Lok Sabha Question No. 170 (UNSTARRED), answered on 2024-02-02
Subject: Production of Indigenous Chemicals and Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Sanjay Haribhau Jadhav

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

## LOK SABHA

## UNSTARRED QUESTION NO. 170 TO BE ANSWERED ON: 02.02.2024

## Production of Indigenous Chemicals and Fertilizers

## 170:     SHRI SANJAY JADHAV:

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

- (a) the details  of  the  various  schemes  launched  by  the  Government to  increase the production of indigenous chemicals and fertilizers in the country;
- (b) the various steps taken/proposed to be taken by the Government for smooth distribution of fertilizers  in  tribal  and  remote/inaccessible areas particularly in Maharashtra;
- (c) whether  any  specific  system  has  been  introducedto  standardize  fertilizer products in the country to the global standards and make them suitable for the global market; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS & FERTILIZERS

## (SHRI BHAGWANTH KHUBA)

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(a): With regard to Urea, 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. Each of these units  has  installed  capacity  of  12.7  Lakh  Metric  Tonne  per  annum  (LMTPA). Therefore, these units have together added urea production of 76.2 LMTPA thereby total production urea production capacity has increased from 207.54 LMTPA during 2014-15 to 283.74 LMTPA at present. 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.      In  addition,  The  Government  also notified the New Urea Policy (NUP) - 2015 on 25 th May, 2015 for the existing 25 gasbased  urea  units 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. These steps together have facilitated increase  of  Urea  production  from  level  of  225  LMT  per  annum  during  2014-15  to 284.94 LMT during 2022-23.

With  regard  to  P&K  Fertilizers,  Government  has  implemented  Nutrient  Based Subsidy (NBS) 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/semi-annual basis is provided  on  P&K  fertilizers  depending  on  their  nutrient  content.  As  P&K  fertilizer sector  is  covered  under  Open  General  License  (OGL),  the  companies  are  free  to import/produce fertilizers as per market dynamics. Based on examination of requests received,  permissions  are  granted  to  the  fertilizer  companies  for  increasing  their manufacturing capacity and for induction of new P&K companies & fertilizer products under NBS, with a view to make the country self-reliant in P&K fertilizer production. Further,  to  promote  indigenously  produced  fertilizers,  freight  subsidy  on  SSP  has been made applicable from Kharif 2022 onwards and Potash Derived from Molasses (PDM) 100% indigenously produced fertilizer has been notified under NBS since Rabi 2021-22.

So far as chemicals are concerned, the Government has notified Plastic Park Scheme to support setting up need based Plastic Parks, with requisite state-of-the-art infrastructure,  enabling common facilities through cluster development approach, to consolidate  the  capacities  of  the  domestic  downstream  plastic  processing  industry. The  scheme  aims  to  increase  investment,  production  and  export  in  the  plastics sector.  A  policy  called  PCPIR  Policy,  2007  has  also  been  notified  to  boost manufacturing  in  Chemicals  and  Petrochemicals  sector,  augment  exports  and generate employment with co-development of downstream industry in cluster-based approach.  PCPIRs  are  dedicated  investment  regions  equipped  with  necessary infrastructure for establishment of manufacturing facilities for domestic and export-led production of chemicals and petrochemicals. At present, three Petroleum, Chemical and  Petrochemical  Investment  Regions  (PCPIRs)  are  being  implemented  in  the States of Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej) and Odisha (Paradeep) to promote investment and industrial development in these sectors under the PCPIR Policy, 2007.

(b): Before the commencement of each cropping season, Department of Agriculture and Farmers Welfare (DA&FW) assesses the state-wise & month-wise requirement of fertilizers. To fulfill this requirement of fertilizers in the states (including rural tribal and  remote  areas)  across  the  country,  as  per  assessment  done  by  DA&FW, Department  of  Fertilizers  allocates  adequate  quantities  of  fertilizers  to  States  by issuing  monthly  supply  plans.  The  movement  of  all  major  subsidized  fertilizers  is monitored through web-based monitoring system called integrated Fertilizer Monitoring System (iFMS). However, the inter/intra-district distribution of fertilizers is being done by the respective state to meet the field requirement within the state.

(c) & (d): The  fertilizers  manufactured/imported  are  governed  by  the  Fertilizer Control Order (FCO), 1985 which prescribes the standards of various fertilizers. The fertilizers are incorporated in FCO on the basis of its agronomic efficacy data of trials conducted  under  Indian  conditions  and  on  the  recommendations  of  Technical Committee that is Central Fertilizer Committee (CFC).

Government introduced the New Urea Policy-2015 on 1 st June  2015  to make the  old/existing  urea  manufacturing  units  in  the  country  global  competitive  by ensuring  energy  efficiency  in  Urea  production.  Further,  the  units  set  up  under  the New Investment Policy (NIP)-2012 are based on the best available technologies/standards  and  are  highly  energy  efficient.  In view  of our import dependency  in  the  P&K  sector,  the  domestic  industry  has  been  encouraged  to establish  supply  linkages  through  long  term  agreements  at  competitive  prices  with resource rich nations.

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