Context:
Prime Minister inaugurates the Hindustan Urvarak & Rasayan Ltd (HURL) Sindri Fertilizer Plant at Sindri, Dhanbad, Jharkhand.
PM Inaugurates HURL- Sindri Fertilizer Plant in Jharkhand
- Revival of fertilizer plants: The plants of Ramagundam, Gorakhpur and Barauni along with Sindri have been revived and operational with plans for Talcher Fertilizer plant being operational next year.
- Together they will produce 60 lakh metric tonnes of urea
- Hindustan Urvarak & Rasayan Limited (HURL): It is a Joint Venture Company of National Thermal Power Corporation Ltd (NTPC), Indian Oil Corporation Ltd (IOCL), Coal India Ltd (CIL) and FCIL
- The company was incorporated in 2016 and revived the Sindri Fertilizer Unit by setting up a New Ammonia-Urea Plant with installed capacity of 12.7 LMT per annum.
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Significance of the HURL- Sindri Fertilizer Plant
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- Atma nirbhar in the urea sector: The government is aiming to revive the closed urea units of Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizers Corporation Ltd (HFCL) to augment the availability of domestically produced urea.
- Streamlined supply of urea: The plant will ensure adequate supply of urea to the farmers in the state of Jharkhand as well as West Bengal, Odisha, Chhatisgarh, Madhya Pradesh and Bihar.
- Economic development: The plant will boost the overall economic development in the region including development of infrastructure like roads, railways, ancillary industry etc
- Employment: The plant would provide 450 direct and 1000 indirect employment opportunities in the region and the MSME sector will be developed with vendors for supply of various goods for the factory.
- Self Sufficiency: It will provide an impetus to the local farmers by timely supply of fertilizers and extension services and also help in reducing imports.
Fertilizer Sector in India
- Constituents: India’s fertiliser industry is dominated by the production of urea, followed by DAP (diammonium phosphate), MOP (muriate of potash), and complex fertilisers.
- Production: India has achieved 310 lakh metric tonnes of Urea production in 2024 from just 225 lakh metric tonnes of urea in 2014 with an annual growth rate of approximately 10%
- Consumption: India is one of the largest consumer of fertilizer with annual demand of Urea being 360 lakh metric tonnes
- PSUs in Fertiliser sector: A total of 9 units are administered by the Department of Fertilizers
- Example: FCI Aravali Gypsum & Minerals India Limited (FAGMIL);The Fertilizer Corporation of India Limited (FCIL); Hindustan Fertilizer Corporation Limited (HFCL); Rashtriya Chemicals and Fertilizers Limited (RCF)
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What Are the Challenges in the Indian Fertilizer Sector?
- Import Dependency: India imports both crude and manufactured fertilizers as well as importing raw materials such as rock phosphate, ammonia, and phosphoric acid.
- In FY2022-2023, India imported fertilizers worth over 1.38 trillion Indian rupees.
- Imbalanced Nutrient Application: The indiscriminate usage of urea over other nutrients affects the nutrient profile of the crop raising concerns about soil health and agricultural sustainability.
- Subsidy Burdens: Fertiliser subsidies in addition to adding up the financial stress for the government also leads to leakages through smuggling for other industrial uses
- High cost of handling and management: The storage of liquid fertilizers requires high capital investment in the smart storage system as they are soluble in water.
Also Read: UNCCD Report On Land Degradation
News source: PIB
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