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Indian Oil to invest Rs 904 crore in Hindustan Urvarak & Rasayan

Sep 18, 2023

By: BlinkX Research Team

On Friday, September 15, Indian Oil Corporation Ltd. (IOCL) said that its board of directors has authorised a further investment of Rs. 903.52 crore in Hindustan Urvarak and Rasayan Ltd. (HURL).

"...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 established in June 2016 as a joint venture cooperation between five public sector organisations to serve the urea needs of farmers in the country's eastern and northern regions.

The primary promoters of HURL are Coal India Ltd, NTPC, and IOC, who together own 89 percent of the company's stock (29.67 percent each). The remaining 11% is held by Fertiliser Corporation of India Ltd. and Hindustan Fertiliser Corporation Ltd.

On a daily basis, the three fertiliser factories in Gorakhpur (Uttar Pradesh), Sindri (Jharkhand), and Barauni (Bihar) will each generate 3,850 tonnes of neem-coated urea and 2,200 tonnes of ammonia.

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.