Announcement of IDA Provides Ninety-One Million US Dollars for Fertilizer Production in India on November 27, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3.e3eo IDA News Release No. 74/65 November 27, 1974 IDA PROVIDES $91 MILLION FOR FERTILIZER PRODUCTION IN lNDlA A credit of $91 million from the International Development Association (IDA), an affiliate of the World Bank, will assist India in increasing the production of fertilizers so essential for raising the country's agricultural output. The credit will help to finance the modernization and expansion of the Sindri unit of the Fertilizer Corporation of India (FCI) in the State of Bihar. It will add a 900 tons per day ammonia plant and a 1,000 ton per day urea plant. The project, when completed in 1978, will increase the output of nitrogen by 136,000 tons per year. It will help India to save $68 million in foreign exchange • a year. Present estimates are that under Indian conditions, the application of one nutrient ton of fertilizer will yield an additional production of five to seven tons of foodgrains. Thus short falls in the supply of fertilizer seriously impair food production. India's present installed capacity of about 2.5 million nutrient tons of nitrogenous and phosphatic fertilizers, is inadequate to meet even tbe low levels of Indian consumption. India plans to create an installed capacity of 4.9 million tons of nitrogen and 1.2 million tons of phosphate by 1978. The project being assisted by the lDA credit is part of this effort. The project will be implemented by FCI, a public sector corporation, established in 1961. It is India's largest fertil~zer producer, accounting for about 25% of nitrogen and 10% of phosphate capacity in the country. Today~s credit is the fifth from IDA for fertilizer production in India and brings the total of such assistance to $229 million. • ·period. The IDA credit is for 50 years inclQding a 10-year grace It is interest free except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. Note: Money figures at'e eixpressed in US dollar equival en ts. ··- PROJECT: T ECHNI CAL DAT A Fertilizer • COUNTRY: India TOTAL COST: $188.8 million IDA FINANCING: $91 million, for 50 years, including 10 years of grace, interest free, except for a ser,.tice charge of 3/4 of 1% to meet IDA's administrative expenses. OTHER FINANCING: Government of India. IMPLEMENTING ORGANIZATION: Fertilizer Corporation of India, New Delhi, India. PROJECT DESCRIPTION: Construction of a 900 metric tons per day (TPD) ammonia plant and a 1,000 TPD urea plant at the Sindri works of FCI in the State of Bihar. • .. ~.. \ . PROCUREMENT: . ·. "•.' All equipment and material financed under the credit will be subject to international competitive bidding in accordance with Bank/IDA guidelines. However, in order to expedite the project, well-defined long-delivery 1.tems (about $12 million) will be bid using the Nangal bidders list supplemented by other firms with known appropriate supply capacity. ~8 million worth of technically critical items will have restricted bidders list approved by IDA. A preference of 15% or the actual custom duty, whichever is lower, will be granted to Indian suppliers for the purpose of evaluating international bids. ESTIMATED COMPLETION DATE: January 1978 -o- •