Hailing Cabinet Committee on Economic Affairs' (CCEA) move to hike the fixed cost for urea plants by Rs 350/tonne, experts believe the government has given some relief, but is yet to meet the industry expectations.
The Cabinet Committee on Economic Affairs (CCEA) on Friday okayed Rs 350/tonne increase in the fixed cost for urea plants in accordance to the Group of Minister's recommendations.
Fixed cost include salary and wage expenses, contract labour, repair and maintenance, and selling costs. Experts say, the fixed cost increase, which has been a long-pending demand of the industry, will not be sufficient to cover the incremental jump in actual costs.
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