Five closed fertiliser plants are being revived at an estimated cost of Rs 37,971 crore as the government looks to reduce urea imports, Union minister DV Sadananda Gowda said.
India produces around 241 lakh metric tonnes of urea while consumption is about 305 LMT. The shortfall is met through imports. The government fixes the maximum retail price of urea and manufacturers are compensated by way of subsidies.
-
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
'One Can Never Get Good News And Bad Share Price': S Naren, ICICI Pru Life AMC On NDTV Profit Ignite
During the Question Hour in the Lok Sabha, Gowda emphasised there is no scarcity of fertilisers across the country and that the government wants to reduce the use of fertilisers, including urea. The government is reviving five closed fertiliser plants of the Fertiliser Corporation of India, and Hindustan Fertiliser Corporation Ltd. These are the FCIL plants at Talcher (Odisha), Ramagundam (Andhra Pradesh), Gorakhpur (Uttar Pradesh), Sindri (Jharkhand) and HFCL's plant at Barauni (Bihar).
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
These plants are being revived by setting up new ammonia urea plants each having a production capacity of 12.7 LMT per annum. Subsequent to commissioning of these plants, the indigenous urea production would rise by 63.5 LMT per year and reduce urea imports, Gowda said. "The construction of the plants at each of the location is going on at full swing, the estimated cost of all the five plants is Rs 37,971 crore," the Minister of Chemicals and Fertilisers said.
Noting that the government is proposing to reduce urea imports, Gowda said the average total production of urea in the country was around 241 lakh metric tonnes in the last three years while the total consumption was about 305.48 LMT during the same period. "The gap is fulfilled through imports. In the last three years, average imported urea is 63.12 LMT and average expenditure is Rs 12,797.31 crore," he said.
In 2018-19, the budget allocation for fertiliser subsidies was Rs 73,435.21 crore. "In the year 2018-19, out of total expenditure of Rs 73,435.21 crore, only Rs 16,020.37 crore was spent to settle the dues from previous year," Gowda said. He noted that whenever there is a shortage of funds, the government liquidates the pending subsidy by arranging loans under a Special Banking Arrangement.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
