New Delhi, Nov 11 (PTI) The government today said itreleased subsidy on ammonium sulphate to Gujarat StateFertilizer Corporation (GSFC) in view of farmers interest asthis nutrient is being produced only by two firms in India.
The government had stopped subsidy payment to GSFC inMarch 2013 as it found the company did not pass on thebenefits to farmers for a certain period, which was challengedby the company immediately in the Delhi High Court.
The Chemicals and Fertilizers Ministry today issued astatement clarifying on reports alleging inconsistency in itsdecision to resume subsidy to GSFC.
The main Opposition Congress also on Friday attacked theCentre over resumption of subsidy to farmers in poll-boundGujarat through GSFC, terming it an "election lollipop".
The Centre provides around Rs 70,000 crore annually asfertilizer subsidy to the manufacturers for selling nutrientsat cheaper rates to farmers.
In an official statement, the ministry said the subsidyto GSFC on ammmonium sulphate (AS) was stopped by an order onMarch 18, 2013 on the grounds that the company had not passedon the benefits to the farmers.
The order also had directed recovery of subsidy alreadypaid to GSFC with effect from April 1, 2010. GSFC filed apetition in the Delhi High Court against this order.
However, the company withdrew its case in March thisyear to enable the Department of Fertilizer to make recoveryand take further action.
The matter of release of subsidy for the period fromMarch 18, 2013 to March 5, 2017 is still under examination andno subsidy has been released to the company for this periodyet, it said.
However, the ministry said, "the (fertilizer)department has released the subsidy in line with the orders ofthe High Court and in view of the benefits to the farmerssince the Caprolactum Grade Ammonium Sulphate has beenmanufactured in India only by two companies i.e. Fertilizersand Chemicals Travancore (FACT) and GSFC."The ministry said the Delhi High Court in its order datedMarch 2, 2016 asked GSFC to approach the Department ofFertilizer to reconsider the matter and submit requisite data.
GSFC's representation was forwarded to the FertilizersIndustry Coordination Committee (FICC), a subordinate officeof the department.
"After the examination, the FICC found that the companyhas not fully passed on the benefits during 2010-11 and madeundue profits. However, the company had passed on the benefitsto the farmers during 2011-12 and 2012-13," it said.
The ministry then constituted an internal committee ofsenior officers to examine the analysis done by FICC.
"The committee after examination accepted the analysisdone by FICC and recommended that the amount of Rs 33.78 croremay be recovered from the withheld subsidy amount of thecompany for April 1, 2010 to March 17, 2013," the statementsaid, adding that the panel recommended to provide subsidywith effect from March 6, 2017. PTI MJH DPMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.