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Commissioning Of The New Ammonia Plant

Deepak Fertilisers and Petrochemicals Corporation (DFPC) will commence operations in its latest INR 4,350 crore ammonia plant, and production will likely begin by May-June in the present year. The company will add a 5,00,000 million tonnes per annum (MTPA) capacity at Taloja in Maharashtra, raising the whole ammonia capacity to 6,28,700 MTPA.

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The plant is expected to be fully functioning by the quarter-end. The technology used for this ammonia plant is the best in the world (KBR and Toyo) and will start yielding results and smooth functioning.

The company's plan aligns with India's development as well as China's plus-one strategy. With the growing developments in India, the demand for raw materials like cement, coal, and industrial chemicals will rise; ammonia is one such crucial commodity used in fertilisers which is why upstream investments in the raw material will reduce any risk of international vagaries.

As ammonia is a crucial feedstock and its demand is consistently rising (ammonia prices rose 63% in FY23), it is beneficial that the company's plant will cover its entire requirement for the commodity. Other advantages of the expansion include savings made on logistics for ammonia imports.

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According to the article by Procurement Resource, Deepak Fertilisers and Petrochemicals Corporation (DFPC) is geared up to begin operations at its INR 4,350 crore ammonia plant, which will begin production for the commodity between May-June.

The plant will be up and running by the end of the quarter and will help the company meet the full demand for ammonia, lowering its export expenses. The plan also aligns with India's rising ammonia demand as well as China's plus-one strategy.