RCF to buy 11% stake in JV to revive Sindri plant

State-run fertiliser firms RCF has decided to acquire 11 per cent equity stake for about Rs 180 crore in the proposed joint venture firm for revival of closed urea plant at Sindri in Jharkhand.
Besides Rashtriya Chemicals and Fertiliers (RCF), the National Fertilisers Ltd (NFL) has also announced to acquire 11 per cent stake in the proposed joint venture firm for the same amount.
The government has decided to revive FCIL's Sindri unit by investing the proceeds of sale of part of its land to Jharia Rehabilitation Development Authority (JHReDA), Jharkhand.
"... The Board of Directors of the Company at its meeting held on February 25, 2016 has accorded in-principle approval to take a minimum of 11 per cent equity stake in the revival of Sindri unit of FCIL by forming new Joint Venture Company with other PSUs," RCF said in a regulatory filing.

According to sources the RCF will pay about Rs 180 crore to acquire 11 per cent stake.
The government has decided to revive FCIL's Sindri unit by investing the proceeds of sale of part of its land to Jharia Rehabilitation Development Authority (JHReDA), Jharkhand and by forming JV with other PSUs having relevant experience.

In May last, the Cabinet had approved the revival of closed urea unit of FCIL at Sindri with an investment of Rs 6,000 crore.
This unit was lying defunct and was not in operation since 2002. Therefore, the unit and other associated facilities were lying unutilised.

The annual consumption of urea in the country is about 31 million tonnes, out of which 23 million tonnes is produced indigenously and rest is imported.