No Domestic Natural Gas for Deepak Fert
Government has stopped supply of domestic natural gas to Deepak Fertilisers saying it manufacturers nonsubsidised crop nutrients and as such should not get the cheaper fuel.
The oil ministry, acting on a request from the department of fertilisers, on Tuesday issued orders for immediate stoppage of 0.5 million standard cubic metres per day of domestic gas being supplied to the company.
“Department of fertilisers vide letter dated May 1 has conveyed that maximum retail price for nitrogen phosphorus and potassium (NPK) fertilisers under nutrient-based subsidy scheme is free and the manufacturers of NPK can absorb the high cost of ammonia in the MRP, whereas the MRP of urea is fixed and statutorily controlled by government,” it said.
Owing to the shortfall in the supply of domestic gas, the urea manufacturing units have to rely on exorbitantly high priced imported LNG, the cost of which the government has to bear in the form of subsidy.
“Accordingly, the department of fertilis- ers has requested that the supply of gas to Deepak Fertilisers, which is exclusively manufacturing NPK fertilisers, should be stopped with immediate effect and the said quantity of domestic gas may be allocated/shifted to urea manufacturing units, which are facing shortfall in supply of domestic gas or using high priced LNG, preferably to National Fertilizers,” it said. The ministry ordered that supply of all domestic gas including that of RIL’s KG-D6 to Deepak Fertilisers “may be stopped with immediate effect.”— PTI