State-owned Rashtriya Chemicals and Fertilizers Ltd (RCF) secures board approval for a Rs 865.25 crore phosphoric acid plant in Maharashtra, targeting 300 tonnes per day capacity at Thai Unit, Alibag. This backward integration move enhances raw material security for India's leading fertilizer producer, funded via debt-equity mix.
Rashtriya Chemicals and Fertilizers Ltd, a key player in India's fertilizer sector, announced plans to invest Rs 865.25 crore in establishing a new phosphoric acid manufacturing facility. The board granted in-principle approval through a regulatory filing on February 11, 2026, positioning the plant at RCF's Thai Unit in Alibag, Maharashtra. Phosphoric acid serves as a critical input for phosphatic fertilizers, addressing supply chain vulnerabilities amid global raw material fluctuations.
This strategic expansion aligns with India's push for agricultural self-sufficiency, reducing import dependence on phosphoric acid, which constitutes a major cost in fertilizer production. RCF, one of the nation's largest fertilizer manufacturers, aims to strengthen backward integration, ensuring stable output for complex fertilizers like DAP and NPK. The 300 TPD capacity will support domestic farming needs, boosting productivity in Maharashtra's agrarian economy.
Key Highlights
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Investment totals Rs 865.25 crore, financed through debt and equity blend
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Plant capacity set at 300 tonnes per day phosphoric acid production
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Located at Thai Unit, Alibag, Maharashtra for optimal logistics
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Focuses on backward integration to secure fertilizer raw materials
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RCF reinforces position as top Indian fertilizer maker
The development signals renewed capex momentum in public sector undertakings, potentially elevating RCF's production efficiency and market resilience. As fertilizer demand rises with monsoon planting seasons, this plant promises long-term benefits for farmers and shareholders alike.
Sources: PSU Watch, The Economic Times, Devdiscourse, Rediff Moneynews