RCF drops plan to set up $1 bn fertiliser plant in Ghana.

State-run Rashtriya Chemicals and Fertilisers (RCF) has shelved its plan to set up a fertiliser plant in Ghana with an investment of about $1 billion as the West African nation has denied assured supply of gas.

In 2010, India and Ghana had signed a Memorandum of Understanding (MoU) to set up the urea plant with initial capacity of 1.2 million tonnes per annum at Shama district in western Ghana.

Both the countries had to identify one company from each side for executing the project. RCF was nominated by the Indian government to participate in the project.

In June last year, an Indian delegation led by senior fertiliser ministry officials and RCF officials had visited Ghana to discuss the gas supply and pricing issue.

'Ghana government has denied assured supply of gas for the plant giving the reason power generation is priority for them as compared to fertiliser production,' an informed source said, who declined to be identified.

'So, we are shelving this project,' the source added.


BS