Indian Farmers & Fertiliser Cooperative (IFFCO) has formed a joint venture company for setting up a 4.5 lakh tpa phosphoric acid unit in Egypt in collaboration with El Nasar Mining Co. The joint venture project would cost $325 million. (Rs.1,400 crore)

Christened Indo-Egyptian Fertiliser Co, the joint venture will implement the project with a debt equity ratio of 70:30. IFFCO is the major stake holder with 76 per cent while the balance 24 per cent will be held by ENMC.

El Nasar -- Egypt's largest rock phosphate mining company -- will supply rock phosphate, the basic raw material for the project. IFFCO will buy back the entire phosphoric acid, thus produced for its DAP plant at Kandla.

Mr. Surinder Kumar Jakhar, Chairman, IFFCO, has been elected Chairman of IEFC.

Necessary land for the construction of the project at Edfu, near the rock phosphate mines, has been allotted by the Aswan Governorate and the project had been accorded Free Zone status by the General Authority for Investments and Free Zones, Egypt.  Discussions with international financial institutions for syndication of about $220 million loan for the project were in progress. With the commissioning of the project, IFFCO would have assured supply of bulk phosphoric acid for its Kandla plant in India. (Phosphoric acid is the key raw material for production of di-ammonium phosphate, a phosphatic fertiliser.)

Also See:

IFFCO to invest $1 billion in India, abroad (31-May-05)