Winning Bizness Desk

Mumbai. India and Russia have stepped up efforts to build a joint urea plant in Samara as supply worries rise due to tensions involving Iran. The project, expected to be ready within two years, is part of India’s wider plan to secure steady fertiliser supplies. A recent visit by an Indian delegation has pushed discussions forward, signalling urgency amid concerns over disrupted trade routes.

Push to cut West Asia import dependence

India relies heavily on urea imports, with nearly 71 per cent coming from West Asia. The ongoing geopolitical tensions have exposed risks in this dependence. By investing in a plant in Russia, India aims to diversify supply sources and reduce vulnerability to disruptions in the Middle East.

3 PSUs and Russian firm to invest jointly

The project will see a total investment of around ₹20,000 crore.

• Indian Potash Limited, Rashtriya Chemicals and Fertilizers Limited and National Fertilizers Limited will jointly invest ₹10,000 crore
• Russia’s Uralkem Group will contribute the remaining ₹10,000 crore
• The plant will have an annual capacity of 20 lakh tonnes of urea

Consultant clears plan, output to ensure steady supply

Projects and Development India Limited has submitted its technical report for the plant. Indian Potash Managing Director PS Gahlot said the facility will act as a long-term and reliable source of urea for India, helping stabilise supply during global disruptions.

Demand supply gap keeps import bill high

India’s urea demand continues to outpace domestic production:

• Annual consumption stands at about 400 lakh metric tonnes
• Domestic output is around 300 lakh metric tonnes
• The gap of nearly 100 lakh metric tonnes is met through imports
• India spent close to ₹20,000 crore on urea imports in 2025

Alternate supply routes activated amid crisis

To tackle supply risks linked to the Strait of Hormuz, India has approved imports of 25 lakh tonnes of urea for 2026. Supplies are being sourced directly from Algeria, Nigeria, Oman and Russia. The Samara plant, whose foundation was laid during President Vladimir Putin’s India visit in December 2025 in the presence of Prime Minister Narendra Modi, is expected to offer a more stable and cost-effective solution, supported by Russia’s vast natural gas reserves and advanced fertiliser infrastructure.