Deepak Fertilisers Hikes Gopalpur TAN Project Cost To ₹26.75 Billion

Deepak Fertilisers and Petrochemicals Corp. Ltd. on Monday said its unit, Deepak Mining Solutions Ltd., has raised the estimated cost of its technical ammonium nitrate project in Gopalpur, Odisha, by 20% to ₹26.75 billion, from ₹22.23 billion estimated in November 2020.

The cost escalation is due to geopolitical issues, higher input prices, and additional spending on the ammonia pipeline being developed in the Odisha Industrial Infrastructure Development Corp corridor. The company also cited delays and changes impacting the connection to Gopalpur port.

Further investments are being made in effluent treatment, zero liquid discharge, and an ammonium nitrate recovery system, as the common effluent treatment facility from Tata Steel SEZ was not made available.

The company said over 90% of the project's requirements have already been ordered and no further cost revisions are expected. "Despite this increase in cost, the company believes the project's financial metrics remain robust," it added.