Deepak Fertilisers to invest in port-based storage facility

The Times Of India - July 30, 2001

Business Times Bureau

Pune: Anticipating the depletion in the Bombay High reserves and short supply of natural gas to result in under-utilisation of its plant capacities, Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) has decided to invest Rs 20 crore in putting up a port-based storage facility for the import and storage of ammonia and methanol.

The around 30,000 metric tones storage facility is likely to be set up at Nhava Sheva adjacent to the company's existing phosphoric acid terminal, for which the company has approached the authorities for the necessary clearances. The facility is expected to be functional in 18 month's time. This was disclosed by C.K. Mehta, Chairman, DFPCL after the company's annual general meeting on Wednesday.

According to him, the port-based storage facility would enable better capacity utilization of downstream plants of the company and would serve as a precursor to establishing a firm footing for ammonia facilities in gas-rich countries.

Mr. Mehta also said that the company was in negotiations with the Iran government for putting up the gas-based petrochemical plant, which was originally planned to be set up in Tanzania but fell through.

Talking about other future plans, he pointed out that with the good response in the market to the company's Mahadhan Power 23:23:0 and availability of imported ammonia at reasonable prices, the company had decided to invest around Rs 25 crore in increasing its plant capacities of the ANP, ammonium nitrate melt and LDAN capacities.

While the ANP plant capacity would be increased from 2,30,000 tons per annum (MTPA) to 3,00,00 MTPA, the ammonium nitrate melt section capacity upped from 1,80,000 MTPA to 2,70,000 MTPA.

In a bid to improve cost- effectiveness, DFPCL has also appointed to consultancy firms to study the manpower levels and suggest means for rationalising manpower at all levels. The reports are expected within three months, Mr. Mehta said.

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