The Government introduced the New Investment Policy (NIP) in 2012, with an amendment in 2014, to attract fresh investments and achieve self-sufficiency in the urea sector. Under NIP-2012, six new urea units have been established, including four through Joint Venture Companies (JVCs) and two by private companies.
The JVC units include Ramagundam Fertilizers and Chemicals Ltd. (RFCL) in Telangana, and Hindustan Urvarak & Rasayan Limited (HURL) units in Gorakhpur (Uttar Pradesh), Sindri (Jharkhand), and Barauni (Bihar). Private companies Chambal Fertilizers and Chemicals Ltd. (CFCL) and Matix Fertilizers and Chemicals Ltd. (Matix) have set up units in Gadepan, Rajasthan, and Panagarh, West Bengal, respectively. Each unit has a production capacity of 12.7 Lakh Metric Tonnes per annum (LMTPA) using advanced, energy-efficient technology.
These additions have increased India’s urea production capacity from 207.54 LMTPA in 2014-15 to 283.74 LMTPA in 2023-24, strengthening domestic production and reducing reliance on imports.
Additionally, the government continues to implement the Nutrient Based Subsidy (NBS) Policy for Phosphatic and Potassic (P&K) fertilizers, providing a fixed subsidy based on nutrient content while allowing companies to set prices based on market dynamics. This information was provided by Union Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a written reply to the Rajya Sabha.