Chambal Fertilisers and Chemicals Limited, a leading producer of urea fertilizers in India, has recently awarded an engineering, procurement, and construction (EPC) contract to Larsen & Toubro Limited on April 5, 2023.
The contract is for the Technical Ammonium Nitrate (TAN) Project, which involves setting up a new plant for the manufacture of Technical Ammonium Nitrate at the company’s existing site in Gadepan, District Kota, Rajasthan.
The new plant will have a production capacity of approximately 2,40,000 Metric Tons (MT) per annum, including a weak nitric acid plant with a production capacity of about 2,10,000 MT per annum.
The contract awarded to Larsen & Toubro Limited covers the entire scope of the project, including designing, engineering, procurement, supply of equipment and materials, construction, project management, pre-commissioning, and commissioning of the Project and its associated facilities. The contractor will also be responsible for obtaining and transferring the necessary licenses required for the project. The payment for the project will be milestone-based, with an advance payment of 10% against the submission of a bank guarantee by the contractor.
The value of the contract is Rs. 9.6 billion plus applicable Goods and Services Tax. The project is expected to be completed within 30 months from April 5, 2023.
Chambal Fertilisers and Chemicals Limited accounts for almost 13% of the total urea production in the country. The company’s three state-of-the-art nitrogenous fertilizer (urea) plants are located in Gadepan, Kota district, Rajasthan, with an annual production capacity of about 3.4 million MT of Urea. The company’s contribution to urea production plays a significant role in fulfilling the demand of leading agricultural states in India.