21 October, 2020

An Overdose Of Subsidies

With fudged records, the industry is devouring the taxpayer's crores to boost its health

An Overdose Of Subsidies
outlookindia.com
-0001-11-30T00:00:00+05:53
The fraud has been going on for almost a decade. India's fertiliser industry has been devouring the taxpayer's money worth thousands of crores of rupees by drawing excess subsidies from the state exchequer. The funnelled monies have been ironically passed off as farmer subsidy all these years.

This allegation has been raised in the past. But it has now been confirmed by the findings of an expert committee headed by Dr Y.K. Alagh, former central minister and fertiliser expert. The report has been completed and will soon be submitted to the government. Set up by the ministry of fertilisers and chemicals a year ago to examine the overdrawing of subsidies by fertiliser companies, the committee has found that as many as 27 ammonia and urea plants owned by top fertiliser companies in the country have understated their production capacities. The same have now been reassessed. The cbi is also investigating the criminal intent in the subsidies scam, although it is yet to report any progress.

The Alagh committee has recommended that the overdrawn subsidy, that runs into several...
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