Coal India to foray into fertiliser, chemical production

Company has decided to amend its memorandum of association for foraying into the business of producing fertilisers and chemicals using coal gas

State-owned Coal India (CIL) has decided to amend its memorandum of association (MoA) for foraying into the business of producing fertilisers and chemicals using coal gas.

The amendment will permit the maharantna firm to produce, process, store, distribute, sell import, export or otherwise deal in gas and other byproducts arising from coal gasification and use them to produce ammonium nitrate, fertilisers and associated products, a Coal India official said.

The official further said that the amendment will also allow the coal PSU to install and operate such plant in the country and overseas.

The matter also came up for discussion during the board meeting held last month. The board accorded its approval to the proposal to amend of Memorandum of Association resolution, the official said.

CIL said Rashtriya Chemicals and Fertilizers Ltd (RCF) had signed a Memorandum of Understanding (MoU) with Gas Authority of India Ltd (GAIL) for jointly exploring the potential use of gas produced from surface coal gas project in the fertiliser industry.

GAIL had approached CIL for cooperating in various studies required for the process and project development for surface coal gasification in coal bearing states, including the area in and around Talcher in Odisha.

The Ministry of Chemicals and Fertilisers convened a meeting in 2009 for revival of Talcher unit of Fertilizer Corporation of India (FCIL).

In the meeting it was decided that GAIL, CIL and RCF would form a consortium by signing of MoU for setting up surface coal gasification plant for chemicals and fertilisers at Talcher.

In August last year, the Cabinet Committee on Economic Affairs awarded the revival of Talcher plant of FCIL to the consortium.

In August, 2013 the government decided to form two joint ventures for operating the proposed project.