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Care Ratings has made an estimate of Rs 0.85 lakh crore, of which Rs 0.55 lakh crore towards the urea subsidy and around Rs 0.30 lakh crore towards the nutrient-based subsidy. This is only a marginal increase over the current year's budget of Rs 0.80 lakh crore. With new urea units coming into production, the subsidy allocation if it stays sat Rs 0.85 crore will be insufficient.
What is more, how will the overhand from the current financial year of Rs 40,000 crore and the extra Rs 5000 crore to be given as a capital cost dispensation (Rs 350 per tonne) is going to be handled remains a moot point
If the allocation is pegged low, the coming year may not be a great year for the industry.

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