Industry assures additional 10 lakh tonne of urea for Rabi season

New Delhi, Nov 27 (UNI) In view of demand of more urea from the states, Chemical and Fertiliser Minister Ram Vilas Paswan has asked the urea producing units whose cost of production is below Import Parity Price to make extra efforts to increase the production in the Rabi season.

Mr Paswan expressed his desire for additional production when a delegation headed by Fertiliser Association of India (FAI) Chairman U S Jha and its Director General B K Saha along with senior members of the industry called on him here today.

The representatives of the industry responded favourably and assured the Minister that the Rabi production capacity of the urea units will be utilised by 120 per cent of the installed capacity.

This effort would give an additional production of at least 10 lakh metric tonne of urea.

Mr Paswan thanked the industry for immediate positive response.

During the meeting, the delegation submitted to the Minister that a huge amount of subsidy bills are pending because of budgetary constraints. Non-timely payment of subsidy has effected seriously the working capital requirements of different fertiliser companies leading to operational difficulties.

The industry pointed out that about Rs 10,000 crore of subsidy bills were pending including claims related to escalation/de-escalation.

The Minister assured the industry that he shared their concern and the matter is being taken up appropriately.

The delegation also pointed out about the increase in freight of phosphatic and potassic fertilisers by almost 25 to 30 per cent in the last one year and urged him for actual reimbursement of freights so that fertiliser can be transported to remote areas effectively.

Mr Paswan assured that ''he is seized of the matter and action has already been initiated in this regard.'' UNI BBS PV BST1836