The Centre on Friday approved the proposal of Department of Fertilisers to remove ambiguities in the Modified New Pricing Scheme -III (NPS-III) for the determination of fixed costs for the urea units.
"The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval to the proposal of Department of Fertilisers to remove ambiguities in the Modified New Pricing Scheme -III (NPS-III) for determination of fixed costs for the urea units," a press release informed.
"Modified NPS-III was notified on April 2, 2014. However, due to the ambiguous language of the notification, it could not be implemented. The above decision will facilitate its smooth implementation which will result in the grant of Additional Fixed Cost of Rs 350/MT to 30 urea manufacturing units," added the release.
The implementation of the Modified NPS-III will result in gains to existing urea units to the extent of their actual increase in fixed cost with ceilings as mentioned in the proposal which will ensure that no unit is benefited unduly," the statement further said, adding that this will facilitate the continued operations of the urea units resulting in a sustained and regular supply of urea to the farmers.
According to the statement, the approval will also grant the special compensation of Rs 150/MT to urea units, which are more than 30 years old and converted to gas, which will incentivise these units to remain viable for sustained production.