The Ministry for Chemicals and Fertilizers has moved a cabinet note to continue subsidy for the three naphtha-based fertilizer plants. The subsidy to Mangalore Chemicals and Fertilizers, Tuticorn-based Southern Petrochemical Industries Corporation (Spic) and the Chennai-based Madras Fertilizers was discontinued after they failed to meet the deadline to upgrade their plants to gas-based. All these units together have annual production of 15 lakh tonnes of urea.

"I have moved a cabinet note to extend the subsidy to these plants till they are connected to a gas pipeline. The issue would be taken up in the next cabinet meeting," said Ananth Kumar, Union Minister for Chemicals and Fertilizers.

The minister also announced that the government will invest about Rs. 50,000 crore to revive four fertilizer plants and set up two new plants in Madhya Pradesh and Karnataka.

The Government also plans two more gas grids connecting Dabhol in Maharashtra with Bangalore and central region covering Madhya Pradesh and Chhattisgarh with an investment of Rs. 10,000 crore.