Rashtriya Chemicals and  Fertilisers (RCF) may be forced to go ahead with a Rs 35 billion coal-to-gas project at Talchar in Orissa to feed its plants, reports Business Standard

RCF has tied up with Reliance Industries and Oil and Natural Gas Corporation (ONGC) for supplying gas. There may be delays due to the Reliance gas pricing issue yet to receive an approval from the centre.

The company is also in talks with Gail India for fuel supply. If the availability of gas become an issue, then it might think of setting up the Talchar project.

Talchar is the most viable site in terms of infrastructure, facilities and proximity to coal mines. The latest coal gassification technology will be utilised to allow the use of coal with high ash content of up to 30-35%.

The company is also planning to revive two fertiliser plants in Durgapur and Talchar at an investment of about Rs 60 billion.

Shares of RCF (Q, N,C,F)* ended up Rs 2.70, or 6.17%, at Rs 46.45 at the BSE. Total volume of shares traded was 698,820 (Wednesday).