(a) whether the Government have made any efforts to reduce the
cost involved in the production of urea;
(b) if so, the details of the efforts made during the last three years in
this direction;
(c) if not, the reasons therefor;
(d) whether the cost is increasing due to extravagant expenditure by
the concerned officials; and
(e) if so, the reaction of the Government thereto?
THE MINISTER OF CHEMICALS AND FERTILIZERS (SHRI SUKHDEV SINGH DHINDSA)
(a) to (e): A statement is laid on the table of the House.
Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred
Question No. 393 to be answered on 17.12.2002
(a) to (e): Improving the efficiency of urea producing units with the
objective of bringing down the cost of production and controlling the
subsidy outgo is an ongoing exercise of the Government. Keeping that in
mind, policy parameters governing the determination of retention prices of
urea units were recently revised for the 7th and 8th pricing periods and which
have been notified to urea companies on 4.6.2002. The 7th Pricing Period
will cover the period from 1.7.1997 to 31.3.2000, the 8th Pricing Period will
cover the period from 1.4.2000 to 31.3.2003 or till the new pricing policy
comes into existence, whichever is earlier. While finalising the policy
parameters for the 7th and 8th Pricing Periods, the parameters pertaining to
plant capacity, capacity utilization norm, consumption norms have been
updated and revised. Vintage allowance of 5% both in respect of capacity
utilization and consumption norms, which was allowed to urea units which
have been in operation for 10 years or more, has also been withdrawn in
phased manner during the 7th pricing period and completely w.e.f. 1.4.2000.
Updation/revision of these norms has contributed towards bringing down
the cost of production of urea.