The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has approved the proposal of the Department of fertilizers to extend the duration of New Urea Policy-2015 from April 1, 2019 till further orders, except for the provisions which stand already amended vide notification dated March 28, 2018.

It will facilitate to continue operations and regular supply of urea to the farmers, said an official release.

Based on the CCEA decision, the New Urea Policy-2015 (NUP-2015) has been notified by Department of Fertilizers on 25th May, 2015 with the objectives of maximizing indigenous urea production; promoting energy efficiency in urea production; and rationalizing subsidy burden on the government.

It is expected that the domestic urea sector would become globally competitive in terms of energy efficiency over a period of three years. On the basis of actual energy consumption and preset norms, the units have been divided into three groups and revised energy consumption norms have been fixed for next three financial years and target energy norm have been fixed for 2018-19.

It will drive urea units to select better technology and different measure to reduce energy consumption.

The higher energy efficiency due to aforesaid measure will reduce subsidy bill. It is expected that there would be reduction in the subsidy burden of the government in two ways - reduction in specific energy consumption norms and import substitution on account of higher domestic production.

It is expected that the new urea policy will lead to additional production of   1.7 LMT annually in the next three years.