National Fertilizers (NFL) will enter into a Joint Venture Agreement (JVA) with Engineers India (EIL) and Fertilizer Corporation of India (FCIL) on January 14, 2015 for revival of Ramagundam Unit of FCIL. The said unit is located at Karimnagar district in state of Telangana
The project is part of the revival plan of FCIL units by GOI. Under the revival plan, NFL and EIL have been nominated for revival of FCIL’s Ramagundam unit by forming a Joint Venture Company in line with the CCEA approval with major stakeholders along with FCIL. For the project, NFL shall render its expertise for Commissioning, Operation & Maintenance and marketing of Urea while EIL shall be doing Detailed Engineering, Procurement of machinery and Construction supervision.
The proposed complex shall be consisting of new ammonia and urea plant of 2200 MTPD & 3850 MTPD capacity respectively and associated offsite and utility facilities. Project will be based on Natural Gas as feed stock coming from proposed Mallavaram - Bhilwara pipe line and raw water will be fed from Sripada Yellampally Barrage already built on Godavari River. The project cost is estimated at about Rs 5,000 crore proposed to be financed with Debt Equity Ratio of 70:30, with NFL’s contribution of 26% of the equity. The project is targeted to complete in 2018.
