Three Indian companies have announced a joint venture focusing on fertilizer production in Odisha, Reuters reports.
Coal India, GAIL India, and Rashtriya Chemicals and Fertilizers (RCF) will invest a total of Rs 3,095 crore in Talcher Fertilizers – of which GAIL and RCF will contribute Rs 17.3 billion, while Coal India will invest Rs 13.64 billion.
According to Chemical Industry Digest, Coal India, GAIL, and RCF each hold a 31.85% share in Talcher Fertilizers.
Since reaching its limit for investments, state-owned Coal India must first receive approval from the government, which according to a Reuters report, citing sources, should come in the weeks to come.
Currently, India’s agriculture depends on fertilizer imports, more specifically nitrogen-based urea fertilizers.
By allowing companies to make such investments into Talcher, the government can help the fertilizer company recover from its increasing costs and boost manufacturing and output.
“The infusion is aimed at reviving Talcher and turning it into a coal gasification-based urea fertilizer plant with an annual capacity of 1.27 million tons. India imported 22 million tons of fertilizers worth $15.3 billion last fiscal year,” Reuters said.
