Mangalore Chemicals & Fertilizers Limited (MCFL) on Wednesday shut its urea plant due to expiry of permission given by the government for production of farm nutrient from high cost feedstock naptha.
"The company will inform the stock exchanges of any further development," MCFL said. Last month on August 27, government had approved the continuation of production of urea from three plants, including MCFL, using naptha as feedstock for three months till September 30.
According to the modified NPS-III urea policy, on the basis of which cost of production of urea is calculated, the high cost naphtha-based urea units, namely SPIC Tuticorn, MFL Manali and MCFL were allowed to continue the production of urea.
