Hindustan Urvarak Rasayan Limited (HURL) is exploring multiple new fertilizer production projects as part of its next phase of growth. According to reports from Business Standard, the company is considering green urea and coal gasification projects while also evaluating ammonium sulphate and NPK production at its Barauni and Sindri units respectively. Sources indicate that feasibility studies for these proposals are currently being prepared, following which they will be sent for further review.
The company is exploring the possibility of producing ammonium sulphate at its Barauni unit using surplus ammonia produced at the plant and NPK fertiliser at its Sindri unit, also using surplus ammonia. As reported by Business Standard, ammonium sulphate is fast emerging as an affordable alternative to urea, particularly during crisis situations when urea supplies become scarce, such as during the West Asia crisis. The fertilizer contains 21% nitrogen and 24% sulphur, compared to urea's 46% nitrogen content, requiring more applications than conventional urea but releasing nitrogen slowly into the soil.
Last year, the central government brought ammonium sulphate under the nutrient-based subsidy (NBS) mechanism, making it affordable for farmers during the rabi season. According to Business Standard, NPK fertilizers are partially outside the NBS mechanism, allowing companies to price their bags based on market dynamics. NPK is considered a healthier soil nutrient option as it provides balanced nutrition compared to conventional urea and DAP.
Hindustan Urvarak Rasayan Limited was incorporated on June 15, 2016, as a joint venture by Coal India Limited (CIL), NTPC Limited (NTPC) and Indian Oil Corporation Limited (IOCL) as lead promoters, with Fertilizer Corporation of India Limited (FCIL) and Hindustan Fertilizer Corporation Limited (HFCL) as partners. As reported by Business Standard, the three lead promoter companies hold a total equity share of 89% with equal partnership, while FCIL and HFCL together hold the balance 11% share based on usable assets, opportunity cost and land usage at three plant locations. The company operates natural gas-based fertilizer complexes in Gorakhpur, Barauni and Sindri.
