Hyderabad-based Nagarjuna group fertilizer company Nagarjuna Fertilizers and Chemicals Ltd (NFCL) is planning to expand its fertilizer facility in Kakinada, Andhra Pradesh, by setting up a 1.3 million tonne per annum brownfield urea project. This will take up the total capacity of the Kakinada plant to around 3 million tonnes per annum. The Kakinada facility currently has two plants making urea and ammonia with. The new expansion facility is slated to come up within the existing complex and NFCL is planning to invest over US$ 0.91 billion in the setting up of the new urea plant.
The company is already understood to have sought a 2.4 mmscmd (million metric standard cubic meters per day) gas allocation for the expansion project by 2014-15 and has applied for the necessary approvals for the same. NFCL, the flagship of Nagarjuna group that was set up in 1986-87, manufactures and markets plant nutrients under the Nagarjuna brand, and they are the single largest private sector investment in southern India. NFCL has also signed a MOU (memorandum of understanding) with Nigeria, which is Africa’s biggest oil producer and has the continent’s largest gas reserves, to build petrochemical and fertilizer plants in the southern Delta state and in Lagos, the commercial capital.