Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) strengthened its position in the industrial explosives ecosystem by approving its long-awaited Ammonium Nitrate (AN) Melt-II project. The project will add 163,000 MTPA of new capacity — a 94% expansion over its current output.
Major Capacity Boost by 2027
Once the new unit is commissioned around July 2027, GNFC’s total AN Melt capacity will rise to 338,000 MTPA. This increase will nearly double its supply of one of India’s most essential inputs for mining and infrastructure explosives.
The company stressed that the AN Melt-II project is fully aligned with its upstream nitric acid and ammonia expansion sanctioned in August 2023. DV Parikh, Executive Director and CFO, explained, “The effort is to coincide the timing so that downstream products take care of the upstream production part.”
Strengthening an Integrated Value Chain
GNFC currently operates 175,000 MTPA of AN Melt across two streams. Adding another 163,000 MTPA will significantly enhance its integrated chemical value chain. Parikh told investors, “The current capacity is 175,000 metric tonnes per annum across two streams. This new 163,000 MTPA addition lifts our capacity by 94%.” By synchronising upstream and downstream projects, GNFC aims to reinforce its leadership as a reliable supplier to India’s explosives, mining and infrastructure sectors.
Why AN Melt Matters Across Industries
Ammonium Nitrate Melt is a critical input for several industrial applications. Its largest use comes from the mining and infrastructure sectors, where it forms the base for bulk emulsion explosives required for coal, iron ore, limestone and metal extraction.
AN Melt also supports controlled blasting in:
*Highway and tunnel construction
*Metro and urban infrastructure
*Large-scale excavation and earthwork
*Quarrying and aggregates for cement, concrete and roads
Beyond civilian sectors, AN Melt also serves as a key oxidizer in regulated defence and ordnance explosive formulations.
₹2,800-Crore Capex Pipeline Underway
GNFC’s total capital expenditure pipeline now stands at ₹2,800 crore, covering four major projects:
AN Melt-II project – ₹450 crore
Weak Nitric Acid (WNA) plant – ₹1,420 crore
Dahej power and steam conversion plant – ₹613 crore
Ammonia loop expansion – ₹331 crore
The company confirmed that it will continue focusing on melt-form ammonium nitrate due to the limited commercial benefits of producing prilled variants. “We examined prilled AN, but the additional capex did not justify the premium,” Parikh said.
Revised Timelines Now Fully Aligned
As reported by thehindubusinessline.com, despite initial delays, GNFC has ensured that the revised project schedule aligns upstream and downstream operations perfectly. Parikh noted, “Fortunately, both are overlapping now. The upstream and downstream are being taken care of.”
