Lok Sabha Question No. 1130 (UNSTARRED), answered on 2018-07-24
Subject: Fertilizer Production
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAHUL KASWAN

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO. 1130 TO BE ANSWERED ON: 24.07.2018

## Fertilizer Production

## 1130    SHRI  RAHUL KASWAN :

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

- (a)       whether the production of fertilizers has declined in the country;
- (b) if so, the reasons therefor ;
- (c)       the action taken/being taken to increase the fertilizer production; and
- (d)       whether the Government has any proposal to provide online facilities for purchase of fertilizers by the farmers at affordable prices and if so, the scheme formulated in this regard?

## ANSWER

MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  OF  THE  MINISTRY  OF PLANNING AND  MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

( RAO INDERJIT SINGH)

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(a) &  (b ):   The production  of all fertilizers during 2013-14 to 2017-18 are given below:-

( Figure in LMT)

| Year                  |   2013-14 |   2014-15 |   2015-16 |   2016-17 |   2017-18 |
|-----------------------|-----------|-----------|-----------|-----------|-----------|
| Fertilizer Production |    380.46 |    385.39 |    413.14 |    414.41 |    413.61 |

The  above  data  shows  marginal  decrease  in  production  of  all  fertilizers  during 2017-18,  which  is  insignificant.  Otherwise  the  production  has  been  increasing consistently.

- (c):        The  Government  is  implementing  Nutrient  Based  Subsidy  (NBS)  Scheme w.e.f.  1.4.2010.  Under  the  said  Scheme,  a  fixed  amount  of  subsidy  decided  on annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers  depending  upon  its  Nutrient  Content.    After  the  implementation  of  NBS policy, the Government does not interfere in commercial/production aspect of P&K fertilizer  companies.  However,  in  order  to  increase  indigenous  production  of fertilizers,  the  Government  has  been  encouraging  Indian  Companies  to  establish Joint Ventures/acquire raw material assets in Countries which are rich in fertilizer resources for entering into long term agreement for supply of fertilizers intermediaries/raw material to India.

The  Government  had  announced  New  Investment  Policy-2012  on  2 nd January, 2013 and its amendment on 7 th October 2014 to facilitate fresh investment in  urea  sector  and  to  make  India  self-sufficient  in  the  urea  sector.  Under  the provision of NIP-2012 and its amendment, Matix Fertilizers & Chemicals Limited ( Matix)    has  set  up  a  Coal  Bed  Methane  (CBM)  based  Greenfield  Ammonia-Urea complex  at  Panagarh,  West  Bengal  with  the  installed  capacity  of  1.3  MMT  per annum.  The  commercial  production  of  Matix  has  started  on  1 st October,  2017. Chambal Fertilizers  &  Chemicals  Limited  (CFCL)  has  also  proposed  to  set  up  a brownfield project with capacity of 1.34 MMT at Gadepan, Rajasthan, which is likely to start commercial production in January, 2019.

To increase the production of fertilizers by Central Public Sector Enterprises(CPSEs),    Government  has  decided  to  revive  5  closed  units  namely Gorakhpur, Sindri, Talcher and Ramagundam units of Fertilizer Corporation of India Limited (FCIL) and Barauni unit of Hindustan Fertilizer Corporation Limited (HFCL) through  'Nomination  Route'  through  Joint  Ventures  of  nominated  Central  Public Sector  Enterprises  (CPSEs).  Each  of  these  units  are  being  revived  by  installing new Urea Plant having production capacity of 1.27 Million Metric Tonne Urea per annum.

In  addition  to  above,  Government  has  also  decided  to  install  a  new  Urea plant  of  8.646  Lakh  Metric  Ton  (LMT)  per  annum  in  the  existing  premises  of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), which will subsequently replace the existing urea plants Namrup II (capacity 2.20 LMT) and Namrup III (capacity 2.70 LMT per annum.

(d): At present,  no  such  proposal  is  under  consideration.  However,  the Government  has  introduced  Direct  Benefit  Transfer  (  DBT)  system  for  fertilizer subsidy  across  States/  UTs.  Pan  India  roll-out  of  DBT  has  been  completed  by March 2018. Under the DBT system, 100% subsidy on various fertilizers grades is being released to the fertilizer companies, on the basis of actual sales made by the retailers to the beneficiaries through Point of Sale ( PoS) devices installed at each retailer shop.

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