The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Department of Fertilizers' proposal for an equity investment of Rs10,33.54cr plus @29.67% of the total project cost for setting up a coal gasification-based fertilizer project at Talcher Fertilizer Ltd. Rashtriya Chemicals & Fertilizers
(RCF) will be setting up the project.
The revival of the Talcher project will ensure huge investments in the fertilizer sector from the government through PSUs. It will create job opportunities and also boost the economy of the state as well as the eastern region. The revival of the fertilizer unit will also ensure an increase in indigenous production of urea leading to greater self-reliance in urea.
Rashtriya Chemicals & Fertilizers Ltd ended lower by 2% at Rs68.85 from its previous closed of Rs70.25 on the BSE.
The scrip opened at Rs70.25 and has touched a high and low of Rs70.60 and Rs68.55, respectively.
RCF is a fertilizer and chemical manufacturing company. The government holds a 75% equity stake in the company. Its revenue mix consisted of ~88% of fertilizers and ~12% of industrial chemicals in Q1FY19.