India to switch three fertiliser units to gas

Jan 21, 2010 01:00 AM

The cabinet approved a project to convert three liquid fuel-based fertiliser plants of National Fertilizers to natural gas at a cost of 40.67 bn rupees ($ 884 mm), a government statement said.
The conversion of the three plants in northern India will save 1.2 bn rupees of fertiliser subsidy, it said.

Fertiliser makers in India are given subsidy by the government to compensate for the shortfall caused by state-set cap on prices for farmers. In February last year, India unveiled a plan to help fertiliser plants use natural gas instead of fuel oil and naphtha.
India's gas output has almost doubled after Reliance Industries began producing gas from its deepwater block in the east coast.