The Union minister of state for chemical and fertilizer, Srikanta Jena has indicated that the closed Talcher fertilizer plant would be operational in 2012.
After revival the plant would produce 1.2 million tonnes of urea per annum.
“The tendering process for selection of technology for the plant will be initiated within a fortnight and the construction will start from October, 2011 so that the plant commences production of urea by 2012”, the minister said after a review meeting with top officials of his ministry and the new promoters of the project, Rashtriya Chemical and Fertilizers (RCF), Gas Authority Of India Limited (GAIL) and Coal India Ltd (CIL) at Talcher.
Jena said, the consortium consisting of RCF, GAIL and CIL would invest about Rs 7000 to 8000 crore to revive the closed fertilizer unit. It may be noted Talcher fertilizer plant earlier functioned under the aegis of Fertiliser Corporation of India (FCI) and was closed since 1999 after suffering huge losses. The unit was producing 700 to 800 tonnes of urea per day before being shut down.
The minister hinted that half of the infrastructure required for revival of the unit will be built anew. The rest infrastructural needs will be met from existing facilities.
On the new technology to be adopted, the minister said, the plant will use coal gasification technology for its revival. CIL has agreed for annual supply of 5.5 million of coal for gasification purposes. However, RCF will be the main operating agency as it has got the expertise in urea production.
The minister said, Talcher plant was found out to be the most viable for revival among the eight FCI plants closed in the country. Angul collector, D.V. Swamy and local MLA Braja Kishore Pradhan were present on the occasion.