Cabinet approves revision of energy norms under New Urea Policy
22 Mar 2018
The cabinet committee on economic affairs chaired by Prime Minister Narendra Modi, on Wednesday approved a revision of energy norms under New Urea Policy as proposed by the department of fertilizers.
It approved:
(a) The target energy norms under New Urea Policy-2015 for 11 urea units to be implemented from 1st April, 2018.
(b) The extension of the present energy norms with token penalties, under the New Urea Policy-2015 for another two years for 14 urea manufacturing units, which failed to achieve the 'target energy norms'.
(c) Three naphtha based urea units have also been allowed the existing energy norms for another two years or till gas pipeline connectivity is made available to them.
(d) The target energy norms as per New Urea Policy-2015 will be continued for five years with effect from 1st April, 2020.
The extension of present energy norms for the next two years is aimed at ensuring easy availability of urea to farmers throughout the country. It will also help to maximise the indigenous urea production and will lessen the import of urea.
The approval will also help to recover some part of the capital investments by urea manufacturing units for making their units more energy efficient. Energy efficient urea manufacturing units will reduce the carbon footprint and be more environment friendly.
"Chemical fertilisers have played an important role in making the country self-reliant in foodgrain production and provide a very vital input for the growth of Indian agriculture," an official release said.
The energy efficiency norms notified by the department of fertilisers for 2018-19 are capital intensive. The cost economics of the companies does not support the implementation of energy saving schemes as the simple pay back on investment is very long.