New Delhi, Dec 28: India's largest natural gas transportation company Gail today said it has signed an MoU with Rashtriya Chemicals and Fertilizers Ltd (RCF) for setting up a Coal Gasification Project at Talcher in Orissa at an estimated cost of about Rs 3,200 crores.
Synthesis gas produced in the proposed plant will be used in production of Ammonia, Urea and other chemicals. The project will add to production capacity of 11.55 Lakh MT of Urea per year, said a statement.
The existing gas resources of the country are continuously depleting. Considering the constraint, RCF and GAIL independently explored possibility of utilising coal, which is abundantly available in India.
Both the Companies carried out simultaneous studies on viability of coal gasification plants and chemical and fertilizer complex based on this. Both the studies indicated viability of such a project.
Department of Fertilizers, has entrusted RCF with revival of closed fertilizer units at Talcher and Durgapur. As a part of study for revival of Talcher Unit, RCF carried out Techno Economic Feasibility Study considering Coal Gasification route which was found economically viable.