The government will buy back the outstanding fertiliser bonds worth Rs. 6,945-crore from fertiliser companies at a discount and compensate for 50% of their losses. Unable to take higher fertiliser subsidy on the Union Budget, the government had resorted to issuance of bonds worth Rs. 27,500-crore to domestic fertiliser companies towards payment of its subsidy bills in 2007-08 and 2008-09. Out of which, the Centre has already re-purchased bonds worth Rs. 20,55 5-crore from the fertiliser companies to provide them with liquidity.
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