Lok Sabha Question No. 600 (UNSTARRED), answered on 2018-02-06
Subject: Decline in Urea Import
Ministry: CHEMICALS AND FERTILIZERS
Asked by: HARI MANJHI

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO 600† TO BE ANSWERED ON:  06.02.2018

## Decline in Urea Import

## 600†  SHRI HARI MANJHI:

Will the Minister of CHEMICALS & FERTILIZERS be pleased to state:

- (a) the quantitative decline in the import of urea due to its record production in the country and the quantum of revenue saved to as a result thereof;
- (b) whether the production of other fertilizers has also increased in the country;
- (c) if so, the details thereof along with the initiatives taken by the Government in this regard; and
- (d) the number of closed fertilizer factories for which the Government has taken initiative  for  revamping  during  the  last  two  years  and  the  present  status thereof?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PLANING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERILIZERS

## (RAO INDERJIT SINGH)

- (a): The  import  of  urea  is  made  on  Government  account  to  bridge  the  gap between estimated indigenous production and assessed demand in the country. The import during the year 2017-18 (Apr-Dec) was 49.83 Lakh MT as against the import of 49.88 Lakh MT in the year 2016-17 for the same duration. Thus there is a decline of  0.05  Lakh  MT  in  import  of  urea  during  2017-18  (Apr-Dec)  over  previous  year. Based  on  the  weighted  average  price  of  urea  imports  during  the  current  year  i.e. US$ 216.86 PMT CFR, the saving work out to US$ 1.08 million.
- (b)  &  (c):  Yes  Madam,  the  production  of  urea  and  other  fertilizers  during  the  last three years and current year (upto Dec, 17) are as below:
- (d) : During  the  last  two  years  GOI  has  approved  revival  of  five  units  namely, Ramagundam,  Sindri,  Gorakhpur  and  Talcher  units  of  FCIL  and  Barauni  unit  of HFCL.  The details are given in Annexure .

| Year                  |   Urea |   A/S |   DAP |   Complex |   SSP |   Total |
|-----------------------|--------|-------|-------|-----------|-------|---------|
| 2014-15               | 225.85 |  4.41 | 34.44 |     78.32 | 42.36 |  385.39 |
| 2015-16               | 244.75 |  4.14 | 37.87 |     83.01 | 43.39 |  413.14 |
| 2016-17               | 242.01 |  4.9  | 43.65 |     79.66 | 44.18 |  414.41 |
| 2017-18 (upto Dec,17) | 177.84 |  4.14 | 36.88 |     63.01 | 30.03 |  311.9  |

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## Ramagundam Unit:

Ramagundam  unit  of FCIL is being revived on nomination basis by consortium  of  PSUs  namely  Engineers  India  Limited  (EIL),  National  Fertilizers Limited  (NFL) and  FCIL by  setting up  a  gas  based fertilizer  plant  of  1.27  MMTPA capacity.    The  Joint  Venture  agreement  was  signed  on  14.1.  2015.  JV  Company named Ramagundam Fertilizers  &  Chemicals  Limited  has  been  formed.  Progress made so far is as under:

- Project construction activities are under progress.
- As on 15th January 2018,  69.5% of physical progress of the project has been made.
- The project is likely to be commissioned by 31.12.2018.

## Gorakhpur & Sindri units of FCIL and Barauni Unit of HFCL

Gorakhpur, Sindri and Barauni units are being revived by means of a Special Purpose  Vehicle  of  Public  Sector  Undertakings  namely,  National  Thermal  Power Corporation,  Coal  India Limited, Indian Oil Corporation  Limited  and  Fertilizer Corporation India Limited/Hindustan Fertilizer Corporation Limited by setting up  gas based fertilizer plants of 1.27 MMTPA capacity each . A Joint Venture company by name  Hindustan  Urvarak  &  Rasayan  Limited  (HURL)  has  been  formed.  Progress made so far is as under:

- Pre  project  activities  are  under  progress.  The  following  pre-project  activities have been completed in respect of all the three project:
1.  Pre-feasibility
2.  Geo technical investigation and topographic studies
3.  Hydro geological and ground water study for water availability
4.  Environment clearances have been  obtained
- Building/office  renovation  work  has  been  started  and  full  fledged  site  offices have been established at all the 3 locations.
- Pre project works like site development, construction water and power facility have already begun at Gorakhpur & Barauni.
- The  technical  and  commercial  evaluation  of  all  the  bids  for  all  three  projects have been completed.
- The above three projects likely to start production by 2020.

## Talcher Unit:

Talcher Unit of FCIL is being revived on 'Nomination basis' by a Consortium of PSUs namely RCF, GAIL, CIL and FCIL by setting up a coal based fertilizer plant of 1.27 MMTPA capacity.  A JV Company Talcher Fertilizers Limited (TFL) has been formed.

Progress made so far as under:

- Coal gasification technology has been selected.
- Pre project activities are under progress.
- Environment clearance has been obtained.
- Power Price Parity for Bridge Linkage Coal approved by Coal Ministry.
- MoU with IOC for Pet-coke signed on 10.08.17

The Talcher project is likely to start production by 2021

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