2011 05 Misra Iffco Augmenting Urea Capacity through Innovative Revamps

The changes in fertiliser policy for urea that where brought about in September 2008, provided an opportunity to Plant Operators to invest in low cost Revamp Projects to de-bottleneck the plant in order to enhance their annual urea production beyond the stipulated target Production, albeit incrementally.
Substantial benefits of IPP-related prices could be derived on the additional urea produced in excess of the Cut-off Quantity. Since no statutory approvals were required in most cases for small increase in capacities and no minimum investment for the revamp project was specified in the said policy, innovative rehabilitation / upgrades schemes could be implemented as a fast track project. These revamp projects are handled entirely with internal resources without any requirement of a formal financial closure funded entirely through internal reserves.


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