Cabinet approves subsidy policy for Urea produced through coal gasification by Talcher

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

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its approval for the proposal of the Department of Fertilizers for the formulation of an exclusive subsidy policy for Urea produced through coal gasification route by Talcher Fertilizers Limited (TFL).

Objectives

Considering the strategic energy security and urea self-sufficiency of the country, looking into the country's vast coal reserves, it has been decided to go ahead with Talcher Fertilizer Limited plant based on coal gasification technology. The project shall improve the availability of fertilizer to farmers thereby boosting the development of the eastern region and will save transport subsidy for the supply of urea in the eastern part of the country. It would assist in reducing Urea imports to the tune of 12.7 LMT per annum leading to savings in foreign exchange.

The project will also give a boost to the 'Make in India' initiative and AtmaNirbhar' campaign and would help the development of infrastructure like roads, railways water, etc. providing a major boost to the economy in the eastern part of the country including promoting ancillary industry. The project will also provide New business opportunity in form of ancillary industries in the catchment area of the project.

Coal gasification plants are strategically important as coal prices are non-volatile and coal is abundantly available. Talcher plant shall also reduce dependence on important Natural Gas for the production of urea leading to a reduction in LNG import bill. The gasification process adopted in the Talcher unit is a Clean Coal Technology giving negligible SOx, NOx and free particulate emissions as compared to directly coal-fired processes.

(With Inputs from PIB)