CCEA approves amendment to New Urea Policy-2015

The Cabinet Committee on Economic Affairs (CCEA) has given its approval for amendment in Para 5 of New Urea Policy (NUP), 2015.
The amendment is related to the production beyond Re-Assessed Capacity (RAC) and inclusion of Para 8 in NUP 2015 to protect the production beyond RAC by urea units and boost indigenous urea production in the country.

Key Facts
  • It also raises ceiling imposed on production beyond RAC during the year 2016-17 to enable all urea unit to produce additional production which otherwise were not able due to low Import Parity Price (IPP).
  • Further, Department of Fertilizers has been authorized to take appropriate decision in consultation with Department of Expenditure to address any future fluctuation in IPP that would have adverse impact on the production beyond RAC by urea units.
New Urea Policy 2015 
  • It was notified in May 2015 with the objective of maximising indigenous urea production, promoting energy efficiency in the urea units and rationalizing the subsidy burden on the Government.
  • Under it, it is mandatory for all the indigenous urea producers to neem coat 100% of their urea production with the objective of increase Nitrogen Use Efficiency, promote balanced use of fertilizers and prevent diversion of urea for purpose other than agriculture.



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