India–Russia Deal: Indian-Russian fertilizer companies signed an agreement! The USD 1.2 billion urea plant will be set up by mid-2028

• Big relief for India’s fertilizer needs
• Agreement of RCF-IPL-NFL and Uralchem
• A new urea plant will be set up by 2028

India–Russia Deal: Three Indian fertilizer companies RCF, IPL and NFL have signed an agreement with Russian company Uralchem ​​to set up a new urea plant at a cost of 1.2 billion dollars and approximately Rs 10,000 crore. The plant, located in the Russian city, will have an annual capacity of 20 million tonnes and is expected to be operational by mid-2028. India is a net importer of urea and this agreement will benefit from secure and assured supply.

This major decision was taken before the start of Kharif season in India due to suspension of exports from China. India has overtaken China to become a wheat producing country. Wheat cultivation is most important during the Rabi season, but China’s export ban could lead to fertilizer shortages.

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Announcing the signing of the Memorandum of Understanding (MoU), the Ministry of External Affairs said that both sides welcomed the steps taken to ensure long-term supply of fertilizers to India and discussed the possibility of setting up joint ventures in this sector. The MoU was signed between Russia’s JSC Uralchem ​​and a consortium of Indian companies – National Chemicals Fertilizers Limited (RCF), National Fertilizers Limited & (NFL) and Indian Potash Limited (IPL), the ministry said.

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The new plant will use Russia’s natural gas and ammonia resources to produce urea. According to sources, RCF and IPL will each hold 45 percent stake in the proposed joint venture, while NFL will hold the rest. The proposed investment of $1.2 billion will be made through equity and debt. Although India has increased domestic urea production, it still imports to cover the shortfall. In 2024-25, the country imported 5.647 million tonnes of urea, of which a significant amount came from Russia.

The plant to be built in Russia will easily meet India’s fertilizer needs in the future. Indian farmers will have less trouble getting fertilizers like urea. It is often seen that farmers face difficulties in getting fertilizers before the beginning of Rabi and Kharif seasons. The government is going to make a big partnership with Russia to solve these problems.