CIL's Strategic Investment in Talcher Fertilizers: Reviving India's First Coal Gasification Plant

State-owned Coal India Limited (CIL) announced a significant investment of over Rs 1,067 crore in Talcher Fertilizers Ltd through a rights issue, according to a Friday filing. The move seeks to advance India's inaugural coal gasification-based ammonia urea plant, a joint venture effort involving GAIL (India) Ltd, Rashtriya Chemicals & Fertilizers Ltd (RCF), and the Fertilizer Corporation of India Limited (FCIL).

Initial incorporation of Talcher Fertilizers Ltd took place in 2015, with all partners holding a 33.333% stake. The project was conceived to renew FCIL's fertilizer unit by setting up a plant in Talcher, Odisha, with an expected capacity of 12.7 lakh tonnes per annum. Despite its groundbreaking potential, the project faced delays attributed to pandemic-related issues after its launch in September 2019.

Minister of State for Chemicals and Fertilisers, Anupriya Patel, reported a 65.66% completion rate by February 2025, with several components nearing mechanical completion. The partners continuously review progress, engaging in frequent communication with China's Wuhuan Engineering Company Ltd to address project challenges.

(With inputs from agencies.)