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Indian fertiliser companies are planning to invest around $5 billion (Rs 21,000 crore -- Rs 210 billion) in overseas joint ventures over the next three years. These companies are in negotiations for 19 such ventures, said government officials. These joint ventures are aimed at sourcing nitrogenous, phosphatic fertilisers and other raw materials.
The companies involved in the talks include domestic fertiliser majors such as Indian Farmers Fertiliser Cooperative (Iffco), Rashtriya Chemicals & Fertilisers (RCF), Nagarjuna Fertilisers & Chemcials, Coromandel Fertilisers & Mangalore Chemicals & Fertilisers among others. The talks are being spearheaded by the department of fertilisers, the nodal agency responsible for adequate availability and timely supply of fertilisers across the country.
While the proposed ventures in Argentina, Canada, Jordan, Morocco and Ukraine are primarily aimed at potash production, the government is looking at countries such as Algeria, Australia, Azerbaijan, Egypt, Iran, Kuwait, Mozambique, Nigeria, Ukraine and Saudi Arabia for ammonia and urea fertilisers.
The department of fertlisers has already announced plans of Coromandel Fertilisers and Gujarat State Fertiliser Co to set up a JV with Tunisian firm Group Chimique Tunisia for setting up a phosphoric acid production facility.
Similarly, RCF is joining hands with South African firms for setting up integrated fertiliser plant in Mozambique, based on rock phosphate from Foskar mines in South Africa and gas from Mozambique.
Officials added that the attempt is to encourage joint venture ammonia and urea projects in countries where adequate gas is available at reasonable prices. These JVs will also insulate fertiliser companies from the vagaries of sudden increase in imported input prices. Since fertiliser is sold at subsidised rates in India, efforts to cut production cost will have a direct impact on the government's subsidy burden.
