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No proposal to reduce fertiliser subsidies: Dhindsa

The government on Friday said that there was no proposal to reduce fertiliser subsidies though it was looking into reports of 15 fertiliser companies availing of subsidies to the tune of Rs 4.50 billion by falsely showing higher production and lower capacity utilisation.

Replying to supplementaries during Question Hour in the Rajya Sabha, Chemical and Fertiliser Minister S S Dhindsa said though the expenditure reform commission has recommended consideration of gradual reduction in fertiliser, the government had no proposal to implement it.

To a query by Pranab Mukherjee and S R Bommai, on whether the government would consider paying of direct subsides to the farmers, Dhindsa said it had been found that direct subsidies from the exchequer did not fully reach the farmers as margins are taken away by middle-men.

He said the government was awaiting the Alag Committee report which is verifying charges of fertiliser companies seeking unjustified subsides to the tune of Rs 4.50 billion by showing enhanced unit and lower capacity utilisation.

In reply to another question raised by Dipankar Mukherjee regarding opening of two closed public sector pharmaceutical companies in West Bengal, Dhindsa said that the BIFR had suggested it was not viable as they running at 4 per cent of their capacity and, hence, could not be revived.

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