Lok Sabha Question No. 2242 (UNSTARRED), answered on 2025-08-01
Subject: Domestic Production of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Narayan Tatu Rane

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

## LOK SABHA

UNSTARRED QUESTION NO. 2242 TO BE ANSWERED ON: 01.08.2025

## Domestic Production of Fertilizers

## 2242.  SHRI NARAYAN TATU RANE:

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

- (a) the details of domestic production of fertilizers in the country and the steps taken by the Government to increase the domestic production of fertilizers;
- (b) the steps taken by the Government to meet the demand of chemical fertilizers in the country;
- (c) whether the Government proposes to set up new fertilizer plants for production of fertilizers in the country;
- (d) if so, the details thereof and the time by which it is likely to be set up and if not, the reasons therefor;
- (e) whether the Government proposes to set up such a plant in Maharashtra; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

## (SMT. ANUPRIYA PATEL)

- (a) & (b): The details of the  production of major fertilizers in the country during the FY 2024-25 are as under:

| Production of Major Fertilizers during FY 2024-25 (Figures in LMT)   | Production of Major Fertilizers during FY 2024-25 (Figures in LMT)   | Production of Major Fertilizers during FY 2024-25 (Figures in LMT)   | Production of Major Fertilizers during FY 2024-25 (Figures in LMT)   | Production of Major Fertilizers during FY 2024-25 (Figures in LMT)   | Production of Major Fertilizers during FY 2024-25 (Figures in LMT)   |
|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|
| Year                                                                 | Urea                                                                 | DAP                                                                  | NPKs                                                                 | SSP                                                                  | Total Major Fertilizers                                              |
| 2024-25                                                              | 306.67                                                               | 37.69                                                                | 121.05                                                               | 52.44                                                                | 517.85                                                               |

In order to promote indigenous production of Urea in the country, Government of India mandated revival  of  Ramagundam  (Telangana),  Gorakhpur  (Uttar  Pradesh),  Sindri  (Jharkhand)  and  Talcher (Odisha) units of Fertilizer Corporation of India (FCIL) and Barauni (Bihar) unit of Hindustan Fertilizer Corporation Ltd. (HFCL) through Joint Venture Company (JVC) of nominated PSUs for setting up new ammonia-urea plants of 12.7 LMTPA capacity each. The Ramagundam and Gorakhpur units have been

commissioned on 22.03.2021 and 07.12.2021 respectively. Also, Barauni and Sindri units started Urea production on 18.10.2022 and 05.11.2022 respectively. These plants have added 50.8 LMT per annum of indigenous Urea production in the country. On completion of the project, the production of Urea in the country will increase by 25.4 LMTPA and this will assist in maximizing the indigenous production of Urea.

The  Government  has  implemented  Nutrient  Based  Subsidy  Policy  w.e.f.  01.04.2010  for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of subsidy, decided on annual/bi-annual basis, is provided on notified P&K fertilizers depending on their nutrient content. Under NBS policy, P&K fertilizers are covered under Open General License (OGL) and companies are free to import/manufacture P&K fertilizers as per their business dynamics.

To become self-reliant in production of fertilizers, following measures have been taken by the Government:

- (i) Based on the requests, 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.
- (ii) The number of P&K fertilizers covered under NBS policy has been increased from 22 grades in 2021 to 28 grades at present with a view to boost manufacturing and make country self-reliant in fertilizer production. 06 new grades added are NPK 08-21-21, NPK 09-24-24, Potash Derived from Molasses (PDM) (0-0-14.5-0), NPK 11-30-14 fortified with Magnesium, Zinc, Boron and Sulphur, Urea-SSP Complex 5-15-0-10 and SSP 0-16-0-11 fortified with Magnesium, Zinc and Boron.
- (iii) Freight Subsidy on SSP, which is an indigenously manufactured fertilizer, is applicable since Kharif, 2022 to promote SSP usage for providing Phosphatic or 'P' nutrient to the soil.
- (c) to (f): Currently, two new Urea Plants as below are being set-up in the country. On completion of the project, the production of Urea in the country will increase by 25.4 LMTPA and this will assist in maximizing the indigenous production of Urea.
1. Coal-Gasification based new Urea Plant at Talcher, Orissa with a capacity of 12.7 LMT per annum is under execution phase.
2. The Union Cabinet in its meeting held on 19.03.2025 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 through a Joint Venture (JV), under the New Investment Policy, 2012 read with its amendments on 7th October, 2014. A JV company, Assam Valley Fertilizer and Chemical Company Ltd has been incorporated on 25.7.2025.

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