Coal India and Partners to invest $372Mn in Fertiliser Joint Venture

State-owned entities, Coal India, GAIL India, and Rashtriya Chemicals & Fertilizers (RCF), are set to invest approximately 30.95 billion rupees ($371.90 million) in their fertiliser joint venture located in Odisha. GAIL and RCF are set to contribute 17.3 billion rupees, while Coal India's investment will be 13.64 billion rupees in Talcher Fertilizers, preserving their existing ownership stake. Each of the three companies currently holds a 31.85% share in Talcher Fertilizers.

Given that Coal India has reached its investment ceiling, the infusion will require approval from the federal cabinet, which is anticipated in the coming weeks. This initiative aims to enhance the output of Talcher Fertilizers, ultimately reducing India's reliance on imported nitrogen-based urea fertilisers.

The project at Talcher Fertilizers has experienced an increase in costs, but the government's objective is to transform it into a coal gasification-based urea fertiliser plant with an annual capacity of 1.27 million tons. In the previous fiscal year, India imported 22 million tons of fertilisers, valued at $15.3 billion.