Lok Sabha Question No. 954 (UNSTARRED), answered on 2025-07-25
Subject: Self-Sufficiency in Urea
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Manickam Tagore B, Shri Suresh Kumar Shetkar

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

## LOK SABHA

## UNSTARRED QUESTION No. 954 TO BE ANSWERED ON 25.07.2025

## Self-Sufficiency in Urea

## 954:  SHRI SURESH KUMAR SHETKAR: SHRI MANICKAM TAGORE B:

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

- (a)  whether the target to achieve self-sufficiency in urea by the financial year 2025-26 is on track, given that urea imports were still 70.42 lakh tonnes in 2023-24 despite increased domestic production, if so, the details thereof;
- (b) the measures being taken to reduce reliance on phosphatic and potassic fertilizers, with over 106 lakh tonnes imported last year and no domestic MOP production;
- (c) whether import dependence persist despite a 15.5% rise in overall fertilizer output over the last two years, if so, the details thereof;
- (d) the  current  status  of  fertiliser  units  revival  projects  across  the  country  including Talcher, Gorakhpur, Barauni, Sindri and Ramagundam;
- (e) the quantum of import substitution each project is estimated to contribute upon full commissioning; and
- (f)  whether in view of the heavy import of raw materials like rock phosphate and potash, the  Government  has  adopted  any  long  term  strategies  to  ensure  input  security, without  which  fertilizer  self-sufficiency  remains  unachievable  and  if  so,  the  details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND 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 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 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  on  19.03.3025. 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.

In  addition,  the  Government  also  notified  the  New  Urea  Policy  (NUP)  -  2015  on 25thMay, 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 a record Urea Production at 314.07 LMT during 2023-24. During 2024-25, 306.67 LMT of Urea was produced in the country.

(b) & (c): The  Government  has  implemented  on  Nutrient  Based  Subsidy  Policy 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 these fertilizers as per their business dynamics.

Further,  there  are  no  known  sources  of  Potash  in  the  country  and  India  is  100% dependent on import for its potash requirement. Hence, Government has notified Potash derived  from  Molasses  (PDM)  -  which  is  100%  indigenously  manufactured  fertilizer, under  Nutrient  based  subsidy  (NBS)  regime  w.e.f  13.10.2021.  Further,  to  reduce reliance on imported phosphatic and potassic 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 016-0-11 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.

(d) & (e): 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. Currently, Talcher unit is  under  execution phase. 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  on  19.03.3025. 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.

(f): The Government consistently engages in discussion with resource rich countries for enchancing the import of raw materials like rock phosphate and potash in the country. The Government also facilitates signing of Long-Term Agreements (LTAs/Memoranda of Understanding (MOUs) between Indian companies and overseas suppliers to ensure a  steady  and  reliable  supply  of  raw  materials  in  the  country.  In  the  case  of  Rock Phosphate, Indian companies currently have agreements/MoUs for an annual supply ranging from 16,00,000 to 18,00,000 Metric Tonnes (MT) from Morocco, 5,00,000 MT from Jordan, 2,40,000 MT from Togo and 1,50,000 MT from Mauritania. For Potash, Indian companies have secured annual supply agreements/MoUs for 6, 50,000 MT from Russia, 6, 00,000 MT from Belarus and 1, 25,000 MT from Jordan.

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