CCEA nod to gas pooling for fertiliser sector

By: |
New Delhi | Updated: April 01, 2015 11:07 AM

Government approved a proposal to pool the prices of domestic natural gas and imported liquefied natural gas and supply them to domestic fertiliser plants at a uniform delivered price.

gas pooling, gas pooling CCEA, natural gas price, natural gas news, domestic natural gas price, domestic natural gas, liquefied natural gas, LNG, fertiliser plants in india, fertiliser plant, CCEA, Ravi Shankar Prasad, business news, India NewsThe government on Tuesday approved a proposal to pool the prices of domestic natural gas and imported liquefied natural gas (LNG) and supply them to domestic fertiliser plants at a uniform delivered price. (Reuters)

The government on Tuesday approved a proposal to pool the prices of domestic natural gas and imported liquefied natural gas (LNG) and supply them to domestic fertiliser plants at a uniform delivered price.

Briefing reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA), telecom Minister Ravi Shankar Prasad said gas pooling will help save Rs 1,550 crore in subsidy and will benefit 30 urea plants. There are 30 urea producing units in the country, of which 27 are gas-based and three run on naphtha.

Fertiliser plants consume about 42.25 million standard cubic meters per day of gas for manufacture of subsidised urea. Out of this, 26.50 mmscmd comes from domestic fields and the rest 15.75 mmscmd is imported liquefied natural gas (LNG), according to a PTI report. The pooling mechanism will be effective from next month.

Also, an Empowered Pool Management Committee (EPMC) comprising representatives of oil ministry, department of fertiliser, department of expenditure and GAIL will be formed. The committee would approve the plant-wise gas supplies to be made under gas pool mechanism and LNG purchases, according to the agency report.

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India-UAE FTA talks: Duty relief likely for job-intensive sectors
2MGNREGS Outlay: Ministry seeks additional Rs 25,000 crore for rural jobs scheme
3Tracking kharif: As crops start arriving, most mandi prices rule below MSPs, may hit rural demand