Production of urea, a key fertilizer, is expected to increase by 4.2 lakh tonne to 223 lakh tonne this fiscal. India produced 218.80 lakh tonne of urea in FY11. Consequently, imports of the essential crop nutrient are estimated to decline by 4.1 lakh tonne to 62 lakh tonne in FY12, compared to 66.10 lakh tonne last fiscal. In FY12, the projected demand and indigenous production of urea is 285 lakh tonne and the gap will be met through imports.
In order to boost urea output, the government has decided to revive the closed units of Fertilizer Corporation of India Ltd (FCIL) and Hindustan Fertilizer Corporation Ltd (HCIL). The government has decided to revive the Sindri, Gorakhpur, Talcher and Ramagundam units of FCIL as well as the Barauni and Durgapur units of HCIL. All the units were shut down in 2002 by the government.
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