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India Mulling Urea Plant in Karnataka

13 January 2015

INDIA - India's government is working on a plan to set up a new 1.3 million tonnes urea plant in Karnataka.

Speaking on the plan, Anant Kumar, Indian chemical & fertilizer minister said that the plan will be set up, if the state government provide us 500 acres of land.

The proposed plant is expected to be set up with an investment of $964 million around the Dabhol Bangalore Natural Gas Pipeline of the Gas Authority of India Ltd.

However, Kumar said in the initial talks, the state government has agreed for 10 per cent state in the proposed project.

To make India self-sufficient, government will be setting up six urea plant at Sindri, Barauni, Gorakhpur and Ramagundam places among others in the next five years, the minister said while launching Kribhco’s neem-coated urea product in Bangalore.

India current domestic urea output is around 23 million tonnes, against the demand of 32 million tonnes, the balance 9 million tonnes is met through imports.

To cut down import bills, the central government has recently struck it order for 35 per cent cap on neem-coated urea production to allow domestic manufacturers produce more of the fertiliser that is expected to help improve usage efficiency and boost productivity, Kumar said.

Assuring the farmers that pries of urea will not be increased, Kumar said that his ministry would begin talks the industry on reducing phosphatic and potassic fertilisers.

The price of urea is currently fixed by the Centre at $86.14 per tonne.

Jagdish Kumar, Editor

Jagdish Kumar, Editor

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