Mumbai : Asian Development Bank (ADB) said that it would fund the farm efficiency initiative of Smartchem Technologies Limited (STL), a wholly owned subsidiary of Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL), through a USD 30 million loan facility with a tenor of 5 years.
This is ADB’s first agribusiness “Blue Loan”, and the first such blue loan in India in the agribusiness sector across institutions. The loan will be used to finance capital expenditure as well as research and development of enhanced-efficiency speciality fertilizers.
STL was chosen as a suitable candidate for Asian Development Bank (ADB) support because of its (i) leading market position in the enhanced efficiency specialized fertilizers (EESF) segment, with advanced technical capability and satisfactory financial performance; (ii) growth potential from the enhancement of fertilizer production capacity to provide quality inputs; and (iii) actions to encourage the application of EESFs, which will support the sustainable transformation of agriculture in India while improving its resilience to climate change.
ADB has also given approval for a technical assistance grant of USD 5,00,000 for building capacity for Soil Nutrition Management among Smallholder Farmers and Climate Resilience in India. The said grant is in addition to financing of $30 Million (Blue loan).
Commenting on the development, Mr Sailesh C Mehta, Chairman & Managing Director, DFPCL said ‘’This Financial association with ADB will help enhance our ongoing Specialty Fertiliser Business including the applied R&D & grass-root Farmer Training initiatives.
It is heartening to have a validation of our efforts towards Crop/Soil specific Fertiliser Systems and improvements of Nutrient Use Efficiency that promises to bring balanced soil nutrition while lowering leeching effluents. We will continue to strive to deliver on our Vision of playing an active role in building an Atmanirbhar Bhar’’t in foodgrain production and play a decisive role in ensuring food security by raising the yield & quality parameters of Indian Farms to Global Standards.”
ADB’s Director General for Private Sector Operations Suzanne Gaboury said ‘’Private sector investment in agriculture is critical to help farmers adapt to climate change. Fertilizer companies need to be at the forefront of climate adaptation as their products can increase productivity and improve resilience to the impacts of climate change. The private sector can play an important role in bringing more advanced fertilizer products to the market, investing in local manufacturing to reduce reliance on imports, and training farmers in proper usage and soil management.’’
