Lok Sabha Question No. 1492 (UNSTARRED), answered on 2016-07-26
Subject: Availability of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: BIDYUT BARAN MAHATO, SANGANNA AMARAPPA KARADI, KUNWAR HARIBANSH SINGH, VIJAY KUMAR S.R.

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

## LOK SABHA

UNSTARRED QUESTION NO. 1492 TO BE ANSWERED ON : 26.07.2016

## Availability of Fertilizers

## 1492  SHRI  BIDYUT BARAN MAHATO:

SHRI  SANGANNA AMARAPPA:

KUNWAR  HARIBANSH SINGH:

SHRI  S.R. VIJAYKUMAR:

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

- (a) whether  the  Government  has  reviewed  the  availability  of  fertilizers  in  a  high level meeting held recently;
- (b) if  so,  the  details  and  outcome  thereof  along  with  the  status  of  availability  of fertilizers during the current rainy season and the steps proposed to be taken to provide subsidy for purchase of fertilizers to farmers in rural areas of the country;
- (c) whether  the  Government  has  also  decided  to  bring  down  the  MRP  of  DAP fertilizers recently and if so, the details thereof;
- (d) whether  private  manufacturers  have  raised  any  objection  in  this  regard  and  if so, the details thereof and the response of the government thereto; and
- (b) whether  the  Government  has  any  proposal  to  open  new  fertilizers  factory including in Karnataka and if so, the details and the present status thereof?

## ANSWER

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

## (SHRI  MANSUKH L. MANDAVIYA)

(a) & (b): Department of Agriculture, Cooperation and Farmers' Welfare (DAC&FW) and DOF along with Ministry of Railways are regularly holding video conferences with all the States.  The Video Conference is chaired by Joint Secretary of DAC&FW.  It has been  observed  that  the  availability  of  fertilizers  during  the  currentKharif  season  has been adequate.  The details are given in the following table:

<Figures in LMT>

| Cumulative requirement, availability and sales of fertilizers (Urea, DAP, MOP & NPK) from April to June, 2016.   | Cumulative requirement, availability and sales of fertilizers (Urea, DAP, MOP & NPK) from April to June, 2016.   | Cumulative requirement, availability and sales of fertilizers (Urea, DAP, MOP & NPK) from April to June, 2016.   | Cumulative requirement, availability and sales of fertilizers (Urea, DAP, MOP & NPK) from April to June, 2016.   |
|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  | Urea                                                                                                             | Urea                                                                                                             | Urea                                                                                                             |
| Year                                                                                                             | Requirement                                                                                                      | Availability                                                                                                     | Sales                                                                                                            |
| 2016-17 (April to June 2016)                                                                                     | 6674.38                                                                                                          | 7541.28                                                                                                          | 5737.19                                                                                                          |
|                                                                                                                  | DAP                                                                                                              | DAP                                                                                                              | DAP                                                                                                              |
|                                                                                                                  | Requirement                                                                                                      | Availability                                                                                                     | Sales                                                                                                            |
| 2016-17 (April to June 2016)                                                                                     | 2723.85                                                                                                          | 2506.36                                                                                                          | 1507.00                                                                                                          |
|                                                                                                                  | MOP                                                                                                              | MOP                                                                                                              | MOP                                                                                                              |
|                                                                                                                  | Requirement                                                                                                      | Availability                                                                                                     | Sales                                                                                                            |
| 2016-17 (April to June 2016)                                                                                     | 766.66                                                                                                           | 665.83                                                                                                           | 452.04                                                                                                           |
|                                                                                                                  | NPK                                                                                                              | NPK                                                                                                              | NPK                                                                                                              |
|                                                                                                                  | Requirement                                                                                                      | Availability                                                                                                     | Sales                                                                                                            |
| 2016-17 (April to June 2016)                                                                                     | 2308.21                                                                                                          | 2461.62                                                                                                          | 1499.12                                                                                                          |

Further,  subsidy  on  Urea  and  22  grades  of  Phosphatic&Potassic  (P&K)  fertilizers  is passed on to farmers through fertilizers companies at a MRP, which is much below the delivered  cost.  While  Urea  is  provided  at  Government  fixed  price  of  Rs.  5360/MT(excluding taxes etc), the P&K fertilizers are provided to farmers at subsidized price based on the nutrient content on each grade of P&K fertilizer.

- (c):     As the prices of P&K fertilizers have come down in the international market, the fertilizer companies have reduced the MRP of DAP,MOP and NPK Complex fertilizers by Rs. 2500/MT, Rs.5000/MT and Rs. 1000/MT respectively.
- (d):     No, Madam.

(e):        Department  of  Fertilizers  has  notified  the  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. At present, there are following proposals for setting up of Greenfield and Brownfield (Expansion) projects with the Department of Fertilizers:

| Company                                          | Projects                                                            | Ownership   | State          |
|--------------------------------------------------|---------------------------------------------------------------------|-------------|----------------|
| Indo-Gulf Fertilizers Limited -Jagdishpur        | Brownfield Expansion urea project at Jagdishpur.                    | Private     | Uttar Pradesh  |
| Chambal Fertilizers & Chemicals Limited- Gadepan | Brownfield Ammonia-Urea units at Gadepan-Kota.                      | Private     | Rajasthan      |
| Matix Fertilizers & Chemicals Limited, Panagarh  | Greenfield/Brownfield Ammonia-Urea Fertilizers Complex at Panagarh. | Private     | West Bengal    |
| Rashtriya Chemicals & Fertilizers Limited-Thal   | Brownfield Ammonia-Urea Expansion project at Thal.                  | CPSU        | Maharashtra    |
| Kanpur Fertilizers & Cement Limited              | Greenfield Project at Jabalpur                                      | Private     | Madhya Pradesh |
| Nagarjuna Fertilizers & Chemicals Ltd.           | Brownfield Project at Kakinada, Andhra Pradesh.                     | Private     | Andhra Pradesh |

Separately, this department has received a proposal from Government of Karnataka for setting up a fertilizer plant in Karnataka state which is presently at nascent stage.

Further, 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. Present Status of these units is as under:

Talcher and Ramagundam: The Cabinet Committee on Economic Affairs in its meeting held on  09.05.2013  approved  the  nomination  route  to  revive  these  defunct  units.  Rashtriya Chemicals & Fertilizers Limited, Gail (India) Ltd, CIL and FCIL have been nominated to revive the Talcher unit while National Fertilizers Limited (NFL), Engineers India Limited (EIL) and FCIL have been nominated to revive the Ramagundam unit. Pre-Project activities to revive these two units is already under progress.

Gorakhpur,  Sindri  and  Barauni: The  Union  Cabinet  in  its  meeting  held  on  13.07.2016  has approved to revive these defunct fertilizer units by means of Special Purpose Vehicle (SPV) of Public  Sector  Units  (PSUs)  namely,  National Thermal  Power  Corporation  (NTPC),  Coal  India Limited (CIL), Indian Oil Corporation Limited (IOCL) and FCIL/HFCL, through nomination route.

Namrup-IV plant of BVFCL: BVFCL has issued RFP (Request for Participation) Documents to the  two  bidders  namely  M/s  GSFC  Ltd.  and  M/s  Adani  Enterprises  which  have  been  found qualified  in  RFQ  (Request  for  Qualification)  stage.  Last  date  for  submission  of  bids  is 29/07/2016.

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