Urea investment policy under discussion, not rejected: FAI

Fertiliser stocks took quite a hit on Friday and there is a sense of uncertainty on what exactly has happened on the policy front. In an interview to CNBC-TV18, Satish Chander, director general of Fertilizer Association of India (FAI) clears the air and says the new investment urea policy is not rejected; in fact it is under discussion.

"It is still under discussion and a consensus proposal will definitely emerge that will enable the country to put up more units and more investments in the urea sector," says Chander. He says that though the new urea investment policy has nothing to do with the Nutrient Based Subsidy (NBS), ultimately, they will need to be merged. "It means that if subsidy level of X is given to the existing plants, then to the new plants subsidy level of X + Y need to be given, in order to have both old and new plants at the same level, in context of subsidies," he further explained.
 
Below is an edited transcript of Satish Chander's interview to CNBC-TV18. Also watch the accompanying video. Q: Which part of the policy has been rejected and what the issues of objection are from the Finance Ministry? A: There are two things which are under consideration now