Fertiliser ministry seeks Rs 65,000cr subsidy

The fertiliser ministry has requested the finance ministry to provide it about Rs 65,000 crore in supplementary grants for disbursal of subsidies to the manufacturing companies.

"We have sought about Rs 65,000 crore in supplementary budget as the next phase of fertiliser subsidies," Chemicals and Fertiliser Minister Ram Vilas Paswan told reporters here today.

After receiving Rs 31.83 crore as dividend from National Fertilizers (NFL), Paswan said the fertiliser subsidies would be only in cash, and assured manufacturers that there would not be any problems for them.

The Centre subsidises the cost of fertilisers as there is a huge gap between selling price and production cost.

The minster said fertiliser subsidies may fall to around Rs 1,00,000 crore this year from the earlier estimate of Rs 1,20,000 crore because of fall in the global prices of urea and DI-Ammonium Phosphate (DAP).

"Had there been no rupee depreciation, we could have saved more," he added.

The Centre had provided Rs 31,000 crore in the budget 2008 -09 as fertiliser subsidy and later made available Rs 22,000 crore as loan from banks.

"Out of Rs 22,000 crore, fertiliser companies have received about Rs 15,000 crore and the remaining amount would be given by November 30," he said.

Paswan added he would meet Petroleum Minister Murli Deora next week to sort out operationalisation problems as fertiliser units are yet to get gas on a priority basis as decided by the empowered Group of Ministers (eGoM).

The eGoM on gas pricing, headed by External Affairs Minister Pranab Mukherjee has already decided that fertiliser plants would receive gas as first priority.