New Urea Investment Policy

CCEA approved a Urea Investment policy.
Objective of this policy -

• India currently imports 30% of its Urea requirement
• Govt. wants to reduce this import dependency by incentivizing investments in setting up new plants and expanding existing capacity. 

Under this policy, Govt. will provide 10-12 percent of post tax return on fresh capital infused.

To ensure this return, Govt. will bear the whole cose of Natural Gas, the main raw material and which accounts around 80% of the total input cost.

Govt. currently controls the urea pricing.