New Era Cleantech plans to make coal-based urea at Chandrapur plant

Nagpur: New Era Cleantech Solutions Pvt Ltd, which held a groundbreaking for its coal gasification plant at Chandrapur last month, has now drawn plans to make coal gas-based urea at the site on priority basis. The company, which had plans to make ammonia out of coal, now wants to build the urea plant in the first phase itself.

Managing director of New Era Cleantech, Balasaheb Darade, told TOI that the decision comes in light of the urea supply constraints due to the US-Iran war. "The project entails an investment of Rs20,000 crore in two phases," said Darade.





The plant is estimated to produce about 3,850 tonnes per day of urea. This is equivalent to 1.27 million metric tons per annum (MMTPA) based on gasification of 1.3 MMTPA of coal. If this works out, it would become the first-ever private sector coal-to-urea plant in the country.

"However, the industry needs subsidies in the initial phase so as to meet the high capital cost of the plant and machinery," Darade said adding that even the coal gas-based urea should be included in the govt's subsidy plans. The company has written a letter to the ministry of coal seeking a clear policy framework for the coal-to-urea projects in the country, financial incentives and the viability gap funding.

"Urea is available to the farmers in the country at subsidised rates. The subsidy absorbs the price volatility, especially in times like the Middle East crisis. The war has left the rates doubled," said Darade.

India is dependent on imports for urea, which is made of natural gas as a feedstock. Even natural gas is largely imported. "As against this, coal is available in abundance and can be used to make urea too," said Darade, adding that coal is a price-stable feedstock. "It can eventually be a source of cheaper urea in the long term and also open up exports," he said.
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