Lok Sabha Question No. 3354 (UNSTARRED), answered on 2025-08-08
Subject: Self-Sufficiency in Urea
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Ganesh Singh

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

## LOK SABHA

UNSTARRED QUESTION NO. †3354 TO BE ANSWERED ON: 08.08.2025

## Self-Sufficiency in Urea

## †3354. SHRI GANESH SINGH:

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

- (a) the major steps taken for self-sufficiency in urea production in the country under the new urea policy;
- (b) the details of reduction in industrial and subsidy misuse after the implementation of Neem Coated Urea (NCU) policy; and
- (c) whether the supply of fertilizers is being carried out timely and adequate manner in  the  State  of  Madhya  Pradesh  particularly  in  Satna  and  the  neighbouring agricultural area, if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a) With regard to Urea, the Government had announced New Investment Policy (NIP) - 2012 on 2nd 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 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 during  2023-24.  Further,  an  exclusive  policy  for  the  revival  of  Talcher  unit  of  FCIL through JVC of nominated PSUs namely Talcher Fertilizers Limited (TFL)

by setting up a new Greenfield urea plant of 12.7 LMTPA at coal gasification route has also been approved. Recently, the Union Cabinet has approved the proposal for setting up  of  a  new  Brownfield  Ammonia-Urea  Complex  of  12.7  Lakh  Metric  Tonnes  (LMT) annual capacity of Urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam.

In  addition, the Government also notified the New Urea Policy (NUP) - 2015 on 25 th 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 201415 annually.

Above steps together have facilitated increase of Urea production from level of 225 LMT per annum during 2014-15 to  306.67 LMT during 2024-25.

(b) In  May  2015, Government made it mandatory for all the domestic producers and importers of urea to supply 100% Neem Coated Urea. Thereafter, studies have shown that due to slow release, the consumption of NCU reduces as compared to normal Urea.

(c)  The  availability  of  fertilizers  viz.  Urea,  DAP,  NPKS  and  MOP  has  remained adequate in the State of Madhya Pradesh during the ongoing Kharif-2025 season as per given below:

| MADHYA PRADESH FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025)   | MADHYA PRADESH FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025)   | MADHYA PRADESH FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025)   | MADHYA PRADESH FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025)   | MADHYA PRADESH FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025)   | MADHYA PRADESH FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025)   | MADHYA PRADESH FERTILIZRS POSITION FOR KHARIF 2025 (TILL 04/08/2025)   |
|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                                        |                                                                        |                                                                        |                                                                        |                                                                        | Fig. In                                                                | Fig. In                                                                |
| S.No.                                                                  | Product                                                                | Seasonal Requirement for KHARIF 2025                                   | Pro rata Requirement From 01/04/2025 to 04/08/2025                     | Availability From 01/04/2025 to 04/08/2025                             | Cumulative DBT Sales From 01/04/2025 to 04/08/2025                     | LMT Closing Stock as on 04/08/2025                                     |
| 1                                                                      | UREA                                                                   | 17.42                                                                  | 10.47                                                                  | 14.26                                                                  | 12.54                                                                  | 1.74                                                                   |
| 2                                                                      | DAP                                                                    | 7.50                                                                   | 5.24                                                                   | 4.24                                                                   | 3.32                                                                   | 0.91                                                                   |
| 3                                                                      | MOP                                                                    | 0.50                                                                   | 0.39                                                                   | 0.64                                                                   | 0.39                                                                   | 0.25                                                                   |
| 4                                                                      | NPKS                                                                   | 5.00                                                                   | 3.54                                                                   | 6.23                                                                   | 4.27                                                                   | 1.96                                                                   |

However, distribution of fertilizers within the State at district level is done by the State Government.

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