Government approves subsidy policy for urea produced through coal gasification

The cabinet, on Tuesday, approved an exclusive subsidy policy for urea produced through coal gasification route by Talcher Fertiliser Limited. The decision will pave the way for using country’s vast coal reserve to produce urea.
“The project would improve availability of urea to farmers thereby reducing urea imports to the tune of 12.7 lakh tonnes per annum leading to savings in foreign exchange,” commerce minister Piyush Goyal said after cabinet meeting.

The consumption of urea in the country is around 34 MT out of which 9 MT is imported every year to meet the requirement.

The one-of-its-kind Rs 13,277-crore plant will also reduce dependence on important natural gas for production of urea leading to reduction in LNG import bill. The cost of input energy will also be stable as coal prices are non-volatile and coal is abundantly available


The gasification process adopted in Talcher unit is a clean coal technology giving negligible pollutants like nitrogen oxides, sulphur oxides and free particulate emissions as compared to directly coal fired processes.

“This would help in development of infrastructure like roads, railways water, etc. providing major boost to economy in the eastern part of the country including promoting ancillary industry. It will also provide new business opportunity in form of ancillary industries in the catchment area of the project,” Goyal said.


Talcher Fertilizers Limited, a joint venture of four public sector units — Rashtriya Chemicals & Fertilisers Limited, GAIL (India) Limited, Coal India Limited and Fertiliser Corporation of India Limited, is reviving the erstwhile Talcher plant of Fertilizer Corporation of India Limited.

Other Decisions
The Union Cabinet gave its ex post facto approval to the amendments to the Finance Bill 2021 and two phases of Bangalore Metro Rail Project at an estimated cost of Rs 14,788 crore.

The Cabinet approved the Bangalore Metro Rail Project Phase 2A (Central Silk Board Junction to K R Puram) and Phase 2B (K R Puram to Airport via Hebbal Junction), which has a cumulative length of 58.19 km. The total completion cost of the project is Rs 14,788.101 crore, the government said in a statement.

The Cabinet also gave its nod to a memorandum of understanding between India and Bangladesh, signed on March 27, to set up a framework of cooperation in the area of trade remedial measures and discourage unfair trade practices.

“The primary objective of the MoU is to promote cooperation between the two countries in the area of trade remedies, covering the broad activities related to exchange of information, undertaking capacity building activities and activities in accordance with various provisions of World Trade Organization in the area of anti-dumping, countervailing and safeguard measures in bilateral trade between India and Bangladesh,” the government said.

The Cabinet also approved a Mutual Recognition Agreement between the Institute of Chartered Accountants of India (ICAI) and Chartered Accountants Australia and New Zealand, which would result in greater employment opportunities for Indian CAs.

“The MoU provides for mutual recognition of qualification of members of other body, who have achieved membership by completing the examination, professional programme and practical experience membership requirements of the two parties,” the government said.