National Desk, 1st February: The Union Cabinet, chaired by Prime Minister Narendra Modi, has granted approval for determining the Marketing Margin on the supply of domestic gas to Fertilizer (Urea) Units. This decision, covering the period from May 1, 2009, to November 17, 2015, marks a structural reform in the gas sector.
Marketing Margin, charged by gas marketing companies, is approved by the government to compensate for additional risks and costs associated with gas marketing. While the marketing margin on domestic gas to urea and LPG producers was determined in 2015, the current approval addresses the period from May 1, 2009, to November 17, 2015.
This move is expected to provide additional capital to various Fertilizer (Urea) Units, covering marketing margins paid for domestic gas procured during the specified period. The rates are based on those already paid from November 18, 2015, onwards.
Aligned with the vision of AatmaNirbhar Bharat, the approval aims to incentivize manufacturers, encouraging increased investment. The resulting boost in investment is anticipated to contribute to self-sufficiency in fertilizers and create a sense of certainty for future investments in the gas infrastructure sector.