Government to use economically unviable coal mines to produce cheaper urea


The government will soon exploit economically unviable coal mines for gasification to produce cheaper urea to cut down on huge Rs 55,000 crore annual subsidy on the fertilizer, Union Minister Nitin Gadkari said on Saturday.

“We cannot extract coal from 40 per cent coal mines in the country, which are not economically viable. The idea is to use these soon for coal gasification by which we can get urea at a cost of only Rs 8,000 to Rs 10,000 a tonne,” the Road Transport and Highways Minister said at Economic Times Global Business Summit here.

Four of the 30 chemical and fertilizer factories in India produce urea from naphtha, the cost of which comes to around Rs 40,000 a tonne, he said.


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