RAMAGUNDAM FERTILIZERS AND CHEMICALS LIMITED (RFCL) was incorporated on 17th Feb, 2015 to set up natural gas-based ammonia urea complex along with offsite & utility facilities at Ramagundam, Telangana with design capacity of 2,200 MTPD Ammonia Unit and 3,850 MTPD Urea Plant.
RFCL is a Joint Venture Company of National Fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India Limited (FCIL) (Promoters) with 26% equity each by NFL & EIL. FCIL has been granted 11% equity in terms of CCEA approval. Govt. of Telangana has taken equity participation of 11% equity.
With the signing of Share Subscription Cum Shareholders Agreement (SSSHA) on 18th August, 2018 amongst RFCL, its Promoters and Investors, leading to Equity participation of 14.3% of Equity Capital by GAIL (India) Ltd. and 11.7% of Equity Capital by HTAS Consortium (consisting of HT Ramagundam A/S, IFU and Danish Agribusiness Fund, Denmark).
RFCL declared its commercial operation of the Ramagundam Unit on March 22, 2021. For the financial year 2022–23, RFCL produced 8,40,436 MT and dispatched 8,43,266 MT of neem-coated prilled urea. For financial year 2023–24, RFCL produced 8,16,211MT and dispatched 8,19,335 MTtill December 31, 2023.Going forward RFCL endeavours to produce 12.7 Lakh MT per annum at 100 % capacity utilization.
The financial turnaround, with the company earning profits from the financial year 2022-23 onwards and experiencing significant profitability growth in the first half of the financial year 2023-24, is a positive outcome. This suggests effective strategic planning, efficient execution of plans, and a resilient organizational structure. Overall, the narrative paints a picture of a company that faced challenges head-on, demonstrated resilience, and ultimately achieved success under strong leadership and teamwork.
The comparative position for FY 2022-23 vis-à-vis H1 2023-24 is as under:
Urea is a highly concentrated, solid, nitrogenous fertilizer, containing 46.0% Nitrogen. Itis completely soluble in water hence Nitrogen is easily available to crops.It contains Nitrogen in a milder form which changes to ammonical forms and is retrieved by soil colloids for longer duration. Urea is available in granular form and can be applied by drill and broadcasting.Urea is ideally suitable for all types of crops and for foliar spray which instantly removes nitrogen deficiency. Urea also has a strong and long lasting effect on crop resulting in bumper crops. Carbonic acid present in Urea helps in absorption of other nutrients like phosphate and Potash by roots of crop.Saipem-Italy is process licensor for this Urea Plant.
Ammonia is crucial for the world's agricultural industry. All fertilizers that contain nitrogen are produced by using Ammonia. Ammonia is a colorless gas with a characteristic pungent smell. It is lighter than air, its density being 0.589 times that of air.The liquid boils at −33.3 °C (−27.94 °F), and freezes at −77.7 °C (−107.86 °F) to white crystals. Production of fertilizers is by far the most important use of ammonia. India is the third largest producer of ammonia in the world. Globally, approximately 88% (as of 2014) of ammonia is used as fertilizers either as its salts, solutions or anhydrously. When applied to soil, it helps provide increased yields of crops such as maize and wheat. 110 million tons of Ammonia are applied each year throughout the world. Haldor Topsoe-Denmark is the Process Licensor for this Ammonia Plant.
RFCL declared zero date of the Project on 25th September, 2015. The commissioning of the Project is anticipated by December, 2019.
In terms of the Joint Venture Agreement (JVA) responsibilities undertaken by the Promoters of Ramagundam Fertilizers And Chemicals Limited (RFCL) inter alia are as follows:
- a) EIL provided Engineering Procurement Construction Management (EPCM) services to RFCL for execution of the Project.
- b) NFL is providing marketing services to RFCL to facilitate sale of Urea.
- c) FCIL executed the Concession Agreement and the Lease Deed in favour of the RFCL.
- d) Both EIL and NFL are assisting in operations and maintenance activity (O&M) as per the requirements of RFCL.
For transportation of Gas, RFCL has entered into Gas Transportation Agreement with M/s GSPL India Transco Limited (GITL) on 8th July,2016.LT-RLNG is being supplied by M/s GAIL under GSA (Gas supply Agreement ) dated 17th November,2017.
Post achievement of SCOD (22nd March,2021), following milestone have been achieved.