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IOCL, FCIL & HFCL roped in to revive three ailing fertilisers units
Indian Oil Corporation (IOCL), Fertiliser Corporation of India (FCIL) and Hindustan Fertiliser Corporation of India (HFCL) were roped into the joint venture to revive Sindhri and Gorakpur urea units of Fertiliser Corporation of India. This joint venture will also revive the Barauni unit of HFCL, it has been recently decided. Initially, NTPC and Coal India formed a 50:50 joint-venture to revive the Sindhri and Gorakpur fertiliser units.
Subsequently, on the direction of the government, three new shareholders were inducted into the special purpose vehicle formed which will also revive the Barauni unit along with the Sindhri and Gorakpur units. According to a notice issued by Coal India, the joint venture will have a revised shareholding pattern in which Coal India, NTPC and Indian Oil Corporation will hold 29.67% each while FCIL and HFCL will hold the remaining 10.99% in the special purpose vehicle which has been christened
According to sources, three cash rich PSUs, IOCL, CIL and NTPC will cough up around Rs 50 billion in the form of equity in the special purpose vehicle to deliver on promises made by Prime Minister Narendra Modi in Uttar Pradesh, Bihar and Jharkhand. Revival of the three plants will require a total investment of Rs 180 billion. According to the deal the existing defunct units at these locations will be scrapped and new ones would be set up.
“Equity infusion in the proposed special purpose vehicle would be around Rs 1600 each by IOC, CIL and NTPC while FCI may cough up Rs 5 billion in the projects which is expected to be ready in three-four years. Each units is expected to cost Rs 60 billion. They would be gas based will be supplied by GAIL India,” a senior official from one of the PSUs said on condition of anonymity. Edinson Volquez Authentic Jersey
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