GAS - BASED FERTILIZER UNITS
RAJYA SABHA
The New Pricing scheme
for urea units, which has come into effect from 1.4.2003, envisages
that there will henceforth be no capping on production of urea
by the units. Under the Scheme, there shall neither be any reimbursement
of the investment made by a unit for improvement in operations
nor any mopping up of gains of the units as a result of operational
efficiency. These principles are applicable uniformly to all the
units.
The issue of
hidden capacity leading to undue gains by some of the urea units,
which is commonly called as ‘Gold Plating’, has already been addressed
and a communication dated 4.6.2002 on reassessed capacity of 20
urea units has come into effect from 1.4.2000.
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.
