NEW DELHI: Tata Chemicals is likely to sign an agreement with Reliance Industries to buy natural gas for its urea plant at Babrala in Uttar Pradesh. Besides, the company will increase the capacity of its plant from 8.64 lakh tonnes to 11.55 lakh tonnes through the de-bottlenecking process by investing Rs. 208 crore. “We hope to get supply of gas from Reliance Industries’ eastern offshore KG basin from April. The gas sales and purchase agreement is likely to be signed on March 6 along with eight other fertilizer units,” Tata Chemicals Executive Director Kapil Mehan said here at a press conference.
He said the company was ready to invest more to augment capacity of urea further at the same site in Uttar Pradesh if they get assured gas supply for long-term.