Press Information Bureau
Government of India
Ministry of Chemicals and Fertilizers
11-March-2011 15:39 IST
New Investment Policy for Urea
The Government has notified on 4th September 2008 a New Investment policy for urea sector. The policy has been finalized in consultation with fertilizer industry. The policy aims at revamp, expansion, revival of existing urea units and setting up of Greenfield/Brownfield projects. The fertilizer Industry has responded positively towards the New Investment Policy by initiating investment decision for revamp of existing capacities. The fertilizer units like IFFCO-Aonla – I & II, IFFCO-Phulpur – I & II, Chambal Fertilizers and Chemicals Limited (CFCL) – Gadepan – I&II, Nagarjuna Fertilizers and Chemicals Limited (NFCL) – Kakinada – I&II and the unit of Tata Chemicals Limited – Babrala have informed regarding availability of additional production of urea after revamp. Further RCF, Thai; KRIBHCO-Hazira and NFL, Vijaipur have indertaken revamp of their units. The companies have been regularly requesting the Government for either firm allocation of gas at predetermined fixed prices from domestic gas sources or insulate industry from any additional liability arising due to increase in delivered price of gas by correspondingly increasing the floor prices in the absence of any commitment on allocation of natural gas at fixed prices. The constraints indicated are under examination in the Department of Fertilizers. As regards availability of gas for the various plants, the Empowered Group of Ministers (GoM) on gas price and commercial utilization of gas had decided that the fertilizer sector would be given the highest priority for allocation of gas. The units would be supplied natural gas as and when they are ready to utilize the gas.

This information was given by the Minister of State for Chemicals and Fertilizers Shri Srikant Kumar Jena in a written reply in the Rajya Sabha today.