India ‘hopeful’ of OMIFCO capacity expansion

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A keenly hoped-for expansion of the ammonia-urea plant of Oman-india Fertilizer Company (OMIFCO) in Sur — a signature bilateral investment by the two countries — will have beneficial implications for both sides, according to a top Indian Minister currently on an official visit to the Sultanate.

Suresh Prabhu, (pictured) Minister of Commerce and Industry, and Civil Aviation, Government of India, described the $1 billion OMIFCO project — a partnership of Oman Oil Company (50 per cent), Krishak Bharati Cooperative Limited (Kribhco) 25 per cent, and Indian Farmers Fertilisers Cooperative (IFFCO), 25 per cent — as a hallmark of economic ties between the two countries.

Prabhu, who is currently on a three-day official visit to Muscat, said: “I am glad that the OMIFCO Plant has been producing urea and ammonia to its full capacity. I had visited Oman in 1999 for finalising the details of the Project and I am glad to see that it has emerged as one of the best joint ventures between the two countries. We are happy to import the urea and ammonia produced by OMIFCO Plant which meets India’s growing requirements for fertilizers.”

Asked about the status of ongoing efforts between the two sides for an expansion of the capacity of the fertilizer project, the minister noted: “Both India and Oman will benefit from expansion of the production capacity of OMIFCO Plant and I am quite confident the concerned authorities of Oman will look favourably into the additional requirements of natural gas for expanding the production capacity of the plant through debottlenecking of the existing plant and building of a new line of production.”

All of the output from the joint venture project, comprising 1.65 million tonnes of urea and 250,000 tonnes of ammonia per year, is being shipped to India under a long-term offtake agreement. India has been keen for a significant expansion of capacity, but negotiations have stalled ostensibly on the price of natural gas as feedstock for the expansion. BILATERAL COOPERATION Prabhu arrived here on Sunday to attend a series of bilateral meetings scheduled in Muscat. “My current visit to Oman is aimed at co-chairing, together with my Omani counterpart, HE Dr Ali bin Masoud al Sunaidy, Minister of Commerce & Industry, the 8th Session of Joint Commission Meeting (JCM), which is the highest bilateral ministerial mechanism between the two countries