Fertilizers Talcher Urea Plant to Go Back On–Stream

Editor: Dominik Stephan

India's Fertilizer Corporation of India plans to bring an urea fertilizer plant at Talcher back on-stream. The newly revived plant shall produce up to 1.2 million tons/year Urea and Ammonium Nitrate for the local fertilizer industry...

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(Picture: PROCESS)

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

On the occasion, Mr Srikant Kumar Jena said that it was 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 (US $1.2 billion). He said that it is a unique project being setup on Coal Gasification for production of 1.2 million tons/year Urea and Ammonium Nitrate. CIL shall supply about 5 million tons per annum of coal for this project.

Joint Venture Double Feature for Urea Production

Mr Jena informed that it was 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 major stake. JV-2 would take up down-stream Urea-cum-Ammonium Nitrate Complex & Off-sites, including Power Plant & Coal Washery and will have major stakes of RCF & CIL with minor stake by FCIL & GAIL, the Minister added.

FCIL, a multi-unit fertilizer PSU under the Dept. of Fertilizer (DoF) having units Sindri, Talcher, Ramagundam, Gorakhpur & Korba was closed in September 2002. However, the revival process was started by the Government and the Cabinet, in principle, approved 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 the Units of FCIL, including Talcher Fertilizer Plant was approved by CCEA.

Pre Projects Already Started for Talcher Urea Plant

Recently, CCEA approved waiver of Government of India loan and interest of about Rs. 11,000 crore 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 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.

Secretary, Ministry of Petroleum and Natural Gas, Mr Vivek Rae; Secretary, Ministry of Coal, Mr SK Srivastava; Secretary, Department of Fertilizer, Mr Sudhir Mital, the CMD of FCIL, Mr Satish Chandra; CMD of RCF, Mr RG Rajan; CMD of GAIL, Mr BC Tripathi, and CMD of CIL, Mr S Narsingh Rao were also present on the occasion.

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