TALCHER FERTILIZERS LTD. (TFL)

TALCHER FERTILIZERS LTD. (TFL)

Subject: Economy

Context: Union Cabinet has given its approval for the proposal of the Department of Fertilizers for the formulation of exclusive subsidy policy for Urea produced through coal gasification route by Talcher Fertilizers Limited (TFL).

Concept:

• Considering the strategic energy security and urea self-sufficiency of the country, looking into the country’s vast coal reserves, it has been decided go ahead with Talcher Fertilizer Limited plant based on coal gasification technology.
• The project shall improve availability of fertilizer to farmers thereby boosting development of eastern region and will save transport subsidy for supply of urea in eastern part of the country.
• It would assist in reducing Urea imports to the tune of 12.7 LMT per annum leading to savings in foreign exchange.

Background

• Talcher Fertilizers Ltd. (TFL) is a Joint Venture Company of four PSUs namely Rashtriya Chemicals & Fertilizers (RCF), GAIL (India) Ltd. (GAIL), Coal India Ltd. (CIL) and Fertilizer Corporation of India Ltd. (FCIL) which was incorporated on 13th November, 2015.
• TFL is reviving the erstwhile Talcher plant of Fertilizer Corporation of India Ltd. (FCIL) by setting up a now greenfield Urea Plant with the installed capacity of 12.7 Lakh Metric Ton per annum (LMTPA). The estimated project cost of the TFL Urea project is 13277.21 Crore (+/-10%).