RCFL plans to revive Talcher Urea Plant

Angul, Aug 2 (UNI) Public sector Rastriya Chemicals and Fertilizer Limited (RCFL) has evinced keen interest to take over Talcher Urea Plant, lying defunct for decades, following a cabinet decision to revive eight closed fertilizer units in the country.

The Coal-based Talcher Urea plant, one of the four urea units in Eastern India, was producing 900 tonnes of urea per day. Besides, the farmers in Western Orissa, West Bengal also got benefitted by Talcher Plant.

The Talcher plant was closed in 2002 by the Board For Industrial Financial and Reconstruction(BIFR) in the absence of any alternative proposals by the former NDA government. The plant has now only 12 employees, including a General Manager, to act as the caretaker of the plant till it is sold out.

Sources said the RCFL has asked the Planning and Development of India Limited (PDIL) under the Fertilizer ministry to work out a feasibility report on the revival of Talcher Urea plant.

As per the proposal the Talcher Urea Plant would be converted into a gas-based urea unit with 2000 tonne ammonia production per day at an estimated cost of Rs 3500 to Rs 4000 crore.

Experts in fertilizer industry though are elated over the Center's decision to revive Talcher plant but skeptical over the implementation of the revival plan due to lack of gas source.

The Centre while reviving the plant had made it clear that the plant has to be converted into a gas based plant.

Sources said the feasibility report as desired by the RCFL is likely to be ready within a month and would be submitted by the PDIL to the RCFL. Although there would be no problem of water for the plant but non-availability of gas would be a biggest hurdle as there was no source of gas nearby, sources said.

However, the only source of hope for the revival and the future of the Talcher plant could be the Reliance gas pipe line which is all likely to pass through Orissa via Bhadrak to West Bengal in 2009 from Krishna-Godabari basin.

Recently a three-member team of PDIL headed by a Deputy Manager visited the plant,held discussion with the General Manager of the Plant and gathered data on the availability of water and other raw materials to produce ammonia.

Sources here said a clear picture on the revival of Talcher Urea Plant would emerge soon after the submission of PDIL report to RCF.

UNI