Fertiliser Min gets Rs 10,000-cr under spl banking arrangement

The Finance Ministry has granted Rs 10,000 crore to Fertiliser Ministry under special banking arrangement to provide loan to cash-starved fertiliser companies at reasonable rates.
"Before placing the Budget, the Finance Ministry...Granted us Rs 10,000 crore under special banking arrangement (SBA). This has been sanctioned and lot of problems will be mitigated," Fertiliser Minister Ananth Kumar said at a press conference here.
The SBA, under which fertilizer companies can take loans against subsidy receivables, would help the industry meet its fund requirements till the time the cash subsidy is released by the Finance Ministry.
Asked about huge backlog of fertiliser subsidy, Kumar said that it has come down to Rs 20,000 crore from the level of Rs 40,000 crore in 2009.

"We will pursue with the Finance Ministry for the release of subsidy and see the dream day without backlog," he said.
Fertiliser subsidy arrears are estimated to be around Rs 35,000 crore by end of this fiscal. In view of delayed payment of subsidy by the government, the industry has to bear about Rs 4,000 crore annually as interest cost.

The government made available adequate amount of
fertiliser during this kharif and rabi season, he said.
"We have made available 21-22 lakh tonnes of urea and other fertilisers in excess of demand," the Fertiliser Minister said.
The monthly requirement of fertlisers during peak season is about 30-32 lakh tonnes. Retail prices of some of the non-urea fertilisers like DAP and potash have been reduced, he said.

Highlighting the reforms being undertaken to make the country self-sufficient in urea, the Minister said, the revival of five closed urea units and coal-gasification of one urea unit in the next couple of years will help increase the country's total urea output by 80 lakh tonnes.
"For revival of closed units, everything has been tied up. When the revival completes, which will take couple of years, India will be producing 80 lakh tonnes of additional urea. We are going to be self-sufficient in urea and rather be in a situation to export," he said.
The government is reviving closed urea units of the Fertilizer Corporation India (FCIL) at Sindri in Jharkhand and Gorakhpur in Uttar Pradesh, as well as the Barauni unit in Bihar of Hindustan Fertilizer Corporation (HFCL).

It is also reviving Talcher fertiliser plant in Odisha and coal-gasification of Brahmaputra Valley Fertilizers Corporation Ltd (BVFCL).