01 May 2008 20:04 [Source: ICIS news]
NEW DELHI (ICIS news)--India announced on Thursday a mechanism to deter them from siphoning subsidies and marketing sub-standard single super phosphate (SSP) fertilizers.
According to detailed scheme for SSP subsidy, the government would recover ten times the value of subsidy falsely claimed by a company for quantity that was not delivered in a district. State governments are required to certify receipt of fertilizer parcels in each district in their respective territories.
The scheme would require a company that produced SSP from “sub-standard” and/or “non-qualified raw material” to return the subsidy along with penalties and interest, which would be prime lending rate plus 3% of the subsidy amount.
It also listed 10 SSP manufacturers that would be allowed to market their product directly as their production exceeded the threshold mark of 100,000 tonnes/year. The 10 large SSP producers include Tata Chemicals, Coromandel Fertilizers and Jubilant Organosys.
Those SSP manufacturers, whose production had been below this cut-off mark, would have to market their production through large companies that produce urea and NPK complex fertilizers.
The scheme came in to effect from today. The scheme has been framed to give effect to revised SSP subsidy policy that was approved by Cabinet Committee on Economic Affairs (CCEA) on 11 April.
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