By Bizodisha Bureau, Bhubaneswar, April 27, 2017 : The defunct Talcher Fertilizer Plant of the Fertilizer Corporation of India (FCI) in Odisha is being revived at a cost of Rs 8000 crore as per the deadline.

Addressing a press conference at New Delhi on Thursday, Union Petroleum & Natural Gas minister Dharmendra Pradhan said, there has been satisfactory progress in the revival process of the now.

“Following a decision to revive four defunct fertilizer plants in eastern India, work is in progress for the revival of these units. In Talcher fertilizer will be produced using coal-based gas. These projects are reviewed by us on a regular basis. Today a mid-term review of the projects was undertaken. We found that work progress has been satisfactory. Technology for the Talcher unit has been finalized in the meantime. Shell petroleum has been entrusted with the responsibility of extract gas from coal. Using the company’s license gas will be produced from coal and from it fertilizer will be produced through ammonia plant,” Pradhan said, according to a PIB press release.

“These investments will result in the industrialization of Odisha and all areas of eastern India including West Bengal, Bihar, Jharkhand and eastern UP,” Pradhan added after the review meeting held at Shastri Bhawan here.

Pradhan elaborated that Rs 20,000 crore would be invested to revive fertilizer plants at Gorakhpur (Uttar Pradesh), Barauni (Bihar) and Sindri (Jharkhand).

Among them, the Talcher Fertilizer Plant in Odisha is being revived with an investment of Rs 8000 crore by a consortium comprising FCI, GAIL, Rashtriya Chemical and Fertilizer Limited and Coal India Limited. This would be the first time a Fertilizer plant in India will be operated based on Coal Gasification technology.

Production from these four major Fertilizer plants will ensure enhanced domestic fertilizer production and availability which will give an impetus to the vital agricultural sector thereby aiding the Second Green Revolution. The ground work for these Plants is scheduled to commence in FY 2017-18, he added.

The Board for Industrial and Financial Reconstruction (BIFR) had ordered the closure of FCI’s Talcher unit in 2002 as it was making losses over a period of time.
After nearly a decade, revival plans were mooted during the UPA government in 2012. Two years later, the Cabinet Committee on Economic Affairs (CCEA) after a series of deliberation had decided to revive the Talcher Unit.

It was decided that the unit will be revived by a consortium of GAIL, RCF, CIL and FCIL.