Deepak Fertilisers is doing pretty well today. From yesterday’s close of Rs.266, it went up to an intra day high at Rs.273.50, just Rs.10 short of its 52-week high of Rs.283.
The good news for the company is that the much awaited subsidy from the Govt finally arrived.
The Fertiliser Ministry had withheld a subsidy of Rs 310.52 crores pending decision on recovery of alleged undue gain on account of supply of 'cheap' gas. The total subsidy payable was Rs.795 crore, out of which it had earlier released Rs.485 crore.
And now the company has received an intimation that the Department of Fertiliser would release the balance withheld amount of Rs 310.52 crore on providing a bank guarantee of equivalent amount.
The Nutrient Based Subsidy (NBS) scheme adopted by GoI since 2010 is for 22 grades of decontrolled fertilisers namely DAP, MAP, TSP, DAP Lite, MOP, SSP, Ammonium Sulphate and 15 grades of complex fertilisers. These fertilisers are provided to the farmers at the subsidised rates based on the nutrients (N, P, K & S) contained in these fertilisers.