The cost of Rashtriya Chemicals & Fertilizers' (RCF's) project, at Thal in Maharashtra, is likely to escalate, due to a delay in getting the necessary clearances.

The ammonia urea project, located at Thal in Raigarh district, is yet to receive approval from the government to commence construction work on the project. As a result of this, the project cost is likely to escalate by Rs 500 crore from Rs 4,100 crore to about Rs 4,600 crore.

The company intends to set up a plant, with a total capacity of 1.27 million tpa, on 200 acre. In 2013, the project had obtained approval from the pre-Public Investment Board (PIB) but is presently stuck at the PIB level.

In 2012, RCF had awarded the contract to execute the project, to Tecnimont ICB (TICB), for Rs 4,112.50 crore, but construction work on the project has not yet started in the last two years.

In March 2014, the technology partner, TICB had opted out of the project, as it became unviable for the company at the cost at which it was awarded to them. At present, the company is contemplating issuing new tenders inviting bids for a technology partner for the project.

Related Link:
Project profile