NFL to invest Rs 1,250 cr in 2 yrs on new plant, energy-saving projects

State-owned fertiliser firm NFL will invest Rs 1,250 crore over the next two years on energy saving projects in its five existing plants and setting up a new factory in Madhya Pradesh to produce di-nitrogen tetroxide, its CMD Manoj Mishra said.

Besides that, he said National Fertilizers (NFL) is reviving a closed urea plant at Ramagundam, Telangana, in a joint venture with EIL, FCIL and the state government with an estimated cost of over Rs 5,300 crore.

NFL is also exploring the possibility of setting up a di-ammonium phosphate (DAP) plant in Algeria through a joint venture and under buyback arrangements.

"We have posted a record turnover of Rs 8,928 crore during the last fiscal. Urea production and sales were also at all-time highs," Mishra told reporters.

NFL, which has five plants at Haryana, Punjab and MP, produced a record 38.1 lakh tonnes of urea in 2017-18 fiscal with 118 per cent capacity utilisation. Urea sales stood at 39.16 lakh tonnes.

It imported 4.47 lakh tonnes of non-urea fertilisers like DAP and muriate of potash (MoP) and sold 3.93 lakh tonnes in the domestic market. Total sales of fertiliser was a record 43.09 lakh tonnes.

Asked about planned capital expenditure, Mishra said, "We will invest Rs 1,250 crore over the next two years on energy saving projects and setting up of new plant".

The company has taken up energy saving scheme at Nangal, Bathinda and Panipat units at an estimated cost of about Rs 650 crore, he said, adding that Rs 220 crore would go towards energy saving schemes at two plants -- Vijaipur I & II -- in MP with a capex of Rs 220 crore.

Mishra highlighted that the company achieved lowest energy consumption at all its plants during the last fiscal and targets to bring energy cost further.

Stating that NFL has bagged an order from ISRO to supply di-nitrogen tetroxide (N2o4) , Mishra said the company would set up a plant at Vijaipur in MP with an investment of Rs 350 crore. The annual capacity of this plant would be 1,000 tonnes.

The company has received 'letter of intent' from ISRO on BOOS (built, own, operate and supply) basis.

On the status of Ramagundam plant, Mishra said the company has already contributed Rs 218.69 crore towards equity in its joint venture (RFCL) out of total requirement of Rs 343 crore.

NFL and Engineers India (EIL) have 26 per cent stake each in the JV, while Fertilizers Corporation of India Ltd (FCIL) and Telangana government have 11 per cent stake each.

The NFL's CMD said that the company is exploring the possibility of setting up a one million tonnes capacity DAP and phosphoric acid plant in Algeria in a joint venture with GSFC, RCF and NMDC.

Earlier this week, NFL reported 24 per cent decline in its standalone net profit to Rs 67.68 crore for the quarter ended March 31, on higher operational expenses. Its net profit stood at Rs 89.01 crore in the year-ago period.

Total income, however, rose to Rs 2,126.23 crore in the fourth quarter of this fiscal compared to Rs 1,870.58 crore in the corresponding period of the previous year.