Pact for gas-based fertilizer plant signed

The Krishnapatnam port area in the State is all set to have another major industry.

The Andhra Pradesh Government has succeeded in convincing Chinese major, Huanqiu Contracting and Engineering Corporation (HQCEC) for setting up a gas-based fertilizer plant near the Krishnapatnam port. The proposed plant, with an estimated investment of Rs. 10,183 crore, would be executed by the HQCEC in association with Malaysia-based Isomeric Holdings and LEPL Ventures of the State. A memorandum of understanding to this effect was signed between the AP Economic Development Board, Industries and Commerce department and the three companies on Monday.

The development comes after Chief Minister N. Chandrababu Naidu, presently in China to attend the meeting of the World Economic Forum being held at Tianjin, held discussions with the senior management of the HQCEC. An official communication said the HQCEC, affiliated to the China National Petroleum Corporation, had over five decades of track record in setting up major, medium and small industries. The company had expertise in engineering, procurement, construction, commissioning and supervision of major projects while the Isomeric Holdings had proven track record in setting up gas-based projects, the communication said. According to the MoU, construction works on the plant would commence in the next fiscal and the project would provide employment to over 5,000 people.

The Rs.10,183-crore project near Krishnapatnam will be executed by three companies