India plans $783 million urea plant in Iran
India is looking for a local partner to set up a urea manufacturing plant in Iran at a cost of $783 million.
A consortium of three Indian companies seeks to form a joint venture with Iranian partners to build the plant in Chabahar with a capacity of 1.3 million tonnes.
The facility will use Iranian natural gas as feedstock and the urea produced at the plant will be exported to India.
According to the Press Trust of India, a senior India delegation will visit Iran next month for talks. Indian government officials have already conveyed to Iranian authorities that they are looking for a long-term gas contract at feasible rates.
India has nominated state-run Rashtriya Chemicals and Fertilizers (RCF), Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) and Gujarat State Fertilizers Corporation (GSFC) for the proposed plant.
India’s urea consumption has soared by 50% to 30 million tonnes per year over the past decade. The country has to import 8 million tonnes of urea per year to cover rising demand by Indian farmers for fertilizers.