Special Banking Arrangement for payment of outstanding subsidy to fertilizer companies
By TIOL News Service
NEW DELHI, NOV 01, 2017: THE Cabinet Committee on Economic Affairs has accorded ex-post facto approval for implementation of Special Banking Arrangement (SBA) of Rs. 10,000 crore for payment of outstanding claims on account of fertilizer 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.
Government is making available fertilizers, namely Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. For making funds available to the fertilizer 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.
|