The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has allowed 14 urea manufacturing units, which could not meet the new energy norms under the 2015 policy, to continue with the existing energy norms for further period of 2 years with token penalties. Under the new urea policy 2015, 27 urea units were to meet the energy efficiency norms by the end of fiscal year 2017-18. Out of 27 urea units, only 11 urea units have mostly achieved the target.
The cabinet also decided to allow three naphtha-based units to carry on with existing energy norms for another two years or till they get gas pipeline connectivity. Besides, it approved implementation of new energy norms under the new urea policy 2015 for 11 urea units with effect from April, 2018, which would help the government save subsidy of about Rs 268 crore. In addition, it approved continuation of the new energy norms for five years with effect from 2020.
According to the CCEA, the extension of present energy norms for further period of 2 years will ensure easy availability of urea to farmers throughout the country. It will also help to maximise the indigenous urea production and will lessen the import of urea. Apart from this, it will also help to recover some part of the CAPEX invested by urea manufacturing units for making their units more energy efficient. It noted that energy efficient urea manufacturing units will reduce the carbon footprint and it will be more environment friendly.