New Delhi: The government plans to ramp up urea output by 4-5 million tonnes in the next few years as it begins the revival process of closed fertiliser units.
"We are working on reviving closed fertiliser plants using coal gasification or other cost effective technologies to increase the domestic production of urea. We aim to become a net urea exporter by March 2019," Fertiliser Minister Ananth Kumar said here Wednesday.
Four PSUs -- GAIL, Coal India Limited (CIL), Rashtriya Chemicals and Fertilizers (RCF) and Fertilizer Corporation of India (FCIL) -- today signed joint venture agreements to set up an Integrated Coal Gasification cum Fertilizer and Ammonium Nitrate complex at Talcher, Odisha.
The two JVs will together invest Rs 9,000 crore for using the coal gasification technology, Kumar said here at the JV signing event.
Speaking on the occasion, Power and Coal Minister Piyush Goyal said: "This coal gasification endeavour of the government will led to savings of about Rs 3,000 crore annually on fertiliser subsidy".
There will be two JV companies set up for the purpose -- GAIL Coal Gas (India) Limited and Talcher Chemicals and Fertilizers Limited.
GAIL Coal Gas (India) shall by led by GAIL with the state-run gas utility holding 35 percent stake, FCIL (11%) and RCF and CIL each holding 3 percent stake.
According to sources, the JV will raise the remaining 48 percent from open market and financial institutions.
This JV firm will be primarily responsible for setting up the upstream coal gasification and gas purification section for the production of Ammonia for downstream fertilizer unit at an estimated investment of Rs 3,000 crore, an official statement said.
"Talcher Chemicals and Fertilizers Limited, shall be led by RCF and CIL with 40 percent stake each and GAIL and FCIL with 10 percent each," GAIL CMD B C Tripathi said here.
This JV company will be responsible for setting up Ammonia-Urea, Nitric Acid-Ammonium Nitrate plants at an estimated investment of Rs 6,000 crore, the statement said.
