Kochi: The fertilizer department has given state-run Fertilisers and Chemicals Travancore Ltd, or FACT, permission to set up a Rs670 crore urea plant, union fertilizer secretary Atul Chatruvedi said on Saturday. He said the firm could raise up to 20% of the funds itself, while the rest could come from financial institutions and some Central funding. The plant, with a proposed annual capacity of 500,000 tonnes, could be a complementary unit to the ammonia plant and could be in place over the next two years when the proposed Petronet LNG (liquefied natural gas) plant will be commissioned. The company is also expected to launch crop-specific fertilizers in the next three months for coconut, spices, banana and rubber farmers.
FACT shut down its 200,000 tonnes a year urea plant in 2003 due to the high price of naphtha, which is fuel for the plant. Once the supply of LNG is assured, the proposed new plant can start operations and become viable, said FACT chairman and managing director George Sleeba.