Announcement of Indian Investors, IFC Sponsor Fifty-One Million Twenty Thousand US Dollars Ammonia Plant on February 4, 1980

International Finance Corporation • 1818 H Street, N.W. Washington, D.C 20433, U.S.A. 202-477-1234 IFC Press Release No. 80/15 Monday, February 4, 1980 Indian Investors, IFc·sportsor $51.2 Million Arnmonia Plant A n.ew company, Deepak Fertilizers and Petrochemicals Corporation Limited, is being established to build an approximately $51 million, 90,000 metric tons- a-year liquid ammonia plant near Bombay. Equity financing for the project includes Deepak Nitrite Limited together with Mr. C. K. Mehta and associates, $3.84 million equivalent; and International Finance Corporation, the World Bank affiliate that assists private enterprise ventures in developing countries, $1.04 million equivalent. In addition, there will be a $7.32 million equivalent public offering of common and preferred shares, underwritten by a group of Indian financial institutions headed by the • Industrial Development Bank of India . Indian institutions are lending up to an equivalent of $31.25 million for the project, and IFC is lending $7.5 million. Ammonia produced by Deepak Fertilizers and Petrochemicals will be sold to industrial and agricultural users in India's western region. This will help assure ammonia supplies at reasonable prices for small users in a variety of industries including pharmaceuticals, explosives, dyes, nitric acid, soda ash and other chemicals. The plant will be located at Taloja, an industrial estate about 35 miles northeast of Bombay, and will utilize gas from the Bombay High and Bassein fields. Technical assistance for the plant will be provided by Fish International Engineers Inc., of the United States, and Engineers India Limited. The project will support India's economic development and will resul:: in estimated net annual foreign exchange savings of $9.3 million. • [Any inquiries relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0394.]