The Government on Friday sought Parliament nod for net additional spending of over Rs 3.25 lakh crore in the current fiscal. In the first batch of supplementary grants requests tabled in the Lok Sabha by Minister of State for Finance Pankaj Chaudhary, approval is sought for gross additional expenditure of about Rs 4.36 lakh crores.
In the supplementary grants, the Department of Fertilisers under the Ministry of Chemicals and Fertilizers has demanded Rs 1.10 lakh crore additional fertiliser subsidy. Under this Rs 86,1666.72 crore will be given as urea subsidiary while Rs 23,122.23 crore will be given as P&K subsidiary.
Shares of major fertiliser companies are trading in the red. While Chambal Fertilisers and Chemicals is down 2.77 percent, Deepak Fertilisers and Petrochemicals Corporation is down 1.64 percent, Gujarat State Fertilizers & Chemicals is down 2.41 percent and Coromandel International is down 1.22 percent from previous close on the BSE.
Under this, subsidiary for Nitrogen (N) will be Rs 98.02 per kilo, Phosphorous (P) will be Rs 66.93 per kilo, Potassium (K) rS 23.65 per kilo, will be and for Sulphur (S) it will be Rs 6.12 per kilo.
Earlier CNBC Awaaz had reported that the government is preparing to give big relief to the fertiliser sector on three fronts. This includes increasing urea's fixed cost and reinstating the MRP for P&K Fertiliser.
According to sources, the Ministry of Chemicals and Fertilizers is considering a proposal to increase the minimum fixed cost of urea. Discussions have happened between the fertiliser industry and the Ministry of Chemicals and Fertilizers on this issue.
Apart from the raw material in urea production, fixed costs like the plant machine and salary are periodically assessed by the government to determine the exact difference between the cost of production and the selling price of urea and accordingly provide subsidies to the companies.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
'Rahul Gandhi deserted Amethi due to fear of Smriti Irani': How BJP plans to puncture Congress' UP plan
May 3, 2024 1:12 PM
'Don't be scared, don't run away', PM Modi tells Rahul for not contesting from Amethi
May 3, 2024 1:06 PM