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Indian firm to build giant fertilizer plant
2008-03-24 10:24:50
By Penzi Nyamungumi, VPO, Mumbai
An Indian firm has embarked on a USD 505 million (around 600bn/-) comprehensive strategic investment in the agricultural sector aimed at giving the country`s backbone sector a new push through manufacturing of fertilizers from gas.
The ambitious project is projected to generate 275 direct and over 200 additional jobs to the locals, and earn the country some USD 140 million, to be generated every year in foreign exchange, through export of surplus Urea and Ammonia to neighboring countries.
Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) based in Mumbai, India is currently doing ground works, including exploring the possibility of making a strategic investment in Tanzania for the manufacture of Urea fertilizer from gas.
Managing Director of the corporation Sailesh Mehta told Vice President Dr. Ali Mohamed Shein, who is on official visit of India, that they propose to set up a fertilizer complex in southern Tanzania at the port of Mtwara where significant reserves of gas have been found.
He said last week they were in Tanzania where they met and shared views with the Tanzania Investment Centre (TIC) and Ministry of Energy and Minerals officials. The team visited Mtwara as well.
``Our visit was very positive. What remains now is fast track mechanism to introduce it,``he argued.
Mehta said the proposal envisaged converting the gas into ammonia, from which urea would be made and such conversion is probably the best way to utilize the gas for the betterment of the Tanzania economy.
``It would bring investments of about USD 505 million, and generate direct employment for up to 275 people for operating the facilities``, he said. Mehta also added that the local availability of urea would improve agriculture yields, bringing in more revenue into the hands of farmers.
He further said foreign exchange of about USD 140 million would be generated every year through export of surplus urea and ammonia to neighbouring countries, which are all dependent on imports as there is no plant for manufacture of fertilizers in the region.
Giving vote of thanks on behalf of the Vice President, the Minister for Industry, Trade and Marketing, Dr. Mary Nagu, said the government welcomed the project since the fertilizer plant would provide a strong foundation for the growth of agriculture in Tanzania.
Dr. Nagu said the challenge ahead was imparting knowledge to the people on the importance of using fertilizers, which was still very little among the peasants.
The proposed fertilizer complex is estimated to produce over 300,000 tons of urea per year, of which about 50,000 tons per year will be sold in Tanzania to meet current demand.
The corporation has an experience of 25 years in business. Dr. Shein and his delegation toured the Deepak Fertilizer Industry at Taluja area in Mumbai.
Yesterday, the VP was expected to have a tour of Mahindra and Mahindra Tractors Ltd and in the evening, he would meet members of the Indian Merchant Chamber and Engineering Export Promotion Council here.
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