## Policy Summary: Fertilizer Unit in Amritsar
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 2086, concerning the potential establishment of a fertilizer unit in Amritsar. The question, posed by Shri Gurjeet Singh Aujla, inquired about the government's consideration of supporting such a unit to benefit farmers, reduce import dependency, generate employment, and stimulate the rural economy.
The response, provided by the Minister of State in the Ministry of Chemicals and Fertilizers, Smt. Anupriya Patel, clarifies that while the government is committed to increasing indigenous urea production, there is currently no proposal under consideration for establishing a fertilizer unit specifically in Amritsar.
The government's strategy focuses on reviving existing Fertilizer Corporation of India (FCIL) and Hindustan Fertilizer Corporation Ltd. (HFCL) units through Joint Venture Companies (JVCs) of nominated Public Sector Undertakings (PSUs). This initiative involves establishing new ammonia-urea plants, each with a capacity of 12.7 LMTPA (Lakh Metric Tonnes Per Annum), at Ramagundam (Telangana), Gorakhpur (Uttar Pradesh), Sindri (Jharkhand), Talcher (Odisha), and Barauni (Bihar).
As of the date of the response (August 1, 2025), the Ramagundam and Gorakhpur units have been commissioned on March 22, 2021, and December 7, 2021, respectively. The Barauni and Sindri units commenced urea production on October 18, 2022, and November 5, 2022, respectively. These revived and newly established plants have collectively added 50.8 LMT per annum to the country's indigenous urea production capacity, thereby reducing urea import dependency.
The response also notes the existing presence of two operational urea plants belonging to National Fertilizers Limited (NFL) located at Nangal and Bhatinda, with annual production capacities of 4.78 LMT and 5.11 LMT, respectively.
Key Entities Referenced
SHRI GURJEET SINGH AUJLA: Member of Parliament who raised the question regarding the establishment of a fertilizer unit in Amritsar.
MINISTRY OF CHEMICALS AND FERTILIZERS: The government ministry responsible for policies related to chemicals and fertilizers.
SMT. ANUPRIYA PATEL: The Minister of State in the Ministry of Chemicals and Fertilizers who provided the answer to the question.
Amritsar, Punjab: City in Punjab where the establishment of a fertilizer unit was proposed.
Ramagundam, Telangana: Location of one of the revived fertilizer units of Fertilizer Corporation of India FCIL.
Gorakhpur, Uttar Pradesh: Location of one of the revived fertilizer units of Fertilizer Corporation of India FCIL.
Sindri, Jharkhand: Location of one of the revived fertilizer units of Fertilizer Corporation of India FCIL.
Fertilizer Corporation of India (FCIL): A Public Sector Unit (PSU) whose units are being revived to promote indigenous urea production.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION No. 2086 TO BE ANSWERED ON 01.08.2025
Fertilizers Manufacturing Units in Amritsar
2086: SHRI GURJEET SINGH AUJLA:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the Union Government is considering to support the establishment of
fertilizer unit in Amritsar to provide relief to farmers and reduce import
dependency, if so, the details thereof;
(b) whether it is true that such a unit would not only reduce transportation
costs/import dependency, but also generate massive employment
opportunities for local youth, support agriculture, boost rural economy and
reduce the burden of excessive subsidy by enabling cheaper domestic
production, if so, the details thereof; and
(c) whether the proposal of such units under relevant schemes promotes self-
reliance in agri-inputs and prioritise border areas like Amritsar for such
strategic investment, if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) to (c): 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 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 thereby reducing import
dependency of Urea. However, as of now, there is no proposal for consideration
for establishment of fertilizer unit in Amritsar. At present, there are two operational
Urea plants of National Fertilizers Limited (NFL) at Nangal and Bhatinda with
annual production capacity of 4.78 LMT and 5.11 LMT respectively.
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