New Investment Policy Boosts Urea Production and Self-Sufficiency
ECONOMY & POLICY

New Investment Policy Boosts Urea Production and Self-Sufficiency

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) 
               

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)                

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code