Executive Summary:
The Ministry of Chemicals and Fertilizers addresses domestic fertilizer production in response to Lok Sabha Unstarred Question No. 2242. The response details the current production, steps to increase it, and plans for new fertilizer plants. Key actions include reviving existing units and establishing new plants to enhance urea production and promoting the use of Phosphatic and Potassic (PK) Fertilizers. A new plant in Assam was approved on March 19, 2025, through a Joint Venture.
Key Points / Main Content:
* **Domestic Fertilizer Production (FY 2024-25):**
* Total major fertilizer production: 517.85 LMT.
* Urea: 306.67 LMT.
* DAP: 37.69 LMT.
* NPKs: 121.05 LMT.
* SSP: 52.44 LMT.
* **Steps to Increase Domestic Urea Production:**
* Revival of FCIL and HFCL units (Ramagundam, Gorakhpur, Sindri, Talcher, Barauni) through JVCs.
* Ramagundam and Gorakhpur units commissioned on 22.03.2021 and 07.12.2021 respectively.
* Barauni and Sindri units started Urea production on 18.10.2022 and 05.11.2022 respectively.
* These plants added 50.8 LMT per annum of indigenous Urea production.
* **Nutrient Based Subsidy (NBS) Policy:**
* Implemented w.e.f. 01.04.2010 for PK Fertilizers.
* Fixed subsidy on notified PK fertilizers based on nutrient content.
* PK fertilizers covered under Open General License (OGL).
* **Measures for Self-Reliance in Fertilizer Production:**
* Recognition of new manufacturing units or capacity increases under NBS.
* Expansion of PK fertilizers covered under NBS from 22 to 28 grades.
* Freight Subsidy on SSP applicable since Kharif, 2022.
* **New Urea Plants:**
* Coal Gasification based Urea Plant at Talcher, Orissa (12.7 LMTPA) is under execution.
* New Brownfield Ammonia-Urea Complex at BVFCL, Namrup Assam (12.7 LMTPA) approved on 19.03.2025 through a JV, Assam Valley Fertilizer and Chemical Company Ltd incorporated on 25.7.2025.
Impact Analysis:
* **Fertilizer Manufacturers:**
* Impact: Opportunity to increase production and benefit from NBS and freight subsidies.
* Action Required: Evaluate opportunities to set up new units or expand existing capacity; comply with NBS guidelines.
* **Farmers:**
* Impact: Increased availability of domestically produced fertilizers, potentially at subsidized rates.
* Action Required: Utilize SSP fertilizer for Phosphatic nutrient requirements.
* **Government:**
* Impact: Progress towards self-reliance in fertilizer production and reduced import dependence.
* Action Required: Continue to monitor and support the revival of existing units and establishment of new plants.
Key Entities Referenced
SHRI NARAYAN TATU RANE: A member of Lok Sabha who raised a question about domestic fertilizer production.
MINISTRY OF CHEMICALS FERTILIZERS: The Indian government ministry responsible for chemical and fertilizer production and policies.
SMT. ANUPRIYA PATEL: The Minister of State in the Ministry of Chemicals and Fertilizers who provided the answer to the question.
Ramagundam Telangana: A unit of Fertilizer Corporation of India (FCIL) that was revived to increase domestic Urea production, located in Telangana.
Gorakhpur Uttar Pradesh: A unit of Fertilizer Corporation of India (FCIL) that was revived to increase domestic Urea production, located in Uttar Pradesh.
Sindri Jharkhand: A unit of Fertilizer Corporation of India (FCIL) that was revived to increase domestic Urea production, located in Jharkhand.
Talcher Odisha: A unit of Fertilizer Corporation of India (FCIL) that was revived to increase domestic Urea production, located in Odisha.
Barauni Bihar: A unit of Hindustan Fertilizer Corporation Ltd. (HFCL) that was revived to increase domestic Urea production, located in Bihar.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 2242 TO BE ANSWERED ON: 01.08.2025
Domestic Production of Fertilizers
2242. SHRI NARAYAN TATU RANE:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the details of domestic production of fertilizers in the country and the steps taken by the
Government to increase the domestic production of fertilizers;
(b) the steps taken by the Government to meet the demand of chemical fertilizers in the country;
(c) whether the Government proposes to set up new fertilizer plants for production of fertilizers
in the country;
(d) if so, the details thereof and the time by which it is likely to be set up and if not, the reasons
therefor;
(e) whether the Government proposes to set up such a plant in Maharashtra; and
(f) if so, the details thereof and if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) & (b): The details of the production of major fertilizers in the country during the FY 2024-25 are
as under:
Production of Major Fertilizers during FY 2024-25
(Figures in LMT)
Total Major
Year Urea DAP NPKs SSP
Fertilizers
2024-25 306.67 37.69 121.05 52.44 517.85
In order to promote indigenous production of Urea in the country, Government of India mandated
revival of Ramagundam (Telangana), Gorakhpur (Uttar Pradesh), Sindri (Jharkhand) and Talcher
(Odisha) units of Fertilizer Corporation of India (FCIL) and Barauni (Bihar) unit of Hindustan Fertilizer
Corporation Ltd. (HFCL) through Joint Venture Company (JVC) of nominated PSUs for setting up new
ammonia-urea plants of 12.7 LMTPA capacity each. The Ramagundam and Gorakhpur units have been-2-
commissioned on 22.03.2021 and 07.12.2021 respectively. Also, Barauni and Sindri units started
Urea production on 18.10.2022 and 05.11.2022 respectively. These plants have added 50.8 LMT
per annum of indigenous Urea production in the country. On completion of the project, the production
of Urea in the country will increase by 25.4 LMTPA and this will assist in maximizing the indigenous
production of Urea.
The Government has implemented Nutrient Based Subsidy Policy w.e.f. 01.04.2010 for
Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of subsidy, decided on
annual/bi-annual basis, is provided on notified P&K fertilizers depending on their nutrient content.
Under NBS policy, P&K fertilizers are covered under Open General License (OGL) and companies
are free to import/manufacture P&K fertilizers as per their business dynamics.
To become self-reliant in production of fertilizers, following measures have been taken by the
Government:
(i) Based on the requests, the new manufacturing units or increase in manufacturing capacity of
existing units have been recognized / taken on record under the NBS subsidy scheme, with a view
to boost manufacturing and make country self-reliant in fertilizer production.
(ii) The number of P&K fertilizers covered under NBS policy has been increased from 22 grades
in 2021 to 28 grades at present with a view to boost manufacturing and make country self-reliant in
fertilizer production. 06 new grades added are NPK 08-21-21, NPK 09-24-24, Potash Derived from
Molasses (PDM) (0-0-14.5-0), NPK 11-30-14 fortified with Magnesium, Zinc, Boron and Sulphur,
Urea-SSP Complex 5-15-0-10 and SSP 0-16-0-11 fortified with Magnesium, Zinc and Boron.
(iii) Freight Subsidy on SSP, which is an indigenously manufactured fertilizer, is applicable since
Kharif, 2022 to promote SSP usage for providing Phosphatic or 'P' nutrient to the soil.
(c) to (f): Currently, two new Urea Plants as below are being set-up in the country. On completion
of the project, the production of Urea in the country will increase by 25.4 LMTPA and this will assist
in maximizing the indigenous production of Urea.
1. Coal-Gasification based new Urea Plant at Talcher, Orissa with a capacity of 12.7 LMT
per annum is under execution phase.
2. The Union Cabinet in its meeting held on 19.03.2025 approved the proposal for setting
up of a new Brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity
of Urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited
(BVFCL), Namrup Assam through a Joint Venture (JV), under the New Investment Policy, 2012 read
with its amendments on 7th October, 2014. A JV company, Assam Valley Fertilizer and Chemical
Company Ltd has been incorporated on 25.7.2025.
.
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