17th December, 2002
Ministry of Chemicals & fertilizers  


NO ADVERSE EFFECT OF NEW PRICING NORMS


LOK SABHA

The Government does not expect any adverse impact on the viability of urea manufacturing units on account of implementation of policy parameters for 7th and 8th Pricing periods alone as Government continues to provide 12 per cent post tax return on networth to these units.

Parameters for 7th and 8th pricing periods were decided with the approval of the competent authority on 16.5.2002 and were notified to the urea companies on 4.6.2002. The 7th pricing period covers the period from 1.7.1997 to 31.3.2000 and the 8th pricing period will cover the period from 1.4.2000 to 31.3.2003 or till new pricing policy comes into existence, whichever is earlier. Based on approved parameters for 7th and 8th pricing period, retention prices of all 32 urea units have already been notified.

This information was given by the Minister of State for Chemicals & fertilizers, Shri Tapan Sikdar, in a written reply to a question in the Lok Sabha today.