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TMI BlogCabinet approves Special Banking Arrangement (SBA) for payment of outstanding subsidy to fertilizer companies during 2016-17X X X X Extracts X X X X X X X X Extracts X X X X ..... Cabinet approves Special Banking Arrangement (SBA) for payment of outstanding subsidy to fertilizer companies during 2016-17 X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of outstanding claims on account of fertilizer subsidy in the year 2016-17. CCEA has also approved that, in future, Department of Fertilizers would avail the SBA with the concurrence of Department of Expenditure. Under the SBA, a total loan of ₹ 9,969 crore for settlement of outstanding subsidy bills with SBI was raised by the Government. The loan amount along with interest liability o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the part of Government amounting to ₹ 80.90 crore were paid to SBI. SBA for an amount of ₹ 10,000 crore for the year 2016-17 has already been implemented/ operationalised to overcome the liquidity problems of the fertilizer companies. Background: Government is making available fertilizers, namely Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... izer manufacturers/importers. For making funds available to the fertilizer companies against their subsidy claims, Ministry of Finance had approved SBA for an amount of ₹ 10,000 crore with Government interest liability limited to G-Sec rate. Accordingly, an SBA was worked out with SBI for an amount of ₹ 10,000 crore to meet the outstanding subsidy claims of fertilizer companies. The lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an together with Government interest thereon has been repaid from BE 2017-18 within the sanctioned budget. X X X X Extracts X X X X X X X X Extracts X X X X
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