Union cabinet approves subsidy policy for Talcher Fertilizers urea output


The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday approved a proposal for the formulation of an exclusive subsidy policy for urea produced through coal gasification route by Talcher Fertilizers Limited, according to a government statement.

Talcher Fertilizers Ltd. plant will be based on coal-gasification technology, considering the strategic energy security and urea self-sufficiency of the country and looking into the country’s vast coal reserves, according to the statement.

Talcher Fertilizers is a Joint Venture Company of four  state-run companies- Rashtriya Chemicals & Fertilizers, GAIL (India) Ltd., Coal India Ltd. and Fertilizer Corporation of India Ltd.

The company is reviving the erstwhile Talcher plant of Fertilizer Corporation of India Ltd. In Angul district of central Odisha. A greenfield urea plant with the installed capacity of 1.27 million mt per year is being planned with an investment of about Rs 13,277 crore.

The project, when implemented, would help reduce urea imports to the tune of 1.27 million mt per year and save foreign exchange. Talcher plant will also reduce dependence on important natural gas for production of urea.

The gasification process adopted in Talcher unit will be a clean coal technology giving negligible SOx, NOx and free particulate emissions as compared to directly coal-fired processes, according to the statement.


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