Government plans urea plant in JV with Qatar

Published: 16 Dec 2008 02:07:09 PST

The Indian government is in talks with Qatar for setting up a 1.6-million tonne (mt) fertiliser plant in the Gulf nation with a buyback arrangement to import urea at a fixed price to augment its domestic supply. India is keen to set up the urea plant in Qatar on the lines of Oman India Fertiliser Company (OMIFCO). In OMIFCO, Oman Oil Company holds 50 per cent equity, while 25 per cent each is shared by Indian Farmers Fertiliser Cooperative Ltd (IIFCO) and Krishak Bharati Cooperative Ltd (KRIBHCO). India is looking at a joint venture with Qatar wherein both the countries will have 50 per cent equity each in the proposed plant.
"We will soon send an invitation to Qatar for sending a team to negotiate the details of setting up the joint venture plant," said Atul Chaturvedi, secretary - department of fertilizers, Ministry of Chemicals and Fertilizer.
U S Awasthi, managing director, Indian Farmers Fertiliser Cooperative Ltd (IIFCO) added that Qatar has agreed to supply gas for the proposed urea plant if there is additional availability after making an assessment in 2011-12. 
 Also, there is a moratorium on fresh supply of gas in Qatar till 2011-12, he informed. As of now, India is a net importer of urea. The total overseas shipments of the fertiliser from abroad was worth a whopping $ 1 billion for a quantity of 6 mt in the last fiscal. As per government’s projections, the urea imports are likely to touch 10 mt by 2011.