Cabinet approves urea investment policy to boost local production

India's Union Cabinet has given its approval to a new urea investment policy designed to stimulate domestic production and reduce reliance on imports. The policy aims to bridge the gap between the country's substantial demand for urea, a vital fertilizer for agriculture, and its current manufacturing capacity.

The core of the new policy is to encourage investment in setting up gas-based urea manufacturing plants across the country. By incentivizing the establishment of these facilities, the government intends to boost the local supply of urea, ensuring greater availability for farmers and enhancing agricultural productivity.

This move is expected to not only strengthen India's self-sufficiency in fertilizer production but also potentially lead to cost efficiencies. The focus on gas-based plants suggests a strategic approach to leveraging available resources while promoting industrial growth in the fertilizer sector. The policy's implementation is anticipated to provide a significant push to the domestic urea market.