Iffco to fund major part of $500m for Canada urea plant

Tags: Industry
Fertiliser major IFFCO will fund a substantial chunk of $500 million (about Rs 2,750 crore) investment to establish a urea plant in Canada with about 1.3 million tonnes annual capacity, a top IFFCO official said.

Last month, the fertiliser cooperative had announced that it has entered into an agreement with Canada-based agri cooperative La Coop federee to set up this plant with a total investment of $1.2 billion (about Rs 6,600 crore).

Out of the total investment, IFFCO's Managing Director U S Awasthi said, $700 million (about Rs 3,850 crore) would be sourced through banks and pension funds.

"Of the remaining $500 million, we will invest a substantial chunk. The amount of investment to be made by the other two contributors, Quebec Investment Fund and La Coop federee is to be decided," Awasthi told PTI.

IFFCO will fund the amount through internal accruals and will look for suitable investors to fund the project, he added.

"We are talking with some banks and investment funds, but it will take some time before anything is finalised," Awasthi said.

The construction of the plant, located at Becancour city in Quebec province in Canada, will commence in 2014 and the it will be fully operational in 2017.

IFFCO chose the Becancour Industrial Park site due to its strategic location, access to a port and railway and the ease of supplying it with natural gas pipeline, he added.

IFFCO, which produces and markets fertilisers, operates 5 fertiliser production plants in India and holds participating interest in plants in Oman, Jordan and Senegal.

La Coop federee is the biggest agri-food enterprise in Quebec and ranks among the 100 biggest cooperatives and mutuals in the world, all sectors combined.


  • The govt should build on the feel good season to bolster its economic agenda

    There are two pieces of good news to ring in the festive season beginning this Dusshera.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Sachin Shridhar

Reordering the world order on cheap money

When you produce something, just about anything, capital is ...

Rajgopal Nidamboor

Of archetypes, not stereotypes

It is not that devising technologies, or progress, is a ...

Dharmendra Khandal

Use technology wisely to save earth's treasures

Wildlife biologists are certainly getting inspired by our armed forces’ ...


William D. Green

Chairman & CEO, Accenture