CIL to foray into fertiliser, chemical production

Coal India (CIL) has decided to amend its memorandum of association (MoA) for foraying into fertiliser and chemical production using coal gas.

The amendment will permit CIL to produce, process, store, distribute, sell import, export or otherwise deal in gas and other byproducts arising from coal gasification and use them to produce ammonium nitrate, fertilisers and associated products, a Coal India official said.

The official said the amendment will also allow the PSU to install and operate such plant in the country and overseas.

The matter also came up for discussion during the board meeting held last month. The board accorded its approval to the proposal to amend of Memorandum of Association resolution, the official said.

CIL said Rashtriya Chemicals and Fertilizers Ltd (RCF) had signed a MoU with Gas Authority of India Ltd (GAIL) for exploring use of gas produced from surface coal gas project in the fertiliser industry.

GAIL had approached CIL for cooperating in various studies and project development for surface coal gasification in coal bearing states, including in and around Talcher in Odisha.

The Ministry of Chemicals and Fertilisers convened a meeting in 2009 for revival of the Talcher unit of Fertilizer Corporation of India (FCIL).

It was decided that GAIL, CIL and RCF would form a consortium by signing MoUs to set up surface coal gasification plant for chemicals and fertilisers at Talcher. In August last year, the Cabinet Committee on Economic Affairs awarded the revival of Talcher plant of FCIL to the consortium.