NTPC-Coal India JV to help revive Fertilizer Corp of India

State-run National Thermal Power Corporation Ltd (NTPC) and Coal India Ltd (CIL) have signed a joint venture agreement to revive the plants owned by Fertilizer Corporation of India Limited (FCIL).

The JV will take up the revival of FCIL plants at Sindri in Bihar and Gorakhpur in Uttar Pradesh by setting up an ammonia urea plant at each location, NTPC stated in a release.

NTPC and CIL formed the joint venture  on Monday, which will set up two urea factories on the premises of ailing Fertilizer Corporation of India Ltd (FCIL) to help in its revival.

''The joint venture company would initially be incorporated with equal equity (50:50) participation from NTPC and CIL. It contains provision of inducting strategic partners at a later date depending upon business requirement of the company,'' NTPC said in a statement.

The JV will build urea production facilities on the premises of ailing Fertilizer Corporation of India Ltd (FCIL) at Sindri in Bihar and Gorakhpur in Uttar Pradesh.

''The joint venture company would initially be incorporated with equal equity (50:50) participation from NTPC and CIL. It contains provision of inducting strategic partners at a later date depending upon business requirement of the company,'' NTPC stated in a release.

The move to rope in financially sound PSUs for revival of the Feriliser Corporation units follow lukewarm response from private partners to revive the sick fertilizer companies.

Details of the JV, including the capacity of the proposed plants and the investment required as also the hiring of consultant, are yet to be worked out, say reports.

Meanwhile, reports say the government may allow fertiliser units to use natural gas foe urea production to make fertiliser production viable considering the heavy investment needed for fertiliser units.

Besides the two Fertiliser Corporation units, there are 10 unviable units belonging to FCIL, Hindustan Fertilizer Corp Ltd, Fertilizers and Chemicals Travancore Ltd, and Brahmaputra Valley Fertilizers Ltd.