| PARADEEP
PHOSPHATES LIMITED (PPL)
Paradeep
Phosphates Ltd.(PPL) was incorporated on 24.12.1981
as a wholly owned Government of India Undertaking
with an authorised capital of Rs.120 crore. A
participation agreement between the Government
of India (GOI) and Government of Nauru (GON) was
signed on 26.05.1982 providing for 40% equity
participation by GON and 60% by GOI. In November,
1985 it was decided to increase the participation
of GON in the share capital to 49% with GOI holding
the balance 51% . PPL has again become a wholly
owned GOI undertaking w.e.f. 10.06.1993 as the
49% share holding belonging to GON has been acquired
by GOI.
The
authorised capital of the company was increased
from Rs.120 crore to Rs.467.65 crore consisting
of 35,00,000 equity shares and 11,76,500 non-cumulative
Redeemable Preference Shares of Rs.1000/- each.
The Preference Share Capital was created pursuant
to the conversion of outstanding interest on GOI
loan of Rs.117.65 crore as a measure of capital
restructuring approved by the Government. The
paid up capital of company has increased from
Rs.120 crore to Rs.331.65 crore.
2.
PRODUCTION PERFORMANCE
Productwise
annual installed capacity and actual production
achieved upto October, 1998 by PPL is as under:
(`Lakh
MT)
| Sl.No.
|
Name
of the Project |
Installed
capacity per annum |
Production
during 1998-99 (upto Oct. 1998)
|
| 1.
|
Di-Ammonium
Phosphate (DAP) (4 x 600 MTPD)
|
7.20
|
4.11
|
| 2.
|
Phosphoric
Acid (1 x 750 MTPD) |
2.25
|
0.30
|
| 3.
|
Sulphuric
Acid (2 x 1000 MTPD)
|
6.60
|
1.15
|
The
Project was implemented in two phases. Phase-I
of the plant comprising a DAP plant off-site,
material handling system, bulk storage for DAP,
bagging plant, storage for Ammonia and Phosphoric
Acid and other facilities was commissioned in
February, 1986 and commercial production of DAP
was started in August, 1986.
Phase-II
of the Project comprising of Phosphoric Acid,
Sulphuric Acid plant, Captive Power Plant, material
handling system, ship unloader and utilities was
commissioned in October, 1990 and commercial production
of acid was started in June, 1992.
The
capacity utilisation of Phase-II plants has been
low due to persistent equipment problems in the
sulphuric acid plant. A diagnostic study of sulphuric
acid plant has been carried out by the consultant
M/s Dharamsi Morarji & Co. (DMCC) and on the
recommendations of DMCC a revamping proposal for
one stream of sulphuric acid plant has been approved
by the Board of Directors of the Company and the
Government of India. Due to fund constraints,
one stream of SAP was revamped in 1998-99 and
second stream is being revamped in 1999-2000.
After revamping SAP will achieve rated capacity
utilisation.
The
details of the target and actual production during
1997-98, estimated production and target for 1998-99,
and production target for 1999-2000 alongwith
the corresponding figures of capacity utilisation
are given in Statement-II.
3. FINANCIAL
PERFORMANCE
During
the year 1997-98, a company’s operation resulted
in net loss of Rs.105.52 crore as against a loss
of Rs.60.63 crore during 1996-97. Despite 110%
capacity utilisation of DAP plant against 65%
utilisation during 1996-97 and record production
of captive P2O5, company had to incur loss of
Rs.105.52 crore mainly due to depreciation of
value of rupee against US dollar. The depreciation
of rupee, reduction of concession on indigenous
& imported DAP and the heavy interest burden
on long term loan has contributed to the loss.
The company has incurred a loss of Rs.106.91 crore
upto October, 1998.
4. PROJECT/CAPITAL
INVESTMENT
The
BE for 1998-99 and proposed BE for 1999-2000 is
Rs.1000 lakh & 3623 lakh respectively.
Details
of Project/Schemes under implementation/proposed
for implementation and IEBR for plan schemes and
performance indices are given in Statement-I,
Statement-III
& Statement-IV
respectively. |
