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RCF may go ahead with Rs 3,500 cr Orissa plant

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PB Jayakumar Mumbai
Last Updated : Feb 05 2013 | 1:36 AM IST
With the uncertainty surrounding gas availability and pricing, the public sector Rashtriya Chemicals & Fertilisers (RCF) may be forced to go ahead with a Rs 3,500 crore coal-to-gas project at Talchar in Orissa to feed its plants.
 
"We have tied up with Reliance Industries and Oil and Natural Gas Corporation (ONGC) for supplying gas. There may be delays although Reliance has assured us supplies from March next year. We are also talking to GAIL for fuel supply. If the availability of gas become an issue, then we will have to look at the option of setting up the Talchar project," said U S Jha, chairman and managing director.
 
Jha said the pact with Reliance-ONGC was for supply of 2 million cubic metres per day (mcmd) at about $7 per mmbtu. The coal gassification project could provide gas at a much cheaper price.
 
According to governmental policy, all chemical and fertiliser companies have to switch over to fuels cheaper than naphtha in the future as naphtha is valued at about $18 per million British thermal units (mbtu).
 
The techno-economic feasibility studies commissioned by RCF showed Talchar to be the most suitable site in terms of infrastructure, facilities and proximity to coal mines. The latest coal gassification technology will be utilised to allow the use of coal with high ash content of up to 30-35 per cent. "A final decision will be taken after assessing the availability of other fuels as feedstock and prices," he said.
 
RCF is also planning to revive two fertiliser plants in Durgapur and Talchar at an investment of about Rs 6,000 crore. Its urea plant in Trombay is defunct for the last five years owing to non-availability of sufficient gas.
 
The company is in talks with GAIL to supply LNG from the Uran pipeline. A project to debottleneck the plant at an investment of Rs 450 crore, is on the anvil.
 
The company is setting up a new argon plant at Thal. The ammonia plant at Trombay has been revamped and the methanol and ANP plants are to follow suit. RCF has lined up about Rs 10,000 crore for expansion and revamping, he said.

 
 

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First Published: Jul 12 2007 | 12:00 AM IST

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