The project is being developed through a collaboration between Indian Potash Limited, Rashtriya Chemicals and Fertilizers Limited, and National Fertilizers Limited, alongside Russia’s Uralchem Group. The Indian firms are jointly investing ₹10,000 crore, matched by an equal contribution from the Russian partner.
Confirming the accelerated timeline, Indian Potash Managing Director PS Gahlaut stated that the plant is likely to be completed within two years. He added that Projects & Development India Limited has already submitted a pre-feasibility report for the project. An 11-member delegation, including representatives from the three Indian companies and PDIL, recently visited Russia to assess progress, following which the report was formally submitted. The stakeholders are expected to take a final decision after reviewing the findings in consultation with PDIL.
The urgency behind the project stems from a deepening fertiliser crisis triggered by geopolitical tensions involving the United States, Israel, and Iran. The blockade of the Strait of Hormuz has disrupted Liquefied Natural Gas supplies, a critical input for urea production, resulting in volatility and shortages in India. Currently, over 71 percent of India’s urea imports originate from the Middle East, making the country highly vulnerable to such disruptions.
India’s dependence on urea remains substantial due to its critical role in agriculture. The country produced approximately 306 lakh metric tonnes of urea in 2025, while consumption reached around 387 lakh metric tonnes, leaving a deficit of nearly 81 lakh metric tonnes. To bridge this gap, India imported urea worth .3 billion during the year.
In response to the crisis, the government has already approved the import of 2.5 million tonnes of urea through Indian Potash Limited from alternative suppliers, including Russia, Algeria, Nigeria, and Oman, bypassing the Strait of Hormuz. The imports are being secured at prices ranging from 5 to 9 per tonne.
The joint venture gained momentum in December 2025, when Russian President Vladimir Putin visited India and witnessed the signing of a memorandum of understanding in New Delhi alongside Prime Minister Narendra Modi. The agreement aims to establish a long-term, stable fertiliser supply while reducing exposure to global price fluctuations.
Urea remains the most widely used fertiliser in India due to its nitrogen content, which enhances vegetative growth and supports the formation of essential proteins, amino acids, and enzymes. Proper nitrogen application can increase crop yields by 20 to 50 percent, particularly in cereals such as rice, wheat, maize, and corn, reinforcing the country’s continued reliance on this input.
As global supply risks persist, the Russia-based urea project represents a strategic shift in India’s fertiliser policy. By diversifying sourcing and establishing overseas production capacity, the initiative is expected to provide a stable buffer against geopolitical shocks and price volatility, strengthening India’s agricultural resilience in an increasingly uncertain global environment
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