Tuesday, November 22, 2005
IFFCO in JV with Egyptian El Nasar
Press Trust of India
New Delhi, November 22, 2005
Indian Farmers Fertiliser Cooperative Ltd, in collaboration with Egyptian El Nasar Mining Company, has launched Indo-Egyptian Fertiliser Company' for setting a $325 million phosphoric acid project in Egypt.
The JV project is scheduled to be commissioned in early 2009, an IFFCO statement said.
The mega project to be set up at an estimated cost of $325 million would be financed with the debt equity ratio of 70:30, it added.
IFFCO would have an assured supply of nearly one million tonne bulk phospheric acid for its Kandla plant in Gujarat once the JV gets commissioned, IFFCO Managing Director US Awasthi said.
The Indian fertiliser cooperative major would have 76 per cent equity while the balance 24 per cent would be held by its Egyptian counterpart in the JV.
ENMC, Egypt's largest rock phosphate mining company, will supply basic inputs for the project while IFFCO will buy back the entire phosphoric acid output.
The land needed for construction of the project at Edfu, near the rock phosphate mines, has already been alloted by the Aswan Governorate, while the project also received free zone status from the General Authority for Investments and Free Zones, Egypt.
Discussions regarding the syndication of about $220 million loan for the project are in process, Awasthi added.
© HT Media Ltd. 2005.