Boost in Urea Production: Government Acquires Additional Gas to Meet Agricultural Demand

The government has successfully procured additional natural gas through a spot bid to enhance urea production capacities at fertiliser plants, which had been operating below potential due to fuel shortages. A government official disclosed on Thursday that this move seeks to close the shortfall between current supply and full operational needs.

Fertiliser plants initially received only 32 MMSCMD of natural gas, about 62% of their daily requirement. An auction was conducted to bridge this gap, with plants collectively requesting 8.56 MMSCMD additional. The bid concluded with securing 7.31 MMSCMD, to be delivered promptly from March 19 to March 31.

This augmentation brings gas availability to approximately 40 MMSCMD, allowing plants to operate at 78 to 80% of installed capacity. The initiative is anticipated to boost urea production by up to 13,000 tonnes per day, crucial for addressing the agricultural sector's needs as the kharif season approaches.