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RCF plans Rs 10,000-cr capex over 5 years

RCF plans Rs 10,000-cr capex over 5 years
PTI
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First Published: Sun, Jul 08 2007. 05 31 PM IST
Updated: Sun, Jul 08 2007. 05 31 PM IST
Mumbai: Public sector enterprise Rashtriya Chemicals and Fertilizers (RCF) has planned a capital expenditure of Rs 10,000 crore for the next five years and will consider tapping the capital market for raising funds.
The company is talking to the government on its initial public offer and the process would take six to eight months, RCF Chairman and Managing Director Uday Shankar Jha said here.
Of the Rs 10,000 crore capex planned, the debt-equity ratio would be 2:1 and hence the company could borrow up to Rs 7,000 crore while the rest could come from its IPO, he said.
“The company expects to finance its projects largely through internal generation and debt, apart from other modes of generating funds as may be appropriate,” it said in its annual general report.
With the capex money, RCF wants to revive two units--Hindustan Fertilizer Corporation’s unit in Durgapur, West Bengal, and Fertilizer Corporation of India unit in Talcher, Orissa.
Both the units would absorb about Rs 6,500 crore, Jha said.
It also plans to set up a brownfield ammonia urea complex at Thal, Maharashtra, for Rs 2,700 crore, eyeing the “evergrowing demand” for nitrogenous fertilizer.
“We have done the feasibility study and a techno-economic feasibility report has been submitted to the government for clearance,” Jha said.
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First Published: Sun, Jul 08 2007. 05 31 PM IST