Lok Sabha Question No. 2033 (UNSTARRED), answered on 2024-08-02
Subject: Self Reliance of Domestic Fertilizer Industry
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Abhishek Banerjee

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

## LOK SABHA

## UNSTARRED Question No. 2033 TO BE ANSWERED ON 02.08.2024

## SELF RELIANCE OF DOMESTIC FERTILIZER INDUSTRY

2033   SHRI ABHISHEK BANERJEE :

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

- (a) the steps taken/proposed to be taken by the Government to ensure self-reliance of the domestic fertilizer industry in the country; and
- (b) the  amount  of  money  spent  on  import  of  fertilizers  during  the  last  five  years, year-wise?

## 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 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 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. 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 gas-based 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.

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 314.09 LMT during 2023-24, thereby  reducing import of Urea during 2023-24.

With  regard  to  P&K  Fertilizers,  the  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,  is provided  on  notified  P&K  fertilizers  depending  on  their  nutrient  content.  Under  this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level which is monitored by the Government. The Government has taken following steps to make country self-reliant in fertilizer production:

(i) Based  on  examination  of  requests  received,  permissions  are  granted  to  the fertilizer  companies for increasing their manufacturing capacity which are under NBS and  for  induction  of  new  P&K  companies  &  their  fertilizer  products  under  Nutrient Based  Subsidy  (NBS),  with  a  view  to  boost  manufacturing  and  make  country  selfreliant in fertilizer production.

(ii) Potash derived from Molasses (PDM) which is 100% indigenously manufactured fertilizer has been notified under Nutrient based subsidy (NBS) regime w.e.f 13.10.2021.

(iii) Further,  freight  subsidy  on  Single  Super  Phosphate  (SSP),  which  is  also  an indigenously manufactured  fertilizer, has been  made  applicable for Kharif and Rabi2023-24  to  help  in  promotion  of  SSP  usage  for  providing  Phosphatic    or  "P" nutrient to the soil.

As a result of these steps, production of DAP has increased from 38.99 LMT in 2018-19 to  42.93 LMT in 2023-24, while during the same period, the production of NPKs has increased  from  89.98  LMT  to  95.48  LMT  by  22  P&K  fertilizer  manufacturing  units. Similarly,  production  of  SSP  increased  from  40.72  LMT  in  2018-19  to  44.44  LMT  in 2023-24 by 104 SSP manufacturing units.

(b): The value of imported urea during the years 2019-20, 2020-21, 2021-22, 202223, and 2023-24 is Rs. 14,049 Cr., Rs. 25,049.62 Cr., Rs. 50,250.40 Cr., Rs. 41,365.6 Cr. and Rs. 28,193.94 Cr. respectively.

P&K fertilizers are covered under Open General License (OGL) and companies are free to import /produce these fertilizers as per their business dynamics.

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