The Government has issued revised energy norms under the new urea policy for existing 25 gas-based urea plants in the country, a move that is expected to save about Rs800 crore in fertiliser subsidy. As per the norms issued by the Fertiliser Ministry, all the gas-based urea manufacturing plants are divided into three groups and a specific energy norm is fixed for each plant.
Fertiliser subsidy stood at about Rs70,000 crore during the last fiscal. Under the first group, plants can consume 5.5 g.Cal of gas per tonne of urea, plants under second group can consume 6.2 g.Cal of gas and those in third group can consume 6.5 g.Cal of gas.
Gas constitutes of about 65-70 per cent of the cost of production of urea and cost of gas used is reimbursed by the Government in the form of subsidy. “New norms issued for all the 25 gas-based urea plants, and it is estimated that there will be savings of Rs800 crore in subsidy payments on account of cost of gas,” a source said.