Rashtriya Chemicals and Fertilizers: Thal Unit Energy Norm Revision to Impact Profits

Rashtriya Chemicals and Fertilizers Limited (RCF) announced a revision in energy norms for its Thal Unit, effective from April 1, 2025. The revised norm of 5.984 Gcal per Metric Tonne, down from 6.200 Gcal PMT, is expected to result in an adverse financial impact of approximately ₹171.54 crore. The impact covers FY 2025-26 and Q1 of FY 2026-27. The Trombay Unit’s energy norms remain unchanged.

RCF Thal Unit Energy Norms Revised

Rashtriya Chemicals and Fertilizers Limited (RCF) has been notified of a revised energy norm for its Thal Unit by the Department of Fertilizers, Government of India. This revision, effective from April 1, 2025, changes the energy norm to 5.984 Gcal per Metric Tonne (PMT). This is a reduction from the previously applicable norm of 6.200 Gcal PMT.

Financial Impact of Revision

The company estimates this revision will lead to an adverse financial impact of approximately ₹171.54 crore. Of this total, an estimated ₹132.52 crore pertains to the financial year 2025-26, and ₹39.02 crore is attributable to the first quarter of financial year 2026-27. RCF is currently undertaking a detailed evaluation and final computation of this impact, ensuring adherence to applicable Accounting Standards and the Urea Subsidy Scheme provisions.

Trombay Unit Unaffected

It is important to note that the energy norms applicable to RCF’s Trombay Unit remain unchanged by this notification.

Source: BSE

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