Deepak Fertilisers reaps 'subsidy' harvest

Deepak Fertilisers & Petrochemicals Corp yesterday, after market closure, announced that the Govt has agreed to release Rs.485 crore of its subsidy arrears.

The company stated, “Department of Fertilizers, Ministry of Chemicals and Fertilizers, has been withholding subsidy claims due to the company in accordance with applicable Nutrient Based Subsidy [NBS] Scheme of the Government of India, since June, 2014 amounting to Rs. 795 crores as on March 31, 2016. The Company had since challenged the said withholding before Hon'ble Bombay High Court and the Department has now informed commencing the release of all subsidy arrears except an amount of Rs. 310.52 crores in the interim. This part withholding is already under Hon'ble Court's purview for final award.”

The stock price today scaled almost 8% at Rs.166.85, very close to its 52-week high of Rs.173.25.