SME Times News Bureau | 10 Apr, 2013
Tuesday signed an MoU with a Rajasthan-based private company to set up a
gas-based fertilizer plant in Tripura to meet the growing shortage of urea in
the eastern and northeastern states and adjoining Bangladesh.
The Oil and Natural Gas Corporation (ONGC), in association with Chambal
Fertilisers and Chemicals Limited (CFCL) and the Tripura government, will set
up the Rs.5,000 crore plant in northern Tripura.
"The Tripura government would share the 10 percent of the equity while the
remaining 90 percent would be borned equally by CFCL and ONGC," ONGC CMD
Sudhir Vasudeva said.
"We expect by 2016 the fertilizer plant would start producing urea and
three million cubic metres of gas would be required per day for the project,"
Vasudeva said, adding that the plant would annually produce 1.3 million tonnes
The Tripura government has asked the district magistrates of North Tripura and
Dhalai districts to select a suitable 800 to 1,000 acres of land for the fertilizer
CFCL chief finance officer Abhay Baizal said that the proposed fertilizer plant
would meet the large demand of fertilizer in eastern and northeastern states
and adjoining Bangladesh.
"After meeting the demand of the northeastern states, we would try to
supply fertilizer to Odisha, Bihar and West Bengal via Bangladesh," Baizal
ONGC had earlier sought expression of interest from companies with relevant
experience and track record to be a partner in the proposed gas-based
The ONGC has also been setting up a giant gas-based 726 MW capacity power plant
at a cost of Rs.1,000 crore at Palatana in southern Tripura to cater to the
electricity needs of northeastern states.
Founded by K.K. Birla, CFCL is one of the largest private sector fertilizer
producers in India.