GoI to make India self-sufficient in urea sector, set to revive 5 closed fertiliser plants

NEW DELHI: To focus on increasing indigenous urea production and to make India self-sufficient in urea production, the government of India is reviving 5 closed fertiliser plants, namely Talcher (Odisha), Ramagundam (Andhra Pradesh), Gorakhpur (Uttar Pradesh) and Sindri (Jharkhand) plants of Fertilizer Corporation of India Ltd (FCIL) and Barauni (Bihar) plant of Hindustan Fertilizer Corporation Ltd (HFCL), by setting up new ammonia urea plants of 12.7 lakh metric tonne per annum capacity each.

This was stated by minister for chemicals and fertilisers, government of India, D V S Gowda, in a written reply to a question on import of urea in the country, in Lok Sabha on Tuesday

The minister said that in the last 3 years, India imported an average urea of 63.12 lakh metric tonne (LMT) with an average expenditure of Rs 12,797.31 crores. He informed that the average total production of urea in the country in the last three years was around 241 LMT and the total consumption (sales) was 305.48 LMT approximately. The gap is fulfilled through imports, a release read.

“In view of the above, government had announced New Investment Policy (NIP) – 2012 on 2nd January, 2013 and its amendment on 7th October 2014 to facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector,” Gowda said.

The government of India releases subsidy to the fertiliser companies on a regular basis subject to availability of budget, receipt of quality certificates (B2) from the state governments, etc.

“Whenever there is shortage of funds, the government liquidates the pending subsidy by arranging loans under a special banking agreement (SBA),” the minister added.