Economy, Domestic Economy
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Iran-India JV for Chabahar Urea Plant

Iran-India JV for Chabahar Urea PlantIran-India JV for Chabahar Urea Plant

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.

 

Financialtribune.com