“The Gas Authority of India Ltd. and Rashtriya Chemicals and Fertilizers will join hands to construct an integrated plant that will synthesize gas from coal, which will be used to make ammonia as raw material for manufacturing urea,” said U.D. Choubey, chairman and managing director of GAIL.

Choubey said the proposed project would be located at Talcher district in Orissa, adding the company's board has approved the proposal. He said GAIL would carry out a techno-economic study of a commercial plant to extract gas from coal, while RCF will conduct a similar study on a commercial plant for the use of synthesized gas from coal. The two companies will jointly evaluate the coal-gasification potential for the fertilizer industry, Choubey said.