The Government released fertiliser subsidy up to Rs 7,000 crore, says Minister
In a written reply to a question in Lok Sabha, Minister of State for Planning (IC) and Chemicals & Fertilizers, Rao Inderjit Singh, informed that the Department of Expenditure has conveyed its approval for the Special Banking Arrangement (SBA) up to Rs. 7000 crore from nationalised banks to meet fertiliser claims from September 2017 to February 2018.
The minister was answering a question regarding the details of fertiliser subsidy arrears to be given to the fertiliser companies and corrective measures being taken by the Government. “The Government releases subsidy to the fertiliser companies on a regular basis subject to availability of budget. Whenever there is a shortage of funds, the Government tries to liquidate the pending subsidy by arranging loans under a Special Banking Arrangement (SBA). The delay in release of fertiliser subsidy is due to paucity of funds and non-receipt of Quality Certificates from State governments,” the Minister said.
Singh informed that the Department of Expenditure had given approval of an SBA up to Rs. 7000 crores under two two conditions. Firstly, the Department of Fertilizers should use only minimum required amount and making sure that amount raised is actually utilised during current Financial Year. Secondly, the rate of interest to be borne by Government of India shall be 6.84 percent per annum or the actual rate of borrowing by fertiliser companies, whichever is lower, the minister added.
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