a) the details of various schemes under the ambit of his Ministry to increase the indigenous
production of chemicals and fertilizers;
(b) the details of the schemes/projects including the funds provided, expenditure incurred and
the number of beneficiaries during the last three years;
(c) whether any specific system has been introduced to help producers to become more
competitive in the global market post COVID-19; and
(d) if so, the details thereof?
ANSWER
MINISTER OF CHEMICALS AND FERTILIZERS
(SHRI D. V. SADANANDA GOWDA)
(a) to (d): A statement is laid on the Table of the House.
Statement referred to in parts (a) to (d) of Lok sabha Starred Question No.298 for answer
on 16.03.2021 regarding `Indigenous Production of Chemicals and Fertilizers’
(a) In so far as Department of Fertilizers is concerned, the Government had announced New
Investment Policy (NIP) – 2012 on 2nd January, 2013 and its amendment on 7th October,
2014 to facilitate fresh investment in the urea sector and to make India self-sufficient in the
urea sector. Under NIP – 2012 read with its amendment, Matix and CFCL have set up
Greenfield and Brownfield urea plants respectively. Further, a decision has been taken to
revive 4 closed units of the FCIL namely Gorakhpur, Sindri, Talcher and Ramagundam and
one closed unit of HCFL namely Barauni by setting up of new Ammonia-Urea complex.
Each of these units has the installed capacity of 12.7 LMT per year.
The Government of India has also notified the New Urea Policy (NUP) – 2015 on 25th May,
2015 for existing 25 gas based urea units with the objective of maximizing indigenous urea
production; promoting energy efficiency in urea production; and rationalizing subsidy
burden on the Government. NUP-2015 also envisages the provision to incentivize beyond
RAC production which has led to additional production from the existing gas based urea
plants.
There is no Scheme in Department of Chemicals & Petrochemicals to increase the
indigenous production of Chemicals.
(b) Urea is being provided to all the farmers at a statutorily notified Maximum Retail Price
(MRP). The MRP of 45 kg bag of urea is Rs.242 per bag (exclusive of charges towards neem
coating and taxes as applicable). The difference between the delivered cost of urea at farm
gate and net market realization by the urea units is given as subsidy to the urea
manufacturer/importer by the Government of India.
The details of subsidy allocated and expenditure on indigenous urea during last three years
is as under:
Year Revised Estimate
(Rs. In crore)
Actual Expenditure
(Rs. In crore)
2017-18 31973.70 31973.70
2018-29 34989.50 32189.50
2019-20 43050.00 43050.00
(c) No Sir.
(d) In view of (c) above, question does not arise.
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