Bhubaneswar: The Rs 13,000-crore Talcher Fertilizers Ltd project in Angul district, designed to produce 12.7 lakh metric tonne (LMT) of urea annually, is running more than four years behind schedule. Its timely completion could have reduced the country’s import dependence at a time India’s fertilizer supply is under pressure due to the West Asia crisis. Originally slated for completion in Sept 2023, its deadline has now been pushed to Dec 2027.Information shared in Lok Sabha by minister of state for chemicals and fertilizers Anupriya Patel shows the project missed its Sept 2023 commissioning target due to multiple bottlenecks. As of Feb 2026, the project stands at 71.24% completion, with plant commissioning now scheduled for Dec 2027.According to the minister, the main reasons for the delay relate to issues involving the Chinese contractor Wuhuan Engineering Co Ltd (WECL), which was awarded the lump sum turnkey contract in Sept 2019 for engineering, procurement, and construction of the coal gasification and ammonia-urea package. The onset of the Covid-19 pandemic soon after the contract award slowed progress significantly.Other factors include WECL’s delay in placing supply orders from the initial phase, reluctance to honour several techno-commercial terms of the contract, and submission of incomplete documents with invoices, causing payment complications. The company also reportedly deployed inadequate manpower and machinery from the beginning, while repeatedly demanding cost escalation beyond contractual provisions, the minister responded to a query by BJD MP Sasmit Patra. Visa issues for Chinese personnel due to Covid-19 restrictions and geopolitical tensions further hit progress.Around 2,000 people are expected to get direct or indirect employment during construction and operations, with preference for local candidates from Odisha. The project is being executed by Talcher Fertilizers Ltd (TFL), a joint venture formed in 2015 after the Centre mandated revival of the Talcher unit of Fertilizer Corporation of India Ltd. TFL comprises GAIL (India) Ltd, Coal India Ltd, Rashtriya Chemicals & Fertilizers Ltd, and Fertilizer Corporation of India Ltd. The 12.7 LMTPA coal gasification-based ammonia-urea plant is the first-of-its-kind in the country. In 2025-26, India produced 251.26 LMT of urea and imported 89.3 LM
