Rcf, Deepak Fertilisers Eye Sail Unit

The state-owned Rashtriya Chemicals & Fertilisers (RCF) and Deepak Fertilizers & Petrochemicals Corporation Ltd (DFPCL) have expressed interest in taking over SAIL's fertiliser plant which was put on the block a few months ago.

"The tender floated was for expression of interest and the process of due diligence is yet to begin," said M K Moitra, director, personnel and corporate planning of the company.

The SAIL management has decided to sell off the Rourkela Fertilizer Plant as part of its revival and restructuring package. Located adjacent to SAIL's Rourkela Steel Plant, the plant manufactures calcium ammonium nitrate (CAN) and nitric acid, with naphtha as feed stock.

The installed capacity of the plant is 360,000 tonne per annum of CAN. SAIL will sell off 74 per cent equity in the plant.

The SAIL unit fits into RFCL's expansion programme. RFCL has embarked on a portfolio enhancement scheme where by it is on the look out for takeovers including the Rourkela Fertiliser Plant.

"We need to weigh the pros and cons of the takeover before we reach a decision," said Varma.

SAIL, in a bid to do good its losses, is hiving off its non-core business units. The decision to hive off its fertiliser plant was taken last year when the company incurred a loss. Its effort to sell off the oxygen plant has been stalled as the bids submitted were way below the reserve price.

Though the fertiliser companies are yet to submit their bids, RFCL's expression of interest would reflect its seriousness of purpose, said sources.

Deepak Fertilisers could not be contacted for comments. Though SAIL officials are keen on selling off the fertiliser unit this fiscal, with the due diligence yet to begin, it will take some time before the deal happens.