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MoU signed for revival of Talcher fertiliser plant


FCI (5)

OST Business Bureau

New Delhi/Bhubaneswar, Sep 5:

Fertilizer Corporation of India Ltd (FCIL) today signed a memorandum of understanding (MoU) with Coal India Ltd (CIL), Gas Authority of India Limited (GAIL) and Rashtriya Chemicals & Fertilizers Ltd (RCF) for revival of Talcher Urea Plant in Odisha.

The MoU was signed in the presence of Union Minister for Petroleum & Natural Gas Veerapa Moily, Minister for Coal Sriprakash Jaiswal and Minister of State for Chemicals and Fertilizers Srikant Kumar Jena. The project is expected to be commissioned by 2017.

“Today is a historic day for the country, in particular for the people of Odisha, as the Talcher Unit of FCIL is being revived by a consortium of RCF, CIL, GAIL & FCIL at an estimated cost of about Rs 8,000 crore,” said Jena.

He said that it is a unique project that would use the coal gasification technology for production of 1.2 MTPA Urea and Ammonium Nitrate. CIL shall supply about 5 million tons of coal per annum for the project.

The Chemical and Fertilizers Minister informed that it had been decided to form two separate joint venture (JV) companies for the proposed revival. JV-1 would take up upstream coal gasification and gas purification with GAIL having a major stake. JV-2 would take up downstream Urea-cum-Ammonium Nitrate Complex & Off-sites, including Power Plant & Coal Washery with RCF & CIL having major stakes and FCIL & GAIL having minor stakes, the Minister added.

FCIL, a multi-unit fertilizer PSU under the Department of Fertilizers (DoF) having units in Sindri, Talcher, Ramagundam, Gorakhpur and Korba, was closed in September 2002. .

The Cabinet gave in principle approval to the proposal for revival of closed units of FCIL in April 2007. In October 2008, the Cabinet approved the constitution of an Empowered Committee of Secretaries (ECOS) with the mandate to evaluate all options for revival of closed units of FCIL. In August 2011, the Draft Rehabilitation Scheme (DRS) for revival of all units of FCIL, including Talcher Fertilizer Plant was approved by CCEA.

Recently, CCEA approved the waiver of Government of India loans and interest worth about Rs. 11,000 crores on FCIL and subsequently FCIL was de-registered from BIFR.

The pre-project activities for revival of Talcher project have already started. GAIL has already floated tenders for pre-qualification of Coal-Gas Technology Supplier. RCF has also floated tenders calling for LSTK bids for the Ammonia-Urea plant. The project will not only reduce the dependence on imported urea but shall also utilize indigenously available feedstock.