Can some briefly explain how the new urea policy announced by the government will help our fertilizer industry?
The subsidy rates for urea produced through different routes have been fixed at three levels. For additional urea produced through revamp of existing units, the subsidy would be 85 per cent of the IPP.
Urea produced through brownfield expansion at existing locations would attract a higher subsidy rate of 90 per cent of IPP.
The closed units of Hindustan Fertiliser Corporation Ltd and Fertiliser Corporation of India Ltd that are being revived will attract 95 per cent subsidy, according to the new investment policy based on the recommendations of Dr Abhijit Sen Committee.
For greenfield projects, the Government would seek competitive bidding. Simultaneously, the policy also envisages promoting joint venture projects abroad ...more