Lok Sabha Question No. 3213 (UNSTARRED), answered on 2024-12-13
Subject: Demand and Production of Urea
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. Amol Ramsing Kolhe, Shri Mohite Patil Dhairyasheel Rajsinh, Dr. Sanjay Jaiswal, Smt. Supriya Sule, Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad, Shri Amar Sharadrao Kale, Shri Bhaskar Murlidhar Bhagare, Shri Nilesh Dnyandev Lanke, Shri Bajrang Manohar Sonwane

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 3213 TO BE ANSWERED ON : 13.12.2024

## Demand and Production of Urea

## 3213. SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:

SHRI SANJAY DINA PATIL:

SMT. SUPRIYA SULE:

PROF. VARSHA EKNATH GAIKWAD:

SHRI BAJRANG MANOHAR SONWANE:

SHRI AMAR SHARADRAO KALE:

DR. AMOL RAMSING KOLHE:

SHRI NILESH DNYANDEV LANKE:

DR. SANJAY JAISWAL:

SHRI BHASKAR MURLIDHAR BHAGARE:

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

- (a) the  demand  and  production  for  urea  in  the  country  indicating  the  policies formulated  to  encourage  its  production  and  the  role  of  private  sector participation envisaged in these policies;
- (b) whether  the  Government  is  incentivizing  the  establishment  of  new  urea manufacturing plants, if so, the details thereof and the expected outcomes in terms of expansion of its domestic production capacity;
- (c) whether  the  Government  has  revived  or  plans  to revive  closed  urea manufacturing plants;
- (d) if so, the details, including their locations and current status thereof;
- (e) whether the Government plans to adopt green hydrogen or other sustainable technologies in urea production and if so, the details thereof; and
- (f) the  steps  taken  by  the  Government  to  ensure  equitable  supply  of  these across States?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA  PATEL)

(a)  to  (b):    During  2023-24  the  demand  for  Urea  stood  at  356.08  LMT  and production of Urea stood at 314.09 LMT.  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,  Sindriand  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.

In  addition, the  Government  also  notified  the  New  Urea  Policy  (NUP)  2015 on 25th May, 2015 for the existing 25 gas-based urea units with one of the objectives  of  maximizing  indigenous  urea  production  beyond  RAC.The  NUP2015 has led to additional production of urea by 20-25 LMT as compared to the production during 2014-15 annually.These 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.

- (c)  to  (d)  :  Government  mandated  the    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 LMT per annum capacity each. Ramagundam, Gorakhpur, Barauni and Sindri units have started urea production on 22.03.2021, 07.12.2021, 18.10.2022 and 05.11.2022 respectively.
- (e):      As per the National Green Hydrogen Mission (NGHM), there is no such proposal.
- (f):          The  following  steps  are  taken  by  the  Government  every  season  for ensuring timely and adequate supply of fertilizers in the country:
- i.          Before  the  commencement  of  each  cropping  season,  Department  of Agriculture  and  Farmers  Welfare  (DA&FW),  in  consultation  with  all  the  State Governments, assesses the state-wise& month-wise requirement of fertilizers.
- ii.              On  the  basis  of requirement projected, Department of Fertilizers allocates sufficient/  adequate  quantities  of  fertilizers  to  States  by  issuing  monthly  supply plan and continuously monitors the availability.
- iii.       The movement of all major subsidized fertilizers is monitored throughout the country  by  an  on-line  web  based  monitoring  system  called  Integrated  Fertilizer Monitoring System (IFMS);
- iv.        Regular  Weekly  Video  Conference  is  conducted  jointly  by  DA&FW  and Department of Fertilizers with State Agriculture Officials and corrective actions are taken to dispatch fertilizers as indicated by the State Governments.
- v.      The gap between demand (requirement) and production of fertilizers is met through  imports.  The  import  for  the  season  is  also  finalized  well  in  advance  to ensure timely availability.

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