Rashtriya Chemicals awards Rs 1,000-crore contract to Larsen and Toubro

New Delhi: State-owned Rashtriya Chemicals and Fertilizers Ltd (RCF) said its board of directors has approved a purchase order with Larsen & Toubro Ltd for the establishment of a 1200 MTPD (DAP basis) complex fertilizer plant at its Thal facility.

This is to inform that the Board of Directors of the Company at its meeting held today i.e. October 9, 2024, has accorded its approval for Placement of a Purchase Order on Larsen & Toubro Ltd for setting up of 1200 MTPD (DAP basis) Complex Fertilizer plant on LSTK Basis at RCF, Thal," the company said a stock exchange filing.

Shares of Rashtriya Chemicals and Fertilizers Ltd ended at Rs 170.65, up by Rs 1.45, or 0.86%, on the BSE.

The project will be executed on a lump-sum turnkey (LSTK) basis and is valued at approximately Rs 1,000.27 crore, excluding GST. The construction timeline for the plant is set for 27 months.In July this year, Rashtriya Chemicals and Fertilizers said its board of directors has approved a contract with Topsoe for the revamp of its ammonia plant at RCF Thal.

The contract, valued at Rs 514.6 crore, includes the procurement of a basic engineering design package (BEDP) and the supply of proprietary equipment and catalysts aimed at reducing specific energy consumption. The contract, awarded to the international entity Topsoe, spans 36 months.

Currently, the shareholding of the government in RCF is 75% and the rest 25% is shared among LIC/mutual funds, UTI/financial institutions, and the public.