Mangalore Chemicals and Fertilizers (MCFL) has received green clearance for Rs 1,547-crore expansion cum modernisation of its fertiliser plants in Karnataka, a senior government official said today.

The company's proposal is for energy improvement of ammonia and urea plants, expansion of DAP/NPK plant and Poly Carboxyl Ether (PCE) plant at the existing premises in Panambur in Mangalore.

"The environment clearance has been given by the nodal ministry of environment to MCFL's proposed project," the official said.

The green signal has been given to the project subject to compliance with certain conditions. The estimated cost of the project is Rs 1,547 crore, the official said.

The MCFL complex is spread in an area of 192 acre. The proposed developments/facilities are planned within the existing premises.

The company's proposal is to increase production capacity of ammonia from 2,47,500 tonnes per annum (TPA) to 3,28,500 TPA, urea from 4,29,000 to 5,69,400 TPA, DAP and NPK fertilisers from 4,01,500 to 14,01,500 TPA and Sulphonated Napthalene Formaldehyde (SNF)/poly carboxylate Ether (PCE) from 85,000 to 1,03,000 TPA.

"Poly Carboxyl Ether (PCE) acts as super plasticizers and is currently being imported in the country. The proposed new facility within the MCFL plant would be contributing in our country's 'Make in India' program, the company said.

Since the fertiliser subsidy are paid by the government taking into account energy consumption, the MCFL's proposed project aims to bring energy norms to best achievable industry levels to continue profitable operation.

Current energy consumption of urea production at MCFL is 6.5 gigacalorie per tonne and the company wants to do energy improvement revamp of existing ammonia and urea plants to reduce its energy consumption from present levels.