Attaining Atmanirbharta in Urea Production
The Indian agriculture industry has achieved milestones in March as the fertiliser sector witnessed launch of Sindri fertiliser plant developed at a cost of over Rs 8900 crore on March 1 and Barauni fertiliser unit set up an estimated investment of Rs 9512 crore on March 2 respectively. These plants from Hindustan Urvarak & Rasayan Ltd (HURL) will each have a urea production capacity of 12.7 lakh metric million tonnes per annum (LMTPA) and provide affordable urea to farmers and lead to an increase in their productivity and financial stability.
It may be noted that due to obsolete technologies, many fertilizer plants were shut down. The government mandated the revival of five closed units, namely Ramagundam, Talcher, Gorakhpur, and Sindri of Fertilizer Corporation of India Limited (FCIL) and Barauni unit of Hindustan Fertilizer Corporation Limited (HFCL), under the New Investment Policy (NIP) of 2012.
Barauni fertiliser plant in Bihar is one of the largest fertiliser manufacturing units of India, for which the foundation stone was laid in 2019 by the Prime Minister Narendra Modi. The facility integrates the world’s best technologies aiming to meet the demand for urea in the states of Uttar Pradesh, Bihar, Jharkhand, Chattisgarh, Madhya Pradesh, West Bengal and Odisha. Sindri plant in Jharkhand for which the foundation was laid in 2018, aims to ensure adequate supply of urea to the farmers in Jharkhand as well as West Bengal, Odisha, Chhattisgarh, Madhya Pradesh and Bihar.
The plant would provide 450 direct and 1000 indirect employment opportunities in the region.
It may be recalled that HURL, incorporated on June 15, 2016 as a Joint Venture Company by Coal India Limited (CIL), NTPC Limited (NTPC), Indian Oil Corporation Limited
(IOCL) and FCIL/HFCL mandated to revive Gorakhpur, Sindri and Barauni units with an estimated investment of Rs 25,000 crore.
Gorakhpur plant in Uttar Pradesh that was lying shut for more than 30 years, was revived and built at a cost of around Rs 8600 crore and became operational in December 2021. This project has the world's highest prilling tower of 149.2 metres. It also consists of India’s first air operated Rubber Dam and Blast Proof Control Room to enhance safety aspects.
In November 2022, Ramagundam plant by Ramagundam Fertilizers and Chemicals
Ltd (RFCL) was revived at a cost of Rs 6,338 crore and dedicated to the nation. The plant provides adequate and timely supply of urea fertiliser to the farmers in Telangana as well as in Andhra Pradesh, Karnataka, Chattisgarh and Maharashtra.
Presently, India operates four fertiliser plants, and the government's initiative to establish the fifth, Talcher Fertilisers Ltd, in Odisha at cost of Rs 13,270 crore, is set to commence operations in September 2024.
The new plant is anticipated to enhance selfsufficiency in fertiliser production further. The upcoming plant boasts a production capacity of 38.5 LMTPA of urea.
With these developments, India's urea availability and sales in 2023 demonstrated a consistent growth pattern, with availability increasing by 3.65 per cent from 397.1 to 411.6 LMT and sales showing a 3.25 per cent uptick from 369.1 to 381.1 LMT. This steady rise in sales underscores the significance of bolstering domestic production for the country's fertiliser needs, aligning with the broader goal of fostering self-reliance in the sector, according to S&P Global Commodity Insights report. The report also observed that India experienced a notable 21.3 per cent year-on-year decline in urea imports in 2023, totalling 74.1 LMT.
These new plants will not only improve the availability of fertiliser but will also boost overall economic development, including development of infrastructure like roads, railways, ancillary industry etc. As India gears to take the “Atmanirbhar Bharat” initiatives forward, HURL’S ‘Bharat Urea’ will provide a tremendous boost to the economy by not only reducing the imports but also by giving an impetus to the local farmers’ timely supply of fertilisers and extension services.