Cabinet approves revised energy norms under New Urea Policy

The Cabinet Committee on Economic Affairs (CCEA) has given approval of revised energy norms to the Department of Fertilizers.

Mar 22, 2018 09:03 IST India Infoline News Service

fertilizer
The Cabinet Committee on Economic Affairs (CCEA) has given approval of revised energy norms to the Department of Fertilizers. The resolution passed by CCEA involved the following points:

• The target energy norms under New Urea Policy-2015 (NUP-2015) for 11 urea units is to be implemented w.e.f. April 1, 2018.
• The extension of present energy norms with token penalties, under the NUP-2015 for a further period of two years for 14 urea manufacturing units which failed to achieve the target energy norms.
• Three naphtha based urea units are also allowed to follow the existing energy norms for another two years or till gas pipeline connectivity, whichever is earlier.
• The target energy norms as per NUP-2015 will be continued for five years w.e.f. 1st April, 2020.

The extension of present energy norms for further period of two years would ensure easy availability of urea to farmers throughout the country. It will also help to maximize the indigenous urea production and will lessen the import of urea.

The approval will also help to recover some part of the capital expenditure invested by urea manufacturing units for making their units more energy efficient. Energy efficient urea manufacturing units would reduce the carbon footprint and be more environment friendly.

Chemical fertilizers have played an important role in making the country self-reliant in food grain production and provide a very vital input for the growth of Indian agriculture.

The energy efficiency norms notified by the department for the year 2018-19 are capital intensive. The cost economics of the companies does not support the implementation of energy saving schemes as the simple pay back on investment is very long.

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