Coal news and updates

Coal India board has given an `in-principle' approval to formation of two joint ventures, with GAIL and Rashtriya Chemicals & Fertilisers for coal gassification and fertiliser projects respectively at Talcher in Odisha.

 

This follows the signing of two memorandum of understandings (MoUs) in September last year between the three state-owned entities to revive a urea plant through use of gasified coal.

 

Coal India will supply the necessary coal for gasification that will feed 1.3 million tonnes of urea and 3.3 million litres of ammonia nitrate each year with an investment of Rs 9,000 crore.

 

"The company will form two joint ventures namely for coal gasification with GAIL as a major partner and another for fertiliser, which are ammonium nitrate plants, coal mine, coal washery, power plant and utilities with RCF and CIL as major stake holder," the state-owned miner said in a disclosure to the exchanges.

 

The first JV would take up upstream coal gasification and gas purification with GAIL having major stake while the second JV would set up downstream urea-cum-ammonium nitrate complex including power plant, mine and washery.

 

Pre-project activities have already started with GAIL floating tender for pre-qualification of coal-gas technology supplier while RCF also floated tender calling for bids for its ammonia – urea plant.

 

The project is expected to be commissioned by 2017.

 

The coal gasification plant will produce ammonia synthesis gas and carbon dioxide gas to be utilised as feed for daily production of 2700 tonnes of ammonia, 3850 tonnes of urea and 1000 tonnes of ammonium nitrate, the tender earlier issued by GAIL said.

 

The Talcher urea plant, belonging to Fertiliser Corp of India, stopped production in 2002.

 

A revival process was started by the government and in 2008 the cabinet formed an empowered committee of secretaries to evaluate options for revival. Then in 2011, the Draft Rehabilitation Scheme for revival including the Talcher plant was approved by CCEA following where GAIL and Coal India were roped in.

 

 

Source: http://www.dnaindia.com/