New Investment Policy Boosts Urea Production and Self-Sufficiency

26 Mar 2025 CW Team

The government introduced the New Investment Policy (NIP) – 2012 on January 2, 2013, with an amendment on October 7, 2014, to attract fresh investments in the urea sector and achieve self-sufficiency in production. Under this policy, six new urea units have been established, including four set up through joint ventures by public sector undertakings (PSUs) and two by private companies. The joint venture units include the Ramagundam Urea plant of Ramagundam Fertilisers and Chemicals Ltd. (RFCL) in Telangana, along with the Gorakhpur, Sindri, and Barauni units of Hindustan Urvarak & Rasayan Limited (HURL) in Uttar Pradesh, Jharkhand, and Bihar, respectively. The private sector units include the Panagarh Urea plant of Matix Fertilisers and Chemicals Ltd. in West Bengal and the Gadepan-III Urea unit of Chambal Fertilisers and Chemicals Ltd. in Rajasthan.

Each of these units has an installed capacity of 1.27 million metric tonnes per annum (MMTPA) and is equipped with advanced, energy-efficient technology. Collectively, they have added 76.2 LMTPA to India's urea production capacity, increasing the total from 207.54 LMTPA in 2014-15 to 283.74 LMTPA in 2023-24.

Additionally, the government has implemented the Nutrient-Based Subsidy (NBS) Policy for phosphatic and potassic (P&K) fertilisers since April 1, 2010. Under this policy, a fixed subsidy amount, determined annually or biannually, is provided on notified P&K fertilisers based on their nutrient content. As the P&K sector is deregulated, fertiliser companies are free to set market-driven prices and make investments accordingly.

This information was shared by Union Minister of State for Chemicals and Fertilisers, Smt. Anupriya Patel, in a written reply to a question in the Rajya Sabha.

(PIB)

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