The fresh estimates have been based on the interim reassessment of unit capacities carried out by the chemicals and fertilisers ministry. The capacity estimate may go up further, once the Alagh committee, working on determining the amount of subsidies recoverable from units that had overstated their capacities, submits its report.

Meanwhile, the ministry's decision to allow complex fertiliser manufacturers to use 3.4 lakh tonne of urea available within the country, has resulted in a saving of Rs 220 crore worth of foreign exchange, according to a Press release.

The Alagh committee has been given the responsibility of choosing the most suitable method out of the five methods suggested by the G.B. Purohit committee for reassessing capacities of units. If required, the committee may come up with its own method.

Till the Alagh committee submits its report, the fertiliser ministry has decided to reassess capacities moderately as an interim measure. The reassessment of capacities have helped reduce annual subsidy payments by Rs 507 crore and reveals that the country had achieved 95 per cent of self-sufficiency.

For the year 2000-01, the indigenous producers have offered 212 lakh tonne of urea. Of this, nearly 200 lakh tonne has been set aside for direct sales as required under the Essential Commodities Act. The substitution of urea imports for manufacturers of complex fertilisers has helped a number of units in planning their inventories better. Complex fertiliser manufacturers including Coromandal Fertilisers Ltd, MFL, Zuari Industries, GFCL have tied up their supplies of urea with urea manufacturers like Nagarjuna Fertilisers, Chambel Fertilisers and Indian Farmers Fertiliser Cooperative Ltd.