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Friday, January 24, 2020
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Additional funds to meet subsidy requirement

New Delhi: Department of Fertilizers has sought Rs. 48051  Crore in the 1st batch of supplementary Demand for Grants during 2019-20 to wipe out the carry over liabilities of Rs. 32488.54 Crore of fertilizer subsidies as on 31.03.2019 and balance Rs. 15562.46 Crore to meet the additional requirement of funds in 2019-20 on account of lesser budget allocation in respect of Indigenous Urea and additional import of urea due to gap in assessed requirement of urea and Indigenous production.

The subsidy claims, preferred by companies, are scrutinized as per the policy guidelines and payment procedure notified from time to time. The claims are processed on FIFO basis subject to availability of funds.  Out of the allocated budget of Rs.83466.00 crores for the year 2019-20,  Rs.28492.68 crores have been paid in the current financial year i.e. 2019-20 towards carryover liabilities for the year 2018-19.  Clearance of remaining backlog dues depends on availability of funds.

This information was given in a written reply by the Union Minister of Chemicals & Fertilizers, D.V.Sadananda Gowda in Rajya Sabha yesterday.