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Fertilizers push: Coal India to infuse over Rs 1,067 crore in Talcher Fertilizers; coal gasification plant sees 65% progress
State-run Coal India Ltd (CIL) on Friday said it will invest more than Rs 1,067 crore in Talcher Fertilizers Ltd (TFL) by subscribing to equity shares through a rights issue, marking a significant step towards realising India's first coal gasification-based ammonia urea plant.
TFL was set up in 2015 as a joint venture between GAIL (India) Ltd, CIL, Rashtriya Chemicals & Fertilizers Ltd (RCF), and Fertilizer Corporation of India Ltd (FCIL) to revive FCIL's defunct Talcher fertiliser unit in Odisha. GAIL, CIL, and RCF each hold 33.33% stake in the project, according to PTI.
In a stock exchange filing, Coal India said it will acquire 1,06,75,06,771 equity shares at Rs 10 each, with the transaction expected to be completed by July 9.
The flagship Talcher project is a key part of India's bid to convert coal into fertiliser feedstock. The Rs 13,277-crore urea plant is designed to produce 12.7 lakh tonnes of urea per annum using coal gasification technology. However, the plant has been running behind schedule since the EPC contract was awarded in 2019 to China's Wuhuan Engineering Company Ltd (WECL).
Minister of State for Chemicals and Fertilisers Anupriya Patel told Parliament earlier this year that project progress as of February 28, 2025, stood at 65.66%, with the Outside Battery Limit (OSBL) components reaching 77.62% completion, the agency reported.
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She also noted several OSBL installations such as the pipe rack, plant lighting, Boiler-1, and water treatment units have reached near-completion. Initially slated for commissioning in September 2024, the project missed its deadline due to pandemic-related disruptions stemming from the outbreak in Wuhan, China — the base of the contractor WECL.
The TFL board and JV partners are now holding regular progress reviews, while project engineers continue coordinating via video conferencing with WECL to address outstanding engineering issues, the minister informed.
Coal India, which produces over 80% of the country's coal, sees this investment as strategic to both its diversification and India's fertiliser self-sufficiency.
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