Lucknow: Uttar Pradesh could see three new urea production plants involving an estimated investment of around ₹30,000 crore, with proposals reported for Gorakhpur, Jagdishpur and Shahjahanpur. The proposals are awaiting consideration by the central government, according to a report citing government sources.
The reported projects are linked to Hindustan Urvarak & Rasayan Limited (HURL), Indo Rama and KRIBHCO Fertilizers Limited, with the proposed facilities expected to add to the state’s existing fertiliser manufacturing capacity.
Proposals Reported in Three Locations
At Gorakhpur, HURL has proposed another urea plant alongside its existing facility. HURL Managing Director Dr S.P. Mohanty told Rural Voice that the company’s board has approved the proposal and preparations are underway, subject to approval from the central government.
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HURL’s existing Gorakhpur unit is one of the urea plants established under the government’s earlier efforts to revive fertiliser production capacity. The plant has an installed capacity of 12.7 lakh metric tonnes per annum (LMTPA).
At Jagdishpur, Indo Rama is reported to be planning a new urea plant.
The third proposal is at Shahjahanpur, where KRIBHCO Fertilizers Limited already operates an ammonia-urea complex. KRIBHCO’s official website lists its Shahjahanpur facility as a natural-gas-based urea plant with a reassessed annual urea capacity of 8.64 lakh tonnes.
A recent site visit by Projects & Development India Limited and KRIBHCO at Shahjahanpur was also reported for a proposed 2,200-tonne-per-day ammonia and 3,850-tonne-per-day urea plant, indicating that work on the proposal has progressed to project-preparation activities.
Centre Seeks to Expand Domestic Urea Capacity
The proposed projects come amid the Centre’s broader efforts to increase domestic urea production and reduce dependence on imports.
The government has previously implemented the New Investment Policy (NIP) 2012 and its 2014 amendment to facilitate fresh investment in the urea sector. Six new urea units were established under the policy, including HURL’s Gorakhpur plant in Uttar Pradesh, along with units in Jharkhand, Bihar, Telangana, West Bengal and Rajasthan.
According to the Ministry of Chemicals and Fertilizers, these six units together added 76.2 lakh tonnes per annum of urea production capacity. The government has continued to focus on expanding indigenous production and strengthening fertiliser supply chains.
The latest proposals, if approved and subsequently implemented, would add further urea manufacturing capacity in Uttar Pradesh. However, approval, final investment details, construction timelines and production capacities for the three newly proposed plants have not yet been officially announced.
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