Three urea plants in south to continue operation

Three naphtha-based fertiliser plants in southern India, including Mangalore Chemical and Fertilisers Limited, would continue production of urea, the government announced on Wednesday.

The Madras Fertilisers Limited (Manali), MCFL, Mangalore and Southern Petrochemicals Industries Corporation, Tuticorin will continue production of urea using naphtha till natural gas is made available to the plants through pipelines, Fertilisers Minister Anant Kumar told reporters here.

Under the Modified New Pricing Scheme (NPS)-III, the three were allowed to produce urea from naphtha as feedstock till June 30 last year, which was later extended twice by the Cabinet to April 16 this year. The decision to allow the three plants continue production of urea was taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.

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