Urea producer, public sector giant Kribhco is all set to stablish a 6 lakh tonnes per annum P&K plant in Krishnapatnam, Andhra Pradesh with an investment of Rs 1000 crores. This project would be completed in next four years. The company would double it's capacity later on to make it 12 lakh tonnes per annum.
Presently Kribhco producing 22 lakh tonnes of urea per annum at Hazira Gujrat. It has one plant in Shahjahanpur U.P. in partnership with Shyam Group to produce urea. Capacity of this plant is 10 lakh tonnes per annum. Besides this Kribhco has one another plant in Oman in partnership with Iffco.
Kribhco wants to tap the incentives AP government offering to new enterant in the state. The government will provide power at Rs 1 per unit for next 10 years. VAT will also not to be charged for next 7 years. Besides this lots of other incentives are being offered by the state government. Kribhco has done the calculations and excepts Rs 500 crores savings by government incentives.
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