Chambal Fertilisers and Chemicals Limited Announces Contract Amendment for Technical Ammonium Nitrate Plant.

Chambal Fertilisers and Chemicals Limited (CFCL) has announced an amendment to its contract with Larsen & Toubro Limited for the establishment of a Technical Ammonium Nitrate (TAN) plant at the company’s site in Gadepan, District Kota, Rajasthan.

This development follows a series of communications regarding the project, with the initial contract awarded to Larsen & Toubro in 2023.

Key Details of the Amendment

1. Parties to the Contract:
   • Owner: Chambal Fertilisers and Chemicals Limited
   • Contractor: Larsen & Toubro Limited
2. Nature of the Contract:
   • The contract covers designing, engineering, procurement, supply of equipment and materials, construction, project management, pre-commissioning, and commissioning of the TAN plant and its associated facilities. It also includes the grant and transfer of the requisite license for the project.
3. Date of Contract Amendment:
   • January 21, 2025
4. Amendment Details:
   • Plant Configuration: Modifications to enable additional feed of warm ammonia in both the WNA (Weak Nitric Acid) and TAN plants.
   • Future Expansion: Space provision in the High Density Ammonium Nitrate (HDAN) plot plan for future accommodation of Low Density Ammonium Nitrate (LDAN) equipment.
   • Revised Contract Price: The basic contract price has been revised from ₹960.71 Crore to ₹992.71 Crore (excluding tax), with no change to the overall estimated project cost of ₹1645 Crore.
   • Extended Completion Timeline: The timeline for the completion of the project has been extended to January 19, 2026.

Strategic Impact

This amendment highlights Chambal Fertilisers and Chemicals Limited’s commitment to ensuring the scalability and future growth of the TAN plant while maintaining its focus on innovation and infrastructure development. The revision in the contract price and the extended timeline reflects the evolving nature of the project, which is expected to contribute to the long-term growth and operational capabilities of the company.

Official Disclosure

For more information, you can refer to the official filing via the BSE and NSE announcements.

Disclaimer: This content is written by Chiman Soni, a CS Executive student and founder of Corporate Laws Hub. The information provided herein is for educational and informational purposes only and should not be construed as legal advice or financial advice. While every effort has been made to ensure the accuracy and reliability of the information, readers are advised to consult a qualified legal professional, financial advisor, or refer to authoritative sources for specific legal or financial queries or concerns.