Nagarjuna Fertilisers and Chemicals Ltd. (NFCL) has moved the Environment Ministry for environment clearance for its proposed ammonia, urea plants in its existing unit at Kakinada in Andhra Pradesh?s East Godavari district. In a letter to the ministry, the company said it intends to set up single stream gas based ammonia 2200 MTPD and urea 3860 MTPD plants under NFCL Fertiliser Project-III in the existing complex.

The estimated project cost is Rs 4,314 crore and manpower requirement is 240 people.

The total plot area is 1127 acres, of which 789 acres is for greenbelt development.

At present, it has 2x1300 MTPD ammonia and 2x2280 MTPD urea plants which are being operated efficiently.

The company said that there is dire need for creating additional urea production capacities in the state.

"The demand for fertiliser in Andhra Pradesh has gone up from 1.7 million MT in the past five years to 2.6 million MT in 2009-10. It is expected to go up further substantially in the next five years with the state government?s drive in taking up more irrigation projects," the company said.

According to NFCL, the project-III will be located within the boundary wall of the existing site in Kakinada, where enough land is available.

"This offers effective utilisation of existing land and will not put pressure on any agricultural land for industrial use. This will also offer effective saving in project cost."