CCEA approves arrangement for payment of outstanding subsidy to fertilizer companies
Updated: Oct 20, 2014 12:23:13pm
New Delhi, Oct 20 (KNN) With a view to help fertilizer companies overcome their liquidity problems due to delay in payment of subsidy, the Cabinet Committee on Economic Affairs (CCEA) has approved ex post facto the implementation of the special banking arrangement (SBA) for outstanding claims on account of fertilizer subsidy.
“CCEA chaired by the Prime Minister Narendra Modi, today approved ex post facto the implementation of the Special Banking Arrangement (SBA) for Rs 14,500 crore for outstanding claims on account of fertilizer subsidy in the year 2013-14,” according to an official statement.
Government is making fertilizers namely Urea and 22 grades of Phosphatic and Potassic (P&K) fertilizer available to farmers at subsidized prices through fertilizer manufacturers / importers.
Subsidy to fertilizer companies is paid from funds allocated under regular budget estimates for each year.
“In order to meet carried over subsidy liabilities and help fertilizer companies overcome their liquidity problems, due to delay in payment of subsidy, an SBA had been made during 2013-14 with a consortium of nationalized banks to avail loans with the approval of the Ministry of Finance,” the statement added.
The loan together with Government interest amounting to Rs 169.33 crore has been repaid from Budget Estimates for 2014-15, within the sanctioned budget under the Vote on Account. (KNN/SD)
“CCEA chaired by the Prime Minister Narendra Modi, today approved ex post facto the implementation of the Special Banking Arrangement (SBA) for Rs 14,500 crore for outstanding claims on account of fertilizer subsidy in the year 2013-14,” according to an official statement.
Government is making fertilizers namely Urea and 22 grades of Phosphatic and Potassic (P&K) fertilizer available to farmers at subsidized prices through fertilizer manufacturers / importers.
Subsidy to fertilizer companies is paid from funds allocated under regular budget estimates for each year.
“In order to meet carried over subsidy liabilities and help fertilizer companies overcome their liquidity problems, due to delay in payment of subsidy, an SBA had been made during 2013-14 with a consortium of nationalized banks to avail loans with the approval of the Ministry of Finance,” the statement added.
The loan together with Government interest amounting to Rs 169.33 crore has been repaid from Budget Estimates for 2014-15, within the sanctioned budget under the Vote on Account. (KNN/SD)
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