September 2, 2012 10:04:42 am
State-run Rashtriya Chemicals and Fertilisers (RCF) has lined up a capex of Rs 6,300 crore to be spent over the next five years to fuel its expansion and is also considering to invest in Canadian potash mines.
“We have planned a capex of Rs 6,300 crore over the next five years for our capacity expansion plans,” company’s Chairman and Managing Director R G Rajan told reporters here.
RCF,he said,is also considering to invest in mines in Canada as a joint venture,he said.
“We will appoint a consultant to identify potash mines in Canada that will guarantee long-term supply of the soil nutrient. However,things are at a very preliminary stage,” he added.
The company has proposed to set up a coal-based fertiliser plant at Talcher,Odisha,to be developed jointly by Coal India and RCF and an ammonia urea plant in Ghana,which will be developed in a joint venture with the Ghana government.
Besides,RCF is expanding the capacity of its existing ammonia plan in Thal,Maharashtra,which is a part of its ‘Thal Ammonia Revamp Project’.
RCF is also planning to set a single super phosphate manufacturing unit at Thal based on imported sulphur and rock phosphate.
“The Thal expansion project is underway and we expect it to be completed soon. We will be spending Rs 300 crore for this project,which will be funded through internal accruals. We expect all the proposed projects to be completed within next five years,” he said.
He said funds would be raised through a mix of internal accruals and debt.
“Besides,in the JV projects,our investments will be less as the expenditure will be shared by both the parties,” Rajan added.
Meanwhile,Rajan said the company expects to divest 12.5 per cent stake by the end of this fiscal.
“We have approached the Department of Fertiliser and the Department of Disinvestment and we expect the stake sale to happen in the fourth quarter of this year,” Rajan said.
Currently,the public shareholding in the company is 7.5 per cent and with the additional 12.5 per cent sale,it would increase to 20 per cent.
The company is eyeing for the Navratna status,he said.
“We are eligible for having Navratna status as we have fulfilled all the criteria,including having independent directors on the board. We have approached the government for this,and we expect to get the status soon. This will give us
powers to take some decisions by ourselves and not depend on the government for approvals,” Rajan added.
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