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Rashtriya Chemicals gives in-principle nod to set up DAP plant in Algeria

Rashtriya Chemicals gives in-principle nod to set up DAP plant in Algeria
There are large deposits of rock phosphate in Algeria.

The board of state-run Rashtriya Chemicals and Fertilisers Ltd (RCF) has given an in-principle approval to develop rock phosphate mines and setting up a diammonium phosphate (DAP) plant in Algeria on a joint venture basis.

InfraCircle on 22 December last year reported that RCF in partnership with state-run National Mineral Development Corp. (NMDC) is exploring how to set up a manufacturing plant for soil nutrient DAP in Algeria, North Africa. 

“Recently, the board of RCF has given its in-principle nod for exploring rock phosphate mine and setting up a DAP plant in Algeria,” said a senior government official, requesting anonymity, further adding that feasibility for the project needs to be seen now.

Another official, who did not wish to be named, said that the company will be carrying out a due diligence for exploring the possibility via a third party with an estimated cost of Rs.5 crore.

“The cost of due diligence will be shared equally among four players including National Fertilisers Ltd (NFL), RCF, Gujarat State Fertilizers & Chemicals Ltd (GSFC) and NMDC,” said the second official quoted above.

A senior fertiliser department official had earlier told InfraCircle that India’s dependency on imports in case of phosphates at present is around 90% and the country need to look at new geographies, where fertiliser can be brought back into the country under long term off-take agreement.

India imported around 6 million tonne of DAP during 2015-16, while imports during the first eleven months of the current fiscal stands at 4.37.

There are large deposits of rock phosphate (raw material) in Algeria which can be mined by NMDC, said a third official, requesting not to be named.

According to information available on the website of fertilisers department, the government has been encouraging Indian companies to establish joint ventures abroad in countries which are rich in fertilizer resources for production facilities with buyback arrangement and to enter into long-term agreement for supply of fertilisers and fertiliser inputs to India.

India imports around 2 MT of urea every year from OMIFCO under a long-term offtake agreement between the government and OMIFCO. The import of urea from OMIFCO is done through fertiliser cooperatives Indian Farmers Fertiliser Cooperative Ltd (IFFCO) and Krishak Bharati Cooperative Ltd (KRIBHCO).


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