CIL gets board nod for two JVs to revive Talcher urea plant

Taking forward Rs 8,000 crore revival process for FCIL's Talcher urea plant in Odisha, Coal India will form two joint ventures -- one with PSU major GAIL and the other with Rashtriya Chemicals and Fertilisers (RCF).
The board of directors of Coal India Ltd (CIL) has given its in-principle approval for these JVs, the company said in a regulatory filing today.
A consortium of RCF, GAIL, CIL and Fertiliser Corporation of India Ltd (FCIL) have agreed to invest Rs 8,000 crore for the revival of this urea plant with a production capacity of 1.2 million tonnes per annum.
An MoU has been earlier signed to form two separate joint ventures to revive this plant and also build a power plant and coal washery facility at the site.

The first JV would be for upstream coal gasification with GAIL having a majority stake. The second JV would be for urea-cum-ammonia nitrate complex with RCF and CIL being major stakeholders.
"The company will form two joint ventures... JV 1 for Coal Gasification with GAIL as a major partner (and) JV 2 - for fertiliser (Ammonium Nitrate) plants, coal mine, coal washery, power plant & utilities with RCF and CIL as major stakeholder," CIL said in its filing.
The revival of this plant is being seen as crucial as urea production in the country has not been sufficient to meet the demand.