This would add a substantial Rs 30 crore to the total project cost of Rs 1,200 crore required to set up a urea project, say industry analysts. The fertiliser industry was earlier exempted from this duty. The industry has not been spared in this budget. According to Rashtriya Chemicals and Fertilizers chairman and managing director DK Varma, "we are totally disappointed by the budget as the industry was expecting the government to announce a clear policy on the industry." Varma said that the5% duty will affect new fertiliser projects and will have a cascading impact on future decisions for expansions. Among new projects chalked out for expansion is RCF's Thal expansion Kribhco's project in Hazira.