State-owned Coal India, GAIL India and Rashtriya Chemicals & Fertilizers (RCF) will invest 30.95 billion rupees ($371.90 million) in their fertilizer joint venture in Odisha, two government officials told Reuters.
GAIL and RCF will invest Rs 17.3 billion, while Coal India will invest Rs 13.64 billion in Talcher Fertilizers to maintain their current stake, adjusted for an increase in project costs, said the sources, who were not authorized to discuss the matter. to speak to the media.
Each of the three companies has a 31.85% stake in Talcher Fertilizers.
Coal India needs a federal cabinet decision for the capital infusion as the company has reached the investment ceiling, the sources said, adding that the cabinet is likely to take a decision in the coming weeks.
Project costs at Talcher Fertilizers have increased as the government looks to increase production at the facility to reduce India’s dependence on imports of nitrogen-based urea fertilizers.
The injection is aimed at revitalizing Talcher and transforming it into a coal gasification-based urea fertilizer plant with an annual capacity of 1.27 million tonnes. India imported 22 million tonnes of fertilizer worth $15.3 billion last fiscal.
“It was a collective decision of all the promoters to infuse a proportionate amount of shares, but Coal India needs approval to remove that 30% investment limit,” an official said.
India’s finance ministry, Coal India and GAIL India did not respond to emails seeking comment. An email request to the director of Talcher Fertilizers and telephone calls to the RCF office were not returned.
($1 = 83.2525 Indian rupees)