Lok Sabha Question No. 1970 (UNSTARRED), answered on 2024-12-06
Subject: Atmanirbhar Bharat in Fertilizer
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Smt. Delkar Kalaben Mohanbhai, Shri Bhumare Sandipanrao Asaram, Shri Gyaneshwar Patil

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1970 TO BE ANSWERED ON 06.12.2024

## Aatmanirbhar Bharat in Fertilizer

1970. SHRI BHUMARESANDIPANRAOASARAM: SMT. DELKARKALABENMOHANBHAI: SHRI GYANESHWARPATIL:

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

- (a) whether the Government is making efforts for achieving Atmannirbhar Bharat in fertilizer  sector  or  there  is  any  such  proposal  under  consideration,  If  so,  the details thereof, State-wise;
- (b) whether  Government  has  prepared  any  outline  for  increasing  the  share  of domestic  fertilizer  industry  in  total  fertilizer  consumption  by  increasing  its production and quality;
- (c) if  so,  the details thereof; State-wise/district-wise including Maharashtra, Dadra and Nagar Haveli and Madhya Pradesh;
- (d) whether the contribution of fertilizer sector has helped in improving GDP of the country with the effort of the Government in the last five years; and
- (e) if  so,  the  details  thereof  including  Maharashtra,  Dadra  and  Nagar  Haveli  and Madhya Pradesh, State-wise?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL)

(a)  to  (c):   With  regard  to  Urea,  the  Government  had  announced  New  Investment Policy (NIP) - 2012 on 2nd January, 2013 and its amendment on 7thOctober, 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 which includes 4 urea units set up through Joint Venture Companies (JVC) of nominated PSUs and 2 urea  units  set  up  by  the  private  companies.  The  units  set  up  through  JVC  are Ramagundam  urea  unit  of  Ramagundam  Fertilizers  and  Chemicals  Ltd  (RFCL)  in Telangana  and  3  urea  units  namely  Gorakhpur,  Sindri  and  Barauni  of  Hindustan Urvarak & Rasayan  Limited (HURL)  in Uttar Pradesh, Jharkhand  and  Bihar, respectively. The units set up by private companies are Panagarh urea unit of Matix Fertilizers  and  Chemicals  Ltd.  (Matix)  in West  Bengal;  and  Gadepan-III  urea  unit  of Chambal Fertilizers and Chemicals Ltd. (CFCL) in Rajasthan. Each of these units has installed  capacity  of  12.7  Lakh  Metric  Tonne  per  annum  (LMTPA).  These  units  are highly energy efficient as they are based on latest technology. Therefore, these units have together added  urea production capacity of 76.2 LMTPA,  thereby  total indigenous urea production capacity (Reassessed Capacity, RAC) has increased from 207.54 LMTPA during 2014-15 to 283.74 LMTPA at present.

In addition, the Government also notified the New Urea Policy (NUP) - 2015 on 25th May, 2015 for the existing 25 gas-based urea units with one of the objectives of maximizing  indigenous  urea  production  beyond  RAC.   The  NUP-2015  has  led  to additional  production  of  urea  by  20-25  LMT  as  compared  to  the  production  during 2014-15 annually.

Above steps together have facilitated increase of Urea production from level of 225  LMT  per  annum  during  2014-15  to  a  record  Urea  Production  at  314.07  LMT during 2023-24.

With regard to P &K Fertilizers, Government has implemented Nutrient Based Subsidy Policy w.e.f. 1.4.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the  policy,  a  fixed  amount  of  subsidy,  decided  on  annual/bi-annual  basis  based  on import prices of fertilizers and other relevant factors like requirement of nutrients in the country,  balanced  use  of  fertilizers,  subsidy  and  MRP  etc.  is  provided  on  P&K fertilizers  depending  on  their  nutrient  content.  Further,  P&K  fertilizers  are  covered under Open General License (OGL) and companies are free to import/produce these fertilizers as per their business dynamics.

In order to achieve Atmanirbhar Bharat in fertilizer sector, the new manufacturing units or increase in manufacturing capacity of existing units have been recognized/taken  on  record  under  the  NBS  subsidy  scheme,  with  a  view  to  boost manufacturing  and  make  country  self-reliant  in  fertilizer  production.  Further, to promote Potash derived from Molasses (PDM) which is 100% indigenously manufactured  fertilizer,  it  has  been  notified  under  Nutrient  Based  Subsidy  (NBS) regime  w.e.f  13.10.2021.  Also,  freight  Subsidy  on  SSP,  which  is  an  indigenously manufactured  fertilizer,  has  been  made  applicable  since  Kharif  2022  to  help  in promotion  of  SSP  usage  for  providing  Phosphatic  or  'P'  nutrient  to  the  soil.  These steps  have  facilitated  increase  in  production  of  P&K  fertilizers  from  159.54  LMT  in 2014-15 to 182.85 LMT in 2023-24.

(d)  &  (e):    Yes.    The  Economic  Survey  2023-24  states  that  the  Indian  agriculture sector provides livelihood support to about 42.3 per cent of the population and has a share of 18.2 per cent in the country's GDP at current  prices. Fertilizers, water and seeds  are  vital  inputs  for  achieving  higher  agricultural  production  in  the  country. Government has undertaken various efforts during the last decade due to which the total all fertilizer production has increased from 385.39 LMT in 2014-15 to 503.35 LMT in 2023-24.

Several measure were undertaken by the Government such as Urea Subsidy Scheme, New Urea Policy 2015, Nutrient based Subsidy scheme etc. to increase the total fertilizer production in the country.

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