Minister for Chemicals and Fertilizers Ananth Kumar told Karnataka Chief Minister Siddaramaiah that his Ministry will take it up before the Union Cabinet again for a reconsideration of an earlier decision in 2010 that all urea production units, including the Mangalore Chemicals & Fertilizers Limited, should run only on gas-based production process.
The Chief Minister had pleaded that as the gas pipeline infrastructure could not be set for this plant, yet this should be considered. It was explained to the Karnataka Chief Minister that the subsidy burden arising out of naphtha plants is Rs.40,000 per tonne against Rs.15,000 for gas based production. Kumar also asked the Chief Minister to waive off the VAT on naphtha to reduce the subsidy burden to the extent of the VAT, with an objective of maintaining the indigenous production and supply of urea.
Other things like setting up of another fertilizer unit in Northern Karnataka, a Petroleum chemicals & Petrochemicals Investment region (PCPIR), a National Institute of Pharmaceutical Education and Research (NIPER) and a Vocational training & Plastic Testing Agency under CIPET in the state were also discussed.