Indian Farmers' Fertiliser Co-op expects to achieve financial closure for its $325 million phosphoric acid plant in Egypt by November 2006, according to reports. International Finance Corporation that has been appointed as lead arranger is in the final stages of appraising the project.

The project is being implemented by Indo-Egyptian Fertilizer Co -- a 76:24 joint venture between IFFCO and El Nasr Mining Co (an Egyptian government owned enterprise). The joint venture has already acquired 1,000 acres for the project and has been granted major fiscal incentives by the Egyptian government. All capital goods imported for the project would be duty free and the income of the company would be tax free for 10 years.

The joint venture aims to produce 4.5-5.0 lakh tonnes of phosphoric acid that would purchased entirely by IFFCO for its di-ammonium phosphate plants in India. El Nasr will supply the entire requirement of rock phosphate -- the key raw material for phosphoric acid production.

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IFFCO launches Egyptian venture (23-Nov-05)