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Reliance Industries planning fertiliser plant, says report

Reliance Industries planning fertiliser plant, says report
PTI
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First Published: Tue, Jul 24 2007. 01 36 PM IST
Updated: Tue, Jul 24 2007. 01 36 PM IST
Mumbai: India’s top private energy firm, Reliance Industries, plans to build a fertiliser plant that will use natural gas to be produced from its fields off India’s east coast, the Economic Times reported on Tuesday 24 July.
Reliance, India’s most valuable firm, has submitted a proposal to the fertiliser ministry to set up a plant with a capacity of up to 4 million tonnes, the newspaper said.
“We are confident that we can build the plant at 30-40% lower costs,” the paper quoted an unidentified Reliance official as saying.
Reliance is developing two deep-sea gas fields in the Krishna Godavari basin, off the southern state of Andhra Pradesh, and plans to produce up to 80 million cubic metres per day of gas by the second half of 2008/09.
The newspaper said the proposed fertiliser plant would buy gas from Reliance at market prices. It did not say where the factory will be located.
A Reliance spokesman could not be immediately reached for comment.
Most of India’s fertiliser plants run on natural gas, which is sold by state-run gas producers at subsidised rates to keep fertiliser prices low and affordable for farmers.
But limited gas supplies often force fertiliser firms to switch to expensive naphtha, raising their production costs.
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First Published: Tue, Jul 24 2007. 01 36 PM IST