GNFC's Neem Coated Urea Unit Faces Revised Energy Norms, Preliminary Impact Estimated at Rs 61 Crores
Gujarat Narmada Valley Fertilizers and Chemicals Limited (GNFC) has received a notification from the Department of Fertilizers (DoF), Ministry of Chemicals & Fertilizers, Government of India regarding the revised Energy Norms applicable under the Urea Pricing Policy. The revision affects GNFC's Bharuch unit, leading to an estimated positive financial impact for the company.The DoF notification set forth the new Energy Norm for GNFC’s Neem Coated Urea at 6.370 Gcal per Metric Tonne (PMT). This is a change from the existing norm of 6.200 Gcal PMT. The revised energy norm will be applicable from April 1, 2025, until March 31, 2028.
The company has conducted a preliminary assessment based on this notification and estimates a positive financial impact of approximately Rs 61 crores. This financial benefit is distributed across two periods:
- Rs 47 crores pertains to the financial year (FY) 2025-26.
- Rs 14 crores relates to the first quarter (Q1) of FY 2026-27.
The assessment details regarding the revised energy norm and anticipated financial impact are summarized below:
| Metric | Detail | Value |
|---|---|---|
| New Energy Norm | GNFC's Bharuch Unit | 6.370 Gcal per PMT |
| Existing Norm | Previous Standard | 6.200 Gcal per PMT |
| Total Preliminary Impact | Positive Financial Benefit | Rs 61 crores |
| Impact Breakdown | FY 2025-26 | Rs 47 crores |
| Impact Breakdown | Q1 of FY 2026-27 | Rs 14 crores |
GNFC noted that the financial impact is subject to a detailed evaluation, final computation, and appropriate accounting treatment in accordance with applicable Accounting Standards and the provisions of the Urea Subsidy Scheme.
GNFC Stock Price Movement
On Friday, shares of Gujarat Narmada Valley Fertilizers and Chemicals Limited shed 3.25%, settling at ₹510.3 as the equity moved lower. The stock saw a total traded volume of 336,144 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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