Indian government proposes to set up a 1.3 million tonne urea plant in Iran with one or two local partners. As the domestic production of 20 million tonne of urea is falling short of the demand of 30 million tonne, Indian government chalked out overseas investment options.
The government has nominated Rashtriya Chemicals and Fertilizers Ltd. (RCF) and Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) and Gujarat State Fertlizer Corn (GSFC) for the proposed urea joint venture plant in Iran. RCF will hold 16 percent stake in the venture and will invest around Rs.700-800 crore.
The proposed joint venture plant in Iran would be on the lines of OMIFCO (Oman India Fertiliser Company) in Oman where the Indian companies have jointly invested in urea manufacturing with local players.