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Chinese firm Wuhuan bags coal gastification contract from Talcher Fertilizers

Published: Sep 18, 2019

By TIOLCORPLAWS News Service

NEW DELHI, SEPT 18, 2019: Talcher Fertilizers Ltd (TFL) has awarded a Lump Sum Turn Key (LSTK) contract for Coal Gasification Plant PF Talcher Fertilizers Limited to M/s Wuhuan Engineering Co. Ltd, China as a part of measures to revival closed units of Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizers Corporation Ltd (HFCL). The Government has mandated Talcher Fertilizers Ltd (TFL), a Joint Venture Company of RCF, GAIL, CIL, and FCIL to revive the Talcher unit of FCIL with an estimated investment of Rs. 13,277 crores with production capacity of 1.27 MMTPA of Neem coated Urea through coal gasification technology. TFL has also been allotted Northern part of North Arkhapal mine as captive mine for meeting its coal requirements.

Minister for Chemicals and Fertilisers, Mr D V Sadananda Gowda, Minster for Petroleum & Natural Gas and Steel, Shri Dharmendra Pradhan, Secretary (Fertilizers), Mr Chhabilendra Roul, presided over this contract award ceremony.

Speaking on the occassion, Minister for Chemicals and Fertilisers, Mr D V Sadananda Gowda said that TFL is implementing this project based on Coal Gasification Technology, being first of its kind in India. The Plant shall use a blend of coal and petcoke as feedstock for production of urea. Coal for this project shall be sourced from captive Northern part of North Arkhapal mine in Talcher region allotted to TFL and Petcoke shall be sourced from Paradip Refinery. This project will promote use of abundantly available domestic coal in an environment friendly manner. Success of this technology shall also propel usage of coal for production of other chemical products. The project shall improve India's self-sufficiency in Urea; promote agriculture growth and availability of Urea to farmers of Odisha. This initiative would propel India towards self-reliance in the Urea sector through efforts under "Make in India" in addition to generating direct and indirect employment of about 4,500.

The ‘Inauguration of Works' of the project has already been done by the Prime Minister Modi in September Last year and since then TFL is executing many of the pre project activities. Further tendering process for other major packages is also underway and it is expected that majority of the tenders shall be awarded before end of this FY.

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