AMN / New Delhi
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi Friday gave its approval for the amendment in the New Urea Policy.
According to official source here, the amendment in Para 5 relates to the production beyond Re-Assessed Capacity (RAC). The said amendment will protect the production beyond Re-Assessed Capacity (RAC).
by the urea units and is expected to boost indigenous urea production in the country. With the approval of Cabinet, New Urea Policy – 2015 was notified on May 25, 2015 with the objective of maximising indigenous urea production, promoting energy efficiency in the urea
units and rationalising the subsidy burden on the Government.
“By aforesaid amendment, ceiling imposed on production beyond Re-Assessed Capacity during the year 2016-17, has been raised so as to enable all urea unit to produce additional production which otherwise were not able to do so due to low Import Parity Price,” the official release said.
Further, to address any future fluctuation in Import Parity Price that would have adverse impact on the production, the Department of Fertilisers has been authorised to take appropriate decision in consultation with Department of Expenditure.
“All stakeholders namely farmers, urea manufacturers and the Government would be benefitted from the amendment,” the statement said.
Earlier, the government had made it mandatory for all the indigenous urea producers to Neem coat 100 per cent of their production of urea, with the objective of promoting balanced use of fertilisers, to increase Nitrogen Use Efficiency and to prevent diversion of urea for the purpose other than agriculture.