KOCHI: The Union Ministry of Fertilizers and Chemicals initiative to reduce Indias dependence on urea import is likely to give new impetus to the proposal from the Fertilisers and Chemicals Travancore (FACT) to set up a new urea plant at its Udyogamandal division.
According to sources, the proposal for setting up a 1,500-tonne-per-day urea plant was forwarded to the Union Ministry about six months ago after FACT received in-principle approval for the project. The company is in the process of finding a consultant to prepare a detailed project report and is learnt to have nearly finalised the tendering process for the purpose. The FACT management has decided against revamping its naphtha-fired Cochin division urea plant, which was shut down in 2001. It had an annual capacity of more than three lakh tonnes.
The new proposal is to set up a urea plant, estimated around Rs.700 crore, utilising carbon dioxide produced at the 900-tonnes-per-day ammonia complex at the Udyogamandal division. The project has been timed with the expected availability of natural gas in Kochi by 2012