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Tenders: Cabinet approves Rs.13,277.21cr coal-to-urea plant

Fiinews by Fiinews
April 21, 2021
in Investment, Manufacturing, Technology
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TFL to use Clean Coal Technology to gasify coal

The Cabinet Committee on Economic Affairs has approved the Department of Fertilizers proposal to produce Urea through coal gasification technology by a national subsidy Talcher Fertilizers Limited (TFL).

The estimated cost of TFL’s greenfield Urea project is Rs.13,277.21 crore (+/-10%), said the Ministry of Chemicals and Fertilizers on 20 April 2021 on receiving the Cabinet approval.

Considering the strategic energy security and Urea self-sufficiency of the country, backed by India’s vast coal reserves, it has been decided go ahead with Talcher Fertilizer Limited plant based on coal gasification technology, it said.

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

The Talcher plant will also reduce dependence on important Natural Gas for production of urea and help reduce LNG import bill.

The gasification process adopted in Talcher unit is a Clean Coal Technology giving negligible SOx, NOx and free particulate emissions as compared to directly coal fired processes, said the Ministry.

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

TFL is reviving the erstwhile Talcher plant of Fertilizer Corporation of India Ltd (FCIL) by setting up a now greenfield Urea Plant with the installed capacity of 12.7 Lakh Metric Ton per annum (LMTPA).

The project will improve availability of fertilizer to farmers and boost development of the eastern region. It will also save transport subsidy for supply of urea in eastern part of the country.

The project will also promote ancillary industry in the catchment area. #technology #manufacturing #investment #agriculture /fiinews.com

Tags: The Cabinet
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