01 January 2013

Fertilizer Ministry seeks loan from banks to pay subsidy bills

Department of Fertilizers of Govt of India under the Ministry of Chemicals & Fertilizers is facing a problem of funding as the subsidy allocated in Budget 2012-13 has got finished in August 2012 itself. The Govt of India had allocated Rs 60,974 crore in current budget. To meet the subsidy bills of fertilizer companies, Fertilizer Ministry sought to get loan of Rs 30,000 crore from banks. Department of Fertilizers sent a letter to the Finance Ministry of Govt of India to arrange a low interest rate loans from banks under special banking management system. Finance Ministry may directed to the banks for a special provisions.

Fertilizer subsidies is expected to be Rs 1.04 lakh crore in the current financial year. Out off this Rs 1.04 lakh crore,  Sources said that Fertilizer Ministry could not pay the subsidy bills of  Phosphate, Potash and DAP companies since July 2012. Similarly subsidy bills of  Urea companies is held-up since August 2012.

Another source says that out off this subsidy bill of Rs 1.04 lakh crore, Rs 21,000 crore is last years outstanding. In addition, its including an estimated bill of the first quarter of financial year 2013-14(April -June).

Stay tuned to Fertilizer News Blog for more news on subsidy bills !

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