Indian state-owned companies to invest $371.90mn in joint fertilizer venture – Reuters
The state-owned companies Coal India, GAIL India, and Rashtriya Chemicals & Fertilizers (RCF) intend to invest 30.95 billion rupees ($371.90mn) in Talcher Fertilizers, their joint venture in the state of Odisha, Reuters reported on October 17, citing two unnamed Indian government officials.
The news agency stated that, according to its sources, who it said did not have permission to speak to the media, GAIL and RCF will contribute 17.3 billion rupees to the project, while Coal India will provide 13.64 billion rupees. Reuters also reported that Coal India will require federal cabinet approval for its tranche due to the fact that the firm has hit its investment ceiling.
Each of the three companies owns a 31.85% stake in Talcher Fertilizers.
Reuters noted that project costs have been increasing at the Talcher Fertilizer Plant, which is set to be India’s largest coal-gasification facility.
The country’s government says that the plant, which will be capable of producing 1.27 million tonnes of urea fertilizer per year, will reduce the need for imports of nitrogen-based fertilizers and, as a result, make India more self-sufficient.