Central Cabinet Panel’s Subsidy Nod For Urea Of Talcher Fertilizer Limited In Odisha

New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval to the proposal of the Department of Fertilizers for the formulation of exclusive subsidy policy for urea produced through coal gasification by Talcher Fertilizer Limited (TFL) in Odisha.

Considering the strategic energy security and urea self-sufficiency of the country, it has been decided go ahead with TFL plant based on coal gasification technology, the committee stated in a release.

The aims at improving availability of fertilizer to farmers and saving transport subsidy for supply of urea in eastern part of the country. It would assist in reducing urea import to the tune of 12.7 LMT per annum leading to savings in foreign exchange.

Coal gasification plants are strategically important as coal prices are non-volatile and coal is abundantly available.

Talcher plant will also reduce dependence on natural gas for production of urea leading to reduction in LNG import bill.

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 Rs 13277.21 crore.