RCF scouting for partner to build fertiliser plant in Iran

Rashtriya Chemicals and Fertilisers Ltd (RCF) on Sunday said it is scouting for opportunities abroad, including a joint venture to set up fertiliser plant in Iran.

'We are looking for an Iranian partner to build a $800-million urea plant in Iran, which has the second largest reserves of gas in the world. The plant will have 1.27 MT of urea production capacity. The Iranian partner will be selected by SBI Capital Markets (SBICAPS),' RCF Chairman and Managing Director R G Rajan told reporters here.

With this project, RCF and Gujarat Narmada Valley Fertilisers & Chemicals Ltd (GNFC) seek to tap cheaper gas offered by Iran to produce the farm nutrient and ship it to India. The project is expected to materialise after sanctions against Iran are lifted.

RCF is also exploring possibilities of entering into long-term offtake agreements for potash with suppliers in Canada. Commenting on domestic projects, Rajan said the company has drawn up a capex plan, which includes investment of Rs 300 crore in the current year and Rs 1,000 crore in the next year.