Lok Sabha Question No. 4065 (UNSTARRED), answered on 2023-03-24
Subject: Promotion of Indigenous Technique in Fertilizer Sector
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Chandra Prakash Joshi

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

UNSTARRED QUESTION NO. 4065 TO BE ANSWERED ON : 24.03.2023

## Promotion of indigenous technique in fertilizer sector

## 4065.  SHRI CHANDRA PRAKASH JOSHI :

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

- (a) the  details  of  the  efforts  made  by  the  Government  to  promote  manufacturing  of fertilizers in the country;
- (b) whether  the  Government  has  proposed  any  new  scheme  to  promote  indigenous technology in fertilizer sector in the country;
- (c) if so, the details thereof;
- (d) whether the Government has proposed any new scheme in Rajasthan for research and development in the field of fertilizers;
- (e) if so, the details thereof;
- (f) whether  there  is  any  scheme  to  set  up  new  unit  of  fertilizer  plant  in  Chittorgarh Parliamentary Constituency; and
- (g) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

(a) to (c) : Sir, the Government had announced New Investment Policy (NIP) - 2012 on 2 nd  January, 2013 and its amendment on 7 th  October, 2014 to facilitate fresh investment in the urea sector and to make India self-sufficient in the urea sector. Total 6 new urea units have been set up under NIP - 2012. These are Panagarh urea unit of Matix Fertilizers and Chemicals Ltd. (Matix); Gadepan-III urea unit of Chambal Fertilizers and Chemicals Ltd. (CFCL); Ramagundam urea unit of Ramagundam Fertilizers and Chemicals Ltd.(RFCL); and 3 urea units namely Gorakhpur, Sindri and Barauni of Hindustan Urvarak & Rasayan Limited (HURL). Each of these units have the installed urea production capacity of 12.7 Lakh Metric Tonne per annum. Therefore, these units have together added 76.2 LMT per annum in the existing indigenous urea production capacity of the country.

Further, an exclusive policy has been notified on 28 th  April 2021 for the revival of Talcher unit of FCIL by setting up a new greenfield urea plant of 12.7 LMT per annum at coal gasification route.

The Government has notified the New Urea Policy (NUP) - 2015 on 25 th  May, 2015 with one of the objectives of maximizing indigenous urea production. The NUP-2015 has led to additional production of urea by 20-25 LMTPA as compared to the production during 2014-15.

As  far  as  P&K  fertilizers  are  concerned,  the  Government  has  taken  following steps:

1.  Granted  permission  to  Madhya  Bharat  Agro  product  Limited  Unit-II,  Banda Sagar,  MP  for  production  of  DAP/NPK  with  installed  capacity  2.40  LMT  per annum.

2.  Granted  permission  to  M/s.  Krishna  Phoschem  Ltd,  MP  for  production  of DAP/NPK with installed capacity 3.30 LMT per annum

3. PDM  or Potash Derived from Molasses (0-0-14.5-0), which is  100% indigenously  manufactured  Potassic  fertilizer,  has  been  included  under  Nutrient Based Subsidy (NBS) Scheme.

4. Freight Subsidy on SSP, which is an indigenously manufactured fertilizer, has been made applicable for Kharif and Rabi 2022-23.

(d) to (g) : Sir, under the Nutrient Based Subsidy (NBS) scheme, the P&K fertilizer sector is decontrolled, the import of P&K fertilizers is also under Open General Licensing (OGL). Thus, any research and development or setting up of new fertilizer unit is taken up by P&K fertilizer companies on their commercially viable terms.

******