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GAIL, RCF sign MoU

NEW DELHI: GAIL (India) and Rashtriya Chemicals and Fertilizers Limited (RCF) have inked a memorandum of understanding (MOU) for setting up of a coal gasification project.

The project, to be executed by GAIL, would entail utilisation of the coal gas produced for setting up a fertilizer plant by RCF at Talcher in Orissa.

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

Speaking about the joint venture, GAIL Chairman and Managing Director U. D. Choubey highlighted the critical role of fertilizers in a predominantly agricultural country like India and the imperative of providing this input to farmers at a reasonable price. Mr. Choubey said gas had always been a preferred feedstock for fertilizers but there was a large demand supply gap of natural gas and, therefore, considerable efforts were afoot to look for alternative sources of energy.

Surface coal gasification, he said, provided a promising alternative source of gas which could meet the feedstock requirement of the fertilizer industry. This was recognised by RCF and GAIL and was confident that the project would be a big success.

U. S. Jha, Chairman and Managing Director, RCF, said the project entailed an investment of around Rs. 2,400 crore for setting up the coal gasification plant.

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