Ramagundam Fertilizers And Chemicals Limited (RFCL) was incorporated on 17th Feb, 2015 for setting up Gas based Urea manufacturing plant at Ramagundam with 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) with 26% equity each by NFL & EIL. FCIL has been granted 11% equity in terms of CCEA approval. State Government of Telangana has subscribed for equity participation of 11%. 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), the Company had achieved 100% Financial Closure for the Project.
RFCL declared zero date of the Project on 25th September, 2015. The commissioning of the Project was anticipated by June 30, 2020 (excluding the likely period to be impacted by Covid-19 uncertainty). The extent of effect due to Covid-19 would be evaluated once the situation gets normalized. As on date the project has achieved 99.6% overall progress. Currently pre-commissioning and commissioning activities are going on and production of urea shall be achieved in days to come.
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 shall provide Engineering Procurement Construction Management (EPCM) services to RFCL for execution of the Project.
- b) NFL shall provide marketing services to RFCL in relation to the products produced by the JVC.
- c) FCIL executes the Concession Agreement and the Lease Deed in favour of the RFCL. FCIL shall also be responsible for handing over the existing usable assets at the Land to RFCL,free of all encumbrances.
- d) Both EIL and NFL shall assist 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 8 th July,2016 for laying Gas pipeline from Mallavaram to Battery limits of RFCL Plant.
The Foundation Stone Laying Ceremony was held on 7 th August, 2016 through the hands of Hon’ble Prime Minister, Shri. Narendra Modi at Gajwel, Dist. Medak, Telengana.
RFCL has achieved various milestone in execution of the Project of setting up of Urea Plant at Ramagundam. All major Contracts/Orders have been placed and construction activities at site are in full swing.