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Rajasthan to set up Diammonium Phosphate plant

Special Correspondent

Project likely to be completed in two years

JAIPUR: The public sector Rajasthan Sate Mines and Minerals Limited (RSMML) is establishing the first Diammonium Phosphate (DAP) fertiliser manufacturing plant in northern India at Kapasan in Chittaurgarh district. The project is likely to be completed in two years at a cost of Rs.400 crores.

State Mines and Petroleum Minister Laxminarain Dave, stating this here on Thursday, pointed out that the Rashtriya Chemicals and Fertilisers Limited (RCF) had signed a memorandum of understanding with RSMML after the disinvestment of the previous partner, Hindustan Zinc Limited. The plant is expected to produce 2.55-lakh tonnes of DAP annually.

Mr. Dave said the MoU, providing for the share capital of RSMML and RCF in the ratio of 40:60, was signed on May 12 this year with the appointment of a consultant. While the RSMML will supply rock phosphate to the plant, sulphuric acid will be obtained from the Chanderi plant of Hindustan Zinc Limited.

The Gosunda dam of HZL will supply 3 million cubic feet of water for the project. Mr. Dave said the pre-feasibility report had indicated that the project would have an internal rate of return (IRR) of 16.58 per cent and the returns would start coming after six years.

The Minister said the RSMML and RCF would launch a joint venture company for the project after the preparation of the Detailed Feasibility Report (DFR). The plant is set to utilise phosphate produced in a large quantity in Rajasthan and will supply DAP to Rajasthan and other States to meet their agricultural demand.

Rajasthan presently gets DAP, which is the most popular phosphatic fertiliser among farmers because of its good physical properties, from Gujarat for its agricultural sector. Mr. Dave said the strategy for utilising rock phosphate produced in the State for the plant was devised in one of the review meetings of RSMML.

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