Nagarjuna Fertilizers and Chemicals Limited is a leading manufacturer and supplier of plant nutrients in India. We offer an attractive cost-benefit ratio by offering superior products and services in terms of functionality, quality, best prices, greater variety of products, offering better amenities such as ease of use and availability.
Nayarabad urea producer Nagarjuna Fertilizers and Chemicals Limited (NFCL) has embarked on an expansion plan of 4,500 rupees. It is installing a third plant in Kakinada in Andhra Pradesh that will increase the company's urea production by 1.3 million tonnes, bringing total production capacity to 2.9 million tonnes.
NFCL stated that the cost of the expansion will be financed through an "appropriate mix of debt and equity". Key project approvals have been obtained, such as environmental clearance, water allocation and natural gas contracts. It has awarded the early award of work to Technimont of Italy as part of the engineering, procurement and construction (EPC) contract.
Brown field expansion is an addition to the current NFCL capacity of about 1.6 million tonnes per year. The largest quantity proposed is already being marketed by the company through imports.
According to a press release from the company, it is the first project that has been taken for expansion after the Union government announced its fertilizer policy. The policy provides floor and ceiling price mechanism with a guaranteed return of 12% to 20% on equity. The policy also provides for compensation for the variation in the cost of input gas.
NFCL commissioned its first plant in 1991. Capacity doubled with the commissioning of its second plant in 1997. Both plants were renovated in 2007, resulting in increased capacity.