India is one of the largest producers and consumers of chemical
fertilizers in the world. Maximum indigenous production, self-reliance
in design engineering and execution of fertilizer projects,
and autonomy in fertilizer production is vital to meet the growing
demand of fertilizers in the country. The average per hectare
consumption of fertilizer nutrients has increased from less
than 1 kg in 1951-52 to about 86.1 kg during the end of 1997-98.
The consumption of chemical fertilizers in the country is unevenly
distributed, being much higher in regions with assured irrigation.
GROWTH
At the end of 1998, the installed capacity reached a level of
105.20 lakh MT of nitrogen and 31.70 lakh MT of phosphate nutrients,
making India the third largest fertilizer producer in the world.
The rapid increase in fertilizer production capacity was the
result of a favourable policy environment and heavy investments
made over the years in the public, co-operative and private
sectors. Today, there are 63 large sized fertilizer plants in
the country, manufacturing a wide range of nitrogenous, phosphatic
and complex fertilizers. Nine of the units produce ammonium
sulphate as a by-product. Besides, there are about 79 medium
and small-scale superphosphate units.
FERTILIZER PRICES AND SUBSIDY
The sale prices of controlled fertilizer are fixed by the
Government of India (Department of Agriculture & Cooperation)
under the Fertilizer (Control) Order 1985 issued under the Essential
Commodities Act, 1955. At present, only urea, which is the main
nitrogenous fertilizer constituting about 60% of the total fertilizer
consumption in the country, is under statutory price control.
The price of urea is amongst the lowest in the region and is
heavily subsidised.
CONCESSIONS/INCENTIVES TO DOMESTIC FERTILIZER INDUSTRY
To encourage investment in the fertilizer sector, the following
concessions are available to the domestic industry:
Nominal duty on import of capital goods for setting up
of new plants/modernisation of existing units.
Deemed export benefits to indigenous supplies of capital
goods to fertilizer projects provided such supplies are made
under the procedure of international competitive bidding.
Nominal duty on import of fertilizer raw materials and
intermediates.
PRODUCTION
The production of nitrogenous fertilizers during 1997-98 was
100.68 lakh tonnes of nitrogen and that of phosphatic fertilizer
29.76 lakh tonnes of phosphate. The production target for
1998-99 was fixed at 106.82 lakh tonnes of nitrogen and 30.27
lakh tonnes of phosphate, representing a growth rate of 5.9%
in nitrogen and 1.7% in phosphate, as compared to the actual
production in 1997-98.
PROJECTS UNDER IMPLEMENTATION
Six major fertilizer projects involving an estimated capital
cost of Rs 4122.02 crore are under implementation in the country.
IFFCO has set up two additional plants for manufacturing DAP/NPK
fertilizer adjacent to their existing plants at Kandla in
Gujarat to produce an additional 2.27 lakh MTPA of DAP and
3.70 lakh MTPA of NPK fertilizers at an estimated cost of
Rs 212.20 crore. Chambal Fertilizers and Chemicals Ltd. (CFCL)
have set up a project for expanding the capacity of their
existing plant at Gadepan, Distt. Kota, Rajasthan by an additional
capacity of 7.75 lakh MTPA of urea at an estimated capital
cost of Rs 1256 crore. Oswal Chemicals & Fertilizers Ltd.
have set up a new DAP/NPK/NP plant at Paradeep in Orissa at
an estimated cost of Rs 1830.00 crore to produce 15 lakh MTPA
of DAP, 3.20 lakh MTPA of NPK and 1.00 lakh MTPA of NP fertilizers.
Duncan Industries Ltd. are setting up a project for expanding
the capacity of their plant at Kanpur, Uttar Pradesh, by an
additional capacity of 2.00 lakh MTPA of urea at an estimated
cost of Rs 636.38 crore. The project is expected to be commissioned
in May 2003. Godavari Fertilizers and Chemicals Ltd. are expanding
the capacity of their plant at Kakinada, Andhra Pradesh, by
2.80 lakh MTPA of DAP at an estimated cost of Rs 99.13 crore.
The project is expected to be commissioned in December 2001.
Hind Lever Chemicals Ltd. are expanding the capacity of their
plant at Haldia, West Bengal by 3.00 lakh MTPA of DAP and
1.00 lakh MTPA of NPK at an estimated cost of Rs 88.31 crore.
| Source: Directories-today |
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