RCF to commission Talcher unit by 2016, stk up 4%

Coal India board has given an `in-principle' approval to two joint ventures with GAIL and Rashtriya Chemicals & Fertilisers (RCF) to set up an integrated coal gasification and fertiliser and ammonium nitrate complex respectively at Talcher in Odisha for an investment of Rs 9000 crore.

The project is aimed at producing fertiliser from coal, thereby cutting down dependency on imports for the fuel

The first JV would take up upstream coal gasification and gas purification for an estimated investment of Rs 3000 crore, while the RCF led second JV, requiring an investment of Rs 6000 crore, will be responsible for setting up ammonia-urea, nitric acid-ammonium nitrate plants.  RCF’s share in investment stands at Rs 1000 crore, says company CMD RG Rajan adding that the Talcher unit will be commissioned in 2016. Shares of RCF jumped 4 percent intraday on Friday.

Rajan also informed that the company is yet to receive Rs 2000 crore subsidy for this year from the government. However, it received Rs 3000 crore subsidy for fiscal 2014 and 15 so far. In October 2014, the government had okayed Fertiliser Ministry's proposal to provide Rs 14,500-crore subsidy to the cash starved fertiliser industry via a special banking arrangement (SBA) route.