RCF looks for partner to build fertiliser plant in Iran

Rashtriya Chemicals and Fertilisers Ltd (RCF) today said it is scouting for opportunities abroad, including a joint venture to set up fertiliser plant in Iran.

"We are looking for an Iranian partner to build a USD 800-million urea plant in Iran, which has the second largest reserves of gas in the world. The plant will have 1.27 MT of urea production capacity. The Iranian partner will be selected by SBI Capital Markets (SBICAPS)," RCF Chairman and Managing Director R G Rajan told reporters here.

With this project, RCF and Gujarat Narmada Valley Fertilisers & Chemicals Ltd (GNFC) seek to tap cheaper gas offered by Iran to produce the farm nutrient and ship it to India.

The project is expected to materialise after sanctions against Iran are lifted.

RCF is also exploring possibilities of entering into long-term offtake agreements for potash with suppliers in Canada.

Commenting on domestic projects, Rajan said the company has drawn up a capex plan, which includes investment of Rs 300 crore in the current year and Rs 1,000 crore in the next year.

"The increased demand-supply gap in the country provides for opportunity to expand our urea base at Thal in Maharashtra.

"Alternate feedstock like coal gas gives an opportunity to undertake fertiliser projects in other parts of the country closer to coal mines. RCF plans to undertake major projects like an additional ammonia urea project at Thal and a coal-based fertiliser plant at Talcher," Rajan said.

The Talchar unit in Odisha is its first diversion from natural gas-based fertiliser plants, since coal is cheaper than LNG whose availability is uncertain. If this unit succeeds, RCF plans to go for more such coal-based units closer to coal mines, he said.