|Indian firms look for Iranian partners for $1.1b urea plant||
India-based Rashtriya Chemicals and Fertilizers (RCF) and Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) are looking for an Iranian partner to build a Rs70bn ($1.16b) urea plant at Chabahar in south-western Iran.
Citing two Fertilizer Ministry officials, Livemint reported that the companies have approached SBI Capital Markets (SBICAPS), a wholly owned subsidiary of State Bank of India (SBI), to find a partner in the Middle Eastern country.
One official said: "SBICap will make a list of potential partners from Iran for the joint-venture (JV)."
An official at the investment bank said: "We got the mandate only a few days back; it is too premature to comment on specifics."
"We got the mandate only a few days back; it is too premature to comment on specifics."
With this project, RCF and GNFC are seeking to tap cheaper gas offered by Iran to produce the farm nutrient and ship it to India.
India imports eight million tons of the fertilizer to cater to domestic demand.
The Ministry of Chemicals and Fertilizers is working to revive production at three plants operated by Fertilizer Corp. of India and plans to unveil a new urea investment plan offering incentives to establish new urea facilities.
Since 2007-8, urea production in India has been steady at 22 million tons per annum.
High gas prices, low gas availability and shortage of key fertilizer inputs in India has led domestic manufacturers to scout for local JV partners in countries where gas is comparatively cheaper, such as Canada and Africa.
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