Modified NPS III for Existing Urea Units in India

Modified NPS -III for existing urea unit: Duration of Modified NPS-Ill – One year from the date of issue of this notification. Concession rates of urea Units – The calculation shall continue as per NPS – III and its amendments subject to the following modifications: Additional Fixed Cost: The max. additional fixed cost (towards increase in the four components, viz., salaries & wages, contract labour, selling expenses and repair & maintenance) of Rs. 350/MT to existing urea units or actual increase in above four components of fixed cost during the year 2012-13 compared to the year 2002-03, whichever is lower will be paid. This Will be based on the certified cost data for above four components for the year 2012-13 to be provided by all urea Units. In respect of KFCL and BVFCL-11 units, for which cost data of four components is not available either for the year 2002-03 or 2012-13, the actual increase in these four components as per the certified cost data for the latest year over and above Rs. 521/MT(weighted industry average during 200203) subject to maximum of Rs, 350/MT will be allowed. Minimum Fixed Cost: The minimum fixed cost of Rs. 2300/MT or actual fixed cost prevailing during 2012-13,whichever is lower, after taking into account the compensation at 3.1(a) and (b) above, will be paid. This Will be based on
certified fixed cost data for the year 2012-13, to be provided by all urea units. Special compensation of Rs. 150/MT will, be paid to gas based urea plants which have converted to gas and are more than 30 years old. This is in addition to para 3.1 and 3.2 above. Continuation of Production from High Cost Naphtha Based Units SPIC Tuticorin, MFL Manali and MCFL Mangalore Reimbursement to naphtha & FO / LSHS based units Continuing Preset Energy norm of Naphtha Units converting to gas