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News: The Cabinet Committee on Economic Affairs approved the National Investment Policy for Urea-2026 for Atmanirbhar Bharat.
About National Investment Policy for Urea-2026 for Atmanirbhar Bharat (NIPU-2026)
- National Investment Policy for Urea-2026 for Atmanirbhar Bharat (NIPU-2026) is a policy to encourage new investments in gas-based urea manufacturing units in India.
- Piloted by: This policy is piloted by the Department of Fertilizers.
- Aim: The policy aims to encourage new investments, increase indigenous urea production, and achieve self-sufficiency.
- Key Features of NIPU-2026:
- Production Targets: The policy covers urea manufacturing units and is expected to add one crore metric tonnes of urea production capacity with eight to nine new plants.
- Transparent Cost Structure: The policy separates fixed and variable costs to improve transparency in the pricing framework.
- Return on Equity: The policy provides a Return on Equity (RoE) band of 12% to 16%, with a minimum of 12% and a maximum of 16%.
- Foreign Exchange Protection: The policy reduces foreign exchange risk by converting fixed costs into Indian Rupees after four years based on prevailing exchange rates.
