Talcher Fertilizer Plant Delay: Covid-19 Impacts Completion

New Delhi, Dec 5 (PTI) The construction work of the country's first-ever coal gasification-based Talcher Fertilizer Plant in Odisha is running behind schedule and is likely to be completed by September next year, Parliament was informed on Tuesday.

The delay has been caused due to the restrictions imposed during the outbreak of Covid-19, Minister of State for Chemicals and Fertilisers Bhagwanth Khuba said in a written reply to the Rajya Sabha.

Accordingly, the Board of Talcher Fertilizer Ltd has revised the likely date of completion to September 2024, he said, adding that the project has so far incurred an expenditure of Rs 4,200 crore.

"The major reason for the delay in construction work of Talcher Fertilizer Ltd (TFL) project is the spread of Covid-19 and related contextual issues (travel restrictions, etc)," Khuba said.

TFL was awarded Lump Sum Turnkey (LSTK) contract for coal gasification and ammonia urea packages in September 2019 and a few months later, Covid-19 started spreading across the globe, including India, he said.

The entire country was put under a prolonged lockdown, leading to delay in initial engineering work for the project. Later, first and second waves of Covid-19 pandemic struck India, which also lead to delayed work at Talcher site, he said.

"Due to the above restrictions, placement of orders for the project items were also delayed," the minister added.

According to Khuba, the project has received all major clearances, including environment clearance and even the coal ministry has allocated a long-term coal linkage. Erection of the coal gasifier has started at the site.

All major equipment, except urea reactor, have been received at the site for the ammonia urea plant, he said.

Construction of two Chimneys out of three is complete and one boiler drum has been erected at the site, he said, adding that equipment erection is in progress.