The Business Bytes
TBB BUREAU
BHUBANESWAR, JUNE 28, 2021
Talcher Fertilizers Ltd. (TFL) has successfully concluded the financial closure of its mega coal gasification based urea project located at Talcher in Angul district of Odisha.
TFL is a Joint Venture of GAIL (India) Ltd (GAIL), Rashtriya Chemicals & Fertilizers Ltd (RCF), Coal India Ltd (CIL) and Fertilizers Corporation of India Ltd (FCIL).
Informing this here today, Sachchidanand Yadav, Managing Director of TFL, said a consortium of lenders led by State Bank of India has emerged as the financers of the project after following a book building process conducted by M/s SBICAPS on behalf of TFL.
Other members of the lender’s consortium are Punjab National Bank, Union Bank of India, Indian Bank, Bank of Maharashtra, Indian Overseas Bank, EXIM Bank, Bank of India and Canara Bank.
TFL has been mandated by the Government to revive the erstwhile Talcher plant of FCIL by setting up a new greenfield coal gasification based Urea Plant with the installed capacity of 12.7 lakh metric ton per annum (LMTPA) at estimated project cost of Rs 13,277 crore.
The total debt secured by TFL as part of this facility is Rs 9,560 crore and balance funding shall be provided by its Promoters in form of equity.
The debt has been secured after CCEA, chaired by the Prime Minister, approved in April 2021 the exclusive subsidy policy for urea produced by TFL through coal gasification route.
The implementation of the Talcher project is being undertaken through a technology which is being used for the first time in India and is a significant step towards ensuring energy security of the country through harnessing the vast coal reserves of the country in a manner which is more environment friendly than direct fired coal projects.
Yadav informed that the project shall act as harbinger in attracting huge investment in the country for coal gasification projects and will pave the way for alternative use of indigenous coal which shall in turn aid in gasifying the stated aim of 100 MT of coal by 2030.
The project shall also 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 production of urea leading to reduction in LNG import bill.
Further, the gasification process adopted in under construction Talcher unit shall emit negligible SOx, NOx and free particulate as compared to directly coal fired processes thereby supporting commitments made by India under Paris Agreement, 2016.
