Cabinet approves removal of minimum capacity utilization criteria for Single Super Phosphate Mfg Units

New Delhi, Mar 10 (KNN) In order to push major policy reforms in the fertilizer sector, the Union Cabinet today approved the proposal for removing the minimum capacity utilization criteria for the Single Super Phosphate (SSP) units to be eligible for the subsidy under the Nutrient Based Subsidy (NBS) Scheme with immediate effect. 

This is in continuation of other policy reforms made recently which include New Urea Policy, 2015 and Gas Pooling for urea production.

Due to the emphasis on promoting energy efficiency and rationalisation of gas pricing mechanism, highest ever urea production in the period so far has been achieved this year. It is expected that there will be an additional production of 17 lakh MT of urea this year as compared to last year. Moreover, to prevent diversion to non-agricultural use and to enhance productivity, 100% of urea is now neem coated, said a Cabinet release.

This new policy to remove the minimum capacity utilization criterion would put the SSP units on the same footing as other fertilizers and they would be eligible for subsidy irrespective of quantity of SSP produced and sold for agriculture purposes. 

This new policy will help revive smaller SSP units and encourage new SSP units to come up in the country to further boost indigenous production of SSP. It would also provide freedom to the SSP manufacturers to plan their production as per the market dynamics. SSP is also considered as a substitute to DAP, which is largely import based. Growth of SSP industry will not only increase domestic production of phosphatic fertilizers in the country but also its consumption and partly act as a substitute for more costly DAP, the Cabinet release said. 

This would also encourage the evolution of a robust mixed fertilizer market with diversified micro-nutrients to promote balanced fertilization of the soil. 

This new policy would be uniformly applicable to all fertilizers and provide a level playing field. (With PIB Inputs)