Govt gives 3 more months to fertiliser plants to switch to Naptha

Original deadline set by the govt was June 30

The Cabinet Committee on Economic Affairs has approved the continuation of production of urea from Madras Fertilizers Limited (MFL) - Manali, Manglore Chemicals and Fertilizers Ltd (MCFL) - Mangalore and Southern Petrochemical Industries Corporation (SPIC) - Tuticorin using existing feedstock naphtha till September.

It may be noted, under the Modified New Pricing Scheme-Ill for existing urea units, the three naphtha based units that is MFL - Manali, MCFL - Mangalore and SPIC - Tuticorin were allowed to produce urea from naphtha as feedstock till June 30, 2014. The deadline is now extended for three more months.

The Committee, which was chaired by the Prime Minister Narendra Modi, has approved the continuation of production of urea by using existing feedstock naphtha for three months beyond 30th June, 2014, that is from 1st July 2014 to 30th September, 2014.

This will enable these units to continue urea production for the next three months and help in meeting the requirement of urea for Indian farmers in the ongoing kharif season.

This decision will ensure food security of the country. All stake holders namely farmers, urea manufacturers in the country and the Government will be benefitted by this, according to Government's release.