(a) whether Naphtha, fuel oil and gas are used as fuel for production of urea
in the country;
(b) if so, whether the cost of production has been found to be varying based on the
fuel used in production;
(c) if so, the details thereof and the production cost of urea produced during 2006-
07; and
(d) the percentage of each of the said fuel being used at present in the country by
fertilizer producers?
MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND
FERTILIZERS AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS
(SHRI B.K. HANDIQUE)
(a) & (c) : Natural gas, naphtha, fuel oil (FO) and low sulphur heavy stock (LSHS)
are primarily used as feedstock and fuel in the manufacture of urea. Cost of production
of urea is, among other things, dependent upon the cost of feedstock and fuel. For gas
based units, cost of feedstock constitutes about 60% of the total cost of production of
urea, whereas for naphtha and FO/LSHS based units, it is up to 75% of the total cost of
production.
In the year 2006-07, the weighted average concession rate of different groups
based on concession rates of urea units notified till 20.11.2006 is given below :-
Sl.No. Group Provisional weighted average concession price of units in each group (Rs/MT of urea)
1. Gas – Pre-92 5497
2. Gas – Post-92 7188
3. Naphtha – Pre-92 17243
4. Naphtha – Post-92 12489
5. FO/LSHS 11430
6. Mixed 9437 Total 9480
(d): Percentage of each feedstock and fuel used in manufacture of urea in 2005-06 is as follows:
Gas Naphtha FO LSHS Coal 57 23 3 10 7