Indo-Oman Fert Brass Meets Today To Approve Launch

The joint management committee of the Oman-India fertiliser project will meet in Mumbai tomorrow for the last time to approve the formation of the joint venture company for implementing the project.

The joint venture company, to be called Oman-India Fertiliser Company, will be formally constituted by the month-end. After the formation of the company, the committee will be disbanded.

The company will have six directors three each from India and Oman. The chairman will be on a rotation basis. In all probability, the first chairman will be from India.

According to the programme charted out by the Indian authorities, the chief executive officers of the two participating Indian fertiliser companies Krishak Bharati Cooperative Limited (Kribhco) and Rashtriya Chemicals and Fertilisers (RCF) along with the secretary in the department of fertilisers will be the Indian representatives on the board of the joint venture company.

 

If India is given the opportunity to nominate the chairman, the fertiliser secretary will hold the post.

The Rs 4,680 crore ($1.2 billion) project, which is a joint venture between Kribhco, RCF and Oman Oil Company, will have a capacity to produce 3600 tonnes of ammonia and 4400 tonnes of urea per day.

Omani agency PDO will supply natural gas to the project at a cost of 50 cents per million British thermal units (BTU) with a transportation cost of 27 cents per million BTU. The gas supply agreement will be valid for 25 years and will have a cost escalation clause.

The offtake agreement between the joint venture company and RCF and Kribhco envisages the guaranteed purchase by the Indian partners at global prices.

The Snamprogetti-Technib consortium has been picked as the most preferred bidder for providing technological inputs and a contract is being finalised.