The govt of India is seriously thinking about raising the capital expenditure limit for the fertiliser plants. This is being done to attract fresh investment. Of late, the fertiliser sector has been suffering a serious lack of investment, comment sources in the govt.
Through rejigging the investment policy, the govt hopes to save this crucial sector from a situation in which its progress has virtually grounded to a halt. Stagnation in the fertiliser production could upset the fundamentals of the nation’s economy, sources add.
According to sources, the govt. intends giving all kinds of incentives including substantial return on capital to the companies that are willing to invest. That apart, the present investment limit for greenfield and brownfield projects would be scrapped to make things easy for the prospective manufacturers.
However, some people say a scheme to attract investors would work only if the govt not only gave its investment policy a needed tweak but also took such steps as would reduce the whole bureaucratic rigmarole.
Sources in the govt. believe a sizeable increase in the fertiliser production would also mean reduction in the fertiliser subsidy payment.
The fact that a recast investment policy would lure even the fertiliser cooperative behemoths into investing in a big way, is being accepted on all hands.