GAIL in deal with RCF for coal gasification plant in Orissa

Written by Economy Bureau | Mumbai, Dec 28 | Updated: Dec 29 2007, 04:59am hrs
GAIL India on Friday entered into an agreement with Rashtriya Chemicals & Fertilisers Ltd (RCF) for setting up a coal gasification project in Orissa.

The companies have signed a memorandum of understanding (MoU) to jointly implement coal gasification project and utilise the produced coal gas for setting up a fertiliser plant by RCF at Talcher in Orissa.

As part of the MoU, GAIL will undertake the techno-economic study for setting up the commercial coal gasification plant for production of synthesis gas, and RCF will carry out the techno-economic study for setting up a commercial plant to produce fertiliser by utilizing the synthesis gas from the proposed plant.

The project would entail an investment of around Rs 2,400 crore.

GAIL had earlier commissioned a study by Udhe India for examining the potential of the project and it is estimated that the project will help produce 7.76 mmscmd of synthesis gas equivalent to 3,000 tonne per day of ammonia and 3,500 tonne per day of urea.