ANNOUNCED AS TEMPORARYNo
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.
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