Mumbai: In order to be self-sufficient with its water requirements, Rashtriya Chemicals and Fertilizers Ltd (RCF) had started implementing the sewage treatment plant which will be complete by 2019. In the past, the company faced water shortage in summers which prompted them to have this plant.
Commenting about the plant, RCF, director finance, Suresh Warior said, “When there is a severe summer (in May-June) BMC stops supply of water to RCF.” This used to affect the company. But now, he feels this plant will make them self-sufficient. “Two years down the line, we will not depend on BMC. By 2019, 100 per cent of water requirement will be met by the sewage plant,” Warior added. When quizzed if they are looking at partnership with Brihanmumbai Municipal Corporation (BMC) to supply treated water to BMC, he said, “In fact, BMC should have given us the sewage for free but we are paying them. When we ask Maharashtra government to give sewage for free they say nothing comes for free.” This Rs 210 crore project is a joint venture between BPCL (40 per cent and RCF (60 per cent). The cost of treated water (estimated to cost Rs 70/75) and the water RCF buys from BMC (cost Rs 70) is around the same price.
The company had held its annual general meeting recently. As per the financial performance for 2016-17, the company witnessed a decline of 6 per cent in total income due to shut down of some of their non-viable plants. However, the net profit of the company rose from Rs 172.62 crore in 2015-16 to Rs 179.26 crore in 2016-17.
Commenting about the company results, RCF’s CMD U V Dhatrak said, “Some of our plants had to be shut down because they were non-viable that is why our total income went down.” At present the existing plants of the company is running on full load.
Dhatrak added that the joint ventures in Algeria and Iran will take some time as it is still in conceptual phase. He assured that their coal-based Talcher project, in Odisha is moving ahead and it will completed soon. Commenting about the Talcher, Warior said, “There is a huge amount of coal available in this region but the problem here is just the quality. The quality is not so good. So we are using technology that will help in improving the quality of coal.”
The company which has invested Rs 3.5 crore in R&D, is developing various other products that will help farmers. Without any support from state government, RCF is trying to promote nano fertilizers and other water soluble solvents that can be used through drip irrigation.
RCF to go for NCD for upcoming projects
The company might look at exploring external commercial borrowing (ECB) and non-convertible debentures (NCD) to meet its fund requirements of joint ventures. RCF, director finance, Suresh Warior told reporters that it will go for NCD as bonds market are very attractive. The company has negligible debts, he added. The company will issue NCD for a small amount by December 2017 or January 2018, he stated.