The government will soon release Rs22,000 crore to the fertiliser industry as part of the subsidy bill.

Minister for steel, chemicals and fertilisers Ram Vilas Paswan today said that arrangement for the release of the subsidy had already been made and the payment will be made in cash.

The second tranche is in addition to the provision of about Rs.32,000 crore made in Union Budget for 2008-09.

Paswan said the fertiliser subsidy bill is expected to be Rs115,000 crore this year following hike in global price of fertilisers and addition of complex fertilisers to the concession scheme.

Speaking after receiving the dividend cheque for Rs1.5 crore from the FCI Aravali Gypsum and Minerals India Limited (FAGMIL), Paswan said the decision to pay the second tranche of Rs22,000 crore was made at a meeting by the cabinet secretary.

Appreciating the performance of FAGMIL, the minister said, the company has been earning profit since its inception in 2003 and also paying dividend since 2004-05.

He said the government was trying to increase the production of mineral gypsum and has proposed to revive PPCL in Sasaram in Bihar.

Mineral gypsum is used for reclamation of sodic land for cultivation, apart from being a source of sulphur nutrient for plant growth and its productivity.