Fertiliser Ministry gets Rs 9,000-cr under SBA to clear subsidy bill
17 Jan 2014 12:08 AM GMT
'The Finance ministry has approved Rs 9,000 crore as special banking arrangement (SBA) against the demand of Rs 10,000 crore made by the Fertiliser Ministry for paying pending subsidy bills,' a source said.
This is the second time in the current fiscal that Fertiliser ministry has received additional funds as SBA to pay subsidy bills. Against Rs 12,000 crore sought by the Department of Fertilisers in September last year, the Finance Ministry had approved Rs 5,500 crore under a special banking arrangement at an interest rate of 10.7 per cent per annum. The government agreed to bear interest of 8 per cent per annum with 2.7 per cent interest to be borne by the industry. The government had provided Rs 70,586 crore for fertiliser subsidy in 2013-14 against a demand of Rs 1,05,497 crore sought by the Department of Fertilisers.
The urea subsidy was exhausted after making payments till July, while the provision for phosphatic and potassic (P&K) fertilisers had been utilised by December-end after making payments till September, he added.
This is the second time in the current fiscal that Fertiliser ministry has received additional funds as SBA to pay subsidy bills. Against Rs 12,000 crore sought by the Department of Fertilisers in September last year, the Finance Ministry had approved Rs 5,500 crore under a special banking arrangement at an interest rate of 10.7 per cent per annum. The government agreed to bear interest of 8 per cent per annum with 2.7 per cent interest to be borne by the industry. The government had provided Rs 70,586 crore for fertiliser subsidy in 2013-14 against a demand of Rs 1,05,497 crore sought by the Department of Fertilisers.
The urea subsidy was exhausted after making payments till July, while the provision for phosphatic and potassic (P&K) fertilisers had been utilised by December-end after making payments till September, he added.
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