BETA
VERSION

Chemical Fertilizer Plant-Project Bank


CHEMICAL FERTILIZER PLANT (CFP)


 Lead Government Agency

Office of the Investment Board & the Ministry of Agricultural Development

Geographical Location

Dhalkebar, Dhanusa


PROJECT DESCRIPTION AND RELEVANCE/ OBJECTIVES

Nepal’s total annual demand for chemical fertilizers is over 700,000 tons, and much of it is being fulfilled through imports from India and China. A huge amount of government budget goes into subsidizing the fertilizers to the farmers. Hence, establishment of a chemical fertilizer plant within Nepal can substitute the import as well as help reduce the government burden. This project seeks an investor to set up a modern urea plant in Nepal. Such facility will not only cater to Nepal’s fertilizer needs but it can export fertilizer to Indian markets.


RELEVANCE TO THE OVERALL ECONOMY

Agriculture has been the primary means of livelihood for the Nepalese people. It provides the most employment, and more than one third of the total national production is generated by the agriculture. However, this sector has been suffering from numerous challenges, including the lack of adequate irrigation facilities, fertilizers, market access and modernization of farming. Particularly, the need of adequate fertilizers has remained quite crucial.


PROJECT DETAILS

 Project Cost (In USD)

600-1300 Million (Depending on the modality)

Progress

Detailed Feasibility Study conducted

Project Land Required (in Ha.)

162

Project Documents Available

Detail Feasibility Study

Form of Investment (PPP/Private Investment)

Public Private Partnership

Expected Fiscal Benefits to GoN

  • Taxes
  • Food Security
  • Improved productivity in agriculture sector
  • Employment generation

SALIENT FEATURES OF THE PROJECT

 1) Capacity: 1220 TPD Ammonia and 2125 MTPD Urea