Zuari Industries is planning to set up a urea plant at Belgaum in Karnataka with a capacity of 1.3 million tpa. It will use natural gas to produce urea and will entail an investment of Rs. 50,000 million. Natural gas will be transported by GAIL's Dabhol-Bangalore pipeline. Currently, the pipeline is under construction and is likely to be completed by 2012. The company is in the process of land acquisition and applied for requisite clearances.
As of December 2013, the company has shelved the project on account of difficulty in land acquisition.
Fertilizer Ministry has moved a proposal to the Cabinet to remove guaranteed buyback clause in the urea investment policy and adopt a bidding process to shortlist companies after the lucrative incentive led to a flood of applications for expanding capacities. In January, the ministry notified the New Investment Policy(NIP) 2012 -- approved by the Cabinet Committee on Economic Affairs in December last year -- to incentivise manufacturers for raising domestic urea output. Policy guaranteed buy-back of urea for eight years from start of production. Encouraged by this clause, 13 fertilizer firms applied for setting up new plant or expanding capacity of existing plant by about 16 million tonne. However, India needs an additional capacity of only 8 million tonne of urea to become self-sufficient. The domestic production stands at about 22 million tonne. According to sources, the ministry has moved a proposal before CCEA to remove the buy-back clause and introduce bidding process for short listing 4-5 applicants from among the 13 that have applied.
Gujarat Narmada Valley Fertilizers is planning to set up fertilizer vending machines with help from Nabard in Vadodara, Narmada, Bharuch, Tapti and Surat districts of Gujarat. The vending machine will require 400 sq.ft of land and can dispatch quantity of 500 gm and above. It will be operated 24x7.
KPR Fertilizers to set up a fertilizer unit in Halvarthi village in Kunikeri Mandal in Koppal district of Karnataka with an investment of Rs. 39 million. The project involves setting up of a manufacturing unit to produce single super phosphate (SSP) 200 mtpd, di-calcium phosphate DCP) (10 mtpd) and a mixing unit with a capacity of 40 mtpd. Currently, the company has a NPK mixture unit at the existing location.