Aditya Birla Nuvo's urea plant in Uttar Pradesh resumes production

New Delhi: Aditya Birla Nuvo on April 3, said the company has resumed production at its urea plant in Jagdishpur, Uttar Pradesh. "The company has restarted its ammonia/urea plant at Jagdishpur (UP) and expected to produce urea tentatively by late hours of April 2, 2015," Aditya Birla Nuvo said in a regulatory filing.

During the plant shut down, the company undertook various maintenance jobs, it added. The company had closed its urea production on February 27 as the current policy of the government made the production beyond capacity unviable. Urea is a controlled commodity.

The government provides the difference between cost of production and MRP as subsidy. For production beyond 100 per cent capacity, the subsidy is calculated on the basis of import prices.According to sources, this makes production beyond capacity unviable as import prices have come down substantially. The annual capacity of the Birla plant is about 1.6 million tonnes.