KUALA LUMPUR (July 30): Genetec Technology Bhd has decided not to proceed with its plan to collaborate with several parties for the development of an ammonia and urea manufacturing plant in India.

In a filing with Bursa Malaysia, the industrial equipment manufacturer said it was unable to ascertain the technical feasibility and economic viability of the proposed project.

The group had signed a Memorandum of Understanding on Jan 30 with the Malay Chamber of Commerce Malaysia (MCCM), China Rainbow International Investment Co Ltd (CRIIC) and India-based VBC Fertilisers & Chemicals Ltd (VBC) for the proposed development.

Save for MCCM, the three companies had also planned to form a consortium to facilitate the project development.

Under the MoU, Genetec was tasked to facilitate CRIIC’s participation in the project. CRIIC would in turn nominate the engineering, procurement, construction and commissioning contractor, and to provide funding totalling 30% of the project development cost.

MCCM on the other hand would assist the consortium coordinating with the Malaysian government relating to the project. As for VBC, it was to assist the consortium on approvals, permits, licences, land and other matters in the project site in Andhra Pradesh, India.

“No definitive or consortium agreement has been entered into by the company and the parties pursuant to the MoU,” Genetec said in its filing today.

Shares of Genetec closed unchanged at RM1.28, for a market capitalisation of RM50.61 million.