(a) whether the Government proposes to set up new urea units and expand
existing units with a view to bridge the gap between demand and supply of urea;
(b) if so, the details thereof; and
(c) by when the country is likely to become self-sufficient in urea production?
THE MINISTER OF CHEMICALS AND FERTILIZERS & MINISTER OF STEEL (SHRI RAM VILAS PASWAN)
(a) & (b) : As per the industrial policy resolution dated 24th July, 1991, no license is
normally required for setting up/expansion of fertilizer plants. Entrepreneurs are free
to set up fertilizer projects anywhere in the country subject to environmental
clearance. However, Public Sector Undertakings/ Cooperative Societies under the
administrative control of the Department of Fertilizers have to obtain approval of the
Government before undertaking such capital expenditure beyond their delegated
powers. Further, setting up of new, expansion and de-bottlenecking projects of urea
requires prior approval of the Department of Fertilizers which are to be based on
Natural Gas (NG) and Liquefied natural Gas (LNG) as feedstock and fuel, as per the
pricing policy for investment made in new, expansion and de-bottlenecking project of
urea notified in January, 2004.
(c) : The country is nearly self-sufficient in meeting the demand of urea. Whenever
there is a gap in demand-supply situation of urea, Government imports urea through
State Trading Enterprises (STEs). The Government has been pursuing policies
which are conducive for encoursing investment in fertilizer sector so as to achieve
self-sufficiency in meeting the indigenous requirement of major fertilizers.