The government on Wednesday approved an equity infusion of Rs 1,033.54 crore by state-owned RCF in a fertiliser project at Talcher, Odisha.
This plant is being revived at a project cost of over Rs 11,500 crore by Talcher Fertiliser Ltd, which a joint venture firm of GAIL, CIL, RCF and Fertiliser Corporation of India Ltd (FCIL). The move will boost domestic production of urea and cut import dependence.
"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 percent 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 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 percent of GAIL, RCF and CIL each and 10.99 percent 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.
The share of GAIL, CIL and RCF in the equity of TFL will be Rs 1033.54 crore (+ 15 percent) based on the capex of Rs 11,611.48 crore (+ 15 percent) for the Goal gasification based fertiliser plant.
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.
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