Skip to main content

Outstanding claims for fertiliser subsidy get Cabinet nod

Outstanding claims for fertiliser subsidy gets Cabinet nod

Under the Special Banking Arrangement, a total loan of Rs 9,969 crore for settlement of outstanding subsidy bills with State Bank of India (SBI) was raised by the Government

Related Category: Sub Category:

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has accorded the ex-post facto approval for implementation of Special Banking Arrangement (SBA) for Rs 10,000 crore for payment of outstanding claims on account of fertiliser subsidy in the year 2016-17. CCEA has also approved that, in future, Department of Fertilizers would avail the SBA with the concurrence of Department of Expenditure.

Under the SBA, a total loan of Rs 9,969 crore for settlement of outstanding subsidy bills with State Bank of India (SBI) was raised by the Government. The loan amount along with interest liability on the part of Government amounting to Rs 80.90 crore were paid to SBI.

SBA for an amount of Rs 10,000 crore for the year 2016-17 has already been implemented/ operationalised to overcome the liquidity problems of the fertiliser companies.

Government is making available fertilisers, namely Urea and 21 grades of P&K fertilisers to farmers at subsidised prices through fertiliser manufacturers and importers. For making funds available to the fertiliser companies against their subsidy claims, Ministry of Finance had approved SBA for an amount of Rs 10,000 crore with Government interest liability limited to G-Sec rate. Accordingly, an SBA was worked out with SBI for an amount of Rs 10,000 crore to meet the outstanding subsidy claims of fertiliser companies. The loan together with Government interest thereon has been repaid from BE 2017-18 within the sanctioned budget.

Votes with an average with

Related Story

Cabinet okays MoUs with Lebanon in agriculture, with Romania in tourism. Photo: Shutterstock
Cabinet okays MoUs with Lebanon in agriculture, with Romania in tourism

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the signing of a Memorandum of Understanding (MoU) between India and Lebanon for cooperation in the field of agriculture and…

Jharkhand invites invest in agriculture & food processing
Jharkhand invites invest in agriculture & food processing

The Government of Jharkhand, as a part of its endeavour to develop agriculture sector in the state and with a view to provide a focused platform to the prospective investors in the agriculture and…

India to share agriculture expertise with Suriname
India to share agriculture expertise with Suriname

Union Minister of Agriculture and Farmers’ Welfare Radha Mohan Singh met Lekhram Soerdjan, Minister of Agriculture, Animal Husbandry and Fisheries of the Republic of Suriname in Krishi Bhawan, New…