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This is an archive article published on February 1, 2007
New pricing plan for urea units
The cabinet committee on economic affairs today cleared a new pricing scheme for urea units
New Delhi | February 1, 2007 12:00 AM IST
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The cabinet committee on economic affairs (CCEA) today cleared a new pricing scheme (Stage III) for urea units, which, apart from increasing efficiency in urea production also dispenses with the need for indigenous manufacturing units to take prior government approval for additional production.
The policy seeks to encourage indigenous production beyond 100 per cent of installed capacity by introducing a system of incentives for additional output subject to merit order procurement.
Briefing reporters after the CCEA meet, finance minister P Chidambaram said the NPS stage III pricing mechanism will be effective from October 1, 2006 to March 31, 2010.
He said that the scheme is aimed at bringing in cost competitiveness in production and distribution in these plants through switching over to environment friendly fuels.
As per the CCEA decision, the department of fertilisers would separately notify a scheme for conversion of fuel oil/low sulphur heavy stock based units to gas. The policy also encourages setting up of joint ventures abroad where gas is readily available at reasonable prices.
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