NFL to invest ~12.5 bn in energy-saving projects, new plant

State-owned National Fertilizers (NFL) will invest ~12.50 billion over the next two years on energy saving projects in its five existing plants and setting up a new factory in Madhya Pradesh to produce di-nitrogen tetroxide, its Chairman and Managing Director (CMD) Manoj Mishra said. Besides that, he said NFL is reviving a closed urea plant at Ramagundam, Telangana, in a joint venture with EIL, FCIL and the state government with an estimated cost of over ~ 53 billion.

NFL is also exploring the possibility of setting up a diammonium phosphate (DAP) plant in Algeria through a joint venture and under buyback arrangements.

“We have posted a record turnover of ~89.28 billion during the last financial year. Urea production and sales were also at all-time highs,” Mishra told reporters. NFL, which has five plants at Haryana, Punjab and Madhya Pradesh, produced a record 38.1 lakh tonnes of urea in 2017-18 fiscal with 118 per cent capacity utilisation. Urea sales stood at 39.16 lakh tonnes.

It imported 4.47 lakh tonnes of non-urea fertilisers like DAP and muriate of potash (MoP) and sold 3.93 lakh tonnes in the domestic market. Total sales of fertiliser was a record 43.09 lakh tonnes. Asked about planned capital expenditure, Mishra said, “We will invest ~12.50 billion over the next two years on energy saving projects and setting up of new plant.”

The company has taken up energy saving scheme at Nangal, Bathinda and Panipat units at an estimated cost of about ~6.50 billion, he said, adding that ~2.2 billion would go towards energy saving schemes at two plants — Vijaipur I & II — in MP with a capex of ~2.2 billion.

Mishra highlighted that the company achieved lowest energy consumption at all its plants during the last fiscal and targets to bring energy cost further. Stating that NFL has bagged an order from ISRO to supply di-nitrogen tetroxide (N2o4) , Mishra said the company would set up a plant at Vijaipur in MP with an investment of ~3.5 billion. The annual capacity of this plant would be 1,000 tonnes.

The company has received ‘letter of intent’ from ISRO on BOOS (built, own, operate and supply) basis. On the status of Ramagundam plant, Mishra said the company has already contributed ~2.18 billion towards equity in its joint venture (RFCL) out of total requirement of ~3.43 billion.

NFL and Engineers India (EIL) have 26 per cent stake each in the JV, while Fertilizers Corporation of India Ltd (FCIL) and Telangana government have 11 per cent stake each.

The NFL’s CMD said that the company is exploring the possibility of setting up a one million tonnes capacity DAP and phosphoric acid plant in Algeria in a joint venture with GSFC, RCF and NMDC.