Lok Sabha Question No. 3772 (UNSTARRED), answered on 2016-08-09
Subject: Fertilizer Industry
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAJESHBHAI NARANBHAI CHUDASAMA

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

## LOK SABHA

## UNSTARRED QUESTION NO. 3772

TO BE ANSWERED ON :

09.08.2016

## Fertilizer Industry

## 3772    SHRI  RAJESHBHAI  CHUDASAMA:

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

- (a) whether a section of the fertilizer  industry  has  urged  the  Government  to  look into their problems and help the industry as well as prevent imports;
- (b) if  so,  whether  production  of  fertilizers  was  suspended  by  several  companies and the shortfall had to be met by imports;
- (c) if so, whether under 'Make in India' initiative, the Government proposes to take any steps to protect the fertilizer industry and make the country self-reliant in fertilizers and if so, the details thereof; and
- (d) if not, the reasons therefor?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS, SHIPPING, ROAD TRANSPORT & HIGHWAYS

## (SHRI MANSUKH L.  MANDAVIYA)

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- (a): Department  of  Fertilizers,  from  time  to  time,  keep  receiving  representations from fertilizer industry on various issues which are looked into by the Department on timely  basis.    No  representation/request  has  been  received  so  far  on  prevention  of imports  of  fertilizers.    A  few  P&K  fertilizer  companies  had  requested  for  granting concession for encouraging indigenous production to check imports.
- (b): No,  Madam.    The  total  production  of  the  urea  during  the  year  2015-16  was 244.75 LMT which was approximately 20 LMT more than the total production during the financial year 2014-15.  The demand-supply gap was met through imports.
- (c) & (d): Department of Fertilizers has announced New Investment Policy (NIP) 2012  on  02 nd January,  2013  and  its  amendment  thereof  on  07 th October,  2014  to facilitate fresh investment in urea sector and to reduce import dependency.

The Government has also announced New Urea Policy-2015 on 25 th May, 2015 for existing 25 gas based urea units with the objectives of maximizing indigenous urea production; promoting energy efficiency in the urea units; and to reduce the subsidy burden on the Government.

Government has approved to revive five defunct fertilizer units of the Fertilizer Corporation of India Ltd (FCIL)/Hindustan Fertilizer Corporation Ltd.(HFCL) by setting of  urea plants having capacity of producing 1.27 Million Metric Ton (MMT) Urea per annum  at  each  of  these  units.  These  five  units  includes  Talcher,  Ramagundam, Gorakhpur and Sindri units of FCIL and Barauni unit of the HFCL. In addition to these five  urea  plants  Government  has  also  approved  to  establish  a  new  Brownfield Ammonia - Urea Complex (Namrup-IV) in the existing premises of the  BVFCL The capacity of this plant will be 8.646 Lakh Metric Ton Per Annum.

So far as P&K fertilizers are concerned, the country is dependent on imports for 100% requirement of potash and upto to 90% in phosphatic sector in the form of either finished fertilizers or raw material. Even the nitrogen requirement of P&K fertilizers is mostly met from imports. Hence, the Department is encouraging fertilizer companies to set up joint ventures abroad with long term off take agreements and acquire fertilizer assets in resource rich countries to  ensure continuous availability of finished fertilizers/raw materials in the country.

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