Executive Summary:
This document is the response to Lok Sabha Unstarred Question No. 3412 regarding fertilizer availability and the establishment of new fertilizer plants in India. The response, provided on August 8, 2025, by the Minister of State in the Ministry of Chemicals and Fertilizers, addresses concerns about potential fertilizer shortages and outlines government actions to ensure adequate supply and promote self-sufficiency in urea production. While there are no new plants planned, the document details existing policies and investments in new and revived urea units.
Key Points / Main Content:
Fertilizer Availability:
* The availability of fertilizers (Urea, DAP, MOP, and NPKS) has been adequate across states during the Kharif 2025 season.
* The Department of Agriculture and Farmers Welfare (DAFW) assesses state-wise, month-wise fertilizer requirements in consultation with State Governments before each cropping season.
* The Department of Fertilizers allocates adequate fertilizer quantities based on DAFW projections, issuing monthly supply plans and continuously monitoring availability.
* The Integrated Fertilizer Monitoring System (iFMS) is used to monitor the movement of subsidized fertilizers.
* DAFW and the Department of Fertilizers conduct weekly video conferences with State Agriculture Officials to address fertilizer dispatch and take corrective actions.
New and Revived Urea Plants:
* There is no current government proposal to set up new fertilizer plants across the country.
* The New Investment Policy (NIP) 2012 (and its 2014 amendment) aims to facilitate fresh investment in the urea sector for self-sufficiency.
* 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 Fertilizers and Chemicals Ltd (RFCL) in Telangana (Ramagundam Urea unit).
* Hindustan Urvarak Rasayan Limited (HURL) units in Uttar Pradesh (Gorakhpur), Jharkhand (Sindri), and Bihar (Barauni).
* Private company units include:
* Matix Fertilizers and Chemicals Ltd (Matix) in West Bengal (Panagarh urea unit).
* Chambal Fertilizers and Chemicals Ltd (CFCL) in Rajasthan (Gadepan-III Urea unit).
* Each of these units has a 12.7 Lakh Metric Tonne per annum (LMTPA) installed capacity and uses energy-efficient technology.
* The revival of the Talcher unit of FCIL via a JVC of nominated PSUs (Talcher Fertilizers Limited - TFL) has been approved, involving a new Greenfield Urea plant of 12.7 LMTPA using coal gasification.
* A new Brownfield Ammonia-Urea Complex with 12.7 LMT annual urea production capacity at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam, has been approved, with a project cost of ₹10601.40 Crores and a 70:30 Debt Equity ratio via a Joint Venture (JV) under the New Investment Policy, 2012.
Impact Analysis:
State Governments:
* Impact: State governments are responsible for assessing and reporting their fertilizer requirements to DAFW.
* Action Required: Participate in consultations with DAFW to accurately project fertilizer needs and coordinate with the Department of Fertilizers to ensure timely dispatch.
Department of Agriculture and Farmers Welfare (DAFW):
* Impact: DAFW is responsible for assessing the fertilizer requirements for each state and coordinating with the Department of Fertilizers.
* Action Required: Continue to consult with State Governments to accurately project fertilizer needs and coordinate with the Department of Fertilizers to ensure timely dispatch.
Department of Fertilizers:
* Impact: The department is responsible for allocating adequate fertilizer quantities to states based on DAFW projections and monitoring availability.
* Action Required: Issue monthly supply plans, continuously monitor availability through iFMS, and participate in weekly video conferences with DAFW and State Agriculture Officials to address fertilizer dispatch.
Fertilizer Companies (PSUs and Private):
* Impact: Fertilizer companies are responsible for setting up new urea units and ensuring efficient production.
* Action Required: Adhere to the New Investment Policy (NIP) 2012 guidelines, invest in energy-efficient technologies, and meet the production targets.
Farmers:
* Impact: Farmers are the end-users of fertilizers and are directly affected by their availability and timely supply.
* Action Required: Communicate their fertilizer needs to the State Agriculture officials and utilize available resources efficiently.
Key Entities Referenced
Ministry of Chemicals and Fertilizers: A ministry within the Government of India responsible for the development of the chemical and fertilizer industries.
Department of Fertilizers: A department under the Ministry of Chemicals and Fertilizers, specifically focused on the fertilizer sector in India.
Urea: A nitrogen-based chemical fertilizer widely used in agriculture.
New Investment Policy 2012: A policy announced by the Government of India on 2nd January 2013 and its amendment on 7th October 2014 to encourage investment in the urea sector and achieve self-sufficiency in urea production.
Rajasthan: A state in India mentioned in the context of fertilizer plant locations, specifically the districts of Jalore and Sirohi and GadepanIII Urea unit.
Uttar Pradesh: A state in India mentioned in the context of Hindustan Urvarak Rasayan Limited HURL urea unit at Gorakhpur.
Hindustan Urvarak Rasayan Limited: A Joint Venture Company (JVC) involved in setting up urea units in Gorakhpur, Sindri and Barauni.
Brahmaputra Valley Fertilizer Corporation Limited, Namrup, Assam: A fertilizer corporation located in Namrup, Assam, where a new Brownfield Ammonia-Urea Complex is proposed to be set up.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 3412 TO BE ANSWERED ON: 08.08.2025
Setting up of Fertilizer Plants
3412: SHRI LUMBARAM CHOUDHARY:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the action plan of the Government to meet the shortage of chemical fertilizers
across the country, State-wise;
(b) whether the Government proposes to set up new fertilizer plants across the
country; and
(c) if so, the details thereof, State-wise including Jalore and Sirohi districts of
Rajasthan?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) The availability of fertilizers viz. Urea, DAP, MOP and NPKS has remained
adequate across the States during the ongoing Kharif-2025 season.
Further, following steps are taken by the Government before every cropping
season for ensuring timely and adequate availability of fertilizers across the States:
i. Before the commencement of each cropping season, Department of Agriculture
and Farmers Welfare (DA&FW), in consultation with all the State Governments,
assesses the state-wise & month-wise requirement of fertilizers.
ii. On the basis of requirement projected by DA&FW, D/o Fertilizers allocates
adequate quantities of fertilizers to States by issuing monthly supply plan and
continuously monitors the availability.
iii. The movement of all major subsidized fertilizers is monitored throughout the
country by an on-line web-based monitoring system called integrated Fertilizer
Monitoring System (iFMS);
iv. Regular Weekly Video Conference is conducted jointly by DA&FW and D/o
Fertilizers with State Agriculture Officials and corrective actions are taken to dispatch
fertilizers as indicated by the State Governments.-2-
(b) and (c) Currently, there is no proposal of Government to set up new Fertilizers
Plants across the country. However, 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, 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.
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 Government of India has approved the proposal for setting
up of a new Brownfield Ammonia-Urea Complex of 12.7 LMT annual capacity of Urea
production within the existing premises of Brahmaputra Valley Fertilizer Corporation
Limited (BVFCL), Namrup, Assam with an estimated total project cost of 10601.40
Crores with Debt Equity ratio of 70:30 through a Joint Venture (JV), under the New
Investment Policy, 2012 read with its amendments on 7th October, 2014.
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