RCF will set up phosphoric acid plant worth Rs 865 crore in Maharashtra, luck of farmers and shareholders will shine!

RCF Phosphoric Acid Plant: India’s leading fertilizer producing company Rashtriya Chemicals and Fertilizers Limited (RCF) has made a big announcement for the industrial world and agricultural sector. The company has manufactured a new ‘phosphoric acid’ at its Thal Unit in Alibaug, Maharashtra. It has been decided to set up (Phosphoric Acid) plant. The company is going to make a huge investment of Rs 865.25 crore on this project.

The board gave ‘in-principle approval’

In a regulatory filing given to the stock exchange on Thursday, RCF said that its Board of Directors has given in-principle approval to this ambitious project. This plant will not only increase the production capacity of the company, but will also prove to be a major step towards self-sufficiency of raw materials for fertilizer manufacturing.

Plant capacity and investment details

The capacity of this new plant to be installed in the ground unit of Alibaug has been proposed to be 300 tonnes per day. Regarding the financial structure of this project, the company has clarified that an investment of Rs 865.25 crore will be made for it. Also this investment is called ‘loan’ (Debt) and ‘Equity’ (Equity) will be completed through matching.

Why is this phosphoric acid plant special?

Phosphoric acid is a key ingredient in the production of complex fertilizers (such as DAP and NPK). At present India has to import it on a large scale for its needs. Increasing its capacity by RCF will not only reduce costs, but will also help in ensuring timely supply of fertilizer to farmers.

RCF: Indian fertilizer giant

Rashtriya Chemicals and Fertilizers Limited (RCF) is one of the largest fertilizer manufacturing companies in the country. Apart from urea and complex fertilizers, this mini-ratna category company also manufactures industrial chemicals. The Alibaug based facility is already one of the company’s largest production facilities, and the addition of the new plant will further add to its importance.

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Market and future path

Experts believe that with this investment, positive movement can be seen in RCF shares. Promoting domestic production under the Self-reliant India campaign is part of the company’s long-term strategy. In the coming time, this plant will also create local employment opportunities and strengthen the industrial scenario of Maharashtra.