Karnataka likely to get new urea plant

The Ministry of Chemicals and Fertilisers has expressed keenness on setting up a urea manufacturing plant in Karnataka. For this, the state government has agreed to provide 500 acres, Union minister for Chemicals and Fertiliser Anant Kumar said, here on Friday.

Speaking to reporters, after launching Kribhco's neem-laced urea in the city, Kumar said discussions were on with the state for required land and the state is keen on picking up a 10 per cent stake in the proposed plant.

The proposed plant would have a capacity of about 1.3 million tonnes. On the investment involved, he added that it would be Rs 6,000 crore. On the possible location for the plant, he said, it could come up along the Dabhol-Bangalore Natural Gas Pipeline of the Gas Authority of India Ltd, but the precise location is yet to be decided upon.

The minister said about half-a-dozen plants in places like Sindri, Barauni, Gorakhpur, Ramagundam, and a few other places were being revived, and India is aiming to be self-sufficient in the production of urea over the next five years. India currently imports about nine million tonnes of urea at a cost of about Rs 6,000 crore. The domestic production is estimated at around 23 million tonnes.

The Centre had recently done away with the 35 per cent cap on neem-coated urea production to allow domestic manufacturers to produce more of the fertiliser. It could help reduce the usage and boost productivity, while reining in the import bill, Kumar said. He also ruled out any increase in the urea prices. The price of urea is currently fixed by the Centre at Rs 5,360 a tonne. Farmers now use excessive urea as it is highly subsidised by the government.

The neem-laced urea, which also works as an insecticide, costs five per cent more than the normal urea, which is about Rs 260 a tonne.

Kumar also said he would begin talks with the industry to cut the prices of di-ammonium phosphate (DAP) and potassic fertiliser.

Earlier, Union Agriculture Minister Radha Mohan Singh asked the state to strengthen the krishi vignan kendras (KVKs) and take up measures to take newer technologies to the farmers. He also expressed his view that the government would issue soil health cards to more farmers, thus helping control indiscriminate use of fertiliser, he added.