DFPCL also proposes to enhance its capacity for dilute nitric acid, which is required for the the production of ANP. Addressing the 19th annual general meeting in Pune here, chairman and managing director C K Mehta said that a second hand plant has been procured from Ireland for this purpose. Both the projects are expected to be completed early next year. The company has also initiated steps to debottleneck its ANP capacity by about 25 per cent.

Mehta however expressed concern over the uncertain government policies and delayed decisions on the ad-hoc concession for Phosphatic fertilisers. Although the government announced well in time the continuation of farmgate prices at the same rate as was prevailing in the previous year, the quantum of ad-hoc concession was not made known until December 1998, he said. In fact, the government policy has changed four times during the last 12 months which resulted in uncertainty in the area of production planning and sales.

DFPCL further improved its performance in 1998-99 with its sales including other income rising to Rs. 522 crore from Rs. 414 crore in the previous year. This was partly due to the increase in the manufacturing activity and largely due to imports and sale of DAP fertilisers. The net profit also increased to Rs. 54 crore from Rs. 51 crore in the previous year. The board of directors have recommended an increase in dividend to 20 per cent from 15 per cent last year.

Mehta expressed concern over the continued depletion of the country's gas reserves. Unless strong efforts are made to explore new gas reserves, the country may have to depend on high-cost imported LNG, he said. In order to utilise the established marketing network, the company has decided to increase its trading activities and has already planned import of about 1,50,000 MT of DAP in the current year.