E-Paper
IFFCo to venture into infrastructure sector
FUELLED BY an almost 35 per cent growth in sales at Rs 9943 crore and healthy Rs 341 crore net profit during last fiscal, the Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has decided to make a big foray into the infrastructure sector.
FUELLED BY an almost 35 per cent growth in sales at Rs 9943 crore and healthy Rs 341 crore net profit during last fiscal, the Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has decided to make a big foray into the infrastructure sector.
With its financial muscle with US $2 billion plus-sales and technological competence in fertiliser projects, an IFFCO - led trans-national consortium, that includes Italian Thai Development Company Ltd (ITD) of Thailand, MAEDA Corporation of Japan and ITD Cementation India Ltd, has been pre-qualified, based on a global tender to develop Rs 2600 crore Mumbai Trans Harbour Link Project (MTHL) to construct a 22 km long bridge across the deep sea connection Sewri in Mumbai and Nhava in Nhavi Mumbai.
The project to be developed in Build Operate and Transfer (BOT) basis will be the first such venture in which IFFCO decided to take on stiff competition from six global consortia. The contracts are likely to be awarded to the successful bidder in 2007-08.Chairman, IFFCO SK Jakhar, disclosed that in its bid to ride the infrastructure boom, IFFCO has entered into a joint venture agreement with Chhatisgarh State Electricity Board (CSEB) to develop a 1000 MW coal-fired power project at Prem Nagar in the State.
The 74:26 joint venture christened as IFFCO Chattisgarh Power Ltd (ICPL) has been incorporated to take up the project shortly. With 74 per cent stake, the IFFCO will also have the management control through five of its nominees on the board.
Managing Director, IFFCO Dr US Awasthi, informed that while diversifying into infrastructure, IFFCO has continued its campaign to achieve backward and forward linkage in the fertilizers sector. As part of this drive, it has floated the Indo Egyptian fertilizer Co, a joint venture with Egyptian government’s EI Nasr Mining Co. The 76:24 joint venture will setup a plant to produce around 450,000 tonnes of phosphoric acid (P2O5) annually. IFFCO will enter into a 100 per cent buyback arrangement for the phosphoric acid produced from the JV Dr Awasthi said that SK Jakhar is the chairman of IFFCO.
Dr Awasthi informed that IFFCO has commitment to reduce the subsidy since it has taken all-important steps to switch over from naphatha to gas. IFFCO’s Phulpur unit, that has a capacity to produce 14.16 lakh MT of urea per annum, was operating on naphtha as a feedstock. This unit has now switched over from naphtha to gas, which will result in reduction in government subsidy bill by around Rs 1,000 crore per year.
Speaking on the occasion, Chairman, IFFCO SK Jakhar, expressed pleasure at the commencement of production at the recently acquired Paradeep unit after revamp.
