Fertilisers stocks gain ahead of CCEA meet on urea policy
Shares of fertiliser companies gained 1-5 percent on Thursday as the Cabinet Committee on Economic Affairs (CCEA) is expected to approve a new urea investment policy today that is likely to incentivise fertiliser firms setting up new plants and expanding existing capacity.
December 06, 2012 / 15:31 IST
Shares of fertiliser companies gained 1-5 percent on Thursday as the Cabinet Committee on Economic Affairs (CCEA) is expected to approve a new urea investment policy today that is likely to incentivise fertiliser firms setting up new plants and expanding existing capacity.
In 2008, the government had announced a 'New Investment Policy' to boost urea production, but the scheme failed to attract fresh investment in the sector. India faces shortage of 10 million tonnes of urea, which is met through imports. According to sources, "The new urea investment policy is on CCEA agenda on Thursday." The fertiliser ministry expects the new urea investment policy would attract a fresh investment of about Rs 35,000 crore to increase domestic production by 8 million tonnes. In the proposed new investment policy, the Ministry has recommended giving 12-20 per cent post-tax return on fresh capital infused by the manufacturers for setting up of new plants, expansion and revamp of existing ones. FACT rallied nearly 5 percent while National Fertiliser and RCF were up 3 percent each. Chambal Fertiliser, Deepak Fertiliser and Zuari Global gained more than 1 percent.(With inputs from PTI) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
