'We have provided Rs 10,000 crore as SBA as demanded by the fertiliser ministry,' a senior finance ministry official said.
The SBA, under which fertiliser companies can take loans against subsidy receivables, would help the industry meet its fund requirements till the time the cash subsidy is released by the finance ministry. Earlier this month, Parliament had given its approval for an additional Rs 2,000 crore for providing additional cash subsidy under the head of indigenous fertilisers. The government had provided Rs 70,586 crore for fertiliser subsidy in 2013-14 against a demand of Rs 105,497 crore by the Department of Fertilizers. The urea subsidy was exhausted after making payments till July, while the provision for phosphatic and potassic (P&K) fertilisers will finish by December end after making payments till September, another government official said. A subsidy of Rs 41,158.85 crore was allocated for urea and Rs 29,426.88 crore for P&K fertilisers for this fiscal. The official said the fertiliser ministry will not be left with any money to pay subsidy bills for the third and fourth quarters of the financial year ending in March 2014.
The SBA, under which fertiliser companies can take loans against subsidy receivables, would help the industry meet its fund requirements till the time the cash subsidy is released by the finance ministry. Earlier this month, Parliament had given its approval for an additional Rs 2,000 crore for providing additional cash subsidy under the head of indigenous fertilisers. The government had provided Rs 70,586 crore for fertiliser subsidy in 2013-14 against a demand of Rs 105,497 crore by the Department of Fertilizers. The urea subsidy was exhausted after making payments till July, while the provision for phosphatic and potassic (P&K) fertilisers will finish by December end after making payments till September, another government official said. A subsidy of Rs 41,158.85 crore was allocated for urea and Rs 29,426.88 crore for P&K fertilisers for this fiscal. The official said the fertiliser ministry will not be left with any money to pay subsidy bills for the third and fourth quarters of the financial year ending in March 2014.