Cabinet approves new urea policy
Updated: May 13, 2015 05:03:09pm
New Delhi, May 13 (KNN) The Union Cabinet chaired by Prime Minister Narendra Modi today approved a new urea policy aiming to increase domestic production by 2 million tonnes and reduce its subsidy bill by over Rs4,800 crore annually, but decided not to raise retail prices.
The Cabinet approved a comprehensive New Urea Policy 2015 for the next four fiscals with multiple objectives of maximising indigenous urea production and promoting energy efficiency in urea units to reduce the government’s subsidy burden, the fertiliser ministry said in a statement.
“The policy will result in direct saving of subsidy of around Rs2,618 crore and indirect saving of Rs2,211 crore on account of revised specific energy consumption norms and import substitution, respectively, during the next four years. Total savings would be Rs4,829 crore,” it added.
The new policy is also expected to result in an additional production of around 20 lakh tonnes of urea annually. India’s urea production has remained stagnant at 22 million tonnes (MT) annually and the country has to import about 8 MT to meet the domestic demand.
The policy will ensure timely supply of urea to farmers at the same retail price with lesser financial burden on the exchequer, besides reducing import dependence.
The movement plan for urea will continue to be given by the government every month to urea suppliers to ensure its timely and adequate availability in all parts of the country.
The ministry said savings in energy will bring down the carbon footprint as well. The policy will enable the domestic urea sector, with 30 urea producing units, to become more energy efficient, resulting in rationalisation of subsidy burden. “Beneficiaries of this policy would be all the farmers of the country, urea industry and the government of India,” it said.
The maximum retail price (MRP) of urea for farmers has been left untouched at Rs268 per bag of 50 kgs, excluding local taxes. Farmers would have to pay an additional Rs14 per bag for neem-coated urea.
Earlier, the government had approved gas pooling policy under which all urea units would get gas at a uniform price. (KNN Bureau)
The Cabinet approved a comprehensive New Urea Policy 2015 for the next four fiscals with multiple objectives of maximising indigenous urea production and promoting energy efficiency in urea units to reduce the government’s subsidy burden, the fertiliser ministry said in a statement.
“The policy will result in direct saving of subsidy of around Rs2,618 crore and indirect saving of Rs2,211 crore on account of revised specific energy consumption norms and import substitution, respectively, during the next four years. Total savings would be Rs4,829 crore,” it added.
The new policy is also expected to result in an additional production of around 20 lakh tonnes of urea annually. India’s urea production has remained stagnant at 22 million tonnes (MT) annually and the country has to import about 8 MT to meet the domestic demand.
The policy will ensure timely supply of urea to farmers at the same retail price with lesser financial burden on the exchequer, besides reducing import dependence.
The movement plan for urea will continue to be given by the government every month to urea suppliers to ensure its timely and adequate availability in all parts of the country.
The ministry said savings in energy will bring down the carbon footprint as well. The policy will enable the domestic urea sector, with 30 urea producing units, to become more energy efficient, resulting in rationalisation of subsidy burden. “Beneficiaries of this policy would be all the farmers of the country, urea industry and the government of India,” it said.
The maximum retail price (MRP) of urea for farmers has been left untouched at Rs268 per bag of 50 kgs, excluding local taxes. Farmers would have to pay an additional Rs14 per bag for neem-coated urea.
Earlier, the government had approved gas pooling policy under which all urea units would get gas at a uniform price. (KNN Bureau)
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