NTPC and Coal India Limited Made Partnership to Foray into Fertilizer Sector [ Current News (Concise) ]
State-run power producer National Thermal Power Corporation (NTPC) and state-run miner Coal India Limited (CIL) has inked a joint venture agreement (JVA) to resuscitate plants of the Fertilizer Corporation of India Limited (FCIL).
- The agreement will cover the way for NTPC to foray into fertilizer sector and recover present fertilizer plants of FCIL.
Under the agreement
- The revival of FCIL plants would be taken by a joint venture (JV) company at Sindri in Bihar and Gorakhpur in Uttar Pradesh by setting up an ammonia urea plant at each location.
- At the first phase the JV Company would be incorporated with 50: 50 equity participation from both state run entities.
- It also contains necessities of initiating strategic partners at a later date provisional upon business requirement of JV Company.
- NTPC Limited is an Indian central Public Sector Undertaking (PSU) under the Ministry of Power, Government of India, tied up in the business of generation of electricity and associated activities.
- Under the Companies Act 1956 and a “Government Company” a company combined within the meaning of the act.
- The headquarters of the company is located at New Delhi.
- Core business of NTPC is generation and sale of electricity to state-owned power supply companies and State Electricity Boards in India.
- The company also carries out consultancy and turnkey project agreements that include engineering, project management, construction management and operation and management of power plants.
About Coal India Limited
- Coal India Limited (CIL) is an Indian state-controlled coal mining company.
- Its headquartered is located in Kolkata, West Bengal, India.
- It is the largest coal manufacturer company in the world; it contributes around 82 % of the coal production in India.
- During FY 2014–15it produced 494.24 Million tonnes of coal and got revenue of INR 954.35 billionfrom sale of coal in the same financial year.
- CIL was honored the Maharatna status by the Union Government of India in April 2011.
- Published on: May 18, 2016