11 urea companies to get Rs 500 crore on settling gas marketing issue

Eleven urea manufacturing companies will get around Rs 500 crore as reimbursements after the Union Cabinet last week approved the determination of marketing margin on the supply of domestic gas to fertilizer (urea) units from May 1, 2009, to November 17, 2015.

The marketing margin is charged by gas marketing companies from consumers over and above the cost of gas for taking on the additional risk and cost associated with the marketing of gas.

Fertiliser industry representatives said the gas supplied from the KG-Basin in Andhra Pradesh to these 11 firms between 2009 and 2015 for which the private supplier was paid