RCF likely to get PIB clearance for Rs 5,500 cr urea plant

As per proposal, an ammonia-urea plant will be set up at Thal, Maharashtra with a capacity of 1.27 mn tonnes a year

State-run RCF is likely to get clearance from the Public Investment Board (PIB) for establishing a new urea plant at its current manufacturing facility at Thal in Maharashtra with an estimated investment of Rs 5,500 crore.

As per the proposal, an ammonia-urea plant will be set up at Thal in Maharashtra with a capacity of 1.27 million tonnes per annum at the company's current manufacturing location.

"The Rashtriya Chemicals and Fertilisers (RCF) is set to get PIB clearance for its brownfield expansion of its urea- ammonia plant at Thal in Maharashtra," a source said.

According to the source, tender for the plant's engineering and construction has been awarded to a consortium of Technip and L&T.

The total estimated cost of the project is at Rs 5,500 crore.

Public Investment Board (PIB) examines the investment plans put forwarded by the individual ministries in lieu of the respective public sector undertakings.

After getting the PIB nod a note would be moved for the cabinet approval.

The Mumbai-based PSU's annual urea capacity is more than 2 million tonnes and it also produces various grades of complex fertilisers at its two manufacturing units in Thal and Trombay in Maharashtra.

RCF, along with Coal India, GAIL and Fertiliser Corporation of India (FCIL), has also formed a consortium to revive the sick unit of FCIL at Talcher at a cost of Rs 8,000 crore to manufacture urea and ammonium nitrate via coal gasification.