Nagarjuna Fertilizers and Chemicals Limited has started project work on its third plant at Kakinada in Andhra Pradesh. This new facility will enhance to overall Urea production of NFCL by 1.3 million tones taking the total production capability to 2.9 million tones. NFCL, as part of the EPC contract, has awarded early work order to Technimont of Italy.

The cost of expansion is about INR 45 billion, which will be financed through an appropriate mix of debt and equity. The brownfield expansion is an addition to NFCL's existing capacity of about 1.6 million tonnes per annum. The proposed increased quantity is already being marketed by the Company through imports.

The project is unique as it is ideally located in a region deficit in urea.