Cabinet okays applicability of New Investment Policy to Ramagundam Fertilizers & Chemicals Ltd.

New Delhi, June 10, 2021

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its approval for the proposal of the Department of Fertilizers for extension of the applicability of the New Investment Policy (NIP)-2012, read with its amendment dated October 7, 2014, for the Ramagundam Fertilizers and Chemicals Limited (RFCL).

RFCL is a joint venture company consisting of National Fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizers Corporation of India Limited (FCIL) incorporated on February 17, 2015. It is reviving the erstwhile Ramagundam Unit of FCIL by setting up a new gas-based greenfield neem coated Urea Plant with an installed capacity of 12.7 lakh metric tonnes per annum (LMTPA).

The cost of the RFCL Urea project is Rs 6165.06 crore. Gas to RFCL plant is supplied by GAIL through the MBBVPL (Mallavaram-Bhopal-Bhilwara-Vijaipur Gas Pipeline) of GSPL India Transco Limited (GITL).

The state-of-the-art gas-based RFCL Plant is part of the initiative taken by the Government to revive the closed urea units of FCIL/HFCL to achieve self-sufficiency in the urea sector. The start of the Ramagundam plant will add 12.7 LMTPA indigenous urea production. It will be one of the largest fertilizer manufacturing units in South India.

RFCL has the latest technology HTER (Halder Topse Exchange Reformer) to save energy in the production of Urea among single train largest capacity plants, 140 meter high prilling tower to ensure best quality urea prills, fully automated bagging and rail/truck loading facility for dispatch more than 4000 MT urea per day, MCR (Main Control Room) equipped with DCS (Distributed Control System), ESD (Emergency Shutdown system for improved safety and availability), On-line MMS (Machine Monitoring Systems), OTS (Operator Training Simulator), Environment monitoring system.

The facility integrates the world’s best technologies aiming to meet the demand for urea in Telangana as well as in the other Southern and central states of India, namely Andhra Pradesh, Karnataka, Chattisgarh and Maharashtra. The urea produced at RFCL will be marketed by National Fertilizers Limited.

The Government is taking steps to revive five closed units of FCIL / HFCL by setting up new Ammonia Urea Plants of 12.7 LMTPA capacity each at Ramagundam (Telangana), Talcher (Odisha), Gorakhpur (Uttar Pradesh), Sindri (Jharkhand) and Barauni (Bihar) through the formation of joint ventures of leading PSUs with an investment of about Rs 40,000 crore.

On operationalization of these plants, indigenous urea production will be increased by 63.5 LMTPA which will reduce the import of urea to that extent and will save a huge amount of foreign exchange, an official press release added.


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