The government today gave ex-post facto clearance to implementation of the Special Banking Arrangement of Rs 10,000 crore for payment of outstanding claims towards fertiliser subsidy in 2016-17.
The decision was taken at the Cabinet Committee on Economic Affairs meeting chaired by Prime Minister Narendra Modi, an official release said.
The CCEA has also approved that, in future, the Department of Fertilisers would avail the SBA with the concurrence of the Department of Expenditure.Government Of India Release
The government is making available urea and 21 grades of phosphate and potassium fertilisers to farmers at subsidised prices through fertiliser manufacturers and importers.
To make funds available to fertiliser companies against their subsidy claims, the finance ministry had approved the SBA of Rs 10,000 crore with government interest liability limited to government security rate. The SBA has been worked out with the State Bank of India, the release said.
The loan amount, along with interest liability, on the part of the government amounting to Rs 80.9 crore was paid to SBI from the Budget estimate of 2017-18.
Also Read: Cut Retail Prices or Lose Subsidy, Government Tells Private Fertiliser Firms
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