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FACT plans to expand fertlisers production

12 April 2012

State-owned Fertilisers and Chemicals Travancore (FACT) in Kerala, India, is planning to invest Rs59.86bn ($1.16bn) to expand fertiliser production.

The expansion includes construction of a sulphuric acid plant, urea plant, NP complex fertiliser plant and ammonia-urea complex plant, according to the Business Standard.

The Rs46bn ($895m) ammonia-urea complex and Rs3.18bn ($61.8m) sulphuric acid plants to be built at Cochin, Kerala, are expected to produce ammonia, urea and acid of 2,800t per day, 3,500t per day, and 2,000t per day respectively.

The urea plant, which will have capacity to produce 1,500t per day, will be built at Udyogmandal, Kerala, with an estimated cost of Rs8.58bn ($166.9m).

The NP fertiliser complex is expected to cost around Rs2.1bn ($41m) with an installed capacity of 1,000t per day, and is to be built at the Cochin division.

The company plans to increase the NP complex fertiliser production to 1 million tonnes per annum, by installing an additional 1,000t per day NP plant, using ammonia, phosphoric acid and sulphuric acid as feedstocks.

Apart from construction of fertiliser plants, the company has proposed a 50:50 joint venture (JV) model to associate with public and private sector undertakings for purchasing the projects.

The company said it will also provide land and infrastructure facilities like water to the JV, as well as provide design and consultancy services through its design organisation, FACT Engineering & Design Organisation (FEDO).