New Delhi, Nov 18: The Government has approved to revive defunct fertilizer units of the Fertilizer Corporation of India Limited (FCIL)/Hindustan Fertilizer Corporation Limited (HFCL) by setting up of new urea plants having capacity of producing 1.27 Million Metric Ton (MMT) Urea per annum at each of the five units namely Talcher, Ramagundam, Gorakhpur and Sindri units of FCIL and Barauni unit of the HFCL. Pre-Project activities for these units are currently going on. In addition to these five urea plants, the Government has also approved to establish a new brownfield Ammonia – Urea Complex in the existing premises of the BVFCL. The capacity of this plant will be 8.646 Lakh Metric Ton Per Annum. Setting up of new urea plants at these locations will help in bridging the gap between demand and production of fertilizers in the country.
Further, Department of Fertilizers had announced New Investment Policy (NIP) – 2012 on 2nd January, 2013 and its amendment thereof on 7th October, 2014 to facilitate fresh investment in urea sector and to reduce import dependency.
The Government has announced New Urea Policy-2015 on 25th May, 2015 for existing 25 gas based urea units, with the objectives of maximizing indigenous urea production; promoting energy efficiency in the urea units; and to rationalize the subsidy burden on the Government.