Question: For payment of outstanding subsidy during 2016-17 to which of the following companies, Cabinet approves Special Banking Arrangement (SBA)?
(a) Telecom companies
(b) Textile companies
(c) Marketing companies
(d) Fertilizer companies
Answer: (d)
Related Facts:
- On November 1st, 2017, 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).
- This Special Banking Arrangement (SBA) is for Rs. 10,000 crore for payment of outstanding claims on account of fertilizer subsidy in the year 2016-17.
- Earlier, to reduce the burden of fertilizer subsidy backlogs, a Special Banking Arrangement of Rs. 10000 crores have been approved in Budget to clear fertilizer subsidy dues.
- The overall budget allocation for the Department of Fertilizer for the year 2017-18 is 74,235 crores.
- Government is making available fertilizers, namely Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers.
- Under the SBA, a total loan of Rs. 9,969 crore for settlement of outstanding subsidy bills with SBI was raised by the Government.
- The loan amount along with interest liability on the part of Government amounting to Rs. 80.90 crore were paid to SBI.
- Cabinet Committee on Economic Affairs (CCEA) has also approved that, in future, Department of Fertilizers would avail the SBA with the concurrence of Department of Expenditure.
- It is notable that SBA for an amount of Rs. 10,000 crore for the year 2016-17 has already been implemented/ operationalised to overcome the liquidity problems of the fertilizer companies.
- Government is making available fertilizers, namely Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers.
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=173137
http://pib.nic.in/newsite/mbErel.aspx?relid=158133