New Delhi, 22 July
Zuari Fertiliser and Chemicals Ltd has shelved a proposed Rs 5,000-crore urea plant in Karnataka over land acquisition delays.
“Land acquisition has not happened for this project. So we have shelved this project,” a senior official of the company said.
Adventz Group firm Zuari had signed an agreement with Karnataka government for setting up the urea plant near Belgaum in north Karnataka. The agreement was signed during the tenure of former chief minister BS Yeddyurappa.
The company was planning to set up a 1.15-million-ton-per-annum (mtpa) gas-based urea project, but from the beginning there were issues with the land acquisition for the project, the official said.
He added that as per the proposed plan, the project was expected to go on stream in 2015-16, and around 400 acres of land was required for the project, but from the very beginning project has been facing issues with regard to land acquisition.
As of now, we have no plans to take this project to any other state, and there are no plans for any new urea project as well, the official said.
The company is also eyeing to take over UB Group’s Mangalore Chemicals & Fertilisers. It has increased its stake to nearly 16 per cent in the firm, where rival Deepak Fertilisers has picked up over 24 per cent.