State-run GAIL India Ltd and Rashtriya Chemical and Fertilisers (RCF) will invest Rs 2,400-crore in setting up a fertiliser plant in Orissa. The integrated ammonia?urea plant would be based on gas obtained from coal.
Speaking to reporters after the company?s board meeting to consider the second quarter results, GAIL chairman and managing director UD Choubey said, ?GAIL will shortly be joining hands with RCF for jointly exploring potential of proposed surface coal gasification project in Talcher.? Under the MoU, GAIL will carry out techno-economic study of a commercial coal gasification plant, whereas RCF will carry out the techno-economic study of a commercial plant for utilising synthesis gas from the proposed coal gasification plant. The project will help produce 7.76 mmscmd of synthesis gas?equivalent to 3,000 tonne per day of ammonia. The estimated cost of proposed project is Rs 2,400 crore. GAIL will focus on the production and marketing of synthesis gas, which will be in line with its core function of gas handling.