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Gadepan-III: Chambal flags concerns
Sep 02: Chambal Fertilizers has flagged the following concerns on its Gadepan-III plant
"The Fertiliser Industry is highly regulated and dependent upon subsidy policies of the Government of India. Gadepan-III Plant is under NIP-2012 which is effective for 8 years from the start of production. The changes in such policies may sometimes adversely affect the Company.
8Further, the low prices of Urea in the International market coupled with increase in gas prices due to increase in prices of crude oil in international
 market may affect the Urea production beyond re-assessed capacity of Urea plants in the country.
8The short provision of funds in the Union Budget for fertiliser subsidy has become a regular feature. The budget allocation of the Government  of India for fertiliser subsidy is normally over by the third quarter of the Financial Year and the fertiliser companies have to wait for subsidy till  the next financial year. The delay in payment of subsidy by the Government of India increases the finance cost of the Company. The interest
 burden due to delay in payment of subsidy and change in subsidy policy may impact the profitability of the Company," Chambal said
The outlook is positive, according to the company
8"The new Urea capacity addition through Gadepan-III Plant shall augur well for the Company as it will benefit the Company on different counts such as increase in sales volumes, cost efficiency due to optimum resource utilisation and economy of scale," the company said
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