Rashtriya Chemicals to invest Rs 4000 cr; stock surges 4%

Stocks

oi-Sneha

By Sneha B K

Updated: Friday, August 31, 2012, 12:56 [IST]

Rashtriya Chemicals and Fertilisers stocks surged on Friday after the company said it has plans of expanding the capacity of urea and have plans to invest Rs 4,000 crore to strengthen urea capacity in the next three years.

The shares of the company were seen trading higher by 4% at Rs 51.25 on NSE at 11.50 am IST.

"The company plans to expand the capacity of urea at Thal by setting up one single stream ammonia plant of capacity 2,200 TPD (tonnes per day) and one single stream urea plant of capacity 3,850 TPD at the existing site," RCF had yesterday said in a BSE filing.

The cost of the project is expected to be Rs. 4000 crore and will be completed in 36 months period from the zero date, further added.

Board in the meeting held on August 27, 2012, has approved for applying lot PIB/CCEA clearance for the project. Company would also be starting the process for financial tie-up/closure and the LSTK Contract will be awarded after receiving the PIB/CCEA clearance.

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