No Proposal to Revise the Nutrient Based Subsidy Scheme

There is no proposal with the Government to revise the Nutrient Based Subsidy Scheme.

So far as subsidy on Phosphatic and Potassic fertilizers is concerned, there was no additional requirement of funds during 2014-15. However, due to payment of carried over liability on Urea subsidy amounting to about Rs.17628 crores for 2013-14 in the year 2014-15 and increase in subsidy on indigenous urea due to its higher production cost, there was an estimated shortage of funds for payment of subsidy on indigenous urea to the tune of Rs.27477 crore. In order to meet the outstanding subsidy claims on indigenous urea, additional demand was made for allocation under supplementary grants and also under revised estimates. But no additional allocation was made to under the above head of account. However, after allocation of funds under BE 2015-16, the pending subsidy claims on indigenous urea are being cleared.

In order to meet the outstanding urea subsidy claims, a request was also made for allowing the Department to avail loans from PSU banks upto Rs.27477 crore under a Special Banking Arrangement (SBA). However, the request was not considered.

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