Archive · 19 Jan 2026
Madras Fertilizers Plans ₹10,300-Crore Ammonia-Urea Project in Chennai
Madras Fertilizers Ltd, a company owned by the Indian government, is planning to build a new ammonia-urea plant in Chennai.
This project will cost ₹10,300 crore and can make 1.3 million tonnes of urea every year.
The plant will be built in an existing area in North Chennai.
The company's current plant is running at 120% capacity, and they have improved its efficiency.
The new plant will help meet the demand for urea in South India and support the country's goal of self-sufficiency.
The company had its best year in 2024-25, with record production and profits.
They have also asked the government to help with their debts so they can build the new plant.
Madras Fertilizers Ltd plans a ₹10,300-crore greenfield ammonia-urea complex in Chennai with an annual capacity of 1.3 million tonnes of urea.
The project is awaiting approval from the Centre, with the pre-feasibility report already approved by the company's board.
The new plant will be built within the existing complex at Manali, North Chennai, to address the urea shortage in South India.
The company's current plant is operating at 120% capacity with improved efficiency, and the new project aligns with the Centre's Atmanirbhar Bharat vision.
In 2024-25, Madras Fertilizers Ltd achieved record production and profits, with revenue up 14% to ₹2,542 crore and a net profit of ₹64.25 crore.
- Who
- Madras Fertilizers Ltd (Government of India undertaking)
- What
- Planning a ₹10,300-crore greenfield ammonia-urea complex
- When
- Approval awaited from the Centre; pre-feasibility report approved by the board
- Where
- Manali, North Chennai
- Why
- To address urea shortage in South India and align with Atmanirbhar Bharat vision
- Project Investment
- ₹10,300 crore
- Annual Capacity
- 1.3 million tonnes of urea
- Location
- Manali, North Chennai
- Current Plant Capacity
- 120% (improved efficiency by 10-12%)
- 2024-25 Revenue
- ₹2,542 crore
- 2024-25 Net Profit
- ₹64.25 crore
- Market Share in Tamil Nadu
- 21% for urea, 50% for organic manure
- Financial Restructuring Proposal
- Waiver of accrued interest and conversion of principal into zero-interest loan