17 February 2013

India would be self reliant in urea by end of 12th Plan (2012-17)

The Department of Fertilizers (DOF) expected that the demand of urea in the country by the end of 12th Five Year Plan (2012-17) will be around 360 lakh MT. At present the country have indigenous urea capacity of 220 lakh MT and 40 lakh MT from OMIFCO Oman. It shows a shortfall of 100 lakh MT of urea in the country. Credit rating major ICRA Limited foresees urea capacity addition of 100 lakh MT by end of 12th Five Year Plan period (2012-17) and India will be self-reliant in urea. This would be possible only after the announcement of  New Urea Investment Policy (NUIP) 2012 by the Government of India.

The New Urea Investment Policy (NUIP) announced by the government is attracting existing urea manufacturers to make expansion plans in their existing units. New enterents too are planning to come in this field of urea production with their green-field projects. During the last six months, Department of Fertilizer (DOF) has received about 15 proposals to start urea projects.  

Following is the list of urea manufacturers who have already announced their brown-field expansion plans.

1. Tata Chemicals Limited (TCL) has announced its brown field expansion plan to set up urea expansion project at Babrala.

2. Rashtriya Chemicals and Fertilisers Limited (RCF) has announced its expansion plan to set up its third ammonia-urea stream at Thal complex in Maharashtra. The project would cost Rs 2865 crore to the company.

3. Indo Gulf Fertilizers too has announced its brown-field expansion plan to set up its ammonia-urea project at its existing fertilizer complex at Jagdishpur in UP. The expansion project has been proposed to be constructed at a total cost of Rs 4020 crore.

4. Chambal Fertilisers and Chemicals Limited (CFCL) has also announced its brown-field expansion of urea project at its existing Gadepan complex in Kota district of Rajasthan.

The New Urea Investment Policy (NUIP) 2012 provides a more transparent mechanism for reimbursement of higher gas prices and therefore a urea capacity addition of 100 lakh MT (10 mtpa) over the next five years is looking possible.

Stay tuned to Fertilizer News for more news on New Urea Investment Policy (NUIP) 2012 !        

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