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)                

Next Story
Infrastructure Transport

UP Signs Rail Deal to Boost Logistics Infrastructure

To bolster Uttar Pradesh’s industrial and logistics ecosystem, Invest UP and the Lucknow Division of Northern Railway signed a memorandum of understanding (MoU) at Lok Bhawan on Wednesday.The MoU, signed by Invest UP CEO Vijay Kiran Anand and Rajneesh Kumar Srivastava, Senior Divisional Operations Manager of Northern Railway, aims to provide railway land to investors at a concessional lease rate of 1.5 per cent of the prevailing industrial or circle rate for a 35-year period.According to the official statement, the move will support the development of warehousing and logistics infrastructure..

Next Story
Infrastructure Transport

RVNL Wins Rs 1.16 Bn Railway Electrification Contract

Rail Vikas Nigam Ltd (RVNL) has received a letter of intent from Central Railway for an electrification system upgrade contract valued at Rs 1.16 billion. The project, according to the company’s stock exchange filing, will be completed within 24 months.The scope of the work involves modification of the current 1x25 kV electric traction system to a 2x25 kV configuration at the feeding system in the Itarsi-Amla section, located in the Nagpur Division. This upgrade is part of broader efforts to modernise and strengthen the efficiency of India’s railway electrification infrastructure.RVNL cont..

Next Story
Infrastructure Transport

Mumbai Rail Network to Expand with New Airport, Port Links

The Maharashtra government’s infrastructure drive in the Mumbai Metropolitan Region (MMR) will see a major expansion of suburban railway corridors on both Central and Western Railways, with new lines planned to improve airport and port connectivity.The Union Railway Ministry has instructed both zones to conduct feasibility surveys for new lines connecting Navi Mumbai International Airport (NMIA), segregating suburban and long-distance services, and building a new rail link from Dahanu to the upcoming Vadhavan Port in Palghar—touted as India’s largest port.On the Central Railway, surveys ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?