Rashtriya Chemicals and Fertilizers (RCF) plans to turn Phase III of its Thal unit in Maharashtra into a separate company, as it looks to rope in a strategic partner for the Rs 4,000 crore project.

According to sources, RCF is exploring an initial public offering (IPO), as the Thal III project is nearing financial closure and is expecting additional funds from the government's proposed disinvestment plan.

The Phase III expansion at Thal is expected to help RCF increase urea production capacity to 3.3 million tonne from around two lakh tonne. Currently, the facility is also being revamped at an investment of Rs 500 crore that will add 2.5 lakh tonne to its existing capacity.

The company has also lined up capital expenditure of around Rs 6,000 crore over the next four-five years to increase its urea capacity to over four million tonne. The company is in the process of reviving a sick fertiliser unit at Barauni through a JV with National Fertilizers and Krishak Bharati Co-operative.

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RCFL to restart production at urea plant (22-Apr-09)

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