The Budget will give a boost to the agriculture sector. A healthy four per cent annual growth expectation for the sector, as well as an additional subsidy for fertilisers, will have a positive impact; it will also increase liquidity. This will help in partially solving the working capital issue for fertiliser manufacturers.
Like other fertilisers, urea should also be brought under the nutrient-based subsidy scheme. It would be a good measure towards the ultimate cause of balanced fertilisation and would help in improving the produce and agri productivity of the farmers. Currently, due to the disparity in pricing between urea and other fertilisers, there is indiscriminate usage of urea, which has a huge impact on the soil-nutrient balancing.
The notable allocations for the NHAI and "power for all" will create demand for coal and would be an immense growth opportunity to our technical ammonium nitrate business.
The Budget also announced that advanced ruling on tax liability would be available to resident tax payers. This measure will help boost mergers and acquisitions and provide tax road map for complex transactions and avoid disputes.
Executive director, Deepak Fertilisers