This document addresses Lok Sabha Unstarred Question No. 3389, concerning the resolution of gas pricing disputes with domestic urea producers, answered on August 8, 2025. The question sought details on the total claims lodged over revised gas marketing margins, the total claims settled during the last three financial years, the urea manufacturers receiving financial settlements for previous gas cost disputes, and the mechanisms established to resolve pending legacy claims and prevent future disputes affecting fertilizer pricing.
The response provides an annexure detailing the total amount of claims lodged by domestic urea producers concerning revised gas marketing margins for the period 2009-10 to 2015-16, along with payments made by the Department of Fertilizers. Claims raised by urea units are settled according to prevalent Urea Pricing Policies.
The annexure specifies claims, ad-hoc payments made until November 17, 2015, and the net amount paid to twenty-one urea manufacturers. The total claimed amount is ₹431.77 Crores, with ₹28.98 Crores paid in 2015-16, resulting in a net payment of ₹377.92 Crores and a total payment including ad-hoc payments of ₹406.90 Crores. The annexure also mentions that payment was made in the year 2024-25.
The document was presented by the Minister of State in the Ministry of Chemicals and Fertilizers, Smt. Anupriya Patel.
Key Entities Referenced
Urea Pricing Policies: Policies governing the pricing of urea, a type of nitrogen fertilizer, in India.
Kota, Rajasthan: Location of Shriram Fertilizers and Chemicals (SFC) Kota plant.
Ministry of Chemicals and Fertilizers: A ministry of the Government of India responsible for the chemicals and fertilizers sector.
Department of Fertilizers: A department under the Ministry of Chemicals and Fertilizers responsible for the fertilizer industry.
Lok Sabha: The lower house of the Parliament of India, where the unstarred question was raised.
Joyanta Basumatary: A member of Lok Sabha who raised the unstarred question.
Amar Singh: A member of Lok Sabha who raised the unstarred question.
Anupriya Patel: The Minister of State in the Ministry of Chemicals and Fertilizers who provided the answer to the Lok Sabha question.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION No. 3389 TO BE ANSWERED ON 08.08.2025
Resolution of Gas Pricing Dispute
3389: Shri Joyanta Basumatary:
Dr. Amar Singh:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the details of the total amount of claims lodged by domestic urea producers
over revised gas marketing margins, year-wise;
(b) the total claims settled during the last three financial years;
(c) the details of the urea manufacturers provided financial settlements to resolve
previous gas cost disputes; and
(d) the details of mechanisms established to resolve the pending legacy claims and
prevent future disputes which may affect fertilizer pricing?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) to (d): The details of the total amount of claims lodged by domestic urea
producers over revised gas marketing margins, for the period 2009-10 to 2015-16 and
payment made by the Department are placed at Annexure.
Further, any claims raised by the Urea units are settled in accordance with the prevalent
Urea Pricing Policies.
*****Annexure
Annexure referred to in reply to part (a) to (d) of Lok Sabha Unstarred Question No 3389 for answering on 08.08.2025
Details of Marketing Margins claims Year wise
Rs in Crores
2009-10
2015-16 Total Balance
S. (From 2010- 2011- 2012- 2013- 2014- Adhoc
Unit Name (Upto Claimed Payment* Net Paid
No. 01.05.2009 11 12 13 14 15 Payment*
17.11.2015) Amount *
)
1 CFCL-I Gadepan 0.68 0.87 1.26 1.33 1.52 2.96 2.22 10.84 2.54 7.96 10.50
2 CFCL-II Gadepan 4.52 4.67 4.67 4.58 4.45 2.43 0.85 26.18 - 25.76 25.76
3 SFC Kota 3.3 3.65 3.58 3.61 3.38 2.99 1.56 22.07 1.48 20.55 22.03
4 GSFC Baroda 1.04 0.96 1.2 0.27 0.27 0.49 0.41 4.63 0.35 4.29 4.64
5 RCF Trombay 0.61 1 1.31 1.53 0.93 0.65 - 6.03 0.85 4.42 5.28
6 RCF Thal 10.57 11.26 11.16 10.95 9.61 8.3 - 61.85 0.77 59.79 60.55
7 IFFCO Aonla-I 4.23 21.43 25.66
7.17 8.47 9.39 8.61 8.06 7.79 6.61 56.09
8 IFFCO Aonla-II 0.24 24.39 24.63
9 IFFCO Phulpur-I 0.51 0.48 0.46 0.55 0.95 1.08 - 4.02 1.33 3.14 4.48
10 IFFCO Phulpur-II 0.73 0.8 0.82 0.9 1.39 1.55 - 6.19 0.00 6.78 6.78
11 IFFCO Kalol 6.38 6.81 6.96 6.87 5.94 5.62 3.21 41.79 3.27 35.41 38.67
KFL
12 4.61 4.85 5.12 4.94 4.27 4.13 2.57 30.5 2.15 26.40 28.55
Shahjahanpur
13 YFIPL - Babrala 3.51 3.95 4.11 4.03 3.74 3.34 2.4 25.09 1.94 20.26 22.20
14 GNVFC Bharuch - - - - - 1.45 0.86 2.31 0.05 2.12 2.17
15 NFCL-I Kakinada 0.62 0.78 1.67 1.87 0.98 0.85 0.9 7.67 - 6.27 6.27
16 NFCL-II Kakinada 7.06 8.34 8.34 8.62 8.46 7.4 5.3 53.52 4.69 48.09 52.78
17 KRIBHCO Hazira 6.56 7.5 7.56 6.82 5.8 5.19 3.55 43 3.03 35.32 38.35
Indorama -
18 1.38 1.4 1.31 1.49 2.37 2.14 1.3 11.39 0.89 9.50 10.38
Jagdishpur
19 NFL-Vijaipur I 1.44 1.71 1.72 1.54 1.22 1.34 0.52 9.48 0.78 8.13 8.92
20 NFL-Vijaipur II 1.46 1.57 1.21 1.42 0.94 1.04 0.61 8.24 - 7.52 7.52
21 NFL-Bhatinda - - - - - 0.47 0.41 0.88 0.40 0.37 0.77
431.77 28.98 377.92 406.90
*Payment made in the year 2015-16
**Payment made in the year 2024-25