Singareni Collieries (SCCL) on Thursday received an invitation to invest in the revival of the now defunct Ramagundam unit of the Fertilizer Corporation of India (FCI).
Delegates from the National Fertilisers Limited (NFL) and Engineers India Limited (EIL) met the Chairman and Managing Director of SCCL N. Sridhar on Thursday, seeking partnership with the coal major in revival of the unit which is actively under consideration by the Union Government.
Both NFL and EIL have come forward to invest 26 per cent each, while FCI’s share would be 11 per cent. Search is on for the remaining 27 per cent shareholder, a press release from the SCCL said.
A team of officials from both the companies explained that the unit which was coal-fired earlier, would be run on gas henceforth, with its production capacity enhanced from 4.95 lakh metric tonnes to 12.7 lakh metric tonnes. There is a possibility for SCCL to obtain the Ammonium Nitrate for its explosive manufacturing units from Ramagundam unit, they informed. As of now, the chemical is being obtained from factories located in Maharashtra, 1,000 km away.
Alternatively, SCCL can also become a partner by supplying the 30 MW of energy required for the unit, the officials suggested.
Mr. Sridhar asked the team to send financial and technical proposals for the partnership, so that a decision can be arrived at.
The team was led by EIL’s Executive Director (Projects) V.K. Malhotra and General Manager (Finance & Accounts), NFL, Sunil Bhatia. GM (Business Development), SCCL, Ch. Narasimha Rao too participated in the meeting.
Delegates from NFL and EIL seek coal major’s partnership to revive the now defunct unit of Fertilizer Corporation
of India
