MUMBAI, Aug 5 (Reuters) - India’s fertiliser industry body has filed a case against the federal government in a New Delhi court seeking delayed subsidy payments, Tata Chemicals Ltd Managing director R. Mukundan said on Monday.
The fertiliser industry, which sells urea, potash and phosphate at government-set low prices, is yet to receive an outstanding subsidy payment of 300 billion rupees ($4.93 billion) as of end-March.
Tata Chemicals’ dues at the end of June were 11.6 billion rupees, Mukundan told reporters. The company reported a 30 percent drop in net profit for the April-June period, its fiscal first quarter.
“The government is expected to pay the subsidy on a timely basis to the industry. Since this has not been happening, it has affected the entire industry’s profitability,” he said. (Reporting by Kaustubh Kulkarni; Editing by Prateek Chatterjee)