The ambitious Talcher fertiliser project in Odisha is moving into a crucial stage as authorities and the project company step up efforts to resolve delays and improve the financial viability of the nearly ₹19,000-crore facility. The project, being developed at Angul, is designed around coal-gasification technology and is expected to play a role in expanding domestic fertiliser production.
Talcher Fertilizers Limited (TFL) has sought ₹3,508 crore in financial assistance under the Centre’s recently introduced surface coal-gasification programme. The support is being pursued through the viability gap funding mechanism, which could help address some of the financial pressures surrounding the project.
Construction has continued despite the project’s prolonged delays. Official figures indicate that the overall physical progress reached 72.97 per cent by August 31, 2026, showing a marginal improvement from the previous assessment. Work on key infrastructure has also progressed, including completion of the two sections of the raw-water reservoirs and installation of the pipeline connecting the intake system to the reservoirs.
The project is being implemented by TFL, a joint venture involving GAIL, Coal India, Rashtriya Chemicals and Fertilizers (RCF), and Fertilizer Corporation of India. Once operational, the facility is planned to have a 2,200-tonne-per-day ammonia unit and a 3,850-tonne-per-day urea unit, supported by a coal-gasification facility. Its planned annual urea output is around 1.27 million tonnes.
The development has, however, faced a series of execution-related challenges. The engineering and construction contracts for major sections of the project were awarded to China Wuhuan Engineering in 2019. While the government has cited pandemic-related disruptions as one factor behind the delays, the project subsequently encountered further difficulties between TFL and the contractor over execution.
To help accelerate the project, the government has initiated a conciliation process with China Wuhuan Engineering. The process is intended to address outstanding issues and help put the project back on a clearer path towards completion.
The commissioning schedule has now been pushed to December 2027, considerably later than the original October 2024 target. The Odisha government is also supporting efforts to meet the revised deadline, with the Odisha Power Generation Corporation expected to complete the required 220-kV power connectivity by December 2026.
The Talcher project is also significant from a wider energy and industrial-policy perspective. Its coal-gasification-based production model is intended to use domestic coal as a feedstock for manufacturing urea, offering an alternative to conventional natural-gas-based production. The Ministry of Coal currently includes TFL among the coal-gasification projects being developed in the country.
With financial support being pursued, construction activity continuing and efforts underway to resolve contractual issues, the focus now remains on bringing the long-delayed project closer to its revised 2027 commissioning target.
