ADB to fund Smartchem Technologies’ farm efficiency initiative

Asian Development Bank (ADB) has announced 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 $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”).