The joint venture will have an investment of around $2 billion and a manufacturing capacity of 2 million tons annually

India and Russia are planning to set up a urea production facility at a cost of $2 billion, the Financial Express reports.

The facility - a joint venture between Russia's Uralchem and Indian Potash, Rashtriya Chemicals and Fertilizers, and National Fertilizers - is expected to be located at Togliatti, Russia, according to thereport.

"The urea plant should be ready within the next two years," Indian Potash Managing Director PS Gahlaut told the Financial Express.

The proposed facility is expected to have an annual manufacturing capacity of 2 million tons of urea.

Gahlaut said the state-owned Projects & Development India, the consultant for the proposed urea joint venture, submitted a pre-feasibility report last week.

Indian Potash, Rashtriya Chemicals and Fertilizers, and National Fertilizers "are expected to take a call on the pre-feasibility report soon," he told the newspaper.

The urea manufacturing facility will act as an assured supply source for India, Gahlaut added.

On April 23, Reuters reported that New Delhi has agreed to import urea at double the price it paid earlier this year, amid the supply disruption caused by the Middle East conflict.

Indian Potash agreed to buy 2.5 million tons of urea, or nearly a quarter of its annual imports of around 10 million tons in 2025.

India is the world's biggest ureaimporter. The nation's urea production depends heavily on natural gas, which is mainly imported from the Middle East.

Rating agency ICRA projects that India's reliance on urea imports will increase to around 30% of total consumption by 2030.

India is looking to boost fertilizer imports from Russia, Belarus, and Morocco as a supply crunch looms due to the Middle East conflict and as China announced export curbs ahead of the summer planting season.

(RT.com)