Kribhco to invest Rs 1000 cr in AP plant

Company setting up its P&K (phosphoric and potassic) fertiliser plant at Krishnapatnam

Cooperative Kribhco plans to invest Rs 1,000 crore for setting up a P&K (phosphoric and potassic) fertiliser plant at Krishnapatnam in Andhra Pradesh.

This will be the first P&K fertiliser plant of the cooperative, which produces urea only, Kribhco managing director N Sambasiva Rao told PTI.

"The land has already been allotted by state government for the fertiliser plant. The annual capacity of the plant will be about 600,000 tonnes and it will require an investment of Rs 1,000 crore," Rao said.

According to Kribhco officials, it will take 4-5 years for the project to become operational. The plant will come up near Krishnapatnam port on east coast of India. A techno-economic feasibility report for the project has already been prepared.
 

There are also plans to increase the capacity of this plant in the second phase and take the total annual capacity to 1.2 million tonnes per annum.

P&K fertilisers are partially decontrolled as companies are free to decide prices while subsidy on it is fixed by the government.

At present, Kribhco has one urea plant in Hazira in Gujarat having an annual capacity of 2.2 million tonnes.

Besides, the cooperative has one plant in Shajhanpur in Uttar Pradesh in partnership with the Shyam group having a capacity of 1 million tonnes and one plant in Oman in partnership with Iffco.