An informal group of ministers headed by Home Minister Rajnath Singh is likely to hold a meeting tomorrow to discuss gas supply to three naphtha-based urea units -- SPIC Tuticorin, MFL Manali and MCFL Mangalore.
The government is keen that the three South India-based units switch over to natural gas at the earliest to produce urea to avoid huge outgo by way of subsidy.
"A meeting has been scheduled for tomorrow. The issue related to conversion of three naphtha-based urea units -- SPIC, MFL and MCFL -- to use gas as the feedstock is on the agenda," sources said.
Agriculture Minister Radha Mohan Singh and Fertiliser Minister Ananth Kumar will also be a part of the meeting.
Besides, the urea policy and nutrient-based subsidy for Phosphatic and Potassic fertilisers will also be on the table, the sources added.
Of the 30 fertiliser plants in the country, Madras Fertilisers Limited (MFL), Southern Petrochemicals Industries Corporation (SPIC) and Mangalore Chemicals and Fertilisers Ltd (MCFL) use naphtha as feedstock for production of urea as they do not have connectivity to gas grid.
Under the Modified New Pricing Scheme-III, the three naphtha-based units were allowed to produce urea from naphtha as feedstock till June 30 2014. The deadline was further put off till October 2014.
Since these firms were unable to meet the October deadline, the Fertiliser Ministry has stopped extending subsidy, thus leading to closure of MFL and SPIC plant. Following representation from stakeholders, the government extended the subsidy till April 16.
