Odisha pushes ahead with ₹19,000 crore Talcher coal-gas urea plant, seeks VGF aid
The Odisha government has begun conciliation with China Wuhuan Engineering Co. and appointed former Chief Justice D Y Chandrachud to accelerate the delayed Talcher Fertilizers project, while the company seeks a ₹3,508 crore viability gap funding incentive.
The state of Odisha is taking steps to revive the Talcher Fertilizers (TFL) project, India’s first coal-gasification-based urea plant, by appointing former Chief Justice D Y Chandrachud as a conciliator in talks with China Wuhuan Engineering Co. TFL, a joint venture of Gail (India), Coal India, Rashtriya Chemicals and Fertilizers and Fertilizer Corporation of India, has requested a ₹3,508 crore viability gap funding incentive under the Ministry of Coal’s surface coal gasification programme.
Official sources note a slight increase in overall project completion, with raw-water reservoir compartments finished and intake pipelines installed, while a 2,000-tonne mega crane is being prepared for use. The Odisha Power Generation Corporation has pledged to complete a 220-kilovolt power line by December. The plant, originally slated for October 2024 production, now aims for commissioning in December 2027, reflecting a three-year delay from its approved timeline. The project, costing about ₹19,000 crore, is designed to produce roughly 1.27 million tonnes of urea annually using domestic coal.
Why it matters
The revival of the Talcher plant could boost India's fertilizer self-sufficiency and reduce reliance on imported natural gas.
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