Lok Sabha Question No. 66 (STARRED), answered on 2024-07-26
Subject: Promotion of Indigenous Production of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Chandra Prakash Joshi, Shri Rodmal Nagar

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

## LOK SABHA

STARRED QUESTION NO. 66* TO BE ANSWERED

ON: 26.07.2024

## PROMOTION OF INDIGENOUS PRODUCTION OF FERTILIZERS

- +*66:  SHRI CHANDRA PRAKASH JOSHI:

SHRI RODMAL NAGAR:

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

- (a) the efforts being made by the Government to promote indigenous production of fertilizers in the country;
- (b) whether the Government has proposed any new scheme to promote indigenous technology in fertilizer sector so as to make the country self-reliant in this sector;
- (c) whether  the  Government  has  proposed  any  new  scheme  for  research  and development in the fertilizer sector in Rajasthan and Madhya Pradesh;
- (d) if so, the details thereof;
- (e) whether any scheme for setting up of any new fertilizer units in Chittorgarh and Rajgarh Parliamentary Constituency is under consideration; and
- (f) if so, the details thereof?

## ANSWER

MINISTER FOR CHEMICALS & FERTILIZERS AND HEALTH & FAMILY WELFARE

(SHRI JAGAT PRAKASH NADDA)

- (a)  to (f): A statement is laid on the table of the House.

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## STATEMENT  REFERRED  TO  LOK  SABHA  STARRED  QUESTION  NO.  *66  FOR ANSWERING ON 26.07.2024 REGARDING 'PROMOTION OF INDIGENOUS PRODUCTION  OF  FERTILIZERS'  ASKED  BY  SHRI  CHANDRA  PRAKASH  JOSHI AND SHRI RODMAL NAGAR.

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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 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  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 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.  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.

With regard to P&K Fertilizers, the Government has implemented Nutrient Based Subsidy Policy w.e.I. 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 NBS, with a view to boost manufacturing and make country self-reliant 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.

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)  :    No.  There is no such scheme.

- (c) & (d):   No.  There is no such scheme.
- (e) & (f):    No.  There is no such scheme.

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