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Chinese firm gets key contract for revival of Talcher Fertilizers

Talcher Fertilizers has awarded a contract that is being hailed as a milestone in the revival of Talcher unit of FCIL to a Chinese company

Chinese firm gets key contract for revival of Talcher Fertilizers

New Delhi: Talcher Fertilizers Limited (TFL) has awarded a contract that is being hailed as a milestone in the revival of Talcher unit of Fertilizer Corporation of India Ltd (FCIL) to a Chinese company on Tuesday. Talcher Fertilizers awarded a Lump Sum Term Key (LSTK) contract of the project to M/s Wuhuan Engineering Co Ltd, China. The company has been selected as the LSTK contractor for implementing the coal gasification and ammonia/urea packages of TFL. This is a key contract for the revival of Talcher Fertilizers. The ceremony was held in the presence of Petroleum Minister Dharmendra Pradhan and Minister for Chemicals and Fertilisers DV Sadananda Gowda.

Project shall cost Rs 13,277 cr

With an estimated investment of Rs 13,277 crores, the project shall produce 1.27 MMTPA of Neem-coated Urea through gasification of a mixed feedstock comprising of high ash Indian coal and petcoke. TFL has been allotted northern part of North Arkhapal mine as captive mine for meeting its coal requirements and petcoke shall be sourced from Paradip refinery of IOCL. The commissioning of this project is expected in the third quarter of 2023.

The backdrop

In order to augment the domestic urea capacity, revival of closed fertilizer units of Fertilizer Corporation of India Ltd. (FCIL) has been the top priority agenda of the government. Accordingly, the government has mandated TFL, a Joint Venture company of nominated PSUs viz. RCF, CIL, FCIL and GAIL, to revive the Talcher unit of FCIL. This project shall improve India’s self-sufficiency in Urea and promote agriculture growth, thereby reducing the import of urea in the country. This, in turn, is expected to have a significant effect on the LNG imports besides providing employment opportunities to the local populace and also flipping the ancillary industries in the region. Further success of this technology shall open up new areas in the Indian energy context, leading to an alternative use of high ash Indian coal in the areas other than conventional thermal power production.