Centre approves new policy to boost domestic urea production
The Union Cabinet on Wednesday approved the National Investment Policy (NIP) for Urea-2026, aimed at increasing domestic production of the fertiliser and reducing import dependence. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
Information and Broadcasting Minister Ashwini Vaishnaw told reporters that the policy is designed to encourage new investments in the urea sector, particularly for setting up gas-based manufacturing units within the country. The policy will cover new urea manufacturing units under the framework of 'Atmanirbhar Bharat' (self-reliant India), a government initiative to promote domestic production.
According to an official statement, the NIP for Urea-2026 (NIPU-2026) comes after the expiry of the previous New Investment Policy-2012 in October 2019. Under the earlier policy, six new urea units were established: four through joint ventures between nominated public sector undertakings and two by private companies.
Currently, India has 33 operational urea manufacturing units with a total reassessed or installed capacity of 269.42 lakh metric tonnes (LMT). The government has identified a need to further increase indigenous production to meet the growing demand for urea, a key nitrogenous fertiliser used extensively in agriculture.
The policy aims to attract fresh capital and technology into the sector, reduce the country's reliance on imports, and ensure stable supply of fertilisers to farmers. Further details on the incentives and implementation timeline are expected to be announced later.
