NEW DELHI: Four reports tabled in Parliament by the Standing Committee on Chemicals and Fertilisers in March point out that funds are rising for pharmaceuticals, petrochemicals and fertilisers but remain underutilised, even as the government expands schemes to reduce import dependence.
The pharmaceuticals action taken report notes that Budget Estimates rose from Rs 2,244.15 crore in 2022–23 to Rs 6,920.20 crore in 2025–26, yet allocations were reduced by 15–17% at the revised stage because infra schemes could not proceed on time.
The department attributes this to delays in statutory clearances and slow uptake under production-linked incentive and bulk drug park schemes, which together account for 60% of total spending.
In the chemicals and petrochemicals sector, the report shows the department projected Rs 199.76 crore for 2026–27, but received Rs 185.72 crore after scrutiny by the finance ministry.
The reduction is attributed partly to lower demand from autonomous institutions and the absence of one-off expenditures such as loans to PSUs in earlier years. The fertiliser report presents a contrasting picture of scale but not of structure.
Domestic production has expanded, with urea output rising from 239 lakh metric tonnes in 2018–19 to 307 lakh MT in 2024–25, while phosphatic and potassic output increased from 175 to 214 lakh metric tonnes over the same period. Yet the system continues to rely on imports for key inputs, and subsidies remain central to pricing and distribution.
Across the four reports, the committee identifies similar administrative bottlenecks. These include delays in tendering and weak coordination.