Union Cabinet Approves Gas Pooling For Fertilizer Plants

31 March, New Delhi

The Cabinet Committee on Economic Affairs Chaired by Prime Minister Narendra Modi Tuesday has approved gas pooling for fertiliser plants.

Briefing reporters in New Delhi after the meeting, Minister for Communication and IT Ravi Shankar Prasad said that the decision on gas pooling for the sector will help save a subsidy of Rs 1, 550 crore annually.

He said, the move will also increase the operational efficiency of existing fertilizer manufacturing units.He said, the decision will lead to enhance production of urea and meet farmers’ demand.

In an another decision, the Cabinet gave its nod for establishing 2,000 kilometers Jagdishpur-Haldia gas pipeline to feed shut fertiliser and power plants and city gas.

The project will cost Rs 10000 crore. He said, it will benefit eastern parts of the country and will make possible for the government to supply gas to one crore households. The Cabinet also decided to revive the closed units of fertilizers in Gorakhpur and Barauni through bidding process.

CCEA has also approved the allocation of Rs. 4948 crore for Gross Budgetary Support (GBS) to the scheme for the Indian Strategic Storage Programme for Storage of Crude Oil by Indian Strategic Petroleum Reserves Limited (ISPRL).