Centre launches digital system to process Rs 2 lakh crore fertilizer subsidy

A farmer sprinkles fertilizer on his agricultural land being prepared for cultivation, in Chikkamagaluru. (PTI Photo)

• Minister Nadda launched an integrated e-bill system for fertilizer subsidies.
• The system enables digital processing of Rs 2 lakh crore in subsidies
• E-bill platform boosts transparency, speeds payments, and reduces fraud risk

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Union Fertilizers Minister Jagat Prakash Nadda on Thursday inaugurated an integrated e-bill system that will enable the government to process fertilizer subsidies worth approximately Rs 2 lakh crore.

The system marks a shift from manual, paper-based processes to a fully digital workflow, eliminating the physical movement of bills, an official statement said.

"This online system will play a significant role in strengthening transparent, efficient and technology-driven governance," Nadda said at the launch event.

Fertilizers Secretary Rajat Kumar Mishra called the launch "a major milestone in modernising the department's financial operations".

The initiative is the result of a technological partnership between the Integrated Financial Management System (IFMS) of the Department of Fertilizers and the Public Financial Management System (PFMS) of the Controller General of Accounts (CGA), the Ministry of Finance.

CGA Santosh Kumar said the transformation "significantly enhances transparency and accountability by creating a centralised and tamper-proof digital audit trail for all financial transactions, thereby facilitating easier monitoring and audits." The system provides real-time oversight of expenditures and strengthened financial control, with all payments tracked and reported centrally.

Manoj Sethi, joint secretary in the fertilizer ministry, said the system "enables end-to-end digital bill processing, which will significantly accelerate payment timelines, including timely release of weekly fertilizer subsidy payments".

The e-Bill platform allows fertilizer companies to submit claims online and track payment status in real time, eliminating physical visits and manual follow-ups. It enforces a standard electronic workflow, including first-in-first-out bill processing, ensuring consistency and compliance with financial rules.

The system also features robust built-in controls that validate payments against predefined criteria, log every action for audit purposes, and reduce the risk of fraud.