Govt Scuttles Gnfc Power Plans

Bharuch-based Gujarat Narmada Valley Fertilizer's(GNFC) diversification plans have been nixed by the Gujarat government. The company has, however, decided to wait for the new government to be sworn in before taking a final decision on the issue.

GNFC has been weighing a proposal to set up a 450 MW power combine cycle power plant in Gujarat. The plant was based on gas supplied from yet another state-owned Gujarat State Petrochemicals Corporation Ltd (GSPCL).

However, the state government has already made up its mind that GSPCL's gas supply would be used for private power units. It did not favour GSPCL supplying gas to another public sector unit's power project.

 

Industry sources say this is bad news for GNFC as it has already shelved expansion plans in its core sector-- nitrogenous fertiliser. Plans to augment its urea capacity by setting up a 1,350 tonnes per annum gas-based urea plant were drawn up following ONGC improving its gas production.

However, with ONGC revising gas production figures downwards, GNFC decided against any expansion plans. 'Poor availability of gas has forced GNFC to shelve its expansion project', GNFC sources said.

This in turn has resulted in the company scouting for other projects including power plants. Further, company chairman Kishorsinh H Solanki has also resigned as he is keen to contest in the forthcoming Lok Sabha elections.

However, GNFC has undertaken expansion of concentrated nitric acid (CNA) and have embarked on setting up of weak nitric acid (WNA) plant at a total cost of Rs 80 crore.

It has entered into a technical arrangement with Uhde of Germany for the CNA plant, while another German firm, Plinke will provide the same for WNA.

Concentrated nitric acid capacity will almost double to 70,000 tonnes per annum (tpa) and WNA will go up by 24,750 tonnes to 2.30 lakh tpa.

Meanwhile, the company plans to set up 10,000 tpa polyacetal plant at an estimated cost of Rs 230 crore. The company has already started seed marketing polyacetals in the country, before entering into technical agreement.