New Delhi: In a strategic push to revive domestic fertilizer production through coal-based technology, Coal India Limited (CIL) has announced an investment of over ₹1,067 crore in Talcher Fertilizers Ltd (TFL).
The investment will be made via a rights issue through the acquisition of 1,06,75,06,771 equity shares at a face value of ₹10 each, the company disclosed in a regulatory filing to the Bombay Stock Exchange (BSE). The transaction is expected to be completed by July 9, 2025.
Joint Venture to Revive Fertilizer Production in Odisha
Talcher Fertilizers Ltd was incorporated in 2015 as a joint venture between GAIL (India) Ltd, Coal India Ltd (CIL), Rashtriya Chemicals & Fertilizers Ltd (RCF), and Fertilizer Corporation of India Ltd (FCIL). The objective is to revive the defunct Talcher fertilizer unit in Odisha by building India’s first coal gasification-based ammonia-urea plant.
Each of the three key partners—GAIL, CIL, and RCF—hold 33.33% equity in TFL, while FCIL remains a nominal partner contributing land and other legacy infrastructure.
Project Scope and Status
The Talcher Fertilizer Project, once commissioned, will produce 12.7 lakh tonnes of urea per annum using coal gasification technology, a cleaner alternative to traditional coal combustion and a key component in India’s push towards low-emission industrial production.
Despite being awarded in September 2019 to Wuhuan Engineering Company Ltd (WECL) of China, the project has suffered repeated delays. As of February 28, 2025, the overall project completion stands at 65.66%, while the Outside Battery Limit (OSBL) packages have reached 77.62% completion, according to Minister of State for Chemicals and Fertilisers Anupriya Patel.
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Progress Amid Disruptions
Minister Patel told the Lok Sabha that several key components—such as the raw water treatment plant, DM water plant, plant lighting, Boiler-1, and pipe rack structures—have reached advanced mechanical completion.
The original commissioning deadline of September 2024 has now been pushed further due to pandemic-related disruptions, especially those arising in Wuhan, where WECL is headquartered.
Frequent Reviews and International Coordination
To expedite the process, the TFL Board and joint venture partners have been conducting frequent project reviews, both in-person and virtually. Regular video conferences with WECL are being held to resolve outstanding engineering and construction bottlenecks, according to the minister.
Significance of the Project
The Talcher plant is not only a strategic revival effort but also part of India’s broader aim to reduce fertilizer imports, improve energy efficiency, and leverage indigenous coal reserves through cleaner gasification methods. For CIL, which accounts for over 80% of domestic coal production, the investment also signals a diversification into value-added downstream sectors like fertilizer.
About Coal India
Coal India Limited (CIL) is a state-owned Indian company that is the world’s largest coal producer. It was established in 1975 and has grown to become a major employer with a workforce of over 270,000. CIL operates through subsidiaries in 84 mining areas across eight Indian states, managing 352 mines.
