Lok Sabha Question No. 142 (STARRED), answered on 2019-07-02
Subject: Production of Urea
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Vinayak Bhaurao Raut, Pritam Gopinath Munde

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

## LOK SABHA

STARRED QUESTION NO\_ 142* TO BE ANSWERED ON: 02.07.2019

## PRODUCTION OF UREA

## t142 SHRI VINAYAK RAUT: DR. PRITAM GOPINATHRAO MUNDE:

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

- (a) whether the Government proposes to reduce the import burden of urea by the financial year 2021 and if so, the scheme chalked out by the Government to make India self-reliant in the production of urea;
- (C) the extent to which the country has been made self-reliant since implementation of the new investment policy;
- (b) whether the Government had initiated a new investment policy in 2015 aimed at promoting the production of urea and if s0, the investment made under this policy;
- (d) whether the Government has budgeted around Rs. 70,079.85 crore for fertilizer subsidies for the financial year 2019; and
- (e) if so, whether  nearly half of the money was used to settle dues from the previous and if so, the response of the Government thereto? year

## ANSWER

MINISTER OF CHEMICALS & FERTILIZERS

(D.V. SADANANDA GOWDA)

(a) to (e): A statement is laid on the Table of the House:

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF THE LOK SABHA STARRED QUESTION NO. 142* TO BE ANSWERED ON 02.07.2019 REGARDING PRODUCTION OF UREA

(a) to (c): Sir. The average total production of Urea in the country of the last three is 240.74 LMT ~241 LMT and the total consumption (sales) of 305.48 LMT approximately The gap is   fulfilled  through imports. In the last 3 years, average imported urea is 63.12 LMT and average expenditure is Rs 12797.31 Crores. Yes, years

In view of the above, Government had announced New Investment 2012 on 2nd 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. Policy

Under NIP- 2012 read with its amendment; following urea units in private sector have been installed: -

- Matix Fertilizers & Chemicals Limited (Matix) has set up a Coal Bed Methane(CBM) based Greenfield Ammonia-Urea complex at Panagarh, West Bengal with 12.7 Lakh Metric tonne per annum capacity. The commercial production of Matix started on 1st October, 2017 .
- Chambal Fertilizers & Chemicals Limited (CFCL) has also set up a Brownfield project at Gadepan, Rajasthan with 12.7 Lakh Metric tonne per annum capacity\_ The commercial production of CFCL-IIl started on 1st January, 2019.

Government India is also  reviving 5 closed fertilizer  plants of Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizer Corporation Ltd. (HFCL) namely Talcher (Odisha) , Ramagundam (Andhra Pradesh) , Gorakhpur (Uttar Pradesh) and Sindri (Jharkhand) plants of FCIL and Barauni (Bihar) plant of HFCL by setting up new Ammonia Urea plants each having production capacity of 12.7 Lakh metric tonne per annum: Subsequent to commissioning/ start of the above plants, the indigenous urea production will be enhanced by 63.5 Lakh Metric Tonne per leading to corresponding reduction in import of urea. The construction of the plants at each of the location is going on at full swing, the estimated cost of all the 5 plants is Rs 37,971 Crores: year

The Cabinet in its meeting held on 21.05.2015 has also decided to install a new urea plant of 8.646 Lakh Metric Tonne Per Annum (LMTPA) in the existing premises of Brahmaputra Fertilizers Corporation Limited (BVFCL) , which will subsequently replace the existing urea plants Namrup-II (capacity 2.20 LMTPA) and Namrup-III (capacity 2.70 LMTPA): Valley

- (d): Sir. The budget allocation for fertilizer subsidies for the year 2018-19 was Rs\_ 73,435.21 Crores: For the year 2019-20, the amount passed by vote on account for April to July, 2019 is Rs. 35,430.42 Crores. No,
- (e): Sir. In the year 2018-19, out of a total expenditure of Rs. 73,435.21 Crore, only Rs. 16,020.37 Cr was spent to settle the dues from   previous year. The Government releases subsidy to the fertilizer companies on a regular basis subject to availability of budget; receipt of quality certificates (B2) from the State Governments etc Whenever there is shortage of funds, the Government liquidates the pending subsidy by arranging loans under a Special Banking Agreement (SBA): No,

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