The central government may announce the establishment of three new urea production plants in Uttar Pradesh ahead of the state Assembly elections. The three projects are expected to involve an investment of around Rs 30,000 crore. The Centre is likely to take a decision on the proposals within the next month. The Uttar Pradesh Assembly elections are scheduled to be held in the first quarter of next year. Against this backdrop, both the central and state governments are likely to project the move as a major industrial investment initiative for the state.
According to highly placed sources, the three urea plants are proposed to be set up in Gorakhpur, Jagdishpur and Shahjahanpur. Gorakhpur already has a urea production plant operated by KRIBHCO Fertilizers, a subsidiary of the cooperative Krishak Bharati Cooperative Limited (KRIBHCO). KRIBHCO has submitted an application to the central government for setting up another urea production plant.
Indo Rama, meanwhile, plans to establish a new urea plant at Jagdishpur, while public-sector fertiliser company Hindustan Urvarak & Rasayan Limited (HURL) is keen to set up another urea plant in Gorakhpur.
HURL Managing Director Dr S.P. Mohanty told Rural Voice that the company’s board has approved the proposal to set up a new urea production plant alongside its existing facility in Gorakhpur. “We are moving ahead with the preparations. As soon as we receive approval from the central government, we will begin work on setting up the new plant,” he said.
HURL’s existing plant in Gorakhpur was installed by Japanese company Toyo. The new plant will also be set up through the same company.
Sources said Uttar Pradesh Chief Minister Yogi Adityanath has been actively pursuing the establishment of new urea plants in the state. In particular, he has held meetings with the concerned company regarding the proposed Gorakhpur plant.
India consumes around 40 million tonnes of urea annually. Domestic production stands at around 30 million tonnes, while the remaining 10 million tonnes is met through imports. Urea consumption in the country is rising at an annual rate of 3-4%.
Against this backdrop, the government wants India to move towards greater self-reliance in urea production so that the country is better equipped to deal with supply disruptions during crises such as a Gulf conflict. A new Urea Promotion Policy was also announced a few months ago as part of efforts to encourage additional domestic production.