New Delhi, Sep 17 (IANS): Talcher Fertilizers Ltd (TFL) has awarded a Lump Sum Turn Key (LSTK) contract to Wuhuan Engineering of China, for implementing its coal gasification and ammonia and urea packages.

In order to augment the domestic urea capacity, revival of closed fertilizer units of Fertilizer Corporation of India Ltd. (FCIL) has been a top priority agenda of the Centre, a GAIL statement said.

The government has mandated TFL, a joint venture company of public sector units, including Rashtriya Chemicals & Fertilizers (RCF), Coal India (CIL), Fertilizer Corporation of India (FCIL) and GAIL, to revive the Talcher unit of FCIL.

"The LSTK contract has been awarded to M/s Wuhuan Engineering Company Ltd, China, which has been selected as the LSTK contractor for implementing the coal gasification and ammonia/urea packages of Talcher Fertilizers Ltd after following rigorous tendering process. Wuhuan has rich EPC (engineering, procurement, construction) experience in coal gasification plants," it said.

With an estimated investment of Rs 13,277 crore the project will produce 1.27 MMTPA (Million Metric Tonne Per Annum) of Neem-coated Urea through gasification of a mixed feedstock comprising of high ash Indian coal and petcoke.

TFL has been allotted the northern part of North Arkhapal mine as a captive mine for meeting its coal requirements and the petcoke will be sourced from Paradip refinery of Indian Oil Corp. The commissioning of this project is expected in the third quarter of 2023, the statement added.

The GAIL statement further said that the project would improve India's self-sufficiency in urea and promote agriculture growth thereby reducing the import of urea in the country.