**Executive Summary**
This document is a response to Unstarred Question No. 2101 in Lok Sabha, scheduled for December 12, 2025, regarding the revival of closed urea plants and the plan to end urea imports by 2025. It details the government's policies and initiatives, including the New Investment Policy (NIP) 2012 and New Urea Policy (NUP) 2015, to boost domestic urea production. It further discusses the impact and promotion of Nano fertilizers.
**Key Points / Main Content**
* **Government Initiatives:**
* New Investment Policy (NIP) – 2012, including its amendment on 7th October, 2014, was announced to facilitate fresh investment in the Urea sector and to make India self-sufficient.
* The Government has also notified the New Urea Policy (NUP) – 2015 on 25th May, 2015, for the existing 25 gas-based Urea units to maximize indigenous Urea production.
* **New Urea Units:**
* Six new Urea units have been set up under NIP-2012: four through Joint Venture Companies (JVCs) of nominated PSUs and two by private companies.
* JVC units include Ramagundam Urea unit (Telangana) and three HURL units in Gorakhpur, Sindri and Barauni (Uttar Pradesh, Jharkhand and Bihar).
* Private company units are Panagarh Urea unit (West Bengal) and Gadepan-III Urea unit (Rajasthan).
* Each unit has an installed capacity of 12.7 Lakh Metric Tonne per annum (LMTPA).
* An exclusive policy for the revival of the Talcher unit through JVC of nominated PSUs namely Talcher Fertilizers Limited (TFL) by setting up a new Greenfield Urea plant of 12.7 LMTPA at coal gasification route has also been approved. Recently, the Union Cabinet has 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.
* **Urea Production Capacity:**
* These units have added 76.2 LMTPA, increasing the total indigenous Urea production capacity from 207.54 LMTPA (2014-15) to 283.74 LMTPA (2023-24).
* The total Urea production capacity after revival of the plants is 269.42 LMT per annum.
* The NUP-2015 has led to additional production of Urea by 20-25 LMT as compared to the production during 2014-15 annually.
* Steps taken have facilitated an increase in Urea production from 225 LMT per annum during 2014-15 to 306.67 LMT during 2024-25.
* State-wise data on production level during 2025-26 (up to November 2025) is provided in the Annexure.
* **Nano Fertilizers:**
* A study is being conducted by the National Productivity Council (NPC) from 2024 to 2026 to evaluate the efficacy and impact of Nano Urea.
* Conventional Urea is mandatory for basal dose even when Nano Urea is used for foliar application.
* Nano Fertilizers are promoted through awareness programs, field demonstrations, and are made available at Pradhan Mantri Kisan Samridhi Kendras (PMKSKs).
* Nano Fertilizers have been included under the monthly supply plan issued by the Department of Fertilizers regularly.
* Initiatives promoting innovative spraying options and distribution of battery-operated Sprayers are undertaken. Pilot training and custom hiring spraying services through Village Level Entrepreneurs are actively promoted.
**Impact Analysis**
**Farmers**
* **Impact:** Farmers are impacted by the availability of Nano Fertilizers as an alternative and supplement to conventional urea, and by the new awareness programs.
* **Action Required:** Farmers are encouraged to adopt Nano Fertilizers in conjunction with Conventional Urea to enhance crop productivity, following the guidance provided through awareness campaigns and field demonstrations.
**Urea Manufacturing Companies (Public and Private)**
* **Impact:** Existing and new Urea manufacturing companies are affected by NIP 2012 and NUP 2015, leading to increased production capacity and potential revenue.
* **Action Required:** Adhere to the guidelines and incentives provided under NIP 2012 and NUP 2015 to maximize Urea production.
**Fertilizer Department**
* **Impact:** The Department is responsible for implementing and monitoring the policies related to Urea production and usage of Nano Fertilizers.
* **Action Required:** Continue monitoring the impact of Nano Fertilizers, conduct studies, and issue monthly supply plans to promote their usage.
Key Entities Referenced
Ministry of Chemicals and Fertilizers: The primary government body responsible for policies related to the chemical and fertilizer industry.
New Investment Policy (NIP) – 2012: Policy designed to facilitate fresh investment in the Urea sector and make India self-sufficient.
New Urea Policy (NUP) – 2015: Policy aimed at maximizing indigenous Urea production.
Nano Urea: Alternative fertilizer whose adoption is being promoted to reduce conventional urea consumption.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 2101 TO BE ANSWERED ON: 12.12.2025
REVIVAL OF CLOSED UREA PLANTS
2101: SHRI P V MIDHUN REDDY:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the current status of the Government’s plan to end urea imports by 2025, including
the proposals, if any, for revival of closed urea plants;
(b) the details of domestic urea production capacity after the revival of the said plants,
along with the data on production level, State-wise; and
(c) the impact of alternative fertilizers like nano liquid urea on reducing conventional
urea consumption and the steps being taken to promote their adoption across the country,
State-wise?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) Government had announced New Investment Policy (NIP) – 2012 on 2nd January,
2013 and its amendment on 7th October, 2014 to facilitate fresh investment in the Urea
sector and to make India self-sufficient in the Urea sector. Total 6 new Urea units have
been set up under NIP-2012 which includes 4 Urea units set up through Joint Venture
Companies (JVC) of nominated PSUs and 2 Urea units set up by the private companies.
The units set up through JVC are Ramagundam Urea unit of Ramagundam Fertilizers and
Chemicals Ltd (RFCL) in Telangana and 3 Urea units namely Gorakhpur, Sindri and
Barauni of Hindustan Urvarak & Rasayan Limited (HURL) in Uttar Pradesh, Jharkhand and
Bihar, respectively. The units set up by private companies are Panagarh Urea unit of Matix
Fertilizers and Chemicals Ltd. (Matix) in West Bengal; and Gadepan-III Urea unit of
Chambal Fertilizers and Chemicals Ltd. (CFCL) in Rajasthan. Each of these units has
installed capacity of 12.7 Lakh Metric Tonne per annum (LMTPA). These units are highly
energy efficient as they are based on latest technology. Therefore, these units have-2-
together added Urea production capacity of 76.2 LMTPA, thereby total indigenous Urea
production capacity (Reassessed Capacity, RAC) has increased from 207.54 LMTPA
during 2014-15 to 283.74 LMTPA during 2023-24. Further, an exclusive policy for the
revival of Talcher unit of FCIL through JVC of nominated PSUs namely Talcher Fertilizers
Limited (TFL) by setting up a new Greenfield Urea plant of 12.7 LMTPA at coal gasification
route has also been approved. Recently, the Union Cabinet has 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.
In addition, the Government also notified the New Urea Policy (NUP) – 2015 on 25th
May, 2015 for the existing 25 gas-based Urea units with one of the objectives of maximizing
indigenous Urea production beyond RAC. The NUP-2015 has led to additional production
of Urea by 20-25 LMT as compared to the production during 2014-15 annually.
Above steps together have facilitated increase of Urea production from level of 225
LMT per annum during 2014-15 to 306.67 LMT of Urea during 2024-25.
(b) Currently, the total Urea production capacity after the revival of said plants is 269.42
LMT per annum. The data on production level, State-wise during 2025-26 (upto November
2025) is as per Annexure.
(c) A study has been assigned by Department of Fertilizers to the National Productivity
Council (NPC) for a period of 2 years, from 2024–2026, regarding “Evaluating the Efficacy,
Utility, and Impact of Nano Urea in Comparison to Conventional Urea.” As per the key
findings of this study, Nano Urea has to be used for foliar application and for the basal
dose, Conventional Urea has to be mandatorily used. Thus, even when Nano Urea is
applied, there is a requirement for Conventional Urea. The study has shown that Nano
Urea, when applied with Conventional Urea, leads to an increase in crop productivity.
In order to promote the use of Nano Fertilizers amongst the farmers, the following
steps have been taken:
Use of Nano Fertilizers is promoted through different activities such as awareness
camps, webinars, field demonstrations, Kisan Sammelans and films in regional
languages etc.
Nano Fertilizers are made available at Pradhan Mantri Kisan Samridhi Kendras
(PMKSKs) by concerned companies.
Nano Fertilizers has been included under monthly supply plan issued by
Department of Fertilizers regularly.
-3- For ease in application and utilization of Nano fertilizers like Nano Urea through foliar
application, initiatives such as innovative spraying options like 'Kisan Drones' and
distribution of battery operated Sprayers at retail points are undertaken. For this
purpose, pilot training and custom hiring spraying services through Village Level
Entrepreneurs are actively promoted.
*******Annexure
Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question
No 2101 for answering on 12.12.2025
State-wise and Plant-wise
Sl. Name of the State NAME OF PLANTS
Public Sector
1 Punjab NFL:Nangal-II
2 Punjab NFL:Bhatinda
3 Haryana NFL:Panipat
4 Madhya Pradesh NFL:Vijaipur
5 Madhya Pradesh NFL:Vijaipur Expn.
Total(NFL):
6 Assam BVFCL:Namrup-III
Total(BVFCL):
7 Maharashtra RCF:Trombay-V
8 Maharashtra RCF:Thal
Total(RCF):
9 Tamil Nadu MFL:Chennai
TOTAL PUBLIC SECTOR
COOP. SECTOR:
10 Gujarat IFFCO:Kalol
11 Uttar Pradesh IFFCO:Phulpur
12 Uttar Pradesh IFFCO:Phulpur Expn.
13 Uttar Pradesh IFFCO:Aonla
14 Uttar Pradesh IFFCO:Aonla Expn.
Total(IFFCO):
15 Gujarat KRIBHCO:Hazira
TOTAL COOP. SECTOR:
Total (Pub.+Coop.)
PRIVATE SECTOR:
16 Gujarat GSFC:Vadodara
17 Rajasthan SFC:Kota
18 Uttar Pradesh KFCL
19 Goa PPL/ZACL:Goa
20 Tamil Nadu SPIC:Tuticorin
21 Karnataka PPL - (MCFL)
22 Gujarat GNFC:Bharuch
23 Uttar Pradesh Indorama/Grasim:Jagdish
24 Rajasthan CFCL:Gadepan-I
25 Rajasthan CFCL:Gadepan-II
26 Rajasthan CFCL:Gadepan-III
27 Uttar Pradesh YARA/TCL:Babrala
28 Uttar Pradesh KFL/KSFL:Shahjahanpur
Matix Fertilizers and Chemicals Ltd.
29 West Bengal
30 Telangana RFCL-Ramagundam
31 Uttar Pradesh HURL: Gorakhpur
32 Bihar HURL: Barauni
33 Jharkhand HURL: Sindri
TOTAL PRIVATE SECTOR:
TOTAL(PUB.+COOP.+PVT.):