India's IFFCO suspends plans to build Quebec fertilizer factory.

Co-operative major IFFCO has suspended plans to set up an urea plant at Quebec in Canada due to a 60 per cent increase in cost estimates from the original USD 1.2 billion (over Rs. 7,600 crore).

IFFCO had announced in October 2012 plans for setting up of this urea plant in Canada in tie up with an agri-cooperative firm La Coop federee there.

The two entities, however, said in a joint statement issued from Quebec they are not abandoning the project and would look for new partners to set up this facility.

'As construction costs are now estimated to be in excess of 2 billion dollar, this suspension will allow the shareholders to review the global strategy of financing, construction and execution,' they said.

Subsequently, La Coop federee and IFFCO have decided to suspend preparation of the preliminary plans for this urea plant, as also the signing of an EPC contract, among other proposed steps.

The two co-operatives maintained that the suspension is an 'essential strategic pause'. The project had got approval from the Quebec province government in April this year.


ET