NFL, EIL form JV company for revival of Ramagundam plant

State-run NFL, EIL and Fertiliser Corporation have formed a joint venture company in Telangana to set up an integrated fertiliser plant at an estimated cost of Rs 5,000 crore.
On January 15, NFL had signed a joint venture agreement with Engineers India Ltd (EIL) and Fertiliser Corporation of India Ltd (FCIL) to revive the closed plant in Ramagundam in Telangana.
"A joint venture company named Ramagundam Fertilisers and Chemicals Limited has been incorporated on February 17, 2015 with Registered Office at Lodhi Road New Delhi," National Fertilisers Ltd (NFL) said in a BSE filing.
In the newly incorporated company, both NFL and EIL will have 26 per cent stake each, while FCIL will have 11 per cent stake. The JV will scout for partners for the remaining stake.

Since 1999, the production of urea and ammonia at the Ramagundam fertiliser unit, located about 240 kms away from Hyderabad, has been suspended due to non viability.
The project is part of the NDA government's revival plan of Fertiliser Corporation of India Ltd (FCIL)'s closed units.

NFL and EIL were nominated for revival of FCIL's Ramagundam unit.
The proposed plant will be based on natural gas as feedstock coming from proposed Mallavaram-Bhilwara pipeline and raw water will be fed from Sripada Yellampally Barrage already built on Goadavari river.
The plant will have capacity to produce 2,200 tonnes of ammonia per day and 3,850 tonnes of urea per day, and about Rs 5,000 crore will be invested on it, Fertiliser Minister Ananth Kumar had said.

The annual demand of urea in the country is about 30 million tonnes while the domestic production is 22 million tonnes. Rest is met through imports.
However, the government is aiming to raise indigenous production to replace imports.