Indian Oil Corporation Ltd (IOCL) on Friday (September 15) said its board of directors has approved an additional investment of Rs 903.52 crore in Hindustan Urvarak and Rasayan Ltd (HURL).

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"...it is hereby informed that the Board of Indian Oil at its meeting held on September 15, 2023, has accorded approval for additional investment of Rs 903.52 crore in Hindustan Urvarak and Rasayan Ltd," a stock exchange filing stated.

HURL was formed in June 2016 as a joint venture consortium of five public sector units for catering to the urea needs of the farmers in the eastern and northern parts of the country.

CIL, NTPC, and Indian Oil Corporation are the lead promoters of HURL, holding a total of 89 percent equity (29.67 percent each). Fertilizer Corporation of India Ltd and Hindustan Fertilizer Corporation Ltd hold the remaining 11 percent share.

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Each of the three fertiliser plants at Gorakhpur (Uttar Pradesh), Sindri (Jharkhand) and Barauni (Bihar) would produce 2,200 tonnes of ammonia and 3,850 tonnes of neem-coated urea on a daily basis.

Natural gas, which is the feedstock of the plants, would be supplied by a gas pooling mechanism at a uniform delivered price to all the fertiliser plants on the gas grid for the production of urea.

Shares of Indian Oil Corporation Ltd ended at Rs 91.96, down by Rs 2.66, or 2.81 percent. on the BSE.

(Edited by : Shoma Bhattacharjee)

First Published:Sept 15, 2023 6:56 PM IST