Fertiliser subsidy: Govt may soon release Rs 50,000 cr
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12/10/2008
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Business Standard (New Delhi)
Joe C Mathew / New Delhi October 13, 2008, 0:58 IST
80% of delivered cost of fertiliser is realised from govt payouts.
The government may sanction nearly Rs 50,000 crore as the first supplementary grant for settling fertiliser subsidy bills in the upcoming Parliament session beginning October 17. It intends to issue bulk of this amount in cash and nearly Rs 12,000 crore in bonds to fertiliser companies.
The first supplementary demand for grants in 2008-09 is expected to be taken up for discussion and approval around October 20-22.
In the last few months, the Centre has committed itself to several new expenditure, including the farm debt waiver (which will cost Rs 25,000 crore this fiscal), Rs 22,100 crore on account of the Sixth Pay Commission award and several new social sector initiatives.
In addition, the government is expected to release around Rs 70,000 crore worth of bonds to public sector oil companies.
All this is expected to ease liquidity, a point that Finance Minister P Chidambaram emphasised last Friday. Referring to the first supplementary demand for grants, he told a private TV channel that