No Do­mes­tic Nat­u­ral Gas for Deepak Fert

The Economic Times - - Economy -

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

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