(a) the total amount due as subsidy to fertilizer industry by the end of year 2002,
company-wise;
(b) the reasons for accumulation of dues;
(c) the effect of this on the performance of fertilizer industry; and
(d) the remedial measures taken/proposed to be taken to pay the dues for
improving upon the situation?
THE MINISTER OF CHEMICALS AND FERTILIZERS (SHRI SUKHDEV SINGH DHINDSA)
(a) to (d): A statement is laid on the Table of the House.
Statement referred to in reply to parts (a) to (d) of Lok Sabha Starred Question
No. 192 to be answered on 4.3.2003
(a) : The total outstanding dues as on 31.12.2002 for 19 urea manufacturing
companies/Cooperative Societies namely Brahmaputra Valley Fertilizers
Corporation Ltd., Chambal Fertilizers & Chemicals Ltd., Fertilizers & Chemicals
Travancore Ltd., Gujarat Narmada Valley Fertilizers Corporation Ltd., Gujarat State
Fertilizers Corporation Ltd., Indian Farmers Fertilizers Cooperative, Indo Gulf
Fertilizers Ltd., Krishak Bharti Cooperative, Mangalore Chemicals & Fertilizers Ltd.,
Madras Fertilizers Ltd., Nagarjuna Fertilizers & Chemicals Ltd., National Fertilizers
Ltd., Neyveli Lignite Corporation Ltd., Oswal Chemicals & Fertilizers Ltd., Rashtriya
Chemicals & Fertilizers Ltd., Sriram Fertilizers Corporation Ltd., Southern
Petrochemicals Industries Corporation Ltd., Tata Chemicals Ltd. and Zuari
Industries Limited, is Rs. 1432 crore approximately. Some of the technical
parameters as also the impact of escalation/de-escalation are under
verification/updation to arrive at the exact amount payable to the urea units.
Likewise, the outstanding recoveries as on 31.12.2002 from urea units due to
implementation of policy parameters for 7th and 8th pricing period has been
estimated by Fertilizer Industry Coordination Committee to be Rs. 424 crore.
(b) to (d) : An amount of Rs. 6499.00 crore has been allocated under Budget
Estimates for the year 2002-03. An additional amount of Rs. 1000 crore has been
provided on supplementary demands. The arrears of payments are mainly on
account of implementation of the policy parameters for 7th and 8th pricing periods
covering the period from 1.7.1997 to 31.3.2003, which were approved by the
Government on 16.5.2002. Based on parameters approved for 7th and 8th pricing
periods, unit-wise payments and recoveries have been estimated. The balance
outstanding dues of urea companies would be accommodated by making provision
in the Budget.