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Scarcity of raw materials such as rock phosphate, phosphoric acid and natural gas is prompting fertilizer companies to scout for overseas JVs. India's fertilizer company, IFFCO is all set to establish a urea plant in Canada with an estimated investment of $800 million (approx Rs. 4,480 crore).
The 1.25-million-tonne plant is likely to be built in three-tofour years. However, the company is yet to finalise a location for the plant. "We expect to finalise the location in the next two to three months. Then we will have to get an environmental clearance which takes around 18 months. It will be a JV with a Canadian partner through an IFFCO- led consortium of companies," said US Awasthi, IFFCO Managing Director. In order to secure natural gas, the company may team up with a shale gas company. It may rope in global financial services firm JPMorgan Chase for identifying and steering the deal for securing shale gas. Apart from shortage of natural gas, consistent policy hurdles are driving Indian manufacturers to look for overseas alternate options. Birla Corporation is looking at setting up a cement manufacturing unit with a coal based power plant in Ethiopia. The company has sought limestone and coal mining rights in Ethiopia. It has also set up wholly owned subsidiary - Birla Corporation Cement Manufacturing Plc - in Ethiopia for the purpose. Likewise, Tata Power on a look out for coal mines overseas, particularly in Indonesia and South Africa.
Also, SAIL-led conglomerate is likely to sign an investment agreement with the Afghanistan Government to develop steel as well as thermal power plants and necessary infrastructure by end-July 2012. The agreement envisages investment of about $10 billion (approx Rs. 6,000 crore). The Afghan Iron & Steel Consortium had emerged as the preferred bidder for mining exploration rights at three iron ore mines at Hajigak, having an estimated reserve of 1.7 billion tonne. SAIL has the maximum of 20 per cent equity stake in it, while NMDC and RINL hold 18 per cent each. This apart, JSW and JSPL hold 16 per cent each, while JSW Ispat and Monnet Ispat & Energy hold 8 per cent and 4 per cent stake, respectively.
Meanwhile, Crompton Greaves (CG), an electrical solutions provider has commenced operations of its new extra high voltage (EHV) switchgear manufacturing facility in Sapucaia do Sul in the state of Rio Grande do Sul, Brazil.
Other Developments of the month
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