Lok Sabha Question No. 2525 (UNSTARRED), answered on 2019-12-03
Subject: Coal-based Urea
Ministry: CHEMICALS AND FERTILIZERS
Asked by: K. Shanmuga Sundaram

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2525 TO BE ANSWERED ON 03.12.2019

## Cozl-based Urea

## 2525: SHRI SHANMUGA SUNDARAM K:

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

- (a) whether the Government is having any policy for manufacturing coal-based urea since India is having surplus coal at present;
- (b) if the details thereof; SO ,
- (c) whether the Government will encourage second-generation bio-fuels, also known as advances bio-fuels for setting up of industries to manufacture them in India;
- (d) if the estimated savings of petroleum import per annum; and SO,
- (e) the impact on the subsidy given by the Government for urea once the coalbased urea production started?

## ANSWER

## MINISTER FOR CHEMICALS & FERTILIZERS

V. SADANANDA GOWDA)

(a), (b) & (e): The Government had announced New Investment Policy (NIP) 2012 on January, 2013 and its amendment on 7th October 2014 to facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector. The said policy is applicable to urea units to be based on gas i.e. Natural Gas (domestic / RLNG) and CBM: It provides for the same dispensation for revival of closed urea units based on Coal Gasification and Greenfield projects based on Coal Gasification, as that of CBM, after arriving at equivalent Natural Gas price. 2nd

The Government of India is reviving the Talcher fertilizer unit of Fertilizer Corporation India Ltd. (FCIL) by setting up new Ammonia Urea plant of 12.7 Lakh metric tonne per annum capacity   through 'Nomination Basis'by  forming a Joint Venture of Gas Authority of India Limited (GAIL), Rashtriya Chemicals & Fertilizers Limited (RCF) and Coal India Limited (CIL) , on Coal Gasification technology.

- 8 (eight) Urea  manufacturirig units   (namely: IFFCO-Phulpur !, IFFCOPhulpur II, GNVFC-Bharuch, NFL-Bhatinda, NFL-Panipat; NFL-Nangal, SFC-Kota and KFCL-Kanpur) are manufacturing urea using Natural Gas as feedstock and coal As per the prevailing policy for the existing urea manufacturing units, cost of input including feedstock such as coal etc. is a pass through item in the subsidy calculation.
- (c) & (d): In the Government allowed   procurement of ethanol produced   from other  non-food feedstock besides molasses, like cellulosic and lignocelluloses materials including petrochemical route: The Government has also notified National Policy on Bio-fuels 2018 in June, 2018 to  promote Bio-fuels These second generation bio-fuels can be produced from lignocellulosic biomass, crop residues, municipal solid waste, etc. In order to enccurage setting up of second generation bio-fuels plants, the Government has launched a scheme namely "Pradhan Mantri JI-VAN (Jaiv Indhan-Vatavaran Anukool fasal awashesh Nivaran) Yojana for   providing financial support to integrated bio-ethanol projects, using lignocellulosic biomass and other renewable feedstock. The savings of petroleum import per annum from second generation Biofuels cannot be estimated at this stage.