Coal India Goes Beyond Coal: ₹1,067 Cr Fertilizer Foray Redefines Core Strategy

Image Source: Manufacturing India Today

In a strategic push toward energy diversification and fertilizer self-sufficiency, Coal India Ltd (CIL) has announced a ₹1,067 crore equity infusion into Talcher Fertilizers Ltd (TFL) through a rights issue. The move marks a significant milestone in reviving India’s first coal gasification-based ammonia-urea plant in Odisha.

Key Highlights:

Equity Infusion: CIL will acquire 1,06,75,06,771 equity shares at ₹10 each via cash consideration, with the transaction expected to close by July 9, 2025.
Joint Venture Structure: TFL is a JV between Coal India, GAIL (India), Rashtriya Chemicals & Fertilizers, and Fertilizer Corporation of India, each holding a 33.333% stake, except FCIL with a nominal share.
Project Scope: The ₹13,277 crore Talcher plant aims to produce 12.7 lakh tonnes of urea annually using coal gasification technology—an ambitious step toward reducing fertilizer imports.
Progress Update: As of February 2025, the project is 65.66% complete, with Outside Battery Limit (OSBL) components like pipe racks, lighting, and water treatment nearing mechanical completion.
Pandemic Delays: The project, originally slated for commissioning in September 2024, faced setbacks due to COVID-19 disruptions, particularly from the Chinese EPC contractor, Wuhuan Engineering.
Strategic Significance: For Coal India, which supplies over 80% of India’s coal, this investment aligns with its diversification strategy and supports the government’s Atmanirbhar Bharat mission in fertilizers.

This capital commitment not only reinforces Coal India’s evolving role beyond coal but also breathes new life into a long-stalled national project with far-reaching implications for India’s agri-economy.

Image Source: Times of India, Rediff Money, CNBCTV18