CCEA approves removal of ambiguities in the Modified NPS-III

Aiming at maximizing the production of Urea within India, The Cabinet Committee on Economic Affairs (CCEA) on Friday approved the proposal of Department of Fertilizers to remove ambiguities in the Modified New Pricing Scheme-III (NPS-III). The approved NPS-III seeks to determine fixed costs for the urea units.

The proposal was approved at a CCEA meeting that was chaired by Prime Minister Narendra Modi.

The approved decision will facilitate smooth implementation of the scheme and will result in a grant of an additional fixed cost of Rs 350 per metric tonnes to 30 urea manufacturing units. Its implementation will result in gains of the existing urea units to the extent of their actual increase in fixed cost with ceilings as mentioned in the proposal and will ensure that no unit is benefitted unduly.

Besides, it will also facilitate the continued operations of the urea units resulting in a sustained and regular supply of urea to the farmers.

The approval will also grant the special compensation of Rs 150 per metric tonnes to urea units which are more than 30 years old and converted to gas which will incentivize these units to remain viable for sustained production.

The measures will ensure maximum domestic production of urea and reduce will reduce import dependency.

About Modified New Pricing Scheme-III

The Modified NPS-III was notified on April 2, 2014, but was not implemented due to the ambiguous language that was used in the notification.