Three state-run companies, Coal India, GAIL India, and Rashtriya Chemicals & Fertilizers (RCF), are set to invest 30.95 billion rupees ($371.90 million) in their fertilizer joint venture located in Odisha, according to government officials. GAIL and RCF will contribute 17.3 billion rupees, while Coal India will invest 13.64 billion rupees to maintain their current stakes in Talcher Fertilizers. Each of the three companies holds a 31.85% stake in the venture.

To proceed with its investment, Coal India will require approval from the federal cabinet, as the company has reached its investment limit. The cabinet is expected to make a decision in the coming weeks. The project's cost at Talcher Fertilizers has increased, as the government aims to enhance the facility's output to reduce India's reliance on imported nitrogen-based urea fertilizers.

The investment is part of an effort to revive Talcher Fertilizers and transform it into a coal gasification-based urea fertilizer plant with an annual capacity of 1.27 million tons. Last fiscal year, India imported 22 million tons of fertilizers valued at $15.3 billion.

An unnamed official stated, "It was a collective decision of all promoters to infuse a proportionate amount in equity, but Coal India requires approval to lift that 30% investment cap limit." The finance ministry of India, Coal India, GAIL India, and Talcher Fertilizers' managing director did not respond to requests for comments, and calls to RCF's office went unanswered.