Cabinet approves Special Banking Arrangement (SBA) for payment of outstanding subsidy to fertilizer companies during 2016-17

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..... Cabinet approves Special Banking Arrangement (SBA) for payment of outstanding subsidy to fertilizer companies during 2016-17 - News and Press Release Dated:- 1-11-2017 - News - The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi, has accorded the ex-post facto approval for implementation of Special Banking Arrangement (SBA) for ₹ 10,000 crore for pay .....

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..... 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 .....

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..... on 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 thro .....

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..... ugh fertilizer 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 compani .....

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..... es. The loan together with Government interest thereon has been repaid from BE 2017-18 within the sanctioned budget. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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