Govt to subsidise Talcher Fertiliser's coal gas-based urea production
22 April 2021
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given its approval for the Department of Fertilizers’ proposal for the formulation of an exclusive subsidy policy for urea produced through coal gasification route by Talcher Fertilizers Limited (TFL).
The CCEA said, taking into consideration the strategic energy security and urea ,elf-sufficiency of the country, especially in view of the country's vast coal reserves, it has been decided go ahead with Talcher Fertilizer Limited’s project, which is estimated to cost Rs13,277.21 crore (+/-10 per cent).
The project, based on coal gasification technology, will improve availability of fertilizer to farmers thereby boosting development of the eastern region and will save transport subsidy for supply of urea in eastern parts of the country. It would assist in reducing urea imports to the tune of 1.27 million tonnes per annum, leading to huge savings in foreign exchange.
The project will also give a boost to 'Make in India' initiative and `AtmaNirbhar' campaign and would help development of infrastructure like roads, railways water, etc. providing a major boost to economy in the eastern parts of the country, including the promotion of ancillary industry. The project will also provide new business opportunity in the form of ancillary industries in the catchment area of the project.
Coal gasification plants are strategically important as coal prices are non-volatile and coal is abundantly available. Talcher plant would also reduce dependence on important natural gas for production of urea, leading to reduction in LNG import bill. The gasification process adopted in Talcher unit is a Clean Coal Technology giving negligible SOx, NOx and free particulate emissions as compared to directly coal fired processes.
Incorporated on 13 November 2015, Talcher Fertilizers Ltd (TFL) is a joint venture of four PSUs, namely, Rashtriya Chemicals and Fertilizers (RCF), GAIL (India) Ltd (GAIL), Coal India Ltd. (CIL) and Fertilizer Corporation of India Ltd (FCIL), which is reviving the erstwhile Talcher plant of Fertilizer Corporation of India Ltd (FCIL), by setting up a now greenfield urea plant with an installed capacity of 1.27 million tonnes per annum (LMTPA).