The new JV company is named as 'Ramagundam Fertilisers and Chemicals Ltd', in which both NFL and EIL will have 26 percent stake each, while FCIL will have 11 percent stake. The JV will scout for partners for the remaining stake.

"This is a gift of Makar Sankranti from the Centre to Telangana. This will be the first fertiliser plant in the newly crafted state," Fertiliser Minister Ananth Kumar said while speaking at the JV signing event here.

Since 1999, the production of urea and ammonia at the Ramagundam fertiliser unit, located about 240 kms away from Hyderabad, has been suspended due to non-viability.
The project is part of the NDA government's revival plan of Fertiliser Corporation of India Ltd (FCIL)'s closed units. NFL and Engineers India Ltd (EIL) have been nominated for revival of FCIL's Ramagundam unit by forming a joint venture company, NFL said in a BSE filing.
"The proposed complex shall be consisting of new ammonia and urea plant of 2200 tonnes per day and 3850 tonnes per day respectively and associated offsite and utility facilities," NFL CMD Neeru Abrol said.

Project cost is estimated at about Rs 5,000 crore, proposed to be financed with debt equity ratio of 70:30, with NFL's contribution of 26 percent of the equity. The project is targeted to complete in 2018, she added.

The plant will be based on natural gas as feed stock coming from proposed Mallavaram-Bhilwara pipe line and raw water will be fed from Sripada Yellampally Barrage already built on Goadavari river.

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