Urea/Fertilizers Indian Administration Clears the Way for Revival of Closed Urea Units

Editor: Dominik Stephan

Is India about to see a renaissance of its idled urea plants? With demands for this basic fertilizer feedstock rising, the country's administration just opened the door for a revival of closed down production sites of FCIL.

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India's fertilizer industry plans the revival of idled urea plants.
India's fertilizer industry plans the revival of idled urea plants.
(Picture: PROCESS)

New Delhi/India – The Indian Board for Industrial & Financial Reconstruction (BIFR) has given a go ahead for revival of closed urea units of Fertilizer Corporation of India (FCIL) through JV/SPV route by the nominated PSUs viz. Talcher unit in Odisha by Coal India (CIL) and Rashtriya Chemicals & Fertilizers (RCF), Sindri unit in Jharkhand by Steel Authority of India (SAIL) and National Fertilizers (NFL), Ramagundam unit in Andhra Pradesh by Engineers India (EIL) and NFL.

This was stated by Srikant Kumar Jena, Minister of State for Chemicals & Fertilizers in New Delhi today. He said that the objective to revive the closed urea units of FCIL and Hindustan Fertilizer Corporation (HFCL) is now being accomplished by concerted efforts of the Government.

Revival of Urea Industry on Fast Track Basis

He told that Talcher Unit in Odisha shall be revived on fast track basis and the assets shall be handed over to the consortium of CIL and RCF on nomination basis. RCF has already invited bids for engaging an agency for setting up and operation of coal gasification and gas purification plant at Talcher on Build Own Operate (BOO) basis. Shri Jena went on to add that RCF & CIL have joined hands to set up an Integrated Coal Gasification based Ammonia-Urea Complex along with Nitric Acid and Ammonium Nitrate Complex at FCIL, Talcher site in Odisha.

CIL shall supply about 5.5 million tonnes of raw coal to the proposed JV / Consortium. The ammonia-urea project shall be based on ammonia synthesis gas from coal gasification plant. The capacity of urea plant shall be around 12.7 Lakh tonnes per annum, whereas that of Nitric Acid plant shall be around 2.8 lakh tonnes per annum and that of Ammonium Nitrate Plant shall be around 3.3 lakh tonne per annum.

Billion Dollar Investments in Urea Fertilizers Expected

The Minister said that the revival of Talcher unit shall bring an investment of about Rs 80 billion/US $ 1.465 billion to Odisha, generate direct and indirect employment in the State, would help in developing ancillary industry in the region and give a boost to the economy of the State. He added that the revival process of the three units shall also help the country to bridge the gap between demand and domestic production of urea.