28 March 2025, New Delhi: India has significantly strengthened its domestic urea production under the New Investment Policy (NIP) – 2012, which was introduced on January 2, 2013, and later amended on October 7, 2014. The policy aimed to attract fresh investments in the fertilizer sector and reduce dependency on imports. This information was shared by Union Minister of State for Chemicals and Fertilizers, Anupriya Patel, in a written reply in Rajya Sabha
As a result, six new urea plants have been established, adding 76.2 lakh metric tonnes per annum (LMTPA) of production capacity. Among these, four plants were set up through Joint Venture Companies (JVCs) of nominated Public Sector Undertakings (PSUs), including the Ramagundam Urea Plant of Ramagundam Fertilizers and Chemicals Ltd (RFCL) in Telangana and three plants under Hindustan Urvarak & Rasayan Limited (HURL) located in Gorakhpur (Uttar Pradesh), Sindri (Jharkhand), and Barauni (Bihar).
Additionally, two urea plants were set up by private companies, namely the Panagarh Urea Plant of Matix Fertilizers and Chemicals Ltd. (Matix) in West Bengal and the Gadepan-III Urea Plant of Chambal Fertilizers and Chemicals Ltd. (CFCL) in Rajasthan.
Each plant has an installed capacity of 12.7 LMTPA, utilizing the latest energy-efficient technology. With the establishment of these units, India’s total urea production capacity has increased from 207.54 LMTPA in 2014-15 to 283.74 LMTPA in 2023-24, marking a significant step towards self-sufficiency in urea production.
In addition to strengthening the urea sector, the Indian government has implemented the Nutrient-Based Subsidy (NBS) Policy for Phosphatic and Potassic (P&K) fertilizers since April 1, 2010. Under this policy, a fixed subsidy amount is provided on notified P&K fertilizers based on their nutrient content, with prices reviewed annually or biannually. The P&K sector remains decontrolled, allowing fertilizer companies to determine Maximum Retail Prices (MRP) at reasonable levels while managing production and imports according to market conditions. This dual approach of boosting domestic urea production while supporting P&K fertilizers through subsidies is expected to enhance India’s agricultural sustainability and reduce dependency on imported fertilizers.
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