Fertiliser makers may get Rs900 crore per year for three years for efficiency improvement
05 Jan 2011
According to a fertiliser ministry proposal that is to be taken up by a group of ministers (GoM) today, fertiliser companies could get Rs900 crore every year for the next three years as a part of an efficiency improvement package in the sector.
The proposal is under consideration as part of a new regime for urea, which is mainly expected to benefit non-gas based plants. The fourth stage of the New Pricing Scheme, or NPS, for urea units was to get operational by 1 April, 2010. The new regime would replace the NPS Stage 4.
According to a government official, in view of gas availability constraints, non-gas urea units could be given additional three years to switch to gas.
The Rs 900-crore package would be distributed in a manner that would help slash production costs at various urea units, to bring them on par in terms of productivity.
According to fertiliser secretary S Behuria, nothing was certain as yet and it was merely one of the proposals that had been put up for consideration by the GoM tomorrow.
Behuria was speaking to The Economic Times. He added that it was one of the proposals that had been put up and would be considered by the GoM today.