SME Times News Bureau | 18 Apr, 2019
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
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.