The new investment policy for urea sector has resulted in increase of indigenous urea production by approximately two million tonnes in the country through revamp of existing plants, the government has said.

The government has notified on September 4, 2008, the new policy to attract investment in the urea sector.

\"The policy has resulted in increase of indigenous urea production by approximately two million tonnes through revamp of existing plants. No new investments under Expansion, Revival and Greenfield plants were materialised,\" the Department of Chemicals and Petrochemicals has said.

Giving a reply in the Lok Sabha on Thursday, Minister of State for Chemicals and Fertilisers Srikant Kumar Jena said that a committee constituted to examine the issues relating to investment policy and make appropriate recommendations is finalising its report.

In order to attract new investments, the Group of Ministers (GoM) constituted to review the fertilizer policy decided in its meeting held on January 5 to constitute the Committee under the chairmanship of Planning Commission Member Saumitra Chaudhuri.

\"The Committee had several meeting and the report is being finalised soon. For P&K fertilizers, the phosphatic sector are 90 per cent dependent on imports of raw material and Potassic fertilizers are 100 per cent dependent on imports. Hence, no new investment in P&K sector except in SSP fertilizers is expected,\" the minister said.

He further said that the government is paying full inland transportation cost to the manufacturers, importers for moving fertilizers in trains from plant, ports to various destinations in the country up to block level.

\"It is incumbent on the companies to supply fertilizer from nearest rake point to retailer through whole sellers or directly at company'''s cost. Since the recommendation of the Tariff Commission for road freight varies from state to state and district to district, the cost incurred or reimbursed by fertiliser companies to retailers through whole sellers or directly is not maintained by Department of Fertilizers,\" Jena informed.