Coal India-NTPC JV to revive fertiliser plants
The Dollar Business Bureau
Coal India Limited announced that it has entered into an agreement with state-run power company NTPC Ltd. for revival of its two fertilizer plants.
According to the deal, the 50-50 joint venture between Coal India and NTPC will establish and operate new fertiliser (ammonia urea) complex at Gorakhpur in Uttar Pradesh and Sindri in Jharkhand units of the Fertiliser Corporation of India Limited (FCIL). The joint venture will also market FCIL’s products.
"The Ministries of Coal and Power directed CIL and NTPC to enter into joint venture for revival of these projects and hence a JV agreement was signed between the two companies," CIL said in an announcement.
During the meeting held at the Prime Minister’s office, both Coal and Power Ministries were allowed to involve more than one PSU from their respective ministries.
On April 7, the PMO had organised a meeting to discuss the revival of Sindri and Gorakpur units of FCIL and Brauni unit of Hindustan Fertiliser Corporation Ltd. (HFCL) and to set up an ammonia urea plant at each of the three locations.
CIL had last year formed a joint venture agreement with GAIL and fertiliser companies RCF and FCIL to incorporate a firm, which could be used to set up and operate new ammonia urea complex in Talcher, Odisha.
These deals are part of the government’s long-term vision to revive loss-making and closed fertiliser plants by establishing several joint ventures, and to transform these companies into profit-making PSUs, thus increasing domestic production of product.