State-owned Rashtriya Chemicals and Fertilizers Ltd (RCF) has received in-principle board approval to invest Rs. 865.25 crore to establish a new phosphoric acid plant at the company's Thal Unit in Alibag.

The plant is designed with a production capacity of 300 metric tonnes per day (MTPD) on a 100% P2O5 basis.

The plant is expected to become operational within 24 months after the receipt of the Letter of Intent.

The project aims to strengthen backward integration, reducing the company's reliance on external phosphoric acid suppliers and gaining better control over production costs.

The investment will be financed through a combination of debt and equity.