Government Approves Talcher Greenfield Urea Plant and Assam Brownfield Ammonia-Urea Complex Under Fertilizer Capacity Expansion
The Department of Fertilizers has informed Parliament that six new urea units set up under the New Investment Policy (NIP)-2012 have together added 76.2 LMTPA of production capacity, raising India's total indigenous urea capacity from 207.54 LMTPA in 2014-15 to 269.42 LMTPA in 2026-27.
The six units, each with an installed capacity of 12.7 LMTPA, include the Ramagundam unit of Ramagundam Fertilizers and Chemicals Ltd (RFCL) in Telangana; the Gorakhpur, Sindri and Barauni units of Hindustan Urvarak & Rasayan Limited (HURL) in Uttar Pradesh, Jharkhand and Bihar respectively; the Panagarh unit of Matix Fertilizers and Chemicals Ltd in West Bengal; and the Gadepan-III unit of Chambal Fertilizers and Chemicals Ltd (CFCL) in Rajasthan.
Beyond these completed projects, the government has approved a new greenfield urea plant of 12.7 LMTPA at Talcher, to be developed by Talcher Fertilizers Limited (TFL), a joint venture of nominated public sector undertakings, using the coal gasification route. Separately, a brownfield Ammonia-Urea Complex named Assam Valley Fertilizer and Chemical Company Ltd (AVFCCL), with an annual capacity of 12.7 LMT of urea, has been approved for development within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Assam through a joint venture. Both projects are currently under execution.
On July 15, 2026, the Cabinet Committee on Economic Affairs approved the National Investment Policy for Urea-2026 (NIPU-2026), aimed at facilitating fresh investment in the urea sector under the Aatmanirbhar Bharat initiative.
The government also cited measures to secure raw material and finished-fertilizer supplies, including 25 LMT and 17.7 LMT of urea procured through global tenders in April and June 2026 respectively, to support continuity of domestic fertilizer availability alongside the capacity expansion.