'Additional fund for fertiliser subsidy payments not granted'

The Finance Ministry has not granted additional funds of Rs 26,190 crore sought by the Fertiliser Ministry under the revised estimate for subsidy payments, Parliament was informed today.
In a written reply to the Lok Sabha, Minister of State for Chemicals and Fertilizers Hansraj Gangaram Ahir said there are substantial liabilities for payment of subsidies to fertiliser manufacturer companies.
"A proposal for additional funds of Rs 26,190 crore under revised estimate 2015-16...Over and above budgetary estimate of 2015-16 was submitted to the Ministry of Finance. But the same has not been granted by the Ministry of Finance under RE 2015-16," Ahir said in the reply.

The outstanding subsidy bill on indigenous urea as on date is Rs 15,459.76 crore, while the liability as on February 29, to manufacturers of phosphoric and potassic (P&K) fertilisers (indigenous) is Rs 6,910.54 crore, he added.
An amount of Rs 38,200 crore have been allocated in the budget for 2015-16, of which Rs 37,852.11 crore have been utilised leaving a balance amount of Rs 347.89 crore, the Ministry said.
For the next financial year, the government has pegged fertiliser subsidy at Rs 70,000 crore, lower than Rs 72,437.58 crore estimated for this financial year.
The government has allocated Rs 51,000 crore in subsidy for urea and Rs 19,000 crore for decontrolled phosphoric and potassic (P&K) fertilisers.