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NFL, EIL and FCIL signed agreement to form Ramagundam Fertilizers and Chemicals Ltd

Jan 15, 2015 12:29 IST

National fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India (FCIL) on 14 January 2015 signed an agreement to form a Joint Venture Company (JVC) Ramagundam Fertilizers and Chemicals Limited.

The agreement is aimed at setting up new Ammonia and Urea plants at the existing site of Ramagundam Fertilizer plant in District Karimnagar in Telangana.

Execution of construction activities is expected to start in early 2016. The new plant at Ramagundam will be a boon for the farmers of newly created state of Telangana.

Highlights of the joint venture agreement
• The Joint Venture will be primarily responsible for setting up Gas based Ammonia-Urea plants. NFL and EIL will each have 26 percent equity in the venture company.
• EIL will take up the project construction under EPC model. NFL’s expertise will be utilised for the operation and maintenance of the plant
• FCIL will hold a stake in the company, being the provider of existing infrastructure of Ramagundam Project.
• The project comprises of 2200 MTPD Ammonia plant and 3850 MTPD Urea plant.
• Total investment in the project by the PSU promoters is estimated to be in the range of 5000 crore rupees.


Fertilizer Corporation of India (FCIL), Ramagundam was the first major industry in Karimnagar district. This project work started in 1971 and commercially began in 1980. However, after a few years, the project was completely closed and production was stopped from 31 March 1999.

Consequently, thousands of employees were forced to take Voluntary Retirement Scheme (VRS). The unit was practically abandoned.

The FCI plant is built in 1500 acres and the township is of 2600 acres. The township had turned into a ghost town following the closure of the plant.




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