India to get a major boost in Urea production with five new fertilizer plants

Date:01-10-2023

India’s domestic production of urea will see a major boost with five new fertilizer plants coming up in the country. Four of these plants are already functional while Talcher is a coal gasification plant that will become functional by October 2024.

Union Minister of Health & Family Welfare and Chemicals & Fertilizers, Dr. Mansukh Mandaviya reviewed the progress of the FCIL Talcher unit. Revival of the FCIL Talcher unit is being undertaken by Talcher Fertilizers Ltd. (TFL), a company promoted by GAIL (India) Ltd. (GAIL), Rashtriya Chemicals & Fertilizers Ltd. (RCF), Coal India Ltd. (CIL) and Fertilizers Corporation of India Ltd. (FCIL).

Speaking at the occasion, Dr. Mandaviya said, ″Government is taking significant steps in making the country Aatmanirbhar. The fertilizer sector is one of them. By utilizing new technological interventions like coal gasification in our fertilizer plants and using our own sampada (resources) like coal, India is moving towards self-sufficiency in the Urea sector. With this vision, the Government of India has been reviewing the progress of the Talcher unit which will be India’s largest and first coal gasification urea plant.″

While reviewing the work progress, Dr. Mandaviya was provided an overview of the project in the model room and thereafter visited the plant site wherein the construction and erection activities of the project were reviewed carefully. The Minister took stock of the project status and held a review meeting with key functionaries of TFL, PDIL (consultant of the project), and the representatives of Promoters of TFL.

TFL has been mandated by the Government to revive the erstwhile Talcher plant of FCIL by setting up a new coal gasification-based Urea Plant with an installed capacity of 12.7 Lakh Metric tons per annum (LMTPA).

Since the project promotes coal gasification, it shall also aid in meeting the stated aim of gasifying 100 MT of coal by 2030. The project shall provide impetus to the economy of Odisha in particular and eastern India in general thereby also propelling India towards Atma Nirbharta (self-reliance)

Coal gasification plants are strategically important as coal prices are non-volatile and domestic coal is abundantly available. Talcher plant shall also reduce dependence on imported Natural Gas for the production of urea leading to a reduction in the natural gas import bill. Further, the gasification process adopted in under construction Talcher unit is more environmentally friendly as compared to direct coal-fired processes thereby supporting commitments made by India under the Conference of Parties (CoP).

The revival of closed units of FCIL and HFCL had been the top priority agenda of the Government to augment the availability of domestically produced urea. The start of all five plants of FCIL/HFCL would add 63.5 LMTPA indigenous urea production capacity in the country. Out of five, four plants i.e. Ramagundam, Gorakhpur, Sindri, and Barauni Fertilizer Plants have already started urea production in the country and Talcher Plant is expected to start by September 2024.