Lok Sabha Question No. 3610 (UNSTARRED), answered on 2017-08-08
Subject: Investment in Urea Sector
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAGHAV LAKHANPAL

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

## LOK SABHA

UNSTARRED QUESTION NO. 3610

TO BE ANSWERED ON

: 08.08.2017

## INVESTMENT IN UREA SECTOR

## 3610:  SHRI RAGHAV LAKHANPAL:

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

- (a) whether the Government has taken concrete steps to attract fresh investments in the urea sector and to make the country self-sufficient in this sector;
- (b) if so, the details and outcome thereof; and
- (c) the details of the steps taken by the Government for the revival of closed units?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT & HIGHWAYS, SHIPPING AND CHEMICALS & FERTILIZERS

## (SHRI MANSUKH L. MANDAVIYA)

(a) & (b): Yes,  Madam.  The  Government  has  notified  New  Investment  Policy (NIP)-2012 dated 2 nd January, 2013 (and its amendment dated 7 th October, 2014) to facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector. Based on NIP-2012, any interested company can establish urea plant in the country.  At  present,  Department  of  Fertilizers  has  2  active  proposals,  i.e.  Matix Fertilizers  &  Chemicals  Limited  (Greenfield  project  at  Panagarh,  West  Bengal)  and Chambal Fertilizers & Chemicals Limited (Brownfield project at Gadepan, Rajasthan) for setting up of urea projects.

Further, the Government of India has also notified the New Urea Policy (NUP) 2015 on 25 th May, 2015 for existing 25 gas based urea units with the objectives of (i) maximizing  indigenous  urea  production,  (ii)  promoting  energy  efficiency  in  urea production and (iii) rationalizing subsidy burden on the government. This policy has led to  additional  production  of  approximately  20  LMT  during  the  year  2015-16  as compared to 2014-15,  from  the  existing  gas  based  urea  plants.  Total  production  of urea  during  the  year  2015-16  was  244.75  LMT,  which  is  the  highest  ever  urea production in the country. The indigenous urea production for the year 2016-17 was 242.01 LMT.

(c): At present eight fertilizer public sector plants are lying closed. Out of these, five plants  namely  Talcher,  Ramagundam,  Gorakhpur,  Sindri  and  Barauni  are  being presently revived by setting up Ammonia-Urea plants of 1.27 million metric tonne per annum (MMTPA) capacity each.

Gorakhpur  &Sindri  units  of  Fertilizer  Corporation  of  India  limited  (FCIL)  and Barauni unit of Hindustan Fertilizer Corporation Limited (HFCL) are being revived by means  of  Special  Purpose  Vehicle  of  Public  Sector  Undertakings  (PSUs)  through nomination  route.  A  Joint  Venture  (JV)  Company  named  'Hindustan  Urvarak  & Rasayan  Limited  (HURL)'  comprising  of  National  Thermal  Power  Corporation,  Coal India Limited, Indian Oil Corporation Limited and FCIL/HFCL has been formed.

Talcher Unit of FCIL is being revived on 'Nomination basis' by a Consortium of PSUs namely Rashtriya Chemicals and Fertilizers Limited (RCF), GAIL (India) Limited, CIL  and  FCIL.  A  JV  Company  named  'Talcher  Fertilizers  Limited  (TFL)'  has  been formed.

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. A JV Company named 'Ramagundam Fertilizers & Chemicals Limited' has been formed.

Pre-project activities for the proposed projects at each of these units is going on.   Expected date of commissioning of these plants are as under:

| Fertilizer plant   | Expected month of commissioning   |
|--------------------|-----------------------------------|
| Talcher            | December, 2020                    |
| Ramagundam         | November, 2018                    |
| Gorakhpur          | August, 2020                      |
| Sindri             | September, 2020                   |
| Barauni            | October, 2020                     |

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