New Delhi: Designed to cut subsidy in a big way, guidelines for the long-term fertiliser policy based on group pricing was on October 9 finalised by the Group of Ministers with the emphasis on energy efficiency and enhanced productivity.

The GoM on urea, headed by Planning Commission Deputy Chairman K C Pant, finalised its recommendations for formulation of the long-awaited fertiliser policy which would now be placed before the Cabinet for approval, Fertilisers Minister S S Dhindsa said after the group's meeting.

The GoM recommendations, mainly based on the report of the Expenditure Reforms Commission (ERC), are sought to be implemented from April, 2003, after the policy is unveiled by the government, he said. "The emphasis is on energy efficiency and stepped-up productivity."

The second phase is proposed to begin from April 1, 2004, with an energy efficiency drive, sources said, adding that stage-II would be operational for a maximum period of two years subject to performance evaluation.

They said variable costs on escalation and de-escalation on group prices would be taken into consideration with effect from April, 2003.

There could be standard deviation of about 20 per cent based on retention prices for two years.

Regarding savings on subsidy, officials were, however, not in a position to specify the likely quantum saying it would be ascertained after detailed calculations involving a wide range of factors.

The ERC, headed by K P Geethakrishnan, had proposed in its September 2000 report a four-phase programme for eventual decontrol of urea over a period of six years.

PTI