New Delhi: On 8th May, The Fertiliser Ministry has formulated the new urea policy and sent a note on it to the Cabinet Committee on Economic Affairs (CCEA) for final approval, Parliament was informed.
"A final Cabinet Committee on Economic Affairs (CCEA) note regarding New Urea Policy-2015 has been approved and (was) sent to CCEA on May 5 for its consideration," Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir said in a written reply to Rajya Sabha.
While presenting the current NDA government's first budget in July 2014, Finance Minister Arun Jaitley had announced that the government would formulate a new urea policy.
To facilitate new investments in urea sector, the Department of Fertiliser has notified and amended New Investment Policy 2012, Ahir said.
As per this policy, the government permits setting up of new plants, he added.
Fertiliser Minister Ananth Kumar had already said that the government is committed to bring reforms in the sector without raising urea prices.
The Centre has already taken steps to boost domestic production of urea, by forming joint ventures for revival of two closed fertiliser plants at Talcher and Ramamgundam, while Cabinet approval has been given for revival of two other plants.
Urea, which is under government control, is sold at a highly subsidised rate of Rs 5,360 per tonne.
The difference between the maximum retail price (MRP) and the cost of production is reimbursed to manufacturers as subsidy by the central government.
At present, the country imports about 8 million tonnes of urea to meet the annual domestic demand of 30 million tonnes.
India produces about 22 million tonnes of urea annually.
