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Wednesday, May 12, 2021

Union Cabinet okays subsidy for urea from coal gasification

The project, the government said, will “assist in reducing urea imports to the tune of 12.7 LMT per annum leading to savings in foreign exchange”.

By: Express News Service | New Delhi |
Updated: April 21, 2021 5:54:19 am
The project, the government said, will “assist in reducing urea imports to the tune of 12.7 LMT per annum leading to savings in foreign exchange”.

The Union Cabinet on Tuesday approved a scheme for providing subsidy for production of urea through coal gasification by Talcher Fertilizers Limited (TFL) worth over Rs 13,000 crore.

“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” and it will “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”, the government said in a statement.

The project, the government said, will “assist in reducing urea imports to the tune of 12.7 LMT per annum leading to savings in foreign exchange”.

It will also “help development of infrastructure like roads, railways water, etc. providing major boost to economy in the eastern part of the country including promoting ancillary industry”.

Coal gasification plants are strategically important as coal prices are non-volatile and coal is abundantly available, the government mentioned, adding that the “Talcher plant shall also reduce dependence on important Natural Gas for production of urea leading to reduction in LNG import bill”. Also, it said, the gasification process adopted in Talcher unit “is a Clean Coal Technology giving negligible SOx, NOx and free particulate emissions as compared to directly coal fired processes”.TFL is a joint venture company of four Public Sector Units — Rashtriya Chemicals & Fertilizers, GAIL (India) Ltd, Coal India Ltd and Fertilizer Corporation of India Ltd (FCIL). TFL is “reviving the erstwhile Talcher plant of FCIL by setting up a now greenfield Urea Plant with the installed capacity of 12.7 Lakh Metric Ton per annum”.

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