The consortium was zeroed in amidst a host of export credit agencies and foreign commercial banks which had evinced interest in financing the $840 million debt portion for the project. These include FACE of Italy, Coface of France, Chase Manhattan Bank, ANZ Grindlays and CCF/MCC of France. "The offer from the BNP/ABC/JP Morgan consortium was very attractive, and thus the company thought it fit to chose this consortium," said sources. However, details are not available.

Sources said that the consortium BNP/JP Morgan/ABC will provide for the funds by the end of September and the company is expected to take a financial closure by October 31, 1998. However, the financial closure, sources said, may get slightly delayed. The project is being financed through adebt-equity ratio of 3:1. The equity part of $280 million is being equally shared between the Indian partners and the Oman Oil Company.

Oman India Fertiliser Company is a joint venture between Oman Oil Company (OOC) and the Indian companies Rashtriya Chemicals & Fertilisers (RCF) and Khribhco. OOC holds a 50 per cent stake in the company, with the balance held equally among the Indian partners.

The company was instituted in February with the formation of its board of directors. Salim Hassan Macki of OOC was selected as the first chairman of the company in February. The chairmanship will be rotated periodically between Oman and the Indian counterpart.

The preferred bidder for the engineering contract is the Snamprogetti-Technip consortium. It will take 33 months for the project to go on stream.

The project encompasses a world class ammonia-urea complex which will produce 3,600 tpd of ammonia and 4,400 tpd of granulated urea. The entire urea produce will be lifted by the Indian partners as per theagreement. RCF has already initiated seeding exercise for granulated urea in India to familiarise the Indian farmer who has been using only prilled urea.