Indian Railway Finance Corporation (IRFC) is partnering with Talcher Fertilizers Limited (TFL) to support India’s first coal gasification-based urea production facility. IRFC will extend ₹4,000 crore in loan assistance as part of a consortium with other lenders, bringing the total debt component to ₹12,250 crore. The project aims to boost domestic fertilizer production and reduce reliance on imported natural gas.
Supporting Fertilizer Production
Indian Railway Finance Corporation (IRFC) is collaborating with Talcher Fertilizers Limited (TFL) to provide funding for the development of India’s first coal gasification-based urea production facility. The announcement was made on September 26, 2025, detailing IRFC’s commitment to supporting critical infrastructure projects.
Financial Commitment
IRFC will provide loan assistance of ₹4,000 crore for the project. This investment is part of a larger debt package involving other lenders, which totals ₹12,250 crore. This financial backing will enable TFL to establish a state-of-the-art facility utilizing indigenous coal to produce 1.27 million metric tonnes of neem-coated urea annually.
Project Objectives and Impact
The Talcher Fertilizers project aims to decrease India’s dependence on imported natural gas and enhance domestic self-sufficiency in fertilizer production, aligning with the Government’s Atmanirbhar Bharat vision. This project is a crucial part of the fertilizer sector revival plan, focusing on the deployment of coal gasification technology for urea production.
Railway Infrastructure Linkage
The project features a strong railway connection with a dedicated siding being developed under the Indian Railways’ Gati Shakti Multi-Modal Cargo Terminal (GCT) policy. This siding will facilitate seamless movement of coal, pet coke, and limestone, as well as the outward dispatch of urea, with a capacity to handle nearly five rakes per day.
Commitment to National Projects
IRFC emphasizes its commitment to supporting projects of national importance that are closely linked with the railways and contribute to India’s developmental priorities. IRFC’s financing will support the timely execution of Talcher Fertilizers, ensuring sustainable growth in domestic urea production and strengthening railway-linked infrastructure.
Source: BSE
