Cabinet okays subsidy for urea produced via coal-gasification by Talcher Fertiliser

The Union Cabinet on Tuesday approved an “exclusive subsidy policy” for urea fertiliser produced through coal-gasification by Talcher Fertilizers Ltd (TFL). Incorporated in 2015, TFL is a joint venture between GAIL India Ltd, Coal India Ltd, Rashtriya Chemicals and Fertilizers Ltd and Fertilizer Corporation of India Ltd (FCIL).

TFL is reviving the erstwhile Talcher plant of FCIL by setting up a now greenfield urea plant in Odisha with the installed capacity of 12.7 lakh tonne per annum. The estimated project cost of the TFL urea project is Rs 13,277.21 crore.

Briefing repoters about the Cabinet’s decisions, Commerce Minister Piyush Goal said the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given its approval for “a specific subsidy to promote this innovative technology of coal-gasification for the first time in India.”

Coal gasification plants are strategically important as coal prices are non-volatile and coal is abundantly available in the country, he said.

“…India has large coal reserves but not adequate gas. This effort to convert coal to gas, and then gas to urea will truly help India become Aatmanirbhar (self-reliant),” Goyal said.