According to the existing policy, only the capital expenditure incurred byunits up to the costed year (which means a year preceding the last yearbefore commencement of the new pricing policy) is considered for refunds.This results in holding up of refund of expenditure already incurred oncapital additions by sick units. It leads to a delay in reimbursement ofmoney and makes things more difficult for sick units, an official releasesaid.

As per the new policy decision taken by the FICC, in case of sick units thepast capital additions made under modernisation and revamp scheme from1990-91 onwards will be recognised on a yearly basis and due refunds will bemade.

This will be subject to the condition that these assets must have beencommissioned, capitalised and put into use before completion of the entirescheme. The amount received has to be re-invested in equipment, plant andmachinery (with lists of equipment installed) to the satisfaction of thefertiliser department.