Talcher Fertilizers Ltd concludes financial closure of its coal-gasification based Urea Project

Talcher Fertilizers Ltd concludes financial closure of its coal-gasification based Urea Project

Bhubaneswar, June 29, 2021

Talcher Fertilizers Ltd. (TFL) has successfully concluded the financial closure of its mega coal gasification-based urea project located at Talcher in Angul district of Odisha.

TFL Managing Director Sachchidanand Yadav said a consortium of lenders led by the State Bank of India (SBI) has emerged as the financers of the project after following a book-building process conducted by SBICAPS on behalf of TFL.

Other members of the lenders' consortium are Punjab National Bank, Union Bank of India, Indian Bank, Bank of Maharashtra, Indian Overseas Bank, EXIM Bank, Bank of India and Canara Bank.

TFL has been mandated by the Government to revive the erstwhile Talcher plant of FCIL by setting up a new greenfield coal gasification based Urea Plant with an installed capacity of 12.7 lakh metric tonnes per annum (LMTPA) at an estimated project cost of Rs 13,277 crore.

The total debt secured by TFL as part of this facility is Rs 9,560 crore and balance funding shall be provided by its promoters in the form of equity. The debt has been secured after the Cabinet Committee on Economic Affairs (CCEA) approved in April 2021 the exclusive subsidy policy for urea produced by TFL through coal gasification route.

TFL is a joint venture of public sector companies GAIL (India) Ltd. (GAIL), Rashtriya Chemicals & Fertilizers Ltd. (RCF), Coal India Ltd. (CIL) and Fertilizers Corporation of India Ltd. (FCIL).

The implementation of the Talcher project is being undertaken through a technology which is being used for the first time in India and is a significant step towards ensuring energy security of the country through harnessing the vast coal reserves of the country in a manner which is more environment friendly than direct fired coal projects, a press release from the company said.

Yadav said the project would act as harbinger in attracting huge investment in the country for coal gasification projects and will pave the way for alternative use of indigenous coal which shall in turn aid in achieving the stated target of gasification of 100 MT of coal by 2030.

The project would also provide impetus to the economy of Odisha in particular and eastern India in general, he added.

Coal gasification plants are strategically important as coal prices are non-volatile and domestic coal is abundantly available, the release said.

The Talcher plant would also reduce dependence on imported natural gas for production of urea, leading to reduction in LNG import bill. Further the gasification process adopted in the Talcher unit shall emit negligible SOx, NOx and free particulate as compared to directly coal fired processes, thereby supporting commitments made by India under Paris Agreement, 2016, the release added.


Related Stories

No stories found.