It noted, plants under NUP 2012 are assured a 12 per cent return on equity and remain insulated from the latest tightening of energy norms until the policy period expires. The legacy plants are heavily reliant on government subsidies, which contribute 80-85 per cent of their revenue. Subsidy support comprises compensation for variable costs based on prescribed energy norms and a fixed cost component per tonne. Due to this, the operating profitability for legacy plants has become increasingly dependent on energy efficiency, with manufacturers retaining the benefit of savings achieved below prescribed norms. With tighter norms, legacy urea plants are expected to undergo a structural reset.