Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

Naphtha-fed urea units won’t be closed down


  1. Centre had decided to discontinue subsidy for the Naphtha based urea fertilizer plants in the South since October 2014.
  2. Mangalore Chemicals and Fertilisers, Madras Fertilisers and Southern Petrochemicals Industries Corporation affected.
  3. But since Natural Gas could not be supplied to these units in time, Center has agreed to give a grace period.
  4. Fertilizer plants are the biggest consumers of domestically produced natural gas.
  5. Natural gas accounts for as much as 65-70% of urea production costs in India.

Discuss: In 2013, CSAT asked a ques on which industry has the highest water input (Ans – Thermal). Make a note for Fertiliser and Gas.