Announcement of India Receives One Hundred Nine Million US Dollars for Fertilizer Production on January 9, 1975

!NTERNAT.IONAL BANK FOR . • !:..{FCONSTRUCTION AND DEVELOPMENT 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3.e3eo Bank News Release No. 75/3 January 9, 1975 INDIA RECEIVES $109 MILLION FOR FERTILIZER PRODUCTION India's efforts to increase the c.ountry's fertilizer production will be assisted by a loan of $109 million from the World Bank. The loan will help finance the construction or a plant in Phulpur, Uttar Pradesh, to produce 900 tons of ammonia and 1,500 tons of urea per day. The $220.5 million project is scheduled to start commercial production in 1978. It will add about 230,000 tons per year of nitrogen to India's fertilizer capacity. It will help India to save ~59 million in foreign exchange a year. The increased fertilizer output will help to increase Indian food production by more than one million tons a year. Currently,_ India has c.n installed capac~ty of about 2..S million nutrient tons of nitrogenous and phosphatic fertilizers. This is inadequate to meet even ~ the present level of consumption. India plans to create an installed capacity of 4.9 million of nitrogen and l.l million tons of phosphate by 1978/1979. The project being assisted by the Bank loan is part of this effort. Today's loan brings the total of Bank Group assistance for fertilizer production in India to more than $368 million. The project will be implemented by t11e Indian Farmers Fertiliser Coope{'.ative Limited (IFFCO), a cooperative society established in 1~67 and jointly owned by the Government of India and some 24,000 cooperative institutions representing about 20 million farmers. IFFCO has completed the construction of its first two fertilizer plants in Gujarat. The Bank loan to IFFCO will be guaranteed by the Government of India. It will be for a term of 16 years, including five years of grace, with interest at 8% per annum. L~ote: Money figures are expressed in US dollar equivalents. • 0  T E CHNI CAL DAT A PROJECT: COUNTRY: Fertilizer India • TOTAL COST: $220.5 million BANK FINANCING: $109 million, for a period of 16 years, including 5 years of grace, with interest at 8% per annum. OTHEP. FINANCING: Government·cf India, the Industrial Development Bank of India, Indian Farmers Fertiliser Cooperative Limited, New Delhi, India. IMPLEMENTING ORGANIZATION: Indian Farmers Fertiliser Cooperative Limited, N 11, South Extension (Part I), New Uelhi - 24, India. PROJECT DESCRIPTION: Construction of a 900 metric ton per day (TPD) ammonia plant, a 1,500 TPD urea plant and ancillary facilities at Phulpur, Uttar Pradesh State. • PROCUREMENT: Equipment and materials will be procured by international competitive bidding (!CB) except for a) some proprietary equipment and items (valued at $8 million) that may be procured from short list of qualified suppliers; and b) small items costing $50,000 or less that may be procured from domestic manufacturers and local representatives of foreign suppliers. Indian suppliers under ICB will be given 15% preference or the current rate of customs duty, whichever is less. • ESTIMATED COMPLETION DATE: 1978 - 0 -