By Bizodisha Bureau, Bhubaneswar, September 19, 2018: The Union Cabinet headed by prime minister Narendra Modi on Wednesday gave its approval to revive the Talchar fertiliser project with an investment outlay of Rs 1,033.54 crore.

The decision was taken by the Cabinet Committee on Economic Affairs (CCEA). The project will be undertaken by the state-run Rashtriya Chemicals & Fertilizers Ltd (RCF).

“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has approved the proposal of the Department of Fertilizers for equity investment of Rs 1033.54 crore (+ ) @ 29.67 per cent of the total project cost for setting up a coal gasification based fertiliser project in Talcher Fertilizer Ltd (TFL) by Rashtriya Chemicals & Fertilizers Limited (RCF),” an official statement said.

“The revival of the fertiliser unit will also ensure increase in indigenous production of urea leading to greater self-reliance in urea,” it added.

TFL is a joint venture company of gas utility GAIL, RCF, Coal India and FCIL which are all state-run entities. It was incorporated in November 2015, with shareholding of 29.67 per cent of GAIL, RCF and CIL each and 10.99 per cent of FCIL.

“TFL has been formed to set up a coal gasification based fertilizer project at Talcher, District Angul, Odisha. The share of GAIL, CIL and RCF in the equity of TFL shall be Rs 1,033.54 crore based on the capex of Rs 11,611.48 crore for the coal gasification based fertiliser plant,” a CCEA statement said.

The revival of the Talcher project will ensure huge investment in the fertilizer sector from the government through PSUs. This will create job opportunities and also boost the economy of the state and the eastern region.

TFL was incorporated in November, 2015 with shareholding of 29.67 per cent of GAIL, RCF and CIL each and 10.99 per cent of FCIL to revive the Talcher fertiliser plant.

The JV was formed to set up a coal gasification based fertiliser project at Talcher, District Angul, Odisha.

GAIL and CIL are both Maharatna public sector enterprises and their Board is competent to approve their equity investment in the joint venture company TFL.

RCF is a Miniratna company and its equity investment in the project is beyond the delegated financial powers of its Board.