The Cabinet Committee on Economic Affairs on Friday cleared the hike in fixed cost of urea by up to Rs 350 per tonne, a move that would lead to increase in subsidy by about Rs 900 crore.
The Committee also approved changes to the policy that aims at encouraging new investment in the urea sector by removing 'guaranteed buyback' clause and including a provision of bank guarantee of Rs 300 crore from companies.
Published 28 February 2014, 17:31 IST