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Good news for farmers! A big decision regarding urea in the cabinet meeting, what are the 3 major changes in the new policy?

By Samira Vishwas
  • Good news for farmers!
  • Big decision on urea
  • What are the 3 major changes in the new policy?

Farmers Alert: A major decision was taken today in the Union Cabinet meeting chaired by Prime Minister Narendra Modi. Government approved ‘National Investment Policy for Urea-2026’. This policy will encourage new investments for setting up gas-based urea production plants in the country. What exactly is policy”text-align: justify;”> Sell ​​now and be free… Tata’s share will give a bang? Brokerage rated Sell, Do you have the stock in your portfolio?

The demand for urea is increasing rapidly

The central government aims to reduce the dependence on imports by increasing the production of urea in the country. Also, the government wants to achieve self-reliance in this sector. To achieve these goals, the Union Cabinet has taken a major decision. The demand for urea in the country is increasing rapidly. After the Cabinet meeting, Union Minister Ashwini Vaishnav said that the demand for urea in the country is increasing at a rate of approximately 5 percent every year. He said six new urea plants with an annual capacity of 1.27 million metric tonnes have been set up in the last decade, but there is a need to increase the production capacity in view of increasing demand.

Setting up of six new urea units

According to government information, a total of six new urea units have been set up under the New Investment Policy 2012. These include four urea units set up through joint venture companies (JVCs) of designated public sector undertakings and two urea units set up by private companies.

Three major changes in the new urea policy

Union Minister Ashwini Vaishnav highlighting the central government’s policies said that under the new policy fixed and variable costs will be separated for calculation of subsidy. This change will enable a more transparent assessment of the cost of fertilizer projects and create a clearer strategic framework for investors.

A new limit was set

The new policy has set a new cap for return on equity, with a minimum expected return of 12% to 16%. This will encourage private and public sector companies to set up new projects. According to the new policy, fixed costs in dollars will be converted into Indian rupees after four years. This will help in mitigating the foreign exchange risk. This will reduce the impact of exchange rate fluctuations on both companies and governments. Farmers are likely to get a lot of benefit due to this.

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