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