Special Banking Arrangement for payment of outstanding subsidy to fertilizer companies during 2014-15

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..... Special Banking Arrangement for payment of outstanding subsidy to fertilizer companies during 2014-15 - News and Press Release Dated:- 14-10-2015 - News - The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi, today has given its ex-post facto approval for a Special Banking Arrangement (SBA) for a loan of ₹ 7000 crore with the consortium of Public Secto .....

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..... r Banks led by State Bank of India (SBI) and Punjab National Bank (PNB) for settlement of outstanding indigenous urea subsidy bills of fertilizer companies in 2014-15. This has already been implemented/operationalized to overcome the liquidity problems of the fertilizer companies. Under the above SBA, a total of ₹ 6806.66 crore for settlement of subsidy bills with the two consortiums of P .....

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..... ublic Sector Banks led by SBI and PNB was raised by the Government. The above loan amount along with interest liability on the part of Government thereon amounting to ₹ 64.03 crore was paid to the Banks. Background Government is making available fertilizers, namely Urea and 22 grades of P K fertilizers to farmers at subsidized prices through fertilizer manufactures/importers. For mak .....

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..... ing funds available to the fertilizer companies against their subsidy claims, the Ministry of Finance had approved SBA for an amount of ₹ 7000 crore with Government interest liability limited to G-Sec rate. Accordingly, an SBA was worked out with the two consortiums of banks led by State Bank of India (SBI) and Punjab National Bank (PNB) for an amount of ₹ 7000 crore to meet the outsta .....

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..... nding subsidy claims of fertilizer companies. The loan together with Government Interest thereon has been repaid from BE 2015-16 within the sanctioned budget under the vote on account. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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