Executive Summary:
The Ministry of Chemicals and Fertilizers addresses questions regarding India's self-sufficiency in urea and the reduction of reliance on imported phosphatic and potassic fertilizers. It details measures taken, including new urea unit establishments and revival projects, and long-term strategies to secure raw material inputs. The aim is to achieve self-sufficiency in fertilizer production and reduce import dependence.
Key Points / Main Content:
Urea Self-Sufficiency:
* New Investment Policy (NIP) 2012 and its amendment facilitated the establishment of six new urea units, increasing indigenous urea production capacity.
* Ramagundam, Gorakhpur, Sindri, Barauni, Panagarh, and GadepanIII units each have a capacity of 12.7 LMTPA, adding a total of 76.2 LMTPA.
* The New Urea Policy (NUP) 2015 led to an additional urea production of 20-25 LMT annually.
* A new Brownfield Ammonia-Urea Complex at BVFCL, Namrup, Assam was approved, increasing urea production by 25.4 LMTPA.
* Urea production increased from 225 LMT in 2014-15 to 314.07 LMT in 2023-24.
Reducing Reliance on Phosphatic and Potassic (PK) Fertilizers:
* Nutrient Based Subsidy (NBS) Policy implemented since 01.04.2010 provides a fixed subsidy on notified PK fertilizers.
* Potash Derived from Molasses (PDM), a 100% indigenously manufactured fertilizer, is covered under NBS.
* New manufacturing units or increased capacity of existing units recognized under NBS subsidy scheme.
* The number of PK fertilizers covered under NBS increased from 22 to 28 grades.
* Freight Subsidy on SSP is applicable since Kharif 2022 to promote its usage.
Fertilizer Unit Revival Projects:
* Revival of Ramagundam, Gorakhpur, Sindri, Talcher, and Barauni units mandated through JVCs for setting up new ammonia-urea plants of 12.7 LMTPA capacity each.
* Ramagundam, Gorakhpur, Sindri and Barauni units commissioned, adding 50.8 LMTPA of indigenous urea production.
* Talcher unit is currently under execution.
Input Security Strategies:
* The government engages in discussions with resource-rich countries to enhance the import of raw materials like rock phosphate and potash.
* Facilitates Long-Term Agreements (LTAs)/Memoranda of Understanding (MOUs) between Indian companies and overseas suppliers.
* Agreements/MOUs secured for annual supply of Rock Phosphate from Morocco, Jordan, Togo and Mauritania, and for Potash from Russia, Belarus and Jordan.
Impact Analysis:
Fertilizer Manufacturers:
* Impact: Encouraged to increase domestic production of urea and PK fertilizers through supportive policies and subsidies.
* Action Required: Invest in new manufacturing units or expand existing ones to leverage NBS and other incentives; engage in LTAs/MOUs for raw material supply.
Farmers:
* Impact: Potentially benefit from increased domestic fertilizer production, leading to more stable supply and possibly reduced prices.
* Action Required: Utilize domestically produced fertilizers, including SSP and PDM, to support local manufacturing and reduce import dependence.
Joint Venture Companies (JVCs):
* Impact: Responsible for reviving FCIL and HFCL units, contributing to increased urea production.
* Action Required: Continue execution of revival projects, such as the Talcher unit, to meet production targets.
Government:
* Impact: Responsible for implementing policies and strategies to achieve self-sufficiency in urea and reduce import dependence.
* Action Required: Continue monitoring progress, addressing challenges in raw material supply, and adjusting policies as needed to meet objectives.
Key Entities Referenced
New Investment Policy NIP 2012: Policy announced by the Government of India to facilitate fresh investment in the urea sector and to make India self-sufficient in urea production.
Hindustan Urvarak Rasayan Limited HURL: Joint Venture Company involved in setting up urea units in Gorakhpur (Uttar Pradesh), Sindri (Jharkhand), and Barauni (Bihar).
Ramagundam Fertilizers and Chemicals Ltd RFCL: Joint Venture Company that set up the Ramagundam urea unit in Telangana.
Nutrient Based Subsidy Policy: A policy implemented by the Government of India for Phosphatic and Potassic (PK) Fertilizers, providing a fixed amount of subsidy based on nutrient content.
New Urea Policy NUP 2015: Policy notified by the Government of India for existing gas-based urea units to maximize indigenous urea production.
Talcher Fertilizers Limited TFL: Joint Venture Company of nominated PSUs for the revival of Talcher unit in Odisha through a new Greenfield urea plant.
Brahmaputra Valley Fertilizer Corporation Limited BVFCL, Namrup, Assam: Fertilizer corporation where a new Brownfield Ammonia-Urea Complex is planned to be set up.
Fertilizer Corporation of India FCIL: Organization whose units (Ramagundam, Gorakhpur, Sindri, and Talcher) are being revived.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION No. 954 TO BE ANSWERED ON 25.07.2025
Self-Sufficiency in Urea
954: SHRI SURESH KUMAR SHETKAR:
SHRI MANICKAM TAGORE B:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the target to achieve self-sufficiency in urea by the financial year 2025–26
is on track, given that urea imports were still 70.42 lakh tonnes in 2023–24 despite
increased domestic production, if so, the details thereof;
(b) the measures being taken to reduce reliance on phosphatic and potassic fertilizers,
with over 106 lakh tonnes imported last year and no domestic MOP production;
(c) whether import dependence persist despite a 15.5% rise in overall fertilizer output
over the last two years, if so, the details thereof;
(d) the current status of fertiliser units revival projects across the country including
Talcher, Gorakhpur, Barauni, Sindri and Ramagundam;
(e) the quantum of import substitution each project is estimated to contribute upon full
commissioning; and
(f) whether in view of the heavy import of raw materials like rock phosphate and potash,
the Government has adopted any long term strategies to ensure input security,
without which fertilizer self-sufficiency remains unachievable and if so, the details
thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): With regard to Urea, the Government had announced New Investment Policy
(NIP) – 2012 on 2nd January, 2013 and its amendment on 7thOctober, 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,-2-
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
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 on 19.03.3025. 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.
In addition, the Government also notified the New Urea Policy (NUP) – 2015 on
25thMay, 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 a record Urea Production at 314.07 LMT during 2023-24.
During 2024-25, 306.67 LMT of Urea was produced in the country.
(b) & (c): The Government has implemented on Nutrient Based Subsidy Policy
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 these
fertilizers as per their business dynamics.
Further, there are no known sources of Potash in the country and India is 100%
dependent on import for its potash requirement. Hence, Government has notified Potash
derived from Molasses (PDM) - which is 100% indigenously manufactured fertilizer,
under Nutrient based subsidy (NBS) regime w.e.f 13.10.2021. Further, to reduce
reliance on imported phosphatic and potassic fertilizers, following measures have been
taken by the Government:-3-
(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.
(d) & (e): 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.
Currently, Talcher unit is under execution phase. 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 on 19.03.3025. 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.
(f): The Government consistently engages in discussion with resource rich countries for
enchancing the import of raw materials like rock phosphate and potash in the country.
The Government also facilitates signing of Long-Term Agreements (LTAs/Memoranda
of Understanding (MOUs) between Indian companies and overseas suppliers to ensure
a steady and reliable supply of raw materials in the country. In the case of Rock
Phosphate, Indian companies currently have agreements/MoUs for an annual supply
ranging from 16,00,000 to 18,00,000 Metric Tonnes (MT) from Morocco, 5,00,000 MT
from Jordan, 2,40,000 MT from Togo and 1,50,000 MT from Mauritania. For Potash,
Indian companies have secured annual supply agreements/MoUs for 6, 50,000 MT from
Russia, 6, 00,000 MT from Belarus and 1, 25,000 MT from Jordan.
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