<p>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.<br /><br /></p>.<p>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.<br /></p>
<p>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.<br /><br /></p>.<p>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.<br /></p>