The Cabinet Committee
on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi
has given its approval for amendment in Para 5 of New Urea Policy (NUP)
- 2015 relating to the production beyond Re-Assessed Capacity (RAC) and
inclusion of Para 8 in NUP - 2015.
The said amendment will protect the production beyond RAC by the urea
units and is expected to boost indigenous urea production in the
With the approval of Cabinet, New Urea Policy – 2015 was notified on
25th May, 2015 with the objective of maximising indigenous urea
production, promoting energy efficiency in the urea units and
rationalizing the subsidy burden on the Government. By aforesaid
amendment, ceiling imposed o production beyond Re-Assessed Capacity
during the year 2016-17, has been raised so as to enable all urea unit
to produce additional production which otherwise were not able to do so
due to low Import Parity Price.
Further, to address any future fluctuation in Import Parity Price that
would have adverse impact on the production beyond RAC by urea units,
Department of Fertilizers has been authorized to take appropriate
decision in consultation with Department of Expenditure.
All stakeholders namely farmers, urea manufacturers and the Government
would be benefitted from the amendment.
Earlier, with the approval of CCEA, Department of Fertilizers has made
it mandatory for all the indigenous urea producers to neem coat 100% of
their production of urea, with the objective of promoting balanced use
of fertilizers, to increase Nitrogen Use Efficiency and to prevent
diversion of urea for the purpose other than agriculture.