IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 09 May 2013 | Removal date: open ended
Still in force

Interest payment subsidy

On 9 May 2013, the Cabinet Committee on Economic Affairs India approved to provide financial assistance to revive five closed units of the Fertilizer Corporation of India (FCIL). FCIL is a government enterprise administered by the Ministry of Chemicals & Fertilizers and its main products include Ammonia, Urea, Ammonium Nitrate, Nitric Acid, Ammonium Bicarbonate and Gypsum.
 
The package includes the following:
i) Waiver on loans and interest payments amounting to INR 10,644 crore (USD 1.74 billion)
ii) Loan of INR 171 crore (USD 28 million)and a committment fee of INR 25 crore for FCIL (USD 4 million).
 
The assistance has been justified on the grounds of reducing fertilizer import dependence. 
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

342 Basic inorganic chemicals n.e.c.
2836 Carbonates; peroxocarbonates (percarbonates); commercial ammonium carbonate containing ammonium carbamate.
283620 Disodium carbonate
283630 Sodium hydrogencarbonate (sodium bicarbonate)
283640 Potassium carbonates
283650 Calcium carbonate
283660 Barium carbonate
283691 Lithium carbonates
283692 Strontium carbonate
283699 Other
346 Fertilizers & pesticides
2814 Ammonia, anhydrous or in aqueous solution.
281410 Anhydrous ammonia
3102 Mineral or chemical fertilisers, nitrogenous.
310210 Urea, whether or not in aqueous solution
310229 Other
310230 Ammonium nitrate, whether or not in aqueous solution
310260 Double salts and mixtures of calcium nitrate and ammonium nitrate

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