Subsidy to naphtha fertiliser plants to continue: Ananth Kumar

The government is likely to continue subsidy to three naphtha-based fertiliser plants and the issue will be taken up during the next Cabinet meeting.
The government subsidy to three naphtha-based plants namely Mangalore Chemicals and Fertilisers, Tuticorin-based Southern Petrochemical Industries Corporation (SPIC) and the Chennai-based Madras Fertilisers, expired on September 30, after these companies failed to meet the government's deadline to upgrade their plants to gas-based units.
"A Cabinet note to extend subsidy to these plants till they are connected to a gas pipeline has been moved. The issue will be taken up at the next cabinet meeting," Union Minister for Chemicals and Fertilisers Ananth Kumar told reporters on the sidelines of the India Chem 2014 conference here.

He said that details could not shared since the modalities are still being worked out. The government is keen on firms producing urea but the price of naphtha remains a concern, he said.
The government is also in talks with the Iranian government to set up a fertiliser unit at a cost of Rs 10,000 crore, he said.
Inaugurating India Chem 2014 Ananth the Minister said: "One of the most important objectives behind organising India Chem series is to highlight manufacturing possibilities in the country's chemical industry. This event provides an excellent opportunity for Indian chemical companies to showcase their capabilities and strengths to the world chemical community".

The chemical and petrochemical industry is at the threshold of "sustainable" growth with the Government of India providing a framework of support and encouragement, he said.