Nutrient-based subsidy policy to be win-win for all: RCF

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Nutrient-based subsidy policy to be win-win for all: RCF

The nutrient-based subsidy (NBS) policy has been announced in the Budget and Budgetary provision has also been made. In an interview with CNBC-TV18, US Jha, CMD, RCF, speaks about the policy and gives his outlook going forward.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Buy RCF, says Gujral Expect 10% appreciation in Chambal Fert, RCF Angel Broking bullish on RCF, Shrenuj ALSO READ See latest News about Rashtriya Chem See previous management interviews See what other Experts & Brokerages are saying about Rashtriya Chem Rashtriya Chem BSE | NSE 29/05/12 Are Mutual Funds betting on Rashtriya Chem?

Q: The more important issue is what happens going forward if imported fertilizer prices or raw material prices go up, subsidies for many items have been fixed now, but the government has not laid out roadmap on how it will deal with these issues or these subsidies or how they will change depending on the change of raw material prices or international fertilizer prices, isn't that the more critical thing on which you would want some clarity?

A: It is right, but as you know it is based on certain assessment of the world demand-supply situation and maybe certain levels have been fixed and it will be watched, seen and every effort will have to be made to buy the things at the optimum price, at the most competitive price because India can influence the world market situation in a big way. So every effort is being made to see that the world prices do not go up. If whatever we can influence in stabilising or correcting the world prices, India would like to do that.

Q: There has been lot of talk, but no confirmation about any divestment plan linked to RCF, is there anything on the anvil, an FPO (follow-on public offer) or any kind of stake sale or capital raising that you are planning at all?

A: It will depend on two things. One is that when the government wants to do the disinvestment because RCF is also one of the companies in which the government would like to divest some shares. At the moment government is having 92% holding in RCF.

The second is when the company also needs the money. So it will depend on financial closure of some of our major expansion projects and that will be the time. So we really do not know what the timing on the calendar is. It may happen only after six months or so, not earlier than that.