GNFC expects Dahej DCP project to be completed by Dec 2018

The company has entered into a joint venture with EcoPhos SA, Belgium, for setting up the DCP project based on hydrochloric acid generated as by-product from 50,000 MTPA TDI plant at Dahej.

With the completion of this project, entire HCl generated as by-product from TDI-II plant will be consumed for production of DCP, which would help in improving the profitability of TDI business, the company said in its annual report.

GNFC said that the frequent interruptions in operation of 50000 MTPA TDI plant on account of complex technology resulting into higher cost of production is the key anxiety.

Key raw materials are purchased at import parity prices.

Further, company is largely dependent on foreign vendors for critical machineries, spares and technical services.

Therefore, currency fluctuations may impact operations of the company, it said.

The company is exploring opportunities of projects in countries that offer adequate raw materials like natural gas and rock phosphate.

"Availability and pricing of key raw material like natural gas, rock phosphate and other petroleum based products is limiting factor and have potential to impact profitability and operations, therefore we are exploring opportunities of projects in countries where there is availability of raw materials," the report said.

Fertiliser being highly controlled and subsidised sector, company's fertiliser business is largely dependent on government's policies with respect to subsidies, availability and pricing of feedstock and marketing of fertilisers.

In view of enhancing profitability, the company is now setting up 2 lakh MTPA Di-calcium Phosphate (DCP) project at Dahej in Gujarat, which is expected to be completed by December 2018, the report said.

The company has also entered into a memorandum of understanding with a Saudi Arabian company for setting-up about 40 MW solar power generation facilities at Bharuch and Dahej in order to fulfil the renewable purchase obligations applicable to the company, it said.