Skip to main content

Rs 7000 cr Special Banking Arrangement to meet fertiliser subsidy

Whenever there is a shortage of funds, the Government tries to liquidate the pending subsidy by arranging loans under a Special Banking Arrangement

Related Category: Sub Category:

Minister of State for Planning (IC) and Chemicals & Fertilizers, Rao Inderjit Singh, in a written reply to a question on details of fertiliser subsidy arrears to be given to the fertiliser companies and corrective measures being taken by the Government, in Lok Sabha today, informed that the Department of Expenditure has conveyed its approval for the Special Banking Arrangement (SBA) upto Rs. 7000 crores from nationalised banks to meet fertiliser claims from September 2017 to February 2018.

“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 Certificate from State governments,” the Minister said.
 
Singh informed that the Department of Expenditure had given approval of an SBA upto Rs. 7000 crores by following two conditions, the Department of Fertilizers should use only minimum required amount making sure that amount raised is actually utilised during current Financial Year and 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.

Votes with an average with

Related Story

Artificial insemination to preserve Bengal goat germplasm

Artificial insemination (AI) is a simple technique which is well adapted in dairy cattle and buffalo breeding. Its contribution in helping India achieve, the highest milk production of the world,…

NIF to confer children with IGNITE Awards for innovations

National Innovation Foundation – India (NIF) announced the winners of Dr APJ Abdul Kalam IGNITE 2018 competition Monday on the birth anniversary of former President of India, Dr APJ Abdul Kalam,…

Know the Social Entrepreneur of the Year India 2018

Prema Gopalan of Pune based Swayam Shikshan Prayog (SSP) was conferred with the Social Entrepreneur of the Year (SEOY) India Award 2018 by the Schwab Foundation for Social Entrepreneurship, the…