GNFC plans Rs 1,200-cr expansion
Gujarat Narmada Valley Fertilisers Company plans Rs 1,200 crore expansion in different projects.
By Mitul Thakkar, TNN |
AHMEDABAD: The Gujarat Narmada Valley Fertilisers Company (GNFC) is planning an investment of about Rs 1,200 crore in different projects. The Bharuch-based state venture will invest about Rs 750-800 crore to convert its plant from low stock high sulphur (LSHS) to gas to produce ammonia. Sources said the company is in talks with Reliance and GAIL India for gas supply.
“We are in process of converting our LSHS-based plants to gas-based as per the central government’s guideline to opt for cost-effective inputs in the fertiliser industry. We would fund the project with assistance from the central government, internal accruals and borrowings. We are also going to invest about Rs 400 crore to expand our manufacturing capacities,” GNFC joint MD T Natarajan told ET.
GNFC has already kicked started the technical evaluation process for its proposed projects. The company is aiming to complete the energy conversion project well before the central government’s proposed timeframe of three years from now. It is soon going to move its proposal to the Centre for its assistance in energy conversion project.
Meanwhile, the company is expanding its weak nitric acid capacity to 1,050 tonne from 750 tonne a day currently
with an investment of Rs 180-200 crore. It would also increase the concentrated nitric acid manufacturing capacity by 150 tonne a day with an investment of about Rs 50 crore. Apart from these projects, the PSU would also invest about Rs 150 crore in power and steam plants. The concentrated nitric acid, weak nitric acid and power and steam projects would be commissioned by 2009, said the senior executive of the company.
“Weak nitric acid is one of the important inputs in making of certain grades of fertilisers. The increased capacity would also enable to cater to the demand in the open market by other chemical companies," said Mr Natarajan.
He added that currently, GNFC is on aggressive expansion mode and the project it announced during the Vibrant Gujarat Global Investors' Summit is on track. It may be mentioned here that GNFC announced an investment of over Rs 900 crore in methane project at its facility in South Gujarat during the Global Investors' Summit.
“We are in process of converting our LSHS-based plants to gas-based as per the central government’s guideline to opt for cost-effective inputs in the fertiliser industry. We would fund the project with assistance from the central government, internal accruals and borrowings. We are also going to invest about Rs 400 crore to expand our manufacturing capacities,” GNFC joint MD T Natarajan told ET.
GNFC has already kicked started the technical evaluation process for its proposed projects. The company is aiming to complete the energy conversion project well before the central government’s proposed timeframe of three years from now. It is soon going to move its proposal to the Centre for its assistance in energy conversion project.
Meanwhile, the company is expanding its weak nitric acid capacity to 1,050 tonne from 750 tonne a day currently
with an investment of Rs 180-200 crore. It would also increase the concentrated nitric acid manufacturing capacity by 150 tonne a day with an investment of about Rs 50 crore. Apart from these projects, the PSU would also invest about Rs 150 crore in power and steam plants. The concentrated nitric acid, weak nitric acid and power and steam projects would be commissioned by 2009, said the senior executive of the company.
“Weak nitric acid is one of the important inputs in making of certain grades of fertilisers. The increased capacity would also enable to cater to the demand in the open market by other chemical companies," said Mr Natarajan.
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He added that currently, GNFC is on aggressive expansion mode and the project it announced during the Vibrant Gujarat Global Investors' Summit is on track. It may be mentioned here that GNFC announced an investment of over Rs 900 crore in methane project at its facility in South Gujarat during the Global Investors' Summit.
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