India revives plans for urea plant in Iran
India has revived its plan to set up a fertiliser plant in Iran with an investment of about Rs 5,000 crore and has asked the Persian gulf nation to offer long term gas contract for manufacturing the soil nutrient.
India had nominated Rashtriya Chemicals and Fertilisers (RCF), Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) and Gujarat State Fertilisers Corporation (GSFC) for the proposed 1.3 million tonne plant.
Indian companies have appointed SBI Capital to identify the Iranian partners for the joint venture project. India is planning to set up a urea
joint venture plant at Chahbahar in Iran, using natural gas as feedstock which is abundant in the country, with an estimated investment of Rs 5,000 crore.
The Indian government officials have conveyed to the Iranian authorities that they are looking for long-term gas contract at feasible rates. Both nations have been talking to each other since 2013, for setting up of a fertiliser plant in the Persian gulf nation, but talks were stuck over gas price issue.
The proposed urea joint venture plant in Iran would be on the lines of OMIFCO (Oman India Fertiliser Company) in Oman, where the Indian entities have jointly invested in urea manufacturing with local player.