Lok Sabha Question No. 445 (UNSTARRED), answered on 2016-07-19
Subject: Urea Plants
Ministry: CHEMICALS AND FERTILIZERS
Asked by: S.P. MUDDAHANUMEGOWDA

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

## LOK SABHA

UNSTARRED QUESTION NO. 445 TO BE ANSWERED ON: 19.07.2016

## Urea plants

## 445 SHRI S.P. MUDDAHANUME GOWDA:

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

- (a) whether the Union Government proposes to establish ten more urea production Plants in the country, if so, the details thereof;
- (b) whether the  Naphtha fed  urea  units  have  urged  the  Government  to  continue  with  the existing system of subsidy after the expiry of 100 days period; and
- (c) whether the Government is considering to provide LNG to Naphtha fed urea units if it does not want to continue with the subsidy benefit, if so the details thereof and if not, the reasons therefor?

## ANSWER

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

(SHRI MANSUKH L  MANDAVIYA)

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(a):      The Government  had  notified New  Investment  Policy (NIP) - 2012 on 02 nd January, 2013 and its amendment on 07 th October, 2014 to facilitate fresh investment in urea sector and to reduce import dependency.  Presently, Department of Fertilizers has received 6 proposals for setting up of Greenfield and Brownfield (Expansion) projects:-

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

Union Government has also decided to establish following six Brownfield/Revival urea production plants:-

|   S. No. | Name of the fertilizer unit                                                     | Model                                                  |
|----------|---------------------------------------------------------------------------------|--------------------------------------------------------|
|        1 | Namrup-IV unit of the Bhramaputra Valley Fertilizer Corporation Limited (BVFCL) | PPP Model                                              |
|        2 | Ramagundam unit of Fertilizer Corporation of India Limited (FCIL)               | Revival through Special Purpose Vehicle (SPVs) of PSUs |
|        3 | Talcher unit of FCIL                                                            | Revival through Special Purpose Vehicle (SPVs) of PSUs |
|        4 | Gorakhpur unit of FCIL                                                          | Revival through Special Purpose Vehicle (SPVs) of PSUs |
|        5 | Sindri unit of FCIL                                                             | Revival through Special Purpose Vehicle (SPVs) of PSUs |
|        6 | Barauni unit of Hindustan Fertilizer Corporation Limited (HFCL)                 | Revival through Special Purpose Vehicle (SPVs) of PSUs |

(b) & (c): Yes,  Madam.    Based  on  the  decision  of  the  CCEA,  vide  notification  dated 17 th June,  2015,  Department  of  Fertilizers  has  allowed  continuation  of  production  of  three naphtha based urea units, i.e. Madras Fertilizers Limited (MFL)Manali, Southern Petrochemicals  Industries  Corporation  (SPIC)  -  Tuticorin  and  Mangalore  Chemicals  & Fertilizers Limited (MCFL) with Naphtha as feedstock till these plants get assured supply of gas either by pipeline or by any other means.

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