Fertilizer Corporation of India (FCIL), has signed an MoU with Coal India (CIL), GAIL India (GAIL), and Rashtriya Chemicals & Fertilizers (RCF), for reviving the Talcher urea plant in Orissa.

As per the MoU, the project will be revived by the consortium of four public sector companies with an investment of Rs 8,000 crore. The plant will produce 1.2 million tpa of urea and ammonium nitrate. Coal India will supply about 5 million tpa of coal for the fertiliser unit. The project is expected to be commissioned by 2017. 

Further, two separate JV companies will be set up for the proposed revival. JV-1 will pursue upstream coal gasification and gas purification with GAIL having a major stake in the JV company. JV-2 will take up downstream urea-cum-ammonium nitrate complex and off-sites, including power plant and coal washery, and will have a major stake of RCF and CIL with a minor stake by FCIL and GAIL.

Meanwhile, the pre-project activities for revival of the Talcher project have already been started. GAIL has already floated tenders for pre-qualification of coal-gas technology supplier. RCF has also floated tenders for lump sum turnkey contract bids for Ammonia-Urea plant.

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