Steady Construction Progress Across Key Units
The Talcher Fertilizer Plant, a cornerstone in India’s mission for fertilizer self-reliance, has achieved significant progress despite complex engineering and logistical challenges. As of the latest review, the overall project completion stands at over 67%, with Off-Site and Utility (OSBL) packages—excluding Coal Gasification (CG) and Ammonia-Urea (AU) units—showing nearly 80% completion.
Major structures such as the Coal Gasification Frame (CGF) and Urea Main Frame (UMF) have reached advanced stages. The Prilling Tower has been erected up to 106 meters out of 123 meters, and shuttering work is well underway at the Urea Cooling Tower (UCT). Equipment erection and structural work across units like the Air Separation Unit (ASU), Cooling Towers, and Urea UG piping continue to show visible progress.
Contractor Actions to Regain Momentum
Execution delays—initially triggered by the pandemic and compounded by LSTK implementation issues—impacted timelines. However, Wuhuan Engineering Company Limited (WECL) has taken a series of corrective measures, including:
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Clearing vendor dues (5 Indian and 3 offshore),
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Dispatching pending equipment,
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Signing fresh agreements to enhance labor deployment,
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Deploying a dedicated engineering team to the site.
These efforts have helped reinstate momentum in construction and engineering across critical project areas.
Engineering Oversight and Coordination
TFL and PDIL have maintained continuous oversight of the project. Regular site visits, joint coordination meetings, and engineering reviews have enabled real-time decision-making to resolve bottlenecks. PDIL is also preparing an Addendum to the Detailed Feasibility Report (DFR) to assess cost implications arising from the revised timeline.
Review meetings have emphasized stricter monitoring, formation of joint task forces, and improved coordination with local authorities to facilitate unhindered construction activity.
Financing Challenges and NPA Risk
While physical progress continues, the project faces significant financing hurdles. The original Date of Commencement of Commercial Operations (DCCO) of June 2024 has been revised to December 2027, exceeding the two-year extension limit allowed by RBI guidelines.
This has led banks to withhold further loan disbursements to TFL, and the loan is at risk of being classified as a Non-Performing Asset (NPA) starting 1st July 2025. Though SBI released a tranche of ₹437 crore after discussions, the classification poses a serious threat to funding continuity.
Efforts for Financial Safeguards
In response, a high-level proposal seeking a sovereign guarantee from the Government of India has been submitted to the Ministry of Finance. This would help secure ongoing debt funding for the project. Top management from TFL and promoter companies (CIL, GAIL, RCF) continue to engage with banks and government bodies to avert financing disruptions.
Conclusion: Staying on Track Despite Setbacks
Despite operational delays and financial risks, the Talcher Fertilizer Project continues to move forward, supported by close coordination between engineering teams, contractors, and government stakeholders.
With key structures nearing completion and proactive measures underway to restore financing stability, the project remains a crucial component of India’s fertilizer production capacity expansion plan. Its successful execution will mark a major milestone in reviving India’s first coal gasification-based fertilizer plant.
