Date:06/06/2005 URL: http://www.thehindubusinessline.com/2005/06/06/stories/2005060600370800.htm

Back Fertiliser subsidies

In the Budget, it was suggested thatoptimal usage of natural gas would mitigate the burden of this subsidy.

The demand for natural gas is expected to surge from approximately 117 million m3/day to about 200 million m3/day by 2012. But if the National gas grid and the 3 bcfd capacitated Iran-India gas pipeline projects are expeditiously and successfully implemented, there will be an abundant supply of natural gas and we can expect prices to fall in the future. If this happens and the suggested optimal usage is also achieved, the cost of production of fertilisers can be pruned, and this will bring huge respite to the Government.

S. Sairam

Chennai

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