Trombay V unit of Rashtriya Chemicalsto be restarted after 4 years

 The Cabinet Committee on Economic Affairs (CCEA) has approved a special dispensation under New pricing Scheme, Stage-III, to enable restart of production of urea from the Trombay-V unit of M/s. Rashtriya Chemicals Limited which has remained closed for last more than 4 years. The restart of RCF Trombay will add to indigenous production of urea and reduce import dependence towards meeting the requirement of urea in the country. It has also approved restart of existing Naphtha based units which are under shutdown, on naphtha, provided they convert to gas before March 2010, as is necessary for other operational Naphtha based units.

The CCEA also approved a policy to encourage the use of gas in conversion process in urea units. The new policy provides for a Special Fixed Cost towards reimbursement of the cost of conversion to the urea unit. The conversion of these units will lead to increase in efficiency of urea production in the country and also add to usage of natural gas, which is the most efficient and cleaner fuel / feedstock for production of urea in the country.

The above decisions will add to indigenous production and add efficiency in production.