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Govt revitalizing Indian Fertilizer Industry to boost indigenous production

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23 July 2020, New Delhi: Union Minister of Chemicals and Fertilizers Mr. D.V. Sadananda Gowda said that NDA Govt took various initiatives to boost fertilizer sector so that adequate amount of fertilizers could be made available to farmers during the sowing season.

Read: Sale of DAP fertilizer in India up by 108% compared to last year

Mr. Gowda said that under the provisions of New Investment Policy – 2012 and its amendment in 2014, Chambal Fertilizers & Chemicals Limited (CFCL) has set up a Brownfield project at Gadepan, Rajasthan with a production capacity of 12.7 LMT Urea per annum. Here the commercial production started on 1st January, 2019 which  helped in producing  244.55 LMT indigenous urea in the country during 2019-20.

He stated that with a view to become  self-sufficient in urea production, government has started reviving the closed fertilizer units of FCIL at Ramagundam, Talcher, Gorakhpur & Sindri and HFCL unit at Barauni. This is a Joint Venture of nominated PSUs to set up gas based fertilizer plants of 1.27 MMTPA capacity each. The overall progress and likely commissioning of the projects are as under:

ProjectOverall progressLikely commissioning of the project
Ramagundam99.58%In pre-commissioning / commissioning stage
Talcher59.48%By 2023
Gorakhpur88.10%By 2021
Sindri77.80%By 2021
Barauni77.60%By 2021
Overall progress and likely commissioning of the projects for Indigenous production of Fertilizers

Union minister further stated that as per Modified New Pricing Scheme (NPS-III), all of the Units which are using naphtha as feedstock are to be converted on natural gas .  Madras Fertilizers Ltd. has already moved from Naptha feedstock to  Natural Gas as feedstock. After getting pipeline connectivity, this unit has  started producing Urea w.e.f.  29th July, 2019 on natural gas feedstock.

Read: FACT places import orders for essential crop nutrients

The Minister also said that a major decision was also taken to infuse  Rs.900 crore in Fertilizers and Chemicals Travancore Limited (FACT) for its modernisation.

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