Indian Farmers Fertiliser Co-operative has planned to increase the urea capacity at its Phulpur and Aonla units in Uttar Pradesh. IFFCO would be spending Rs.400 crore towards expanding the combined capacity of these two units from 37 lakh tpa to 42 lakh tpa.

IFFCO would also spend Rs.100 crore towards further revamping the Paradeep plant in Orissa that it recently took over from the Oswal Group for a consideration of Rs.2,300 crore. This Rs.100 crore would be in addition to the Rs.200 crore already invested in revamping the plant.

IFFCO would be financing the Rs.500 crore capital expenditure through internal accruals.

Incidentally, IFFCO is also planning to raise $250 million (around Rs.1,200 crore) in external commercial borrowings. These proceeds would be used to part-repay the Rs.2,000 crore (including bridge loan of Rs.1,200 crore) that IFFCO had taken from ICICI Bank to part-finance the Paradeep plant takeover.

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