Chambal Fertilisers and Chemicals today said it has shut down one of its urea units located in Kota district in Rajasthan due to unfavourable government policy for the 2014-15 fiscal. The plant has been closed down from February 8 and expected resume operations during last week of March or first week of April 2015, the company said in a filing.
"The shutdown of the plant is necessitated due to unfavourable policy of the Government of India for production beyond 100 percent capacity of the plant for the financial year 2014-15," the filing said.
The company said it will carry out routine maintenance activities during the shutdown period. The industry is awaiting amendments in the New Investment Policy to ensure that urea production beyond the cut off quantity becomes viable.
Chambal Fertilisers has two urea plants with a combined production capacity of 2 million tonnes per annum.
It also has a joint venture in Morocco for manufacturing phosphoric acid. Shares of the company rose by 1.97 percent to Rs 62 per piece at 1240 hours on the BSE.
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