LONDON, June 8, 2017 /PRNewswire/ --
After the failure of the private sector to implement its bold policy of revamping three mothballed urea plants, the Indian government has decided to flex its fiscal muscle in Uttar Pradesh.
Previous attempts to strong-arm domestic urea producers to invest in the region's vintage urea capacity failed owing to concerns over longer-term gas pricing (and availability), as well as the longevity of the subsidy in its current form. The combined risk of this uncertainty had proved too great and without the government underwriting the returns from these plants, with both subsidised gas and the continuation of cost-offsetting subsidy payments, there was no commercial basis for the revamps.
Read the full story: http://bit.ly/Uttar-Pradesh-Urea
Read more about CRU: http://bit.ly/About_CRU
SOURCE CRU Insight