Lok Sabha Question No. 2970 (UNSTARRED), answered on 2016-12-02
Subject: Interest on Subsidies
Ministry: FINANCE
Asked by: SRINIVAS KESINENI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA

## UNSTARRED QUESTION NO. 2970

To be answered on Friday, 02.12.2016 / Agrahayana 11, 1938(Saka)

## INTEREST ON SUBSIDIES

## 2970. SHRI KESINENI NANI:

Will the Minister of FINANCE be pleased to state?

- a)  the  details  of  amount  spent  by  the  Central  Government  on  various  interest subsidies, head-wise;
- b)  Whether  the  Government  has  allocated  funds  for  interest  subvention  for industrial units in Andhra Pradesh and Telangana during the current financial year;
- c)  if so, the details thereof along with the funds allocated/ utilised for the purpose in Andhra Pradesh (AP) and Telangana; and
- d)  Whether  the  Government  proposes  to  increase  the  interest  subvention  for industrial units in AP and Telangana in the coming financial year and if so, the details thereof and action taken thereon?

## ANSWER MINISTER OF STATE FOR FINANCE (SHRI ARJUN RAM MEGHWAL

- (a) To (d): Statement of interest subsidies is annexed . As per the information received  from  the  Department  of  Industrial  Policy  &  Promotion  (DIPP), Ministry of Commerce & Industry, a budget provision of Rs. 100 crore has been made during the current financial year under Demand No. 12 (Major Head  2885)  of  DIPP  for  interest-subvention  to  industrial  units  in  Andhra Pradesh and Telengana. There is no proposal under consideration in DIPP to increase the interest subvention for industrial units(s) in Andhra Pradesh and Telengana.

Annexure Statement of interest subsidies*

| (In crores of Rupees)      | (In crores of Rupees)                                                                                    | (In crores of Rupees)   | (In crores of Rupees)   | (In crores of Rupees)   | (In crores of Rupees)   |
|----------------------------|----------------------------------------------------------------------------------------------------------|-------------------------|-------------------------|-------------------------|-------------------------|
|                            | NAMES OF PUBLIC ENTERPRISES etc.                                                                         | Actuals                 | Budget 2015-16          | Revised 2015-16         | Budget 2016-17          |
| 1.                         | Interest Subsidies to Khadi Industries                                                                   | ...                     | 21.25                   | 10.12                   | ...                     |
| 2.                         | Interest Subsidies to Other Village Industries                                                           | ...                     | 5.36                    | 5.36                    | ...                     |
| 3.                         | Interest Subsidy to Banks under Export Promotion                                                         | 1426.99                 | 1625.00                 | 400.00                  | ...                     |
| 4.                         | Interest subsidy to Hindustan Shipyard Limited                                                           | ...                     | 5.90                    | 3.50                    | 4.84                    |
| 5.                         | Interest Subsidy to Hindustan Steelworks Construction Limited for loans raised for implementation of VRS | 44.05                   | 44.11                   | ...                     | 44.05                   |
| 6.                         | Interest Subsidy to LIC for Pension Plan for Senior Citizens                                             | 111.24                  | 101.79                  | 101.79                  | 171.90                  |
| 7.                         | Interest Subvention for providing Short Term Credit to Farmers                                           | 6000.00                 | 13000.00                | 13000.00                | 15000.00                |
| 8.                         | Interest subvention on scheme for extending soft loan to sugar mills 2015                                | ...                     | ...                     | 202.50                  | 202.50                  |
| 9.                         | Interest subvention to Industrial Units in Andhra Pradesh & Telengana                                    | ...                     | 100.00                  | ...                     | 100.00                  |
| 10.                        | Payment of Subsidy to Nodal Agencies i.e. Reserve Bank of India and National Housing Bank                | 50.00                   | 0.01                    | 85.00                   | ...                     |
| TOTAL - INTEREST SUBSIDIES | TOTAL - INTEREST SUBSIDIES                                                                               | 7632.28                 | 14903.42                | 13808.27                | 15523.29                |