Lok Sabha Question No. 1278 (UNSTARRED), answered on 2026-02-06
Subject: Self-Sufficiency in Urea
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Kalipada Saren Kherwal

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1278 TO BE ANSWERED ON 06.02.2026

## Self-Sufficiency in Urea

## 1278.  Shri Kalipada Saren Kherwal:

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

- (a) whether it is a fact that India has not achieved self sufficiency in production capacity of urea, if so, the details thereof and the reasons therefor;
- (b) whether it is a fact that nearly ninety percent of gas requirements of the urea sector are met through imports, if so, the details thereof;
- (c) the details of top ten countries with share of gas import (in percentage) of urea and amount in Rs.; and
- (d) the deficit (in LMT) in production capacity and consumption of Urea?

## ANSWER

## THE MINISTER FOR CHEMICALS & FERTILIZERS

## (SHRI JAGAT PRAKASH NADDA

(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 AmmoniaUrea 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 namely Assam Valley Fertilizer and Chemical Company Ltd. (AVFCCL).

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) and (c):  As per Gas Pool portal, during financial year 2024-25, nearly 76% of the total  gas  requirement  of  Urea  sector  was  met  through  imports.  The  details  are tabulated as below:
- (d): The indigenous production of fertilizers is not commensurate with the requirement in the country and the gap is fulfilled through imports. At present, the total indigenous urea production capacity (Reassessed Capacity-RAC) is 269.42 LMT. However, some of  the  units  produces  some  quantity  of  Urea  beyond  their  RAC.  The  details  of production and consumption of Urea during last three years are given below:-

| Category of Gas   | Gas Quantity in MMBTUGCV   | Proportionate (%)   |
|-------------------|----------------------------|---------------------|
| Domestic          | 16,72,22,576.64            | 24.33%              |
| Imported          | 52,00,91,000.98            | 75.67%              |
| Total             | 68,73,13,577.62            | 100.00%             |

(in LMT)

| Year    |   Production (including RAC) |   Consumption |
|---------|------------------------------|---------------|
| 2022-23 |                       284.94 |        357.26 |
| 2023-24 |                       314.07 |        357.81 |
| 2024-25 |                       306.67 |        387.92 |