CCEA approves National Investment Policy for Urea-2026
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·
Why in news
The Cabinet Committee on Economic Affairs (CCEA) approved the National Investment Policy (NIP) for Urea-2026 to stimulate domestic production and reduce import reliance.
Background
The CCEA approved the NIP for Urea-2026 to facilitate new gas-based manufacturing units. As of the current period, India has 33 operational urea-manufacturing units with a total capacity of 269.42 lakh metric tonnes (LMT).
Facts for Prelims
- BodyCCEA: Cabinet Committee on Economic Affairs is a high-level committee chaired by the Prime Minister.
- FactCurrent operational urea-manufacturing units in India: 33.
- FactCurrent total urea manufacturing capacity: 269.42 lakh metric tonnes (LMT).
- FactPrevious policy (NIPU-2012) expired in October 2019.
For Mains
Q. Discuss how the National Investment Policy for Urea-2026 aligns with India's goal of achieving self-reliance in the fertilizer sector and ensuring food security.
Dimensions to cover in your answer
- Input cost volatility: High dependence on imported natural gas for gas-based urea production impacts farmer input costs.
- Infrastructure bottleneck: Need for integrated gas-grid connectivity to support decentralized urea manufacturing units.
- Subsidy burden: Balancing the fiscal pressure of fertilizer subsidies with the need for private investment in production capacity.
Keywords: Self-reliance · Fertilizer Security · Capital Investment · Fiscal Policy · Input Subsidies
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