Diversified firm Tata Chemicals today said it may set up a sulphate of potash (SOP) fertiliser plant in Gujarat if its joint research project with the Department of Science and Technology (DST) proves successful.

"We have inked an agreement with DST to carry out a joint research project to manufacture SOP at Mithapur, in Gujarat. However, a full-fledged manufacturing plant can come up only after seeing the results of the pilot project," Tata Chemicals Chief Operating Officer (Chemicals) Arup Basu said here today.

DST, a body under the Ministry of Science and Technology, coordinates, supports, and oversees scientific activities and research in the country.

Basu said the company will initially produce 3 tonnes per day of SOP using sea water with the DST's Technology. The pilot project will be up and running in the next 18 months, following which the company will take a call on setting up a full-fledged manufacturing plant.

SOP is a superior potassic fertiliser, for which India banks entirely on imports at present to meet the domestic demand of around 6.5 million tonnes a year.

"We believe this SOP project has the potential to bring relief to the country's ever-burgeoning fertiliser subsidy bill, as the prices of potassic fertilisers continue on their upward trajectory," Basu said.

SOP has a low salt index and is virtually free from chlorides, which would be a major benefit in terms of sustained soil fertility.

Tata Chemicals has a urea-making plant at Barbala and a NPK plant at Haldia. On a pan-India basis, the company has a market share of around 4 per cent in urea and around 3 per cent in NPK.

The company also manufactures various chemicals, salt and water purifiers, among other products.