Govt eyes GSFC to boost automotive-grade urea supply amid Gulf disruptions
India has a capacity to manufacture 1.5 lakh tonnes of the solid compound annually, as against the automotive industry's requirement for 6 lakh tonnes, with the gap met through imports from the Gulf. However, as the West Asia war continues to disrupt supply chains, the Centre is now considering bolstering domestic production, the people cited above said, requesting anonymity.Urea used in agriculture and technical-grade urea are chemically the same compound. However, technical-grade urea is a highly purified form with a wide range of industrial applications, including in adhesives, and in the manufacture of dyes, pigments, and cosmetics.“There is thinking now to prepare for future supply disruptions also, so that there is lesser import dependence for TGU,” said the first of the two persons cited above, adding that GSFC was being considered for this plan.In the weeks after the war broke out in West Asia, discussions began between the ministries of chemical and fertilizers, and heavy industries about TGU supplies for diesel vehicle manufacturers, after industry lobby group Society of Indian Automobile Manufacturers (Siam) sought to increase TGU output from Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), which according to automakers is the sole maker of the urea used in making Adblue, Mint reported on 15 April.“While automakers procure TGU from GNFC, its parent company GSFC also has some capacity to make the compound, due to which it is being considered as another source,” said the second person.Capacity developedGSFC, which owns 19.80% stake in GNFC, also developed 35 metric tonne per day capacity to make TGU, starting in 2020. However, this capacity is only available when one of its melamine plants is shut down for a few weeks each year, according to the company’s website.Queries emailed to the spokespersons of the ministries of chemicals and fertilizers, heavy industries, GSFC, GNFC, Siam, diesel vehicle makers Tata Motors, Mahindra & Mahindra, and Ashok Leyland remained unanswered.Increasing local TGU manufactuting capacity would help the auto sector cut reliance on imports. “It will be easier to procure TGU locally for auto companies, but there needs to be a check on the quality of the compound that is supplied from new facilities,” said I.V. Rao, distinguished fellow at the transport and urban governance department at The Energy and Resources Institute (Teri).The development assumes importance for India, the second-largest global consumer of fertilizer and the world’s largest urea importer. It has
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