Odisha Sun Times Business Bureau
New Delhi/Bhubaneswar, Feb 28:
There is good news for the closed urea plant of the Fertiliser Corporation of India (FCI) in Talcher. The proposal for the formation of a joint venture company for the revival of the plant received the approval of the Coal India Limited (CIL) board today.
FCI had signed a memorandum of understanding (MoU) with Rashtriya Chemicals and Fertilisers (RCF), Gas Authority of India Limited (GAIL) and CIL in September last year for revival of this plant, which was closed in 2002.
The MoU provided for formation of two separate joint ventures to revive the plant with a production capacity of 1.2 million tonnes per annum at an estimated cost of Rs 8000 crores. The first joint venture was for upstream coal gasification with GAIL having the major stake. The second JV was for urea-cum-ammonia nitrate complex with RCF and CILbeing the major stakeholders.
RCF and CIL will have around 42 per cent stake each in JV for downstream. GAIL will have 5 per cent stake and rest would be with FCIL.
In the upstream JV, around 80 per cent stake will be held by GAIL and about 10 per cent stake will be with the technology provider of coal gasification. The rest would be with FCIL.
The MoU also provided for building of a power plant and a coal washery facility at the site in Talcher. The project is expected to be commissioned by 2017.
The government had approved the revival offive5 closed units of FCI at Sindri, Talcher, Ramagundam, Gorakhpur and Korba. The Centre had also waived loan and interest amounting to Rs 10,644 crore to FCI.
That apart, the Board for Industrial and Financial Reconstruction (BIFR) had de-registered FCI, paving the way for the revival of its closed urea plants.