The Union Cabinet is believed to have approved a proposal to allow 14 urea units, which could not meet the new energy norms under the 2015 policy, to continue with the existing norms till March 2023, sources said.
According to sources, the existing energy norms for 14 urea manufacturing units have been extended for further period till 31st March, 2023. Some penalty has been imposed while giving an extension.
These plants have been directed to meet the energy norm by March 2023.
The extension of present energy norms will ensure easy availability of urea to farmers through domestic production, they added.
The New Urea Policy-2015 (NUP-2015) was notified by the Department of Fertilizers on 25th May, 2015 with the objective of maximising indigenous urea production, promoting energy efficiency in urea production and rationalising subsidy burden on the government.
The NUP-2015 covers 25 gas-based existing urea units. As per NUP-2015, the existing gas-based urea units were classified into three groups based on their preset energy norms.
The target energy norms were given to 25 urea manufacturing units for the year 2018-19 onwards. However, only 11 units were able to achieve the target energy norms.
The target energy norms for the remaining 14 urea manufacturing units were extended from time to time with appropriate penalties.
On July 7, 2020, the existing energy norms of the 14 urea units were further extended till September 30, 2020 with penalty, as per the fertiliser ministry website.
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