Mangalore Chemicals Gives Rs 225 Crore Surety On Behalf Of Group Firm

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New Delhi: Mangalore Chemicals and Fertilisers Ltd (MCFL) on Monday said it has given a surety of Rs 225 crore on behalf of its group firm Zuari Agro Chemicals Ltd (ZACL) for import of phosphoric acid, ammonia and other raw materials used for production of fertilisers.

A similar facility has been extended by ZACL to MCFL for imports or purchase of raw materials/fertilisers.

“In order to enable ZACL to import / purchase of sulphuric acid, phosphoric acid and ammonia procured for manufacture of fertilisers by ZACL at concessional rate of duty in one or more tranches during 2016-17, the company has given surety on behalf of ZACL for an amount of Rs 225 crore,” fertiliser firm MCFL said in a regulatory filing.

The liability under the surety extinguishes as and when ZACL consumes the imported/purchased goods for the manufacture of fertiliser, it said.

In May last year, Saroj Poddar-led Zuari Group had acquired a controlling stake in MCFL.

MCFL has a plant near the Mangalore port with an annual capacity to produce about four lakh tonnes of urea and about three lakh tonnes of phosphatic fertilisers.

Zuari has three fertiliser plants in Goa – one urea and two complex fertiliser units.