| Rashtriya Chemicals and Fertilizers (RCF), the largest public sector player in the domestic fertiliser sector and chemicals space, is planning to partner with Gas Authority of India (GAIL) to set up a surface coal gassification plant at Talchar in Orissa. |
| The project, which is estimated to cost Rs 2,500 crore, also includes a fertiliser complex in the state. The company is currently in the final stages of talks with GAIL on this project and the Centre's approval for the investment is awaited, according to a company executive. |
| The joint venture coal gassification plant will be the gas-sourcing base for RCF's proposed Ammonia plant in the new fertiliser complex. |
| Company sources said the Ammonia plant would have "substantial" capacity and the entire gas produced in the joint venture plant is expected to be utilised for captive consumption. |
| The implementation of the project is likely to be started by the end of this year, the sources said. GAIL had been actively pursuing surface coal gassification opportunities in Orissa as part of a comprehensive "Energy Cooperation Agreement" signed with Orissa government. For this, GAIL had identified Talcher as a suitable location in the state. |
| RCF, which has embarked on a high-growth trajectory, had already invested more than Rs 350 crore in upgrading and expansion. |
| The company has also planned more projects to be implemented in the next two to three years. It has planned a total investment of about Rs 600 crore in these proposed projects. |
| "Since it is zero-debt company, the funding through internal accruals and external borrowings and other debt instruments will be the preferred options," the sources said. |
| The company had modernised its Ammonia plant at Trombay at an investment of Rs 250 crore this year. The methanol plant at Trombay is also being modernised and expanded at an investment of Rs 107 crore. |
| Apart from these modernisation and capacity expansion projects, the company is planning to set up an Argon plant near its existing plant at Thal in Raigad district at a cost of Rs 95 crore. |
| RCF is also planning a business diversification by setting up a plant to manufacture Load Bearing Gypsum Panels (LBGP) out of Phospho Gypsum. |
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