Cabinet authorises Rs1,033.54-cr equity infusion in Talcher Fertilizers
19 September 2018
The government has authorised investment of Rs1,033.54 crore to revive the Talcher fertiliser project, in a move that will result in huge investments in the fertiliser sector and ensure increased indigenous production of urea, leading to greater self-reliance in chemical fertilisers.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi approved the proposal of the Department of Fertilizers for equity investment of Rs1,033.54 crore, which is nearly 15 per cent of the total project cost.
The project involves the setting up of a coal gasification-based fertilizer project at the Talcher Fertilizer complex by Rashtriya Chemicals & Fertilizers Limited (RCF).
The revival of the Talcher project will help create job opportunities and also boost the economy of the state and the eastern region. The revival of the fertilizer unit will also ensure increase in indigenous production of urea leading to greater self-reliance in urea, an official release stated.
TFL, a joint venture of GAIL, RCF, CIL and FCIL, was incorporated in November 2015 with shareholding of 29.67 per cent of GAIL, RCF and CIL each and 10.99 per cent of FCIL to revive the Talcher Fertilizer Plant. TFL has been formed to set up a coal gasification based fertilizer project at Talcher, in Angul district of Odisha.
GAIL, CIL and RCF will have Rs1,033.54 crore (15 per cent) share in the equity of TFL, based on the Capex of Rs11,611.48 crore for the coal gasification-based fertilizer plant. GAIL and CIL are both Maharatna public sector enterprises and their boards are competent to approve their equity investment in the joint venture TFL.
RCF is a Miniratna company and its equity investment in the project is beyond the delegated financial powers of its board.