Nagarjuna Fertilisers in the process of a Long Term Debt Resolution with its lenders. Pending debt resolution, basis support of Department of Fertilizers and Lenders, it has restarted production of Urea from Unit I of Kakinada Plant, Andhra Pradesh on December 23, 2018.
This plant has been shut down since July’18 due to inadequate working capital on account of Direct Benefit Transfer (DBT) and accumulated losses arising out of the earlier GAIL accident.
Under the DBT scheme, companies now get subsidy only on the basis of the sale of fertilizers by a retailer to a farmer.
This is one of the largest urea complexes in India, spread over 1, 130 acres and restarting the plant is sure to reflect in the earnings.
The market has reacted positively to this news and the stock price has gone up over 14% to Rs.9.78, with volumes showing a surge of almost 3.5 times.