New Delhi: Government today (Dec 3, 20040) ruled out the possibility of switching over to the system of providing direct fertiliser subsidy to farmers saying this would lead to corruption.

"If we switch over to a system of direct subsidy to farmers, it will lead to corruption," Chemicals and Fertilisers Minister Ram Vilas Paswan said during Question Hour in Rajya Sabha.

He said this would also cause problems such as the need for getting certification and other requirements for providing subsidy.

Currently, the subsidy component is provided to fertiliser companies after determining the cost price and maximum retail price, Paswan said.

On revival of the sick Fertilisers and Chemicals Travancore Limited (FACT), the Minister said a note was being prepared proposing waiver of Rs 574 crore outstanding accumulated by the undertaking as on March 31, 2004.

This would include waiver of interest of Rs 36.70 crore of Government and other burden, he said.

The FACT had already been provided with two packages earlier, the Minister said adding the Government was keen on reviving the company.

Similarly, the Government had already provided package for Madras Fertilisers Limited, he said.