Government-owned companies, Coal India (COAL.NS), GAIL India (GAIL.NS), and Rashtriya Chemicals & Fertilizers (RCF), are set to invest 30.95 billion rupees ($371.90 million) in their joint fertilizer venture located in Odisha, according to sources familiar with the matter.
GAIL and RCF will contribute 17.3 billion rupees each, while Coal India’s investment will be 13.64 billion rupees in Talcher Fertilizers, maintaining their current ownership stakes while adjusting for rising project costs. Each of these three companies holds a 31.85% stake in Talcher Fertilizers.
However, Coal India will require federal cabinet approval for this investment as it has reached its investment limit. The cabinet is expected to make a decision in the coming weeks.
The project costs at Talcher Fertilizers have increased due to government efforts to enhance the facility’s production and reduce India’s reliance on nitrogen-based urea fertilizer imports.
The infusion aims to revitalize Talcher Fertilizers and transform it into a coal gasification-based urea fertilizer plant with an annual capacity of 1.27 million tons. India imported 22 million tons of fertilizers valued at $15.3 billion in the previous fiscal year.
An official stated, ‘It was a collective decision by all the promoters to make a proportionate equity investment, but Coal India needs approval to exceed the 30% investment limit.’
As of now, India’s finance ministry, Coal India, and GAIL India have not responded to email inquiries, and there has been no response from Talcher Fertilizers’ managing director or RCF’s office.
