Gujarat State Fertiliser Corporation’s (GSFC’s) phosphoric acid plant in Tunisia, which is being built with Coromandel International and two Tunisian government-owned companies, is expected to be operational by December.
“We have an off-take agreement of 1.8 lakh tonne per annum (tpa) of phosphoric acid from the plant. This will be shipped to India from December and used at our DAP (di-ammonium phosphate) plant at Sikka in Gujarat,” said B M Bhorania, executive director of finance at GSFC.
This will bring the 9 lakh tpa DAP plant to full capacity utilisation from fiscal 2013-14 as against the current 60%.
Full capacity functioning will bring in additional revenues of around `1,500 crore from next fiscal.
Bhorania said the company will start ramping up the production at Sikka from the fourth quarter, will reach 100% capacity and go beyond that by the beginning of fiscal 2013-14.
“The benefits of a ramp-up of DAP capacity will reflect in the balance sheet from Q4 but complete benefit will come in FY14 numbers,” he said.
Over the next two years, the company is planning to set up a 5 lakh tpa unit at Sikka for complex fertiliser commonly called NPK (nitrogen, phosphorus and potassium). The NPK unit will make use of the additional phosphoric acid.
But some analysts were not impressed. Some of GSFC’s major projects are stuck due to uncertain fertiliser policy environment, they said.
For instance, the company’s `8,000 crore integrated fertiliser-and-chemicals complex at Dahej has not kicked off so far as it is still awaiting the urea policy from the Indian government. “The land has been acquired. The detailed project report is ready. The plant can be up and running in three years from the zero date,” said Bhorania.
Playing down concerns that erratic rainfall and low reservoir volumes could hit fertliser use, he said reservoir levels in Gujarat (where GSFC sells its products) are satisfactory and the company expects better volumes in the second half of the year.