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February 28, 2001                                       Feedback  

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D&B Budget Impact Analysis: Fertilisers sector

Overall Impact: Neutral

  • In continuation with his announcement in the last budget, the Finance Minister has reiterated his intention of phasing out Retention Price Scheme (RPS) in medium term.

  • Recommendation of the Expenditure Reforms Commission will be implemented for phased decontrol of urea by 01/04/2006. The first phase includes

    • Replacement of RPS by Group Concession Scheme
    • Linkage of rate of concession given to urea producing unit with the international prices of feed stocks like naphtha, Fuel Oil (FO), Low Sulfur Heavy Stock (LSHS).

  • No hike has been suggested in the prices of urea.

  • With several measures taken to boost agriculture sector, demand for fertiliser may also witness a rise.

Rediff-Dun & Bradstreet Budget Impact Analysis
Budget 2001

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