Fertiliser sector awaits new policy
PRESS TRUST OF INDIA

NEW DELHI, JAN 2: The uncertainty in the fertiliser sector continued even during the year 1999, as the industry was crying for a long-term policy to meet the new challenges emanating from the post-WTO era and attract fresh investment in the sector.

The Hanumantha Rao committee report on fertiliser pricing was put into cold storage following strong opposition by the industry on the appropriateness of the new pricing regime suggested by the committee. Government selected the route of consultation with all concerned but even after the expiry of 20 months, there was no sign of the new policy.

Because of the prolonged uncertainty, not a single grassroot plant was set up in the last several years and the sector failed to attract foreign direct investment (FDI) as there were other attractive sectors such as telecom and power. The issue of demand-supply gap of fertiliser in the country kept on bothering the Planning Commission and ministries of chemicals and fertilisers and agriculture as there was no consensuson the matter.

Four mega fertiliser projects which were cleared by the Cabinet were returned by the Public Investment Board for reconsideration. The fertiliser ministry is sending a fresh proposal to the Cabinet but the clearance prospect of these projects seems quite bleak. Deregulated phosphatic and potasic fertiliser sectors continued to be gripped by policy uncertainties besides distortions in implementation of concession support scheme.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.