Mangalore Chemicals resumes urea production
This follows the decision of the centre government to continue the payment of subsidy for urea plants using naphtha as feedstock
 "Mangalore Chemicals resumes urea production")
The UB Group-promoted Mangalore Chemicals and Fertilizers Ltd has re-started manufacturing operation at its urea plant from January 07, 2015. The company, which had shut down operation of the plant since October 1, 2014, resumed production after the government notified extension of subsidy for 100 days on production of urea using naphtha as feedstock, according to a PTI report.
The government had stopped the extension of subsidy to the naphtha-based urea plants as cost of production of urea was as high as Rs 43,000 per tonne compared to Rs 18,000 per tonne using gas as feedstock. Following this, Mangalore Chemicals, SPIC Tuticorin and Madras Fertilisers Ltd had stopped the production of urea in October last year after subsidy payments were stopped.
Addressing media in New Delhi yesterday, Ananth Kumar, Minister of Chemicals and Fertilizers, said, that all these three companies have now resumed production, following the government's decision to continue the payment of subsidy for urea using naphtha as feedstock.
The government had stopped the extension of subsidy to the naphtha-based urea plants as cost of production of urea was as high as Rs 43,000 per tonne compared to Rs 18,000 per tonne using gas as feedstock. Following this, Mangalore Chemicals, SPIC Tuticorin and Madras Fertilisers Ltd had stopped the production of urea in October last year after subsidy payments were stopped.
Addressing media in New Delhi yesterday, Ananth Kumar, Minister of Chemicals and Fertilizers, said, that all these three companies have now resumed production, following the government's decision to continue the payment of subsidy for urea using naphtha as feedstock.