State-owned Rashtriya
Chemicals and Fertilizers (RCF) plans to invest Rs.4,000 crore to re-start its
Trombay plant and expand the Thal unit in Maharashtra.
RCF requires 2 million
metric standard cubic metres per day (mmscmd) gas to re-start the idle Trombay
facility and the same amount of gas to expand the Thal unit. RCF is likely to
finalise a purchase agreement to buy the 4 mmscmd of gas from GAIL. GAIL will
supply the gas from Reliance Industries' Krishna Godavari (KG) basin.
The company has
received an in-principle nod from the government.
RCF will produce 3
lakh tonne of urea at the Trombay plant and its fertiliser production capacity
is likely to go up by one million tonne from the existing 1.7 million tonne at
Thal.