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Business News/ Companies / NMDC-led consortium may buy 30% stake in Russian firm Acron
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NMDC-led consortium may buy 30% stake in Russian firm Acron

Consortium also looking to enter into offtake agreement for import of potash from Russian firm

Buying a 30% stake in Acron would cost around Rs1,000 crore, an official said. Photo: AFPPremium
Buying a 30% stake in Acron would cost around Rs1,000 crore, an official said. Photo: AFP

New Delhi: State-run National Mines Development Corporation (NMDC)-led consortium is planning to buy 30% stake in the Russian potash firm Acron, which may result in an investment of around 1,000 crore.

Rashtriya Chemicals and Fertilizers (RCF), National Fertilizers Ltd (NFL), Fertilizers and Chemicals Travancore Ltd (FACT) and fertilizer cooperative Kribhco are the four other entities which are part of this consortium.

Along with purchasing 30% stake, the consortium is also looking to enter into an offtake agreement for import of potash from the Russian firm, a top official of NMDC told PTI. At present, NMDC is conducting a feasibility study at a cost of 2 crore on this proposal, the official added.

The official also said that buying a 30% stake in Acron would cost something around 1,000 crore.

When contacted a senior official in the government confirmed the development and said that final decision would be taken after the final report of feasibility study, and added, “if proposal turned out to be feasible an agreement may be signed during the visit of Russian President to the country this year."

India imports 100% of its requirement of potash, which was about 3 million tonnes (MT) in 2013-14. In 2013-14, potash was imported at average price of $390 per tonne. In the current fiscal so far the country has imported 2.7 MT of potash at an average price of about $330 per tonne.

Indian Potash Ltd is one of the major importers of potash while Russia and Ukraine are major suppliers. Potash is a decontrolled fertilizer and government pays fixed subsidy on it. It is mainly used in the form of Muriate of Potash (MoP) by farmer as soil nutrient and also used in the manufacturing of complex NPK fertilizers.

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Published: 12 Nov 2014, 10:06 PM IST
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