DFPCL subsidiary Smartchem to invest Rs. 1,750 Cr in chemical plant

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 June 3, 2024

Smartchem Technologies Limited (STL), a 100% subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), is investing Rs. 1,750 crore in Technical Ammonium Nitrate (TAN) complex at Gopalpur Industrial Park in Odisha.

Odisha Chief Minister Naveen Patnaik laid the foundation stone of Technical Ammonium Nitrate (TAN) complex at Gopalpur Industrial Park on 9th December 2021 in presence of Chairman & Managing Director of Smartchem Technologies Limited, Sailesh Mehta, and Dibya Shankar Mishra, Minister of Energy, Industries, Micro, Small & Medium Enterprises.

Appreciating the development, Patnaik, said: “STL is one of India’s leading manufacturers of NPK and specialty fertilizers. They are also one of the World’s leading producers of Technical Ammonium Nitrate, a product they will also be manufacturing in their facility at Gopalpur. STL is one those companies which will positively impact both the industrial as well as agricultural sector. I am happy to note that STL are investing over Rs. 1750 crores in this upcoming plant. This will not only help STL to establish themselves as a major player in the chemical sector but will also help in the growth and development of the local area. The plant with an employment potential of 1800 will immensely benefit the local community.”

Mishra said: “Industries Department has been working continuously with the other Departments to ensure the seamless service delivery to industries and today’s event is a testament to the success of the initiative. I assure that my team will continue facilitating STL to ensure the establishment and successful commissioning of the plant as well. I hope that we will again meet shortly for the inauguration of the plant.”

The project at Tata Steel Industrial Park, Gopalpur is being built with an investment of Rs. 1,750 crore and will have a capacity of 377 KTPA. The plant has technology from Casale that will ensure that it is the safest plant with lowest possible emission.

The project is expected to be completed by August 2024, 50% of the engineering work is already completed and the piling work will begin from January 2022. It is strategically located near the major mining hubs and the Gopalpur port to capture domestic demands and tap into export opportunities.

On project completion and commencement, Odisha will become a key source of TAN to the entire Eastern belt where majority of mining and infrastructure growth is foreseen in future. It will generate employment for 1,500 people during the project phase and 325 people during the operation phase. It also holds the possibility of attracting investment in ancillary units like explosive manufacturers, manufacturers of LDPE/HDPE bags and liners, among others.

It is part of DFPCL’s initiative to be closer to the end user and add maximum value to them, by being a solution provider and reduce the supply deficit and reduce the resultant import substitution of more than Rs. 4,500 crore.

The emission and discharge from the plant will be one of the lowest and it features advanced NOx/N2O abatement technologies. The plant is expected to generate 4.5 MW power from the waste heat steam.

Smartchem Technologies Limited, Chairman & Managing Director Sailesh Mehta said, “STL is partnering with Odisha to support growth in the mining & infrastructure sector and this complex is the first step to accomplish our ten-year-old dream to expand operations in the Eastern region and come closer to our end users.”

“Technical Ammonium Nitrate is a very important raw material that will fuel the infrastructure, economy, and development of the nation. We are looking forward to reducing our dependence on imports and the Gopalpur Industrial Park’s strategic location may help us do that very quickly in the near future. Tata SEZL can attract ancillary units and become a hub for development,” added Mehta.