Project Event: The project’s overall progress as of October 2024, reached 64 %, compared to… – Software update: Fertilizer update, 13 Nov 2024

Ammonia-Urea Brownfield Project

Cost: Rs. 16372 Cr.

Project Event: The project’s overall progress as of October 2024, reached 64 %, compared to 63.44% as of September 2024, Key highlights for October 2024 include The erection of the Urea Main Frame, which had been halted for an extended period, has resumed and is currently ongoing on the 4th floor out of a total of 5 floors. All 18 columns for the 4th floor have been cast. Construction of the Coal Milling Frame (CMF) building has progressed up to 48 meters out of the total required height of 66 meters. The Prilling Tower erection has reached 105 meters out of its total planned height of 124 meters.WECL increased labor deployment from 700-800 workers to approximately 1,100-1,200 workers per day following a pause due to rain. Consequently, the total contractual workforce on-site has significantly increased to between 2,600 and 2,700 workers per day. As of October 2024, the overall progress for the Outside Battery Limit (OSBL) packages stands at 74.06%, up from 73.02% in September 2024. One OSBL package was completed on September 10, 2024, while four additional packages are in advanced stages of completion. TFL has finalized the completion plan for all OSBL packages.

The TFL project is facing challenges due to demands from WECL that exceed the original contract, including time extensions, cost compensation, changes to payment terms, and deferment of MAD. To address these issues, TFL management met with Mr. Yin Lin, WECL’s Project Director, on September 11-12, 2024, in Bangkok to resolve critical concerns. TFL proposed solutions to support WECL’s cash flow and requested an unconditional completion plan.

WECL stated their financial constraints prevented them from providing a full project completion outlook and demanded MAD deferment and changes to payment terms, offering only a 6-month outlook. On September 19, 2024, TFL officials, led by the Secretary (F), Department of Fertilizers, were instructed to continue engagement with WECL as per the contract. A review meeting on September 30, 2024, directed TFL to maintain communication with WECL and use all contractual measures for project completion.

In response to a DO letter dated September 27, 2024, the Department of Expenditure reviewed WECL’s claims. Although force majeure could have justified an extension, TFL had already provided a 9-month extension ending in June 2024. TFL’s management is now assessing WECL’s demands and exploring negotiations within the LSTK contract to expedite solutions.

SSP/GSSP Expansion Project

Cost: Rs. 50 Cr.

Project Event: The project has elicited the term references for the proposal for environmental clearance, The project is likely to elicit the environmental clearance in April 2025.RFQ for the contractor is likely to be released in March 2025.