Government for promotion of domestic fertilizers

 The Dollar Business Bureau The Minister of State for Chemicals & Fertilizers, Hansraj Gangaram Ahir, on Friday, informed about the government’s moves focused on the incentivization of the domestic production of fertilizers. According to the Minister, a study conducted by the Department of Fertilizers through Ernst & Young focused on the impact of Nutrition Based Subsidy (NBS). According to the findings of the study, the overall burden from the Phosphatic & Potassic (P&K) fertilizers declined, the availability of the same improved, and there has been a significant increase in prices payable by farmers for P&K fertilizers. The study further recommended that the prices of P&K fertilizers must be reasonable and the Indian players in mines should make a strategic investment abroad by creating ‘sovereign fund’, in order to secure supplies of P&K fertilizers. The Minister informed that the Department has received twelve proposals for setting up of Revamp, Expansion, Revival and Greenfield plants based on the New Investment Policy (NIP) - 2012. The interest shown by the project proponents is noted by the Department of Fertilizers and it has directed them to furnish the required Bank Guarantee to the Department of Fertilizers after securing financial closure for the project, he added. He further said the final Cabinet Committee on Economic Affairs (CCEA) Note to establish a Unified Pricing Formula aimed at incentivisation of the domestic production of urea beyond re-assessed capacity from existing urea units has been sent to CCEA for approval. The Minister further informed that the Department of Agriculture assesses requirement of fertilizers every cropping season and for this purpose, the department will organise the Zonal Conferences before every Cropping Season. Thereafter, in Zonal Conferences in consultation with Stakeholders namely States, Department of Fertilizers, Lead Fertilizer Suppliers and Fertilizer Association of India (FAI), among others, the requirements will be finalized, he added.    

This article was published on April 24, 2015 – 11:49 pm IST.