GAIL (India) Ltd, Coal India Ltd, Rashtriya Chemicals and Fertilizers (RCF) and Fertilizer Corporation of India have signed joint venture agreements to set up an integrated coal gasification-cum-fertiliser and ammonium nitrate complex in Talcher, Odisha at an estimated combined investment of ₹ 9,000 crore.

“The deadline for starting the units is March 31, 2019,” said Piyush Goyal, Minister of State (Independent Charge) Power, Coal and New and Renewable Energy, at the signing ceremony on Wednesday.

The first joint venture is GAIL Coal Gas (India) Ltd will be led by the GAIL for setting up the upstream coal gasification and gas purification section for producing ammonia syn gas for the fertiliser unit. The unit will require an estimated investment of ₹ 3,000 crore.

GAIL has floated an expression of interest for technology selection for the unit and will finalise it by January 2015.

The second joint venture is the Talcher Chemicals and Fertiliser Ltd to be led by RCF and will be primarily responsible for setting up the ammonia-urea and nitric acid-ammonium nitrate plants at an estimate investment of ₹ 6,000 crore. The majority stake will be held by RCF and Coal India and pre-project activities have already started.

The entire project will produce 3,850 tonne per day of urea, 2,700 tonne per day of ammonia, 850 tonne per day of nitric acid and 1,000 tonne per day of ammonium nitrate.

India’s fertiliser requirement is 32 million tonne annually where as the production is 22 million tonne. Ananth Kumar, Minister for Chemicals and Fertilisers said that the aim is to become self reliant by 2019 and to do so, alternative technology was looked at due to the low natural gas production in the country.

“The cost saving using this new technology can save upto ₹ 3,000 crore of fertiliser subsidy,” Goyal added.

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