CCEA nods exclusive subsidy policy for Urea produced through coal gasification by Talcher Fertilizers

The project would assist in reducing Urea imports to the tune of 12.7 LMT per annum leading to savings in foreign exchange.

Apr 20, 2021 04:04 IST India Infoline News Service

fertilizer
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday has given its approval for the proposal of the Department of Fertilizers for the formulation of an exclusive subsidy policy for Urea produced through coal gasification route by Talcher Fertilizers Limited (TFL).

TFL is a Joint Venture Company of four PSUs namely Rashtriya Chemicals & Fertilizers (RCF), GAIL (India) Ltd. (GAIL), Coal India Ltd. (CIL) and Fertilizer Corporation of India Ltd. (FCIL) which was incorporated on 13th November 2015.

As per the CCEA statement, considering the strategic energy security and urea self-sufficiency of the country, looking into the country's vast coal reserves, it has been decided to go ahead with Talcher Fertilizer Limited plant based on coal gasification technology. The project shall improve the availability of fertilizer to farmers thereby boosting the development of the eastern region and will save transport subsidy for the supply of urea in the eastern part of the country.

The project would assist in reducing Urea imports to the tune of 12.7 LMT per annum leading to savings in foreign exchange.

Further, the project will also give a boost to the 'Make in India' initiative and AtmaNirbhar' campaign and would help the development of infrastructure like roads, railways water, etc. providing a major boost to the economy in the eastern part of the country including promoting ancillary industry. The project will also provide new business opportunity in form of ancillary industries in the catchment area of the project.

It needs to be noted that, coal gasification plants are strategically important as coal prices are non-volatile and coal is abundantly available.  Talcher plant shall also reduce dependence on important Natural Gas for the production of urea leading to a reduction in LNG import bill. 

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