A leading producer of fertilizers in India Rashtriya Chemicals and Fertilizers has formed a joint venture with Indian firm Gujarat State Fertilizer Corporation and Iranian counterpart Faradast Energy Falat Company (known as Falat) for the development of a 1.3 million-ton urea plant in Iran’s Chabahar.
The project, which entails an investment of about $1 billion, is export oriented such that its product will be shipped back to India.
RCF Chairman and Managing Director Manoj Mishra told Business Standard, RCF and GSFC together have proposed to hold a combined 51% stake in the joint venture, with the remaining 49% going to Falat.
“However, the talks are currently underway,” he said.
India’s annual urea demand is about 30-31 million tons, while the domestic production is 23-24 million tons. The Indian government is encouraging domestic companies to establish joint ventures in countries rich in raw materials required for fertilizer production and in the framework of buyback deals.
