New Delhi. Fertilizer plants can be set up any where in the country where connectivity to the plant is available or likely to be available in future. The concession to new investment is determined on the basis of parameters prescribed in the policy for new investments in urea sector notified on 4th September 2008.

The reduction in naphtha usage in existing gas based units has reduced the subsidy cost to the Government by approximately 32%. The reduction in subsidy by shifting to natural gas has resulted in savings of subsidy bill. As regards benefits to farmers, the fertilizer subsidy is transferred to the farmers in the form of subsidized Maximum Retain Prices (MRPs) notified by the Government which are much below the normative delivered cost of these fertilizers.

This information was given by the Minister of State for Chemicals and Fertilisers Shri Srikant Kumar Jena in a written reply in the Rajya Sabha today.

He said, some of the fertiliser companies have shifted from Naptha to Natural gas due to easy availability of natural gas from KG-D6 Reliance Industries Limited block.