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Tata Projects Wins GSFC Contract for Acid Complex in Jamnagar

Tata Projects Wins GSFC Contract for Acid Complex in Jamnagar

Tata Projects Wins GSFC Contract for Acid Complex in Jamnagar

Tata Projects Wins GSFC Contract for Acid Complex in Jamnagar

Tata Projects Wins GSFC Contract for Acid Plants at Sikka, Gujarat

Tata Projects has won an engineering, procurement and construction (EPC) contract from Gujarat State Fertilisers & Chemicals Limited (GSFC) to build an integrated phosphoric acid and sulphuric acid complex at Sikka in Jamnagar, Gujarat. The project will include a 600 metric tonnes per day (MTPD) phosphoric acid plant and a 1,800 MTPD sulphuric acid plant, along with supporting utilities and infrastructure.

Announced on October 28, 2026, the contract comes as GSFC moves ahead with plans to produce more of the raw materials needed for its fertiliser business within its own facilities. The new plants are expected to support the company’s phosphatic fertiliser production and reduce its reliance on imported phosphoric acid.

The project was approved by GSFC’s board of directors on October 13, 2026. It forms part of the company’s plan to expand its operations and secure a more dependable supply of raw materials for its fertiliser plants.

For Tata Projects, the order adds another major industrial facility to its work in India. The company has experience in building infrastructure for industries such as oil and gas, power, metals, mining and manufacturing. The GSFC contract will add to its work in the chemicals and fertilisers sector.

Phosphoric acid is a key ingredient in the production of phosphatic fertilisers, including di-ammonium phosphate (DAP) and several NPK fertiliser grades. These products supply phosphorus and other nutrients that farmers need to grow crops.

Sulphuric acid is used in the production of phosphoric acid. Having both plants at the same site will allow GSFC to produce these materials as part of its fertiliser manufacturing operations.

GSFC operates a fertiliser complex at Sikka, near Jamnagar’s coast. The location allows the company to receive raw materials through sea routes and move them to its manufacturing units.

Until now, the company has depended on imported phosphoric acid for its phosphatic fertiliser production. Supplies have come from countries such as Morocco, Tunisia and South Africa. Ammonia, another important raw material, is also brought in from overseas markets.

The new plants are expected to reduce the need to buy phosphoric acid from foreign suppliers. The company will still need to source other raw materials, including sulphur, rock phosphate and ammonia.

India is among the world’s largest producers and consumers of fertilisers. Yet the country continues to depend on overseas suppliers for several key materials used in fertiliser manufacturing.

Government figures for 2024-25 show that India imported about 52 per cent of its phosphoric acid requirements. The country also imported around 86 per cent of its rock phosphate and 75 per cent of the ammonia used in complex fertilisers.

These imports expose fertiliser companies to changes in international prices, shipping costs and supply problems. Disruptions in major producing countries or shipping routes can affect the cost and availability of raw materials.

The new GSFC plants will help the company make more of its own phosphoric acid. However, domestic production will still depend on access to the raw materials needed to make it.

India’s fertiliser industry has been working to reduce this dependence through new plants, supply agreements and investments in production facilities at home and abroad.

GSFC’s Sikka project is part of this wider effort. It could help the company manage some of the risks linked to buying finished phosphoric acid from overseas suppliers.

Tata Projects will be responsible for developing the integrated acid complex, including the two manufacturing plants and their supporting systems.

The work will involve engineering, equipment procurement, construction and the preparation of the facilities for operation. The two plants will need to work together, making careful planning and coordination important during construction and commissioning.

Rajiv Menon, President & Chief Growth & Strategy Officer, Tata Projects, said, “Built on sustained engagement with GSFC, the award demonstrates our ability to compete for and secure complex industrial projects through differentiated solutions and a compelling value proposition. As we expand our presence in chemicals, fertilisers and other specialised process industries, our priority remains to build a high-quality, diversified order book anchored in technical expertise, execution credibility and enduring customer partnerships”.

Tata Projects has worked on industrial infrastructure in several sectors, including refineries, petrochemical plants, power generation, metals and mining. Its work also covers roads, bridges, airports, rail systems and manufacturing facilities.

The GSFC order adds to its involvement in chemical process plants, where production facilities often require specialised equipment and close coordination between different engineering teams.

GSFC has not disclosed the project’s total cost or its expected commissioning date in the available announcements. Details about the construction schedule and the time required to begin commercial production are also awaited.

Once the plants begin operating, their output could help GSFC meet more of its own phosphoric acid requirements at Sikka. The extent of the benefit will depend on the plants’ actual production, operating costs and the company’s future fertiliser demand.

For farmers and the wider fertiliser market, the project may help improve the supply of raw materials used in fertiliser production. Its effect on fertiliser prices, however, will depend on several factors, including imported raw material costs, production expenses and government subsidy policies.

The new plants will give GSFC greater control over an important part of its manufacturing process. Their performance after commissioning will determine how much they reduce the company’s dependence on imported phosphoric acid and how much they contribute to its fertiliser operations.

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