Madras Fertilizers Ltd seeks continuation of urea subsidy

CHENNAI: Madras Fertilizers Ltd (MFL) has requested the Union Chemical and Fertilizers Ministry to grant permission for producing urea with naphtha as a feed stock and continuation of urea subsidy to industry.

During his recent interaction with Chemical and Fertilizers Minister Ananth Kumar, MFL Chairman and Managing Director I Vijayakumar requested the ministry for grant of permission to produce urea with naphtha as feed stock beyond June 30, a company release said.

Vijayakumar also requested the Minister for continuation of urea subsidy, an MFL release said.

Under the New Pricing Scheme III (NPS-III), Department of Fertilisers had issued a directive on April 2 mandating all Naphtha-based urea producing fertiliser plants to switch over to gas, failing which they would not be eligible for subsidy after June 30.

Tamil Nadu Chief Minister J Jayalalithaa has already taken up the issue in a recent letter to Prime Minister Narendra Modi. She requested the Ministry to take a relook at its decision to stop subsidy to fertilizer units if they do not shift gas-based production by this month-end.

MFL is engaged in the manufacture of ammonia, urea, complex fertilisers and bio-fertilisers at its facilities in Manali, near here, the release said.