Gujarat Narmada Valley Fertilisers Company (GNFC) today said New India Assurance (NIA) company has settled the claim of Rs 141.20 crore on account of explosion in one of its boilers this month.

"NIA has settled the claim and paid Rs 141.20 crore on February 16, 2011 in full and final settlement of the claim," GNFC said in a filing to the Bombay Stock Exchange. The company had informed the bourse that there was an explosion followed by fire in waste heat boiler (E-703) in ammonia plant on February, 2010. Consequently, there was disruption in the operation of the plants for about 4 months and the company had lodged a claim with NIA towards the loss of profit and material damage.

GNFC is a joint venture enterprise promoted by the Gujarat Government and the Gujarat State Fertilizer Company.