HC notice to govt on fertilizer makers’ plea

NEW DELHI, March 27: The Delhi High Court today issued show-cause notice to the Agriculture Ministry and cooperation on a petition filed by a group of manufacturers and importers of fertilizers, challenging the Government circular reducing the rate of concession on the the fertilisers.

Justice Jaspal Singh directed Standing Counsel Meera Bhatia, who received the notice on behalf of the Government, to file its reply by May 21 — the date for the next hearing. The Agriculture Ministry, in a circular dated February 3, 1998, had reduced concessions available to fertilizer industry with retrospective effect from October 1 last year. Senior counsel Shanti Bhushan, appearing for the petitioners, submitted that the industry had been hit hard by the reduction in concessions. "The petitioners had acted on the promise and made arrangements for the manufacture for import of fertilizers on the basis of the concessions announced. The announcement for reduction on March 3, with retrospective effect from Oct 1, 1997, isclearly illegal," he said.

The 14 petitioners include Indo Gulf Fertilizers and Chemicals Corporation, Chambal Fertilizers and Chemicals Ltd, Shriram Fertilizers and Chemicals and Southern Petrochemical industries Corporation among others. The cost of production of DAP and other complex fertilizers had gone up on account of depreciation of rupee, increase in the cost of Naphtha and fuel, Bhushan said.