Talcher Fertilizers (TFL) has secured funding for its coal gasification-based urea project in Talcher, Odisha, from a consortium of lenders led by State Bank of India, the firm said on Monday.

The total debt secured by TFL as part of this facility is ₹9,560 crore, the firm said in a statement. A joint venture of GAIL (India), Rashtriya Chemicals & Fertilizers, Coal India and Fertilizers Corporation of India, TFL has been mandated by the Central government to revive the erstwhile Talcher plant of FCIL by setting up a new greenfield coal gasification-based urea plant with petcoke blending that has a capacity of 12.7 lakh tonnes per annum.

Also read: Exclusive subsidy policy for urea produced through coal gasification

The estimated cost of the project is ₹13,277 crore, and the balance funding shall be provided by its promoters in form of equity, TFL said.

The consortium

The consortium of lenders led by State Bank of India emerged as the financiers of the project after following a book-building process conducted by SBI Capital Markets. Other members of the lenders’ consortium are Punjab National Bank, Union Bank of India, Indian Bank, Bank of Maharashtra, Indian Overseas Bank, EXIM Bank, Bank of India and Canara Bank.

The debt has been secured after the Cabinet Committee on Economic Affairs in April approved the exclusive subsidy policy for urea produced by TFL through coal gasification route, TFL said. The Centre has set a national target of gasification of 100 tonnes of coal by 2030.

The Talcher plant will also reduce dependence on imported natural gas for the production of urea, leading to a reduction in LNG import bill, the statement added.

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