Govt seeks 50% hike in gas supply to urea plants

India Infoline News Service | Mumbai |

The objective is to save Rs. 15,000 crore in subsidises as imported LNG is costly

The Ministry of Fertiliser has demanded a hike of around 50% in the domestic natural gas allocation to urea plants in order to replace imported LNG, according to a media report.
The objective is to save Rs. 15,000 crore in subsidises as imported LNG is costly, the report added.
Recently, fertiliser ministry wrote to the petroleum ministry to seek raising domestic gas allocation to urea sector from 31.5 million standard cubic meters per day to 46 mmscmd.
Using one mmscmd of imported LNG, whose delivered price at user plant is about $20, for 330 days leads to extra subsidy of Rs 1,060.20 crore per annum.




 

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