According to a Business Standard report, Russia has offered a proposal to the Government of India to pick up 30% stake in the Acron, the Russian potash manufacturer, along with buyback agreement for exclusively supplying potash back to India.
Acron, a Russian group of interrelated companies, is one of the leading global mineral fertiliser producers in the world, primarily potash. This is over and above the agreement which Indian Potash Limited has with Uralkali, another potash manufacturing Russian company for import of potash.
The report adds that the existing import deals with Uralkali will not be hampered with this new development.
To take this proposal forward, the Indian government has formed a consortium of five public sector undertakings led by National Mineral Development Corporation (NMDC) with other associates like Rashtriya Chemical Fertiliser (RCF), Krishak Bharti Cooperative (KRIBHCO), Fertiliser and Chemicals Travancore (FACT) and National Fertiliser Ltd (NFL).
The primary responsibility of the consortium will be to engage in due diligence of the proposal so as to see how feasible it will be to produce and ensure uninterrupted supply of potash to India through an exclusive buyback arrangement. Only after the due diligence report, the proposal to pick up the stake will be finalised, stakes the report.