The Hindu : Business : FACT aiming for JV project in Egypt

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Friday, Aug 11, 2006

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Business

FACT aiming for JV project in Egypt

Staff Reporter

To tie up with Syrian company To tie up with Syrian company

KOCHI: Adi Establishment, Syria, and Fertilizers and Chemicals Travancore (FACT) have signed a memorandum of intent for setting up a joint venture ammonia-urea complex, estimated at Rs. 2,000 crores (approximately), in Egypt.

FACT may have an equity participation of up to 50 per cent in the project, which envisages between seven and 10 lakh tonnes of urea production annually.

The memorandum of understanding for the project is expected to be signed once the Board of Directors of FACT and the Union Government approves the project, said a press release from the public-sector fertilizer company here on Thursday. A team from Adi Establishment, comprising its President Abdul Kareem Adi, Zaki Manaa and Fawaz Zaarour, visited FACT early this week and held discussions with its officials.

The memorandum of intent makes FACT the first south Indian fertilizer company to be chosen for such a mega project, said the press release. FACT had invited expression of interest from reputable organisations to participate in joint-venture projects as part of the fertilizer company's expansion plans.

The Adi Establishment proposed a joint-venture project either in Egypt or Syria.

The India embassy in Syria had conveyed to FACT authorities the interest taken by Adi Establishment. The project site was chosen in Egypt as Adi Establishment confirmed availability of natural gas at a substantially lower price than in Syria, said the press release. The proposed complex would have ammonia and urea plants and associated facilities.

Adi will make available land, electricity, water and other infrastructure for the project. FACT, with vast experience in design, construction and operation of fertilizer units, will handle the technical aspects of the project, including preparation of techno-economic feasibility study, said the press release.

There is also a proposal for buyback of the product by FACT for marketing in India.

The modalities will be decided after getting the required approvals from the Union Government.

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