Coal news and updates

Coal India Enters Into JV Pact With 3 Firms for Odisha Complex

Coal India Ltd (CIL) has entered into a joint venture agreement with GAIL and fertiliser majors Rashtriya Chemical Fertilizers (RCF) and Fertilizer Corporation of India (FCIL) to incorporate a firm for setting up and operating new Ammonia Urea Complex in Talcher, Odisha.

"CIL, GAIL, RCF and FCIL have entered into a JV agreement for incorporation of company namely 'Rashtriya Coal Gas Fertilizers Ltd' to establish and operate new coal gasification based fertilizer complex (Ammonia Urea Complex) at Talcher along with power plant and associated facilities at the Talcher unit of FCIL and to market its products," CIL said in a filing to the BSE.

In August, Coal and Power Minister Piyush Goyal had informed Parliament that CIL, GAIL (India) Ltd, Rashtriya Chemical Fertilizers (RCF) and Fertilizer Corporation of India (FCIL) will form a JV for revival of the Talcher urea plant.

Earlier, there was a proposal to form two joint ventures but later it was proposed to form one joint venture company only.

Mr Goyal, however, said that the proposal is subject to technical and financial viability through preparation of a detailed feasibility report (DPR).

"The proposed JV company is yet to be registered," the minister had said.

The Coal Ministry, he said, has agreed to allot a coal block to the proposed JV company on formation of the same and finalisation of techno-economic feasibility report.

A consortium of RCF, GAIL, CIL and FCIL had agreed to invest Rs 8,000 crore for the revival of this urea plant with a production capacity of 1.2 million tonnes per annum.

source: http://profit.ndtv.com