CCEA extends present energy norms for some urea production units

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday extended the "present energy norms" for a limited number of urea manufacturing units to maximise indigenous production.

The development follows CCEA's approval for a Department of Fertilisers' proposal for "extension of present energy norms with token penalties, under the New Urea Policy-2015 for a further period of two years for 14 urea manufacturing units which failed to achieve the target energy norms".

The approved proposal also encapsulates provision for three Naphtha based urea units which will be allowed the existing energy norms for another two years or till gas pipeline connectivity is completed.

"The extension of present energy norms for further period of 2 years will ensure easy availability of urea to farmers throughout the country. It will also help to maximise the indigenous urea production and will lessen the import of urea," the CCEA said in a statement.

According to the CCEA, 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," the statement said.

Besides, the CCEA approved the "Target Energy Norms under New Urea Policy-2015" for 11 urea units which will be implemented from April 1, 2018.

--IANS

rv/vd