The government has approved an “exclusive subsidy policy” for urea fertiliser produced through coal-gasification by Talcher Fertilisers Ltd (TFL).

Commerce minister Piyush Goyal said the Cabinet Committee on Economic Affairs (CCEA) has given its approval for “a specific subsidy to promote this innovative technology of coal-gasification for the first time in India”. The estimated project cost of the TFL urea project is Rs 13,277.21 crore.

Coal gasification plants are strategically important as coal prices are non-volatile and coal is abundantly available in the country, he said. “...India has large coal reserves but not adequate gas. This effort to convert coal to gas, and then gas to urea will truly help India become Aatmanirbhar (self-reliant),” Goyal said.

The gasification process adopted in the Talcher unit is a Clean Coal Technology giving negligible sulphur dioxide, nitrogen dioxide, and free particulate emissions as compared to directly coal fired processes, he said.