The Indian government has given in principle nod to set up a state-of-the-art natural gas-based fertilizer plant with an estimated cost of Rs 5,000 crore at Ramagundam in Karimnagar district of Andhra Pradesh, said the media reports.
The proposed fertilizer unit will be established jointly by National Fertilisers Ltd, Engineers India Ltd (EIL) and Fertilizer Corporation of India (FCI), the report stated.
Andhra Chief Minister, N Kiran Kumar Reddy has also recently requested the Centre to lay a natural gas pipeline from the Krishna-Godavari basin to Gujarat through Karimnagar, ensuring gas supplies to the proposed fertilizer plant in the state.
Moreover, the government has also cleared revival of FCI's non-operational unit at Ramagundam. FCI's coal-based fertilizer plant has been closed since the Board of Industrial and Financial Reconstruction (BIFR) had in 1992 declared it a sick unit.