Chennai-based Archean Chemical Industries Pvt Ltd, part of the Archean Group, has secured financial closure for its proposed Rs 850 crore marine chemicals project located in the Rann of Kutch in Gujarat. Archean is the first company in India to manufacture Sulphate of Potash, an important ingredient in several fertilizers. A consortium of banks led by Bank of India, with Allahabad Bank, Bank of Baroda, Canara Bank, Punjab National Bank & Union Bank of India have agreed to extend a debt of Rs 565 crore. SBI Capital Markets is the sole financial advisor and debt arranger.

The company is setting up a facility to manufacture one lakh tonnes of sulphate of potash (SOP) with technical know-how from K+S of Germany. The plant is expected to start commercial production by the first quarter of 2012-13. In the second phase, the company will expand capacity up to four million tonnes per annum with an additional capital outlay of Rs 600 crore. The facility will also manufacture industrial salt bromine, magnesium oxide & gypsum.

As the manufacturing process does not involve any organic chemicals, it will be a part of the ‘Green Potash Mission' of the Government of India and will be eligible for Government subsidy also.