Lok Sabha Question No. 233 (STARRED), answered on 2016-08-02
Subject: New Fertilizer Factories
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAMESH BIDHURI, MUKESH RAJPUT

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

## LOK SABHA

STARRED QUESTION NO. 233*

TO BE ANSWERED ON:

02.08.2016

## New Fertilizer Factories

## *233      SHRI  RAMESH BIDHURI: SHRI  MUKESH RAJPUT:

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

- (a) the present  status  of setting up  of new  fertilizer factories/projects in the country;
- (b) whether the Government has any proposal for computerization of fertilizer  and chemical factories including the movement of fertilizers and if so, the details thereof;
- (c) whether the country is self-sufficient in the production of DAP as well as other fertilizers and if not, the time by which it is likely to be self-sufficient in the production of DAP as well as other fertilizers;  and
- (d) the further steps being taken by the Government in this regard?

## ANSWER

MINISTER  OF CHEMICALS & FERTILIZERS AND PARLIAMENTARY AFFAIRS

(SHRI  ANANTHKUMAR)

*(a to d) :    A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO. 233* TO BE ANSWERED ON 02.08.2016 REGARDING 'NEW FERTILIZER FACTORIES'.

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- (a): At  present  following  new  (Greenfield)  and  Brownfield  projects  proposals  have been received in the Department of Fertilizers for setting up of  fertilizer projects: -

|   S.No. | Company                                         | Projects                                                       | Types   | State          |
|---------|-------------------------------------------------|----------------------------------------------------------------|---------|----------------|
|       1 | Matix Fertilizers & Chemicals Ltd Panagarh      | Greenfield(New) Ammonia- Urea Fertilizers Complex at Panagarh. | Private | West Bengal    |
|       2 | Kanpur Fertilizers & Cement Ltd (KFCL)          | Greenfield(New) Project at Jabalpur                            | Private | Madhya Pradesh |
|       3 | Indo-Gulf Fertilizers Limited-Jagdishpur        | Brownfield Expansion urea project at Jagdishpur.               | Private | Uttar Pradesh  |
|       4 | Chambal Fertilizers & Chemicals Limited-Gadepan | Brownfield project of Ammonia-Urea units at Gadepan-Kota       | Private | Rajasthan      |
|       5 | Rashtriya Chemicals & Fertilizers Limited- Thal | Brownfield Ammonia-Urea Expansion project                      | CPSU    | Maharasht ra   |
|       6 | Nagarjuna Fertilizers & Chemicals Ltd.          | Brownfield Project at Kakinada, Andhra Pradesh.                | Private | Andhra Pradesh |

Further  with  a  view  to  enhance  indigenous  production  of  urea,  Government  has approved to revive five defunct fertilizer units of the Fertilizer corporation of India(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  include  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 (NamrupIV) in the existing premises of the BVFCL. The capacity of this plant will be 8.646 Lakh Metric Ton per annum.

(b)  :        Government  has  not formulated  any  schemes for computerization of chemical factories under the administrative control of Department of Chemicals and Petrochemicals.  Similarly  no  schemes  have  been  formulated  by  Government  for computerization of fertilizer factories under the administrative control of Department of Fertilizers. However, the PSUs at their own have taken initiatives for computerization of various aspects of their factory/plant operations. At present, the movement of all major subsidized  fertilizers  have  been  computerized  and  is  being  monitored  throughout  the country  by  an  online  web  based  monitoring  system( www.urvarak.co.in )  also  called  as Fertilizer  Monitoring  System(FMS).  In  this  system  information  regarding  dispatches, receipts and sales of various subsidized fertilizers are being maintained.

(c)  &  (d):      The  country  is  fully  dependent  on  imports  in  Potassic  Sector  and  in Phosphatic Sector it is dependent on imports up to 90% of its requirement either in in the  form  of  finished  fertilizers  or  raw  materials.  Even  Nitrogen  requirement  of  P&K fertilizers is also met mostly through imports. Based on the above it is stated that the country  is  not  fully  self-sufficient  in  the  production  of  DAP  and  other  straight  P&K fertilizers. However, the country's NPK complex fertilizer and SSP requirements are met mostly from indigenous production.

The  requirement  of  urea  for  the  year  2015-16  was  313.35  LMT  while  the domestic production was 244.75 LMT. To meet the demand supply gap, the shortfall is met  through  imports.    Government  has  notified  New  Investment  Policy  -  2012  on 2 nd January, 2013 and its amendment on 7 th October 2014 to facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector.

Furthermore,  Government  has  notified  the  New  Urea  Policy  (NUP)  -  2015  on 25 th May,  2015  for  existing  gas  based  urea  units  with  the  objectives  of  maximizing indigenous  urea  production;  promoting  energy  efficiency  in  urea  production;  and rationalizing  subsidy  burden  on  the  government.  NUP-2015  has  led  to  additional production of approximately 20 LMT from the existing plants and the total production of urea during the year 2015-16 was 244.75 LMT, i.e. the highest ever urea production in the country.

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