Deepak Fertiliser today said Ministry of Chemicals and Fertilizers has agreed to release about Rs 485 crore outstanding subsidy payment to the company.
In a regulatory filing, Deepak Fertilisers informed that the Department of Fertilisers has been withholding its subsidy claims amounting to Rs 795 crore.
The Pune-based firm had filed a case in the Bombay High Court challenging the Department’s decision to hold back subsidy payments for using subsidised natural gas to manufacture decontrolled P&K fertiliser.
“…the Department of Fertilizers (DoF), Ministry of Chemicals and Fertilizers, has been withholding subsidy claims due to the company in accordance with applicable Nutrient Based Subsidy [NBS] scheme…since June, 2014 amounting to Rs 795 crore as on March 31, 2016,” the filing said.
“The company had since challenged the said withholding before Bombay High Court and the Department has now informed commencing the release of all subsidy arrears except an amount of Rs 310.52 crore in the interim. This part withholding is already under court’s purview for final award,” it added.
The company has reported 55 per cent rise in its net profit to Rs 121.13 crore in the year 2015-16 from Rs 78.35 crore in 2014-15.