Establishment of 6 New Urea Plants under New Investment Policy with a Production Capacity of 12.7 Lakh MT per Year

The government has established six new urea plants under the New Investment Policy (NIP) to promote fresh investment in the urea sector. Each plant has a production capacity of 12.7 lakh metric tons (LMT) per year. This initiative aims to make India self-reliant in the production of urea.

Announcement of New Urea Policy 2015:

On May 25, 2015, the government announced the New Urea Policy – 2015, aimed at maximizing indigenous urea production from 25 gas-based urea plants. Several significant measures have been undertaken under this policy to boost urea production in the country.

Government Initiatives on Phosphatic and Potassic Fertilizers:

The case of Phosphatic and Potassic (P&K) fertilizers, companies have been given the flexibility to import or produce raw materials, intermediates, and finished fertilizers based on their business dynamics. Requests for the establishment of new manufacturing units or increasing the capacity of existing units have been considered and recognized under the Nutrient-Based Subsidy (NBS) scheme, with the aim of boosting manufacturing and achieving self-reliance in fertilizer production.

Promotion of Potash Derived from Molasses (PDM): Potash Derived from Molasses (PDM), a 100% indigenously manufactured fertilizer, was brought under the NBS scheme on October 13, 2021. Additionally, freight subsidy on Single Super Phosphate (SSP), another indigenously manufactured fertilizer, has been implemented since Kharif 2022 to promote its use and ensure the supply of phosphatic nutrients to the soil.Increase in Fertilizer Production: These initiatives have significantly increased fertilizer production in the country. Urea production rose from 225 LMT per year in 2014-15 to a record 314.09 LMT in 2023-24. Similarly, the production of

P&K fertilizers increased from 159.54 LMT in 2014-15 to 182.85 LMT in 2023-24.

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