Archive · 25 Jun 2025
RCF Faces ₹204-Crore Hit After Gas Cost Rejection
Imagine a company called RCF that makes fertilizer.
They bought gas to make fertilizer, but the government said they couldn't count those gas costs.
This means RCF lost about ₹204 crore.
Because of this, RCF didn't make as much money in the last few months.
They are now talking to the government, hoping to change the decision.
The company's profits went down, and they made less money from sales compared to last year.
Rashtriya Chemicals and Fertilizers (RCF) faces a ₹204-crore loss.
The Department of Fertilizers (DoF) denied recognition of gas costs.
The rejection concerns EPMC and spot gas for Trombay urea production.
RCF's net profit fell by 23.8% in the last quarter.
RCF is making a representation to the DoF regarding the decision.
- Who
- Rashtriya Chemicals and Fertilizers Ltd (RCF) and the Department of Fertilizers (DoF) are involved.
- What
- RCF faces a ₹204-crore loss after the DoF rejected gas cost recognition.
- When
- The rejection happened on June 25, 2025.
- Where
- The issue affects RCF's Trombay urea plant.
- Why
- The DoF declined to recognize the cost of EPMC gas and spot gas used by RCF for urea production.
RCF
Department of Fertilizers
Gas Cost Recognition
RCF
The non-recognition goes against gas pooling policy principles.
Department of Fertilizers
Department of Fertilizers (DoF) declined recognition of gas costs.
- Financial Setback
- ₹204.14 crore
- Department
- Department of Fertilizers (DoF)
- Gas Types
- EPMC gas and spot gas
- Urea Production
- Trombay plant
- Net Profit Decline (Q4)
- 23.8%
- Revenue Decline (Q4)
- 4%