State-owned National Fertilisers Ltd and FACT are in talks with a Syrian firm Adi Establishment for setting up a multi-crore joint venture unit in Egypt.
"We are in the stage of negotiation with a Syrian firm to form a joint venture company for setting up a urea ammonia plant in Egypt," NFL CMD G S Mangat, who is also looking after the affairs of FACT (Fertiliser and Chemicals Travancore Ltd), told reporters in the Capital.
Mangat said for enhancing the production capacity, the company was in a lookout for joint venture projects overseas. The proposed capacity of the plant would be 10 lakh tonne.
He said the Syrian firm has assured that gas would be provided at $1.5 per million BTU (British Thermal Unit) for setting up the facility.
NFL has sought documents from the Syrian company to analyse their financial strengths, he said adding if they are found satisfactory, the company would go ahead with the proposed joint venture.
The understanding would be based on sharing of equity in the ratio of 50 per cent for Syrian firm and remaining 50 per cent by NFL and FACT at a ratio yet to be finalised, Mangat said.
He said it was feasible to set up plants overseas only if gas was available between 1.25-1.5 $per million BTU.
The memorandum of intent for the joint venture was originally signed by FACT and NFL would also join the planned joint venture project, Mangat said.