RCF and GAIL signed MOU

Thebullishtrends: RCF share price closed today at Rs.112 (+5%). Rashtriya Chemicals & Fertilizers Ltd (RCF) has informed BSE that GAIL and RCF signed a MOU on December 28, 2007 for setting up Coal Gasification Project at Talcher in Orissa.

Both the Companies carried out simultaneous studies on viability of coal gasification plants and chemical / fertilizer complex based on this. Both the studies indicated viability of such a project.Department of Fertilizers, has entrusted RCF with revival of closed fertilizer units at Talcher and Durgapur.

As a part of study for revival of Talcher Unit, RCF carried out Techno Economic Feasibility Study considering Coal Gasification route which was found economically viable.The two Companies decided to jointly implement Coal Gasification Project at Talcher. Synthesis gas produced in the Coal Gasification Plant will be used in production of Ammonia, Urea and other chemicals. The project will add to production capacity of 11.55Lakh MT of Urea per year. Estimated cost of Ammonia-Urea Project is about Rs 3200 Crore.