Deepak Fertilizers unit raises TAN plant cost to $3.1bn

Deepak Fertilizers And Petrochemicals Corporation announced its subsidiary Deepak Mining Solutions Limited revised the estimated cost for its Technical Ammonium Nitrate Project in Gopalpur to ₹2,675 crores, up from ₹2,223 crores estimated in November 2020.

The 20% increase stems from geopolitical issues, material price surges (stainless steel from ₹250/kg to ₹370/kg, carbon steel from ₹43/kg to ₹77/kg), higher construction costs, and currency depreciation (USD-INR from 74.55 to 85.13).

Additional costs include ammonia pipeline development, port ownership changes from Shapoorji to Adani, and investments in effluent treatment systems after Tata SEZ's common treatment facility became unavailable.

The company expects the project's financial metrics to remain robust despite the cost increase.