Ramagundam Fertilizer Unit is located about 240 kms away from Hyderabad, the capital of Andhra Pradesh State and in the district of Karimnagar. The Unit was established at Ramagundam due to abundance of coal that is used as feedstock

This unit was approved by Govt. of India and established with a project cost of Rs.217.00 crores. Industrial license for setting up a coal based Fertilizer factory to manufacture Urea was obtained in November 1971. Planning and Development Division of FCI Ltd. (presently M/s PDIL, Sindri, India) supplied the detailed engineering for the plant. Commercial Production of Ammonia and Urea commenced on 01-11-1980.

The Urea and Ammonia plants have been designed with a capacity to produce 4,95,000 MT and 2,97,000 MT per annum respectively.

From the commencement of commercial production on 01.11.1980 till the year 1998-99, 25,15,594 MT of Urea and 15,48,971 MT of Ammonia have been produced.However production of Urea and Ammonia has been suspended from 01.04.1999 due to non-availability of sufficient budgetary support from Govt. of India.