CIL inks crucial JV for Talcher urea plant

The company signed two separate joint venture agreements

The world’s largest coal miner, Coal India Ltd (CIL), on Wednesday joined hands with gas utility GAIL (India), Fertilizer Corporation (FCIL) and Rashtriya Chemicals and Fertilizers (RCF) for setting up an integrated coal gasification and fertiliser and ammonium nitrate complex at Talcher in Odisha.

The companies signed two separate joint venture agreements. The first JV — GAIL Coal Gas (India) Ltd — will be led by GAIL. It will set up an upstream coal gasification and gas purification plant for production of ammonia syn gas for a downstream fertiliser unit at an estimated investment of Rs 3,000 crore.

“GAIL had floated an Expression of Interest for technology selection for coal gasification and this shall be finalised by the end of January, 2015,” according to the petroleum ministry.  

The second JV, Talcher Chemicals & Fertilizers Ltd, will be led by RCF. It will set up ammonia-urea, nitric acid-ammonium nitrate plants at an estimated investment of Rs 6,000 crore, with majority stake held by RCF and CIL. Both RCF and CIL are undertaking pre-project activities.

The overall project comprises setting up a 3,850 million tonne per annum urea plant, a 2,700 ammonia plant, an 850 nitric acid plant, apart from a 1,000 ammonium nitrate plant. GAIL will put up the coal gasification plant, while RCF and CIL will put up other downstream plants of ammonia, urea, nitric acid and ammonium nitrate.  

The execution of construction activities is likely to start in year 2015-16, after preparation of a detailed Feasibility Study report, and is expected to be complete by end 2019. Also, the government is identifying a coal block near the complex for supplying fuel to the project. The coal ministry has started the process for allocation of the block.
 

According to the government’s release, the revival of the Talcher unit will trigger a “great economic boom” in Odisha and eastern part of the country. The project will pave the way for production of fertilizer from coal, thereby cutting down import dependency of the fuel.