The amendment has been introduced to protect the production beyond Re-Assessed Capacity or RAC by urea units and to boost indigenous urea production in the country.

New Urea Policy 2015: It was notified in May 2015 with main objective of maximising indigenous urea production, promoting energy efficiency in the urea units and rationalising the subsidy burden on the government.

• It is mandatory, under this policy, for all indigenous urea manufacturers to neem coat their entire urea production.
• Neem coating would increase Nitrogen Use Efficiency, promote balanced use of fertilisers and prevent diversion of urea for extra-agricultural purposes.