Lok Sabha Question No. 2487 (UNSTARRED), answered on 2026-02-13
Subject: Promotion of Domestic Production of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. Nishikant Dubey

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION No. 2487 TO BE ANSWERED ON 13 TH  FEBRUARY 2026

## Promotion of Domestic Production of Fertilizers

## 2487. Dr. Nishikant Dubey:

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

- (a)  the  steps  being  taken  by  the  Government  to  reduce  dependence  on  imported  Active Pharmaceutical Ingredients (APIs) and promote domestic production;

(b) the manner in which Government is ensuring a steady and affordable supply of fertilizers to farmers, especially in remote areas of the country;

(c) whether there are any upcoming policy changes/Government initiatives aimed at boosting foreign investment in chemical and fertilizer sectors of the country; and

(d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY  OF  CHEMICALS  AND FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a): The Government of India has taken number of steps to reduce dependence on imported active pharmaceutical ingredients (APIs) and promote domestic production. These include the following:

- (i) Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical  Key  Starting  Materials  (KSMs)  /  Drug  Intermediates  (DIs)  and  Active Pharmaceutical  Ingredients  (APIs)  in  India  (also  known  as  PLI  scheme  for  Bulk Drugs): The scheme is aimed at avoiding disruption in supply of critical APIs used to make critical drugs for which there are no alternatives by reducing supply disruption risk due to excessive dependence on single source. The scheme has a budgetary outlay of ₹6, 940 crore. Till December 2025, investment of ₹4, 814 crore has already been made against an investment commitment of ₹4,329.95 crore over the period of six years in greenfield projects. Further, production capacities have been created for 26 KSMs/DIs/APIs, which were earlier primarily imported. The scheme has resulted in cumulative sales of ₹2, 720 crore  reported till  December 2025, including  exports of ₹5 27.96 crore,  thereby  avoiding  imports  worth  ₹ 2,192.04  crore.  The  tenure  of  the scheme is till the financial year 2029-30.
- (ii) PLI  Scheme  for  Pharmaceuticals :  The  scheme  is  aimed  at  enhancing  India's manufacturing capabilities by increasing investment and production in the pharmaceuticals sector and contributing to product diversification to high-value goods

in the pharmaceutical sector and incentivises production of high-value medicines such as biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, auto-immune  drugs, anti-cancer drugs, etc. as well as production of APIs/DIs/KSMs other than those notified under the PLI Scheme for Bulk Drugs. It has a budgetary outlay of ₹15,000 crore. As of December 2025, the committed investment of ₹17,275 crore targeted over the six -year period of the scheme stands substantially exceeded wit h cumulative investment of ₹4 1,920 crore made in both brownfield and greenfield  projects.  Further,  726  APIs/KSMs/DIs are being manufactured under the scheme,  including  191  which  have  been  manufactured  for  the  first  time  under  the scheme. Cumulative domestic sales of APIs/KSMs/DIs produced under the scheme till December 2025 is worth ₹2 8,067 crore and thereby contributing to import avoidance. The tenure of the scheme is till the financial year 2028-29.

- (iii) Scheme for Promotion of Bulk Drug Parks: The scheme has a budgetary outlay of ₹3,000 crore, under which three bulk drug parks have been approved and are at various stages  of  development  in  the  States  of  Andhra  Pradesh,  Gujarat  and  Himachal Pradesh, through their respective State implementing agencies. The total project cost of these parks is over ₹6,306.68 crore, with Central assistance to the tune of ₹1,000 crore each for creation of common infrastructure facilities. These parks envisage land and  utilities  such  as  power,  water,  effluent  treatment  plant,  steam,  solid  waste management  and  warehouse  facilities  at  a  subsidised  rate  to  bulk  drug  or  API manufacturers for units set up in the park. The State implementing agencies of the States concerned have also offered fiscal incentives in the form of capital subsidy on fixed capital investment, interest subsidy, State Goods and Services Tax reimbursement, exemption of stamp duty and registration charges, etc. Further, the scheme provides for applicants for allotment of land in the parks to set up units for manufacturing products prioritised in the PLI Scheme for Bulk Drugs to have priority in land allotment.

(b): As per the information provided by the Department of Fertilizers, the following steps are taken by the Government every season for ensuring timely and adequate supply of fertilizers across the country, including the remote areas:

- (i) Before the commencement of each cropping season, the Department of Agriculture and Farmers Welfare (DA&FW), in consultation with all the State Governments, assesses the State-wise and month-wise requirement of fertilizers.
- (ii) On the basis of requirement projected by DA&FW, the Department of Fertilizers allocates adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability.
- (iii) The movement of all major subsidised fertilizers is monitored throughout the country by an online  web-based  monitoring system  called the Integrated Fertilizer Monitoring System.
- (iv) Regular  weekly  video  conference  is  conducted  jointly  by  DA&FW  and  the Department of Fertilizers with State Agriculture Department officials, and corrective actions are taken to despatch fertilizers as indicated by the State Governments.
- (v) The  distribution  of  fertilizers  within  the  State  is  done  by  the  respective  State Government.
- (vi) Urea  is  provided  to  the  farmers  at  a  statutorily  notified  Maximum  Retail  Price (MRP). The MRP of 45kg bag of urea is ₹ 242 per bag (exclusive of charges towards neem coating and taxes as applicable). The difference between the delivered cost of

urea at farm gate and net market realization by the urea units is given as subsidy to the  urea  manufacturer/importer  by  the  Government  of  India.  Accordingly,  all farmers are being supplied urea at the subsidized rates.

(c) and (d): As per information provided by the Department of Chemicals and Petrochemicals, various initiatives are being taken to support the sector. The details are as under:

- (i) Petroleum,  Chemicals  and  Petrochemicals  Investment  Regions  (PCPIR): To  attract investments  in  chemicals  and  petrochemicals  sector,  Department  had  notified  the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) Policy. PCPIRs are conceptualized as cluster-based model of development with common infrastructure and support services. Three PCPIRs have been set up at Dahej (Gujarat), Vishakhapatnam-Kakinada (Andhra Pradesh) and Paradeep (Odisha). Currently, 2,246 chemical  units  are  functional  in  these  PCIPRs  having  a  cumulative  investment  of ₹ 3,49,192 crore and these regions have generated employment of 3.7 lakh persons.
- (ii) Plastic Parks: The Department implements the Scheme for Setting up of Plastic Parks under the scheme of New Scheme of Petrochemicals. The Scheme promotes setting up of need-based Plastic Parks with requisite state-of-the-art infrastructure and enabling common  facilities.  The  objective  is  to  consolidate  and  synergize  the  capacities  of downstream plastic processing industry to help increase investment, production and export in the sector as well as generate employment. Under the scheme, the Government of India provides grant funding up to 50% of the project cost to the State Government subject to a ceiling of ₹40 crore per project. In accordance with the Scheme Guidelines, 9  Plastic  Parks  have  been  approved  so  far  and  the  same  are  at  different  levels  of implementation.

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