Govt orders recovery of undue benefit from RCF on sale of P&K

Government has ordered recovery of "undue benefit" earned by Rashtriya Chemicals Fertilizers in production of P&K fertilisers using cheap gas as feedstock.
However, the company termed the government order for the recovery as unjustified and discriminatory and said it would again take up this matter with the Fertiliser Ministry.
In a filing to the BSE, RCF said: "Company has received an office memorandum on January 6, from Department of Fertilisers informing us that...It has been decided to recover undue benefit to the company on usage of domestic cheap gas in the production of P&K fertilisers.."
The recovery would be from the date of the office memorandum considering differential prices of fertilisers based on cost of imported ammonia and the APM gas.

RCF also added the proposed recovery is against the principles of nutrient based subsidy and amounts to an unfair treatment of one segment of the fertiliser sector.
The demand for recovery is based on an erroneous presumption that they (RCF) are making windfall profits on premise that they are using cheap gas, which otherwise they are not entitled to, the filing added.
"Company had taken up this matter in the past with DoF with full justification for not making any such recovery and would also take up the matter again strongly. Company is hopeful that its views in the matter would ultimately prevail," the filing added.