FCIL Signed Mou with CIL, GAIL and RCF for Revival of Talcher Urea Plant in Odisha

Sep 6, 2013 11:15 IST

Fertilizer Corporation of India Ltd. (FCIL) signed an MoU with Coal India Ltd. (CIL), GAIL India Ltd. and Rashtriya Chemicals & Fertilizers Ltd. (RCF) for revival of Talcher Urea Plant in Odisha on 5 September 2013. The MoU was signed in presence of Union Minister of Petroleum & Natural Gas, Veerapa Moily, Minister of Coal, Sriprakash Jaiswal and Minister of State (I/C) for Chemicals and Fertilizers, Statistics and PI, Srikant Kumar Jena.

It is important to note that the Talcher Unit of FCIL is being revived by a consortium of RCF, CIL, GAIL and FCIL at an estimated cost of about 80000 crore Rupees. This is a unique project being setup on Coal Gasification for production of 1.2 MTPA Urea and Ammonium Nitrate. CIL shall supply about 5 million tons per annum of coal for this project.

Under the proposed revival, two separate Joint Venture (JV) Companies will be formed. JV-1 would take up upstream coal gasification and gas purification with GAIL having major stake. JV-2 would take up down-stream Urea-cum-Ammonium Nitrate Complex and off-sites, including Power Plant & Coal Washery and will have major stakes of RCF & CIL with minor stake by FCIL & GAIL.

It is important to note that pre-project activities for revival of Talcher project have already started. GAIL has already floated tender for pre-qualification of Coal-Gas Technology Supplier. RCF has also floated tender calling for LSTK bids for Ammonia - Urea plant. The project will not only reduce the dependence on imported urea but shall also utilize indigenously available feedstock. The project is expected to be commissioned by 2017.


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