SUBSIDY TO FERTILIZER MANUFACTURERS
RAJYA SABHA
Subsidy to urea manufacturers
is being provided under the New Pricing Scheme (NPS) which has
come into effect from 1.4.2003. Under the NPS, the urea units
have been placed in six groups based on vintage and feedstock,
for determining the group based concession rates. These groups
are: pre-1992 gas based units, post-1992 gas based units, pre-1992
naphtha based units, post-1992 naphtha based units, Fuel Oil/Low
Sulphur Heavy Stock (FO/LSHS) based units and mixed energy based
units. The group based concession rates w.e.f. 1.4.2003 would
be computed on the basis of the retention prices applicable as
on 1.4.2002 duly updated for escalation/de-escalation in respect
of feedstock, fuel, purchased power and water for the year 2002-03.
Subsidy on decontrolled
phosphatic and potassic fertilizers is given under the Concession
Scheme. The concession rates for di-ammonium phosphate (DAP) are
worked out for all the manufacturers after adjusting the imported
ammonia and imported phosphoric acid prices prevailing in the
international market. Rates of concession for complex fertilizers
are worked out after adjusting the nutrients cost based on the
raw materials, ammonia, urea, phosphoric acid prices prevailing
in the international market and naphtha prices prevailing in the
indigenous market. Manufacturers of single super phosphate (SSP)
are provided subsidy uniformly at the rate of Rs.650 per metric
ton.
The NPS for urea
and the methodology of calculating the rates of concession for
decontrolled phosphatic and potassic fertilizers have been adopted
to ensure greater transparency, efficiency and uniformity and
to allow fair price to the manufacturers/ suppliers of these fertlizers.
This information
was given by the Minister of Chemicals & fertilizers, Shri
Sukhdev Singh Dhindsa, in a written reply to a question in the
Rajya Sabha today.
