes per annum to around 23 lakh tonnes, he said. This exp ansion is expected to take RCF's total fertiliser production to 34 lakh tpa from the present 26 lakh tpa.

In order to meet the increased requirement of feedstock, RCF has already entered into an alliance with Enron and Tata Total, he said. ``The total requirement of feedstock for the expansion project at Thal is going to be supplied by Enron, whereas Tata To tal would be supplying to the Trombay plant,'' Mr. Varma added.

RCF is also entering into a tie-up with Hindustan Zinc Ltd and Rajasthan State Mines and Minerals Ltd, to set up an 850 tonnes per day DAP plant at Thal, he said. The total investment in the DAP plant is likely to be of the order of Rs. 250 crores, he ad ded.

The company is also investing an additional Rs. 1,000 crores on revamping and modernising the operations at its existing plants, he added. RCF now has about 10 per cent marketshare in the country. ``We are planning to increase our marketshare from the pr esent 20 per cent to 35 per cent in the next three years in the southern States of Karnataka, Andhra Pradesh and Tamil Nadu,'' he said. RCF sells about nine lakh tonnes of urea and complex fertilisers in these States, he said.

``We are also gearing up to meet the deregulated regime by strengthening our market presence and also by bringing down the cost of production,'' Mr. Varma said.

RCF, which had achieved a turnover of Rs. 2,060 crores and a net profit of Rs. 192.7 crores during 1998-99, is expected to end the current financial year by recording a turnover of Rs. 2,400 crores, he added. The sale of fertilisers is expected to touch 30 lakh tonnes during 1999-2000, as against 27 lakh tonnes the previous year, he added.