17 October 2017

Fertiliser Ministry borrows Rs 25,000 crore as bank loan to pay the increased fertiliser subsidy bill


Fertiliser Ministry borrows Rs 25,000 crore

The department of fertilizers comes under the Central Government Ministries in India namely Ministry of Chemicals and Fertilizers. The ministry functions through two departments namely department of Chemicals & Petrochemicals and the Department of Fertilizers.

The main activities of the Department of Fertilizers i.e. DOF mainly includes planning, promotion and development of the fertilizer industry, planning and monitoring of production, import and distribution of fertilizers and management of financial assistance for indigenous and imported fertilizers.

As per the reports, since the ministry is facing a severe liquidity crunch, the Fertiliser Ministry will borrow Rs 25,000 crore as loans under a special banking arrangement to pay part of the increasing fertiliser subsidy bill.

The report says that, the ministry is facing a shortage of funds to pay the industry’s subsidy bills and has subsequently sent a proposal to Finance Ministry for a special banking arrangement so that it can draw a loan of Rs 25,000 crore from public sector banks at low interest. And during the current economy, the fertiliser subsidy bill might raise to Rs 1.04 crore.

According to the reports, since July, Fertiliser Ministry has not paid the subsidy bills for phosphatic and potassic i.e. P&K fertilisers like muriate of poatsh i.e. MOP and di-ammonium phosphate i.e. DAP.

Source: news.indiamart.com

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