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Indian fertiliser body files case seeking subsidy payment-Tata Chem exec
August 5, 2013 / 11:10 AM / 4 years ago

Indian fertiliser body files case seeking subsidy payment-Tata Chem exec

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)

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