Coal India and RICF Seek Cabinet Approval for Odisha Fertiliser JV
Coal India, GAIL India, and Rashtriya Chemicals & Fertilisers (RCF) will invest Rs 3,095 crore ($371.90 million) in their Odisha fertilizer joint venture, according to two government officials. According to the sources, who are not permitted to speak to the media, GAIL and RCF would invest 17.3 billion rupees, while Coal India will pay 13.64 billion rupees to maintain their current ownership in Talcher Fertilisers, adjusted for an increase in project expenses. Each of the three companies owns 31.85% of Talcher Fertilisers.
According to the sources, Coal India would need federal cabinet approval for the infusion because the business has reached its investment cap, and the cabinet is expected to make a decision in the coming weeks. The government is attempting to enhance the output of Talcher Fertilisers to lessen India's reliance on imports of nitrogen-based urea fertilizers.
The injection is intended to revitalize Talcher and convert it into a coal gasification-based urea fertilizer factory with a capacity of 1.27 million tonnes per year. Last fiscal year, India bought 22 million tonnes of fertilizer, costing $15.3 billion.
"It was a collective decision of all promoters to infuse proportionate amount in equity, but Coal India requires approval to lift that 30% investment cap limit," a person familiar with the matter said.