Fertiliser Sector

The government will implement the recommendations of the Expenditure Reforms Commission in a phased manner to bring about complete decontrol of urea by April 2006. Beginning April 1, 2001, the follwing measures would be taken:

Highlights

* Unit-specific Retention Pricing Scheme will be replaced by a Group Concession Scheme

* The current MRP arrangement will continue and the concessions for each group will be calibrated, enabling fertiliser units to sell urea at the stiplated MRP

* The rate of concession for units based on naphtha/FO/LSHS will be linked to international prices of these feedstocks