annual_report2013-14 eng.pdf

Annual Report2013-14

Government of IndiaMinistry of Chemicals and Fertilizers

Department of Fertilizers

CONTENTSS.No. Subject Page No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

Introduction

Organisational setup and functions

Development and Growth of Fertilizer Industry

Availability and Movement of Major fertilizers during 2013-14

Plan Performance

Measures of support for fertilizers

Public Sector Undertakings

Integrated Nutrient Management

Fertilizer Monitoring System

Right to Information Act , 2005

Vigilance Activities

Progressive use of Official Language

Welfare of SCs, STs, OBCs and Physically Handicapped Persons

Sevottam

Annexure I-XXIV

1-2

3-6

7-12

13-18

19-20

21-40

41-86

87-88

89-90

91-92

93-94

95-98

99-100

101-102

103-190

Annual Report 2013-14

1

IntroductionCHAPTER-1

1.1.1 Agriculture which accounts about one

seventh of the GDP, provides sustenance

to two-third of our population. Besides,

i t provides crucial backward and

forward linkages to the rest of the

economy. Successive five-year plans

have laid stress on self-sufficiency and

self-reliance in foodgrain production and

concerted efforts in this direction have

resulted in substantial increase in

agriculture production and productivity.

This is clear from the fact that from a

very modest level of 52 million MT in

1951-52, foodgrain production raised

about 257.13 million MT in 2012-13.

Success of India in agriculture sector,

not only in terms of meeting total

requirement of food grains but also

generating exportable surpluses, the

significant role played by chemical

fert i l izers is well recognized and

established.

1.1.2 As of now, the country has achieved

75% self-sufficiency in production

capacity of urea with the result India

c o u l d s u b s t a n - t i a l l y m a n a g e i t s

requirement of nitrogen-ous fertilizers

through the indigenous industry and

imports. Similarly, 50% indigenous

capacity has developed in respect of

phosphatic fertilizers to meet domestic

r e q u i r e m e n t s . H o w e v e r , t h e r a w

materials and intermediates for the same

are largely imported. As for potash (K),

since there are no viable sources/

reserves in the country, its entire

requirement is met through imports.

1.2.1 The installed capacity has reached a

level of 127.67 lakh MT of nitrogen and

62.08 lakh MT of phosphatic nutrient in

the year 2013-14, making India the 3rd

largest fertilizer producer in the world.

T h e r a p i d b u i l d - u p o f f e r t i l i z e r

production capacity in the country has

been achieved as a result of a favourable

policy environment facilitating large

investments in the public, co-operative

and private sectors.

1.2.2 At present, there are 30 large size urea

plants in the country manufacturing

urea, 21 units produce DAP and comp-

lex fertilizers and 2 units manufacture

Ammonium Sulphate as a by-product.

Besides, there are 97 medium and small-

scale units in operation producing Single

Super Phosphate (SSP). The sector-wise

installed capacity is given in the table

below: -

Growth of fertilizer industry

SECTOR-WISE, NUTRIENT-WISE INSTALLED CAPACITY OF FERTILIZERMANUFACTURING UNITS (2013-14)

Sr. No

Sector

Capacity (lakh MT) Percentage Share N

P

N

P

1.

2.

3.

Public Sector

Cooperative Sector Private Sector

36.29

34.21 57.17

3.99

17.03

41.06

28.42

26.80 44.78

6.43

27.43 66.14

Total

127.67

62.08

100.00

100.00


2

Self-sufficiency in fertilizer sector

1.3.1 Out of the three main nutrients namely

Nitrogen, Phosphate & Potash (N, P &

K ) r e q u i r e d f o r v a r i o u s c r o p s ,

indigenous raw materials are available

mainly for nitrogenous fertilizers. Hence

the government policy has aimed at

achieving the maximum possible degree

of self-sufficiency in the production of

nitrogenous fertilizers based on utiliza-

tion of indigenous feedstock. Prior to

1980, nitrogenous fertilizer plants were

mainly based on naphtha as feedstock.

A number of Fuel Oil/LSHS based

ammo-nia-urea plants were also set up

during 1978 to 1982. In 1980, two coal-

based plants were set up for the first

time in the country at Talcher (Orissa)

and Ramagundam (Andhra Pradesh).

These coal based plants have, however,

been closed by Govern-ment w.e.f.

1.4.1999 due to technical and financial

un-viability. However, with natural gas

becoming available from offshore

Bombay High and South Basin, a

number of gas based ammonia-urea

plants have been set up since 1985. As

the usage of gas increased and its

available supply dwindled, a number of

expansion projects came up in the last

few years with dual feed facility using

both naphtha and gas. Feasibility of

making available Liquified Natural Gas

(LNG) to meet the demand of existing

fertilizer plants and/or for their expans-

ion projects along with the possibility

for utilising newly discovered gas

reserves, is also being explored by

various fertilizer companies in India.

1.3.2 In case of phosphate, the paucity of

domestic raw material has been a

constraint in the attainment of self-

sufficiency in the country. Indigenous

rock phosphate supplies meet about 10%

of the total requirement of P2O5. A

policy has, therefore, been adopted

which involves mix of three options, viz,

d o m e - s t i c p r o d u c t i o n b a s e d o n

indigenous/ imported rock phosphate,

i m p o r t e d s u l p h u r a n d a m m o n i a ;

d o m e s t i c p r o d u c - t i o n b a s e d o n

indigenous/imported inter-mediates, viz.

ammonia and phosphoric acid; and

third, import of finished fertilizers.

1.3.3 I n t h e a b s e n c e o f c o m m e r c i a l l y

exploitable potash sources in the

country, the entire demand of potash

fertilizers for direct application as well

as for production of complex fertilizers

is met through imports.

1.3.4 Given the volatility in the international

market for fertilizer in general and urea

market in particular, strategic imports

could be used to the country's strategic

advantage. This is also desirable as the

international market, especially in case

of urea, is very sensitive to demand

supply scenario. Under the new pricing

regime for urea units, economically

efficient units are being permitted to

produce beyond their re-assessed

capacity to substitute/minimize imports.

1.3.5 Government has recently announced

New Investment Policy-2012 in order to

facilitate fresh investments in urea

sector.


3

CHAPTER-2

Organisational Set Up and Functions2.1.1 The main functions of the Department of

Fertilizers include planning, promotion

and development of the Fertil izer

Industry, planning and monitoring of

production, import and distribution of

fertilizers and management of financial

assistance by way of subsidy/concess-

ion for indigenous and imported

fertilizers. A list of activities being

carried out by the Department of

Fertilizers is at Annexure-I

2.1.2 The Department of Fertilizers consists of

fifteen wings dealing with:

1. Fertilizer Projects and Planning

(FPP) (Urea Policy Division).

2. Phosphat ic & Potass ic (P&K)

Fertilizer (P&K Division).

3. Fertilizer Imports, Movement and

Distribution (Movement Division).

4. Fertilizer Company Affairs (FCA)

(deals with PSUs).

5. Fertilizer Industry Coordination

Committee (FICC).

6. Fertilizers Accounts (FA Wing).

7. Administration (Admn.)

8. Economic and Statistics (E&S).

9. Monitoring and evaluation (M&E).

10. Production and Inputs (P&I).

11. Finance (IFD).

12. Joint Venture (JV).

13. Parliament

14. I.T

15. Vigilance.

2.1.3. FPP wing deals with Urea Policy namely

modified new pricing scheme – III and

new investment policy – 2008 & 2012 to

encourage urea production in the

country & to make urea available to

farmers at affordable price. Apart from

these policies, FPP Section also deals

with policy for encouraging production

availability of fortified and coated

fertilizers in the country. FPP Section

also looks after issues relating to

requirement of coal and other inputs i.e.

Naphtha, Natural Gas, FO/LSHS/LNG.

2.1.4. P&K wing dea ls wi th mat ters to

promote balanced application of P&K in

s o i l f o r m a x i m i z i n g a g r i c u l t u r e

production and also to promote P&K

fertilizers industry in the country, P&K

Division/MPR Section is entrusted with

the work relating to administration/

implementation of Nutrient Based

Subsidy (NBS) Policy for decontrolled

P&K fertilizers including SSP. In order

to secure supply of P&K Fertilizers and

raw materials/ intermedia-tes as well as

urea requirements, the Division is also

entrusted with task to initiate and

finalize joint ventures and long-term off

take arrangements with countries having

rich fertilizers/raw materials resource.

The policy issues pertaining to erstwhile

Concession Scheme, matters relating to

WTO/EXIM Policy/Commerce/Mines

etc. are also dealt with by P&K Division.

2.1.5. Movement Wing deals with season wise

assessment of subsidized fertilizers

( U r e a , D A P , M O P a n d N P K ) i n


4

consultation with DAC and to ensure

adequate and timely availability of

fertilizers to the farmers in all parts of

the country. Movement division prepares

agreed supply plan in consultation with

Manufactures /Importers to fulfill the

monthly requirement. The movement of

a l l major subsidizes fert i l izers is

monitored through an online web based

monitor ing system i .e . Fert i l izers

Monitoring System(FMS).

2.1.6. FCA wing deals with matters relating to

financial performance, annual Accounts,

MoUs, Budgetary support (non-plan)

corporate affairs, revival/rehabilitation of

sick PSUs, issues relating to BIFR,

formatting of new companies and all

matter incidental thereto in respect of

nine fertilizers PSUs i.e. RCF/NFL/

MFL/FACT/BVFCL/FAGMIL/PDIL/

FCIL/HFCL, matters relating to two

Multistate Cooperative Societies i.e.

IFFCO/ KRIBHCO, the work relating to

d i s i n v e s t m e n t o f c o m p a n i e s , a l l

establishment matters of PSUs including

Board level appointments, Nomination of

Part-time official and Non-official

Directors in fertilizers PSUs.

2.1.7 FICC is an attached office under the

Department of fertilizers headed by

Executive Director. FICC is responsible

to evolve and review periodically,

the group concession rates including

freight rates for units manufacturing

n i t rogenous , fer t i l izers , mainta in

accounts make payment to/ and recover

amounts from fertilizers companies,

undertake costing and other technical

functions and collect and analyze

p r o d u c i n g d a t e , c o s t s a n d o t h e r

information etc.

2.1.8 FA wing deals with payment of cost of

imported Urea of OMIFCO/Canalizing

Agencies, recovery of Pool issue price of

Urea from Handling Agencies, Ocean

freight Payments to vessel owners,

subsidy disbursement in respect of

indigenous & Imported P&K fertilizers

and SSP including freight subsidy,

Administration of FMS and MFMS,

reimbursement of freight, insurance

charges, custom duty, handling charges

etc.

2.1.9 Administration wing deals with supply

of day to day articles needed for smooth

running of of f ice , house keeping

s e r v i c e s , m a i n t e n a n c e o f o f f i c e

equipment includ-ing air conditions,

photo copier etc., printing of annual

report, outcome budget, DDG etc.,

hospitality services.

2.1.10 M&E wing work relates to Techno

Economic Clearance for renovation/

moderniza-tion scheme in the fertilizer

sector for availing concessional custom

duty on imported goods, review of

monthly and quarterly performance of

Public & Cooperative Sector Under-

takings through holding quarterly

review meetings, all matter relating to

bio Fertilizers, balanced fertilizers, soil

health cards, nutrient absorption issues,

micro-nutrient etc, and organic fertilizers

based on Urban solid waste etc., work

relating to annual plan of the Depart-

ment of Fertilizers & PSUs, Publication

of yearbook Fertilizers Statistics of India

(Indian Fertilizers Scenario), clean

technology and general environmental

issues, monitoring of international

process of fertilizers and fertilizers

inputs, monitoring of production of


5

fertilizer, attending Parliament question

/RTI/VIP references, various other

works and Ad-hoc nature as and when

required, furnishing various information

to DAC, Ministry of Agriculture and

various other ministries for inclusion in

their publica-tions, work relating to

result framework Document(RFD) in

respect of Department of Fertilizers,

work relating to citizen charter in

respect of Department of Fertilizers.

2.1.11 P&I wing work related collection of

information for production plan targets

and holding of meetings with chief

Executives of Fertilizers companies for

finalizing annual production targets.

There after preparation of company

wise, unit wise, month wise, season

w i s e , p r o d u c t w i s e , s e c t o r w i s e ,

production targets for ensuring year.,

collection and preparation of company-

wise , unit -wise and product-wise

fortnightly/monthly production of

Fer t i l izers (Urea ,DAP,Ammonium

Sulphate, Complexes & SSP). Monitoring

of production of fertilizers viz, Urea,

DAP & Complexes on daily basis.

Preparation of sector-wise monthly quick

estimates of fertilizers in nutrient

terms for Central Statistical, Ministry of

Statistics and Programme Implemen-

tation. Monthly D.O. from Secretary (F)

to Cabinet Secretary and Prime Minister

Office. Preparation of detailed monthly

report of production performance of

fertilizers in terms of nutrients i.e.

Nitrogen & Phosphate for circulation to

Senior Officers of the DOF. Submission

of miscellaneous reports/ returns to

O&M, Hindi and Coordination Section &

others Department, preparation of

information for Economic Survey, India

a annual reference, Indian Railways A

reference Book, VIP reference, Economic

Editors Conference, Out Come Budget,

Indian Fertilizers Scenario, Standing

Committee/ Consultative Committee,

Annual Report, Audit Para(s), President/

Prime Minister Speech, Parliament

Question & Analysis of data.

2.1.12 Finance wing deals with the Internal

Finance Division/Budget Division

performs various vital functions viz.

Preparation of Annual Budget, dealing

with matter relating to Supplementary

Demands for Grants, re-appropriation of

funds and Vote on Accounts. Besides

these, detailed Demands for Grants and

Out-come budget of the Department are

also prepared by IFD. IFD also deals

with Parliament Standing Committee

matters relating to Detailed Demands for

Grants. Financial concurrence to various

policy matters & subsidy payments and

also does coordination work relating to

Audit paras.

2.1.13 JV wing deals with setting up of Joint

Venture Projects in Foreign Countries

which are rich in fertilizers resources for

production facilities with buy back

arrangement and enter into long term

agreement for supply of fertilizers and

fertilizers inputs to India and also on

having access to acquisition of the

fertilizers raw materials assets abroad.

2.1.14 Parliament work relates to the Meetings

of Consultative Committee and Standing

Committee and circulates its materials,

to maintain up to date record of

Parl iament Assurances and keeps

constant vigil on implementation of


6

Parliamentary Assura-nces resulting in

r e d u c t i o n i n n u m b e r o f p e n d i n g

assurances. To get print out of the

parliament questions and to send them

different officers/Sections to whom they

are related. It also transfers the questions

which do not pertain to the Department.

I t e n s u r e s t i m e l y s u b m i s s i o n o f

Parliamentary Papers to both the Houses

o f P a r l i a m e n t a n d t o e - m a i l t h e

questions to LS/RS/PIB. It also deals

with misc. work related to Parliament.

2.1.15 IT wing deals with work relating to

Computerization, e-office Project and

other IT related matters.

2.1.16 Vigilance wing deals with complaints

received from various sources such as

C V C , D o P T , e t c . r e g a r d i n g t h e

employees of Depart-ment of Fertilizers

and the Board level Employees of the

PSUs under the DOF. It appoints Chief

Vigilance Officers in the PSUs under the

Administrative control of DOF, in

consultation with CVC and DoPT.

Besides this Vigilance Section maintains

and reviews the Agreed list, ODI list,

Annual Property return, etc. and issues

Vigilance Clearance in respect of the

employees of DOF and Board Level

Officers of the PSUs.

2.1.17 The names of Minister-in-charge and the

off icers upto the level of Deputy

Secretary who are working in the

Depar tment as on 30 .06 .2014 are

mentioned in Annexure-II and a list of

nine Public Sector Undertakings under

the administrative control of the DOF is

given at Annexure-III.

2.1.18 Fertilizers Industry Coordination Comm-

ittee was initially constituted w.e.f.

01.12.1977 to administer and operate the

erstwhile Retention price cum Subsidy

Scheme (RPS). The office of Fertilizers

Industry Coordination Committee is an

attached office under the Department of

Fertilizers headed by Executive Director.

2.1.19 FICC is responsible to evolve and review

periodically, the group concession rates

including freight rates for units manu-

facturing urea, maintain accounts, make

subsidy payments to the fertilizers

companies, undertake costing and other

technical functions and collect & analyze

product ion data , costs and other

information.

2.1.20. The Secretaries to the Government of

India in various Department i.e. Ferti-

lizers, Industrial Policy and Promotion,

Agriculture and Cooperation, Expen-

diture, Ministry of Petroleum & Natural

Gas, Chairman, Tariff Commiss-ion and

two representatives of the urea industry

are members of the FICC.

Fertilizers Industry Coordination Committee

(FICC)


7

Development and Growth of Fertilizer Industry

CHAPTER-3

Production capacity and capacity utilization

3.1.1 The production of fertilizers during

2012-13 was 121.94 lakh MT of Nitrogen

and 35.41 lakh MT of Phosphates. The

production for 2013-14 is 123.78 Lakh

MT of Nitrogen and 37.14 Lakh MT of

Phosphate, representing a growth rate of

1.5% in Nitrogen and 4.9% in Phosphate.

Production for nitrogenous fertilizer is

less than the installed capacity for the

year 2013-14 . The product ion for

phosphatic fertilizer is less than installed

capacity in the year 2013-14, due to the

constraints in avai labi l i ty of raw

materials/ intermediates which are

substantially imported. However, taken

together, the production of 'N' and 'P'

during the year 2013-14 has been more

than to the corresponding period of last

year.

3.1.2 The following 8 urea plants of the

companies are presently closed due to

various reasons, inter-alia, on account of

technological obsolescence, feedstock

limitation, non-viability of unit and

heavy financial losses :-

Sr. No. Name of the

Company

Place Date of closure Annual Installed

Capacity (in Lakh MT)

1. FCI Gorakhpur 10.6.1990 2.85

2. FCI Ramagundam 1.4.1999 4.95

3. FCI Talcher 1.4.1999 4.95

4. FCI Sindri 16.3.2002 3.30

5. FCI Korba # 4.95

6. HFC Durgapur 1.7.1997 3.30

7. HFC Barauni 1.1.1999 3.30

8. HFC Haldia # 6.65

Total 34.25

# FCI (Korba) & HFC (Haldia) never commissioned.


8

3.1.3 The domestic fertilizer industry has by

and large attained the levels of capacity

utilization comparable with others in the

world. The capacity utilization during

2012-13 was 101.2 % of nitrogen and

62.9% of phosphate. The capacity

utilization during 2013-14 is 97.0 % for

nitrogen and 59.8% for phosphate.

Within this gross capacity utilization, the

capacity utilization in terms of the urea

plants was 108.8% in 2012-13 and 105.2%

in 2013-14. As for phosphate fertilizers,

apart from the constraints mentioned

earlier, the actual production capacity

utilization has also been influenced by

the demand trends.

3.1.4 The capacity utilization of the fertilizer

industry, particularly in respect of urea,

is expected to improve further through

modernisation of the existing plants.

3.1.5 The unit-wise detai ls of instal led

capacity, production and capacity

utilization during 2013-14 are given in

Annexure-IV.

3.2.1 The following strategy has been adopted

to increase fertilizer production:

�Expansion and capacity addition/

efficiency enhancement through

retrofitting/revamping of existing

fertilizer plants.

�Setting up joint venture projects in

countries having abundant and

cheaper raw material resources.

Strategy for growth

�Working out the possibility of using

alternative sources like liquified

natural gas, coal gasification etc., to

overcome the constraints in the

domestic availability of cheap and

clean feedstock, particularly for the

production of urea.

�Looking at possibilities of revival of

some of the closed units by setting

up Brownfield units subject to

availability of gas.

3.3.1 India's dependency on import at present

is to the extent of 25% of our requir-

ement of Urea, 90% in case of Phos-

phates, either as raw material or finished

fertilizers (DAP/MAP/TSP) and 100% in

case of Potash. The Govern-ment has

been encouraging Indian Companies to

establish Joint Ventures abroad in

Countries which are rich in fertilizer

resources for production facilities with

buy back arrangements and to enter into

long term agreement for supply of

fertilizers and fertilizer inputs to India.

Further, the Department is also working

with the goal of having access to

acquisition of the fertilizer raw materials

abroad.

3.3.2 So far, the Department of Fertilizers has

undertaken Joint Ventures abroad with 6

Countries in the previous years. The

details of such joint ventures in the

fertilizer sector is as under :-

Joint Ventures abroad

Joint Venture Projects


9

S.No.

JV Project -Country

JV participants with equity %

Product and the Project status

1. Oman India Fertilizer Co.(OMIFCO), Oman

Oman Oil Co. (OOC -50%), IFFCO (25%) & KRIBHCO (25%)

16.52 lakh MT Urea & 2.48 lakh MT Ammonia. Production started in the year 2006.

2. ICS Senegal, Senegal

ICS Senegal and IFFCO consortium

5.5 lakh MT phosphoric acid. Production already started.

3. Indo-Jordan Chemicals Company (IJC), Jordan

JPMC (Jordan) & SPIC (India) SPIC is no more in the JV.

2.24 lakh MT phosphoric acid. Already producing.

4. JPMC-IFFCO JV, Jordan

JPMC & IFFCO 4.8 lakh MT Phosphoric acid to be commissioned by 2013

5. IMACID, Morocco

OCP (50%) – Morocco, Chambal (25%) & TCL (25%)-India

4.25 lakh MT phosphoric acid

6. Tunisia-India Fertilizer Company (TIFERT), Tunisia

GCT (Tunisia), CFL (Now CIL) & GSFC (India)

3.60 lakh MT of Phosphoric acid. Commercial production has started.

3.3.3

joint venture with any country was

signed by this Department but during

the said year a number of major

develop-ments took place with the

following Countries:-

3.3.4 A Urea/Ammonia Joint venture project

with RCF and GNFC as Indian entities

has been proposed to be set up in Iran.

Iranian Government has indicated gas

price of $ 2.9/MMBTU for the project

which is cheaper than the price prevail-

ing in Indian market. For identification

of Iranian partners for the joint venture

and location of plant for the project, SBI

Cap has been appointed as consultant

who is expected to give its report in 4

months. After receipt of the report from

SBI Cap, further action to negotiate gas

supply agreement and MOU with the

Although during the year 2013-14, no

Iran

Iranian partners would be taken. The

annual Urea production from the joint

venture is expected to be 1.3 million MT

which would be imported to India. On

11.06.2014, a meeting was taken by

Hon'ble Minister for Chemicals and

Fertilizers to review the progress and

directed SBI Cap to submit the report

early.

3.3.5 In December 2013, a communication

from EOI in Moscow has been received

about the offer of 30% stake in the

fertilizer project being undertaken by

A C R O N t o d e v e l o p t h e T a l i t s k y

Potassium-Magnesium deposit in Perm,

Russia. As per the communication,

Vneshecon-ombank, a major Russian

owned bank, has taken a 25% stake in

the Talitsky project and that China has

shown much interest and in investing in

Russia


10

Talitsky but Russia would prefer India

a s a p a r t n e r a n d t h e t e r m s a n d

conditions offered to India would be

identical to those given to Vneshecono-

mbank when it acquired its stake. The

Department is facilitating formation of a

NMDC led consortium to proceed

further on Russian offer. The draft MoU

has been sent to Russian side.

3.3.6 Department of Fertilizers had, vide letter

dated 19th May 2014 agreed to release

the payments to OMIFCO with an

increase of USD 44.6 Per MT for the

Urea being supplied by the Company to

the Government of India from January

2014 onwards subject to the settlement

of any differences in the prices that may

arise, as a result of the studies being

conducted by PDIL, consequent to

a m e n d m e n t s i n t h e G a s S u p p l y

Agreement, as agreed by Government of

India. A high level delegation led by

Secretary(F) visited Oman during 28-29

April 2014 to discuss the issues of (a)

extension of present terms of UOTA for

a further period of 5 years beyond 2015,

on the same terms and conditions; (b) to

maintain the existing gas price escalation

formula; and (c) allocation of additional

gas to OMIFCO for revamp/creation of

new ammonia/Urea capacities.

3.3.7 For the proposed Ammonia/Urea JV in

Ghana, an MOU was signed on 6th July

2010 at the Government level between

the two Countries, followed by several

visits of Indian delegation to Ghana to

discuss issues relating to finalisation of

draft JV agreement and price of Gas. It

Oman

Ghana

has now been informed that Gas being

offered by Ghanaian authorities for the

project is not available. Therefore,

project would be perused after some

time.

3.3.8 For cooperation with Togo, a proposal

was sent to Togolese Government for

cooperation in production of Phosphate

and Phosphoric fertilizers by way of

Joint Venture project between India and

Togolese entities in July, 2012. Togolese

r e s p o n d e d b y s e n d i n g a r e v i s e d

proposal and also included construction

of railway Lome-Cinkasse and install-

ation of agronomic research institute.

The same was sent back, through MEA,

to Togolese Government with our

comments in August 2012. Secretary(F)

led Indian delegation visited Togo in

June 2013 wherein it was decided that

Indian side would send details of the

information and documents required for

preparation of a detailed Indian proposal

for development of carbonated phos-

p h a t e a n d t h e r e a f t e r a T o g o l e s e

delegation would visit India along with

information and documents sought by

the Indian side for firming up the

proposal. As agreed, a questionnaire

seeking required details was sent to

T o g o l e s e s i d e o n 0 1 . 0 7 . 2 0 1 3 a n d

thereafter, a letter dated 24th July 2013

from MOS (I/C) for Chemicals &

Fertilizers was also sent to Minister of

Transport, Mines and Energy, Togo

inviting Togolese delegation along with

information/details as requested by

Indian side. The response of Govern-

ment of Togo on these issues is still

awaited.

Togo


11

Canada

Belarus

3.3.9 A delegation of M/s ENCANTO visited

Department of Fertilizers on 11th & 12th

June 2013 and met Secretary (F). On

these dates, meetings were also held

with RCF led consortium. As outcome

of these meetings, a draft of Principle

terms and purchase and sales agreement

was initiated between RCF (on behalf of

Indian consortium) and M/s ENCANTO

to finalize the Draft Off-Take Agree-

ment. An aggregate off-take of 1.8

million tonne per annum MOP has been

mentioned in the Draft Agreement. A

copy of the draft agreement has been

sent by RCF to Indian consortium to

members for their review and necessary

action. In this connection, a meeting

held on 2nd July 2013 under the

Chairmanship of Secretary(F) with the

RCF led consortium to discuss the draft

agreement initiated by RCF (on behalf of

consortium) and M/s ENCANTO. The

members of the consort ium were

requested to intimate the details of

commitment of off-take quantity. The

RCF led consortium has requested

Department for approval before signing

of the off-take agreement with M/s

ENCANTO.

3.3.10 On 20th May 2013, the Hon'ble speaker

of Lok Sabha visited Belarus and a

meeting was held with the President of

Belarus . During the meet ing, the

President of Belarus expressed interest in

India's participation in the privatization

of the potash industry in Belarus.

Further, Joint Secretary (Eurasia), MEA,

vide D.O. letter dated 30.05.2013, has

suggested to invite a delegation from

Belarus to discuss these matters. The

Department of Fertilizers conveyed to

Embassy of India at Minsk that Indian

side is ready to receive a delegation

from Belarus during the week starting

on 10th June 2013 to discuss issues

related with Potash Fertilizers but the

response from Belarus is still awaited.

3.3.11 On the invitation of Mr. Mehdi Jomaa,

Tunisian Minister of Industry a deleg-

ation led by Hon'ble MOS (I/C) (C&F)

alongwith Secretary (F) and technical

team from Fertilizers companies namely

M/s Coromandel and M/s GSFC visited

Tunisia during 11th -12th July, 2013 to

jointly inaugurate the TIFERT plant, an

important Tunisia-India Joint Venture

and to explore further cooperation and

the potential of new joint projects in the

field of industrial phosphate of fertil-

izers. Before visiting Tunisia, Hon'ble

MOS(I/C) (C&F) along with Secretary(F)

and representative of fertilizer PSU M/s

RCF, visited Jordan during 09th-10th

July, 2013 on the invitation received

from the Chairman of the Board of

Jordan Phosphate Mining Company, a

Govt. of Jordan company to visit Jordan

with the purpose to :-

(i) Review the market conditions in

India and the ways to improve

them for the benefit of both sides

i.e. JPMC and the Govt. of India

(ii) Explore the potential of new joint

venture projects leading to estab-

l i s h m e n t o f n e w I n d u s t r i a l

phosphate of fertilizers for export.

(iii) Presenting the future activities of

JPMC and the infrastructural

Tunisia and Jordan


12

projects that would be needed to

have them materialize.

As an outcome to the India delegation

visit to Jordan, a draft EOI is submitted

by RCF for the proposed Joint Venture

with JPMC and JAFCO and the same is

under process.

3.3.12 On the request of Ministry of Petroleum

and Natural Gas, AS &FA of Depart-

ment of Fertilizers accompanied the

delegation led by Minister (PNG) to

at tend the 17th Indian-Iraq Jo int

Commission Meeting (JCM) held at

Baghdad during 7-8th July, 2013 to

explore the possibilities of Joint Venture

in Fert i l izer in Iraq. During the

discussions the Indian side expressed

IRAQ

interest in (i) setting up of a JV project

in Al-Qaim/Al-Anbar area for establi-

shing a Urea and Phosphate unit ; and

( i i ) import of sulphur from Iraq.

Meanwhile an Inter-Ministerial Meeting

was held under the Chairmanship of

Secretary (East), MEA to review the

actions taken subsequent to the 17th

India-Iraq Joint Commission Meeting

and in preparation for the forthcoming

visit of Prime Minister of Iraq to India

on 23rd August, 2013. In the meeting

DOF was asked to share Draft Letter of

Interest (LOI) and Confidentiality

Agreement to establish proposed Urea

Plant and Phosphate Fertilizer Unit as JV

project in Al-Qaim/Al-Anbar area of

Iraq. The same has been done and

forwarded to MEA and Ambassador of

India to Iraq on 31.7.2013.


13

CHAPTER-4

Availability & Movementof Major Fertilizers during 2013-14

4.1.1 The requirement/ demand for fertilizers

for Kharif and Rabi season is assessed in

bi-annual Zonal Conferences held by

Department of Agriculture and Coopera-

tion (DAC) with the representatives of

fertilizer companies, Fertilizer Assoc-

iation of India, Ministry of Railways,

State Governments, Department of

Fertilizers and other concerned agencies.

The projected requirement is commun-

icated to DoF. Every month Movement

Division prepares agreed supply plan in

consulta-tion with manufacturers and

importers to meet the demand of

fertilizers projected by DAC. State-wise

availability of fertilizers as per supply

plan is made and monitored upto State

level by the Department of Fertilizers,

the concerned State Governments are

responsible for monitoring the availab-

ility intra-state.

4.2.1 The availabil i ty of urea remained

satisfactory throughout the seasons of

Kharif 2013 and Rabi 2013-14.

The assessed requirement of Urea for

Kharif 2013 was 153.18 LMT. i.e. an

increase of 12.80% over the sales of

135.80 LMT in Kharif 2012. The season

started with an opening stock of 8.82

LMT (as on 01.04.2013), and about 112.23

LMT and 41.02 LMT were the indig-

UREA

Kharif 2013

enous production and imports respec-

tively during the season. Efficient

movement and timely import of Urea

helped in ensuring adequate availability

in all the States throughout the season.

The overall availability of urea at all

India level was 162.07 LMT. The sales

were only 150.99 LMT during Kharif

2013.

The assessed requirement of Urea for Rabi

2013-14 was 163.72 LMT. The season


LMT (as on 1.10.2013), and 114.86 LMT

and 29.80 LMT were the indigenous

production and imports respectively

during the season. Efficient movement

and timely import of Urea helped in

ensuring adequate availability in all the

States throughout the season. The overall

availability of urea at all India level was

155.74 LMT. The sales were only 153.55

LMT during Rabi 2013-14.

4.3.1 The availability of DAP remained satis-

factory throughout the seasons of Kharif

2013 and Rabi 2013-14.

The assessed requirement of DAP for


increase of 58.39% over the sales of 40.78

LMT in Kharif 2012. The season started

with an opening stock of 5.23 LMT (as

Rabi 2013-14

DAP

Kharif 2013


14

on 01.04.2013), and about 17.47LMT and

24.40 LMT were the indigenous produc-

tion and imports respectively during the

season. Efficient movement and timely

import of DAP helped in ensuring

adequate availability in all the Sates

throughout the season. The overall

availability of DAP at all India level was


LMT during Kharif 2013.

The assessed requirement of DAP for

Rabi 2013-14 was 45.26 LMT. The season



LMT and 8.06 LMT were the indigenous



and timely import of DAP helped in


Sates throughout the season. The overall

availability of DAP at all India level was


LMT during Rabi 2013-14.

4.4.1 The availability of NPK remained



The assessed requirement of NPK for





on 01.04.2013), and about 33.46 LMT and

2.31 LMT were the indigenous produc-

tion and imports respectively during the


import of NPK helped in ensuring

Rabi 2013-14

NPK

Kharif 2013



availability of NPK at all India level was

38.14 LMT, out of which 36.21 LMT was

available with the States. The sales were

only 32.61 LMT during Kharif 2013.

The assessed requirement of NPK for

Rabi 2013-14 was 52.53LMT. The season



LMT and 1.27 LMT were the indigenous



and timely import of NPK helped in


Sates throughout the season. The overall

availability of NPK at all India level was



only 42.56 LMT during Rabi 2013-14.

4.5.1 The availability of MOP remained



The assessed requirement of MOP for

Kharif 2013 was 20.25LMT i.e. an




on 01.04.2013), and about 13.86 LMT

were the imports during the season.

Efficient movement and timely import of

MOP helped in ensuring adequate

availability in all the Sates throughout

the season. The overall availability of

Rabi 2013-14

MOP

Kharif 2013


15

MOP at all India level was 15.00 LMT,

out of which 12.74 LMT was available

with the States. The sales were only

10.99 LMT during Kharif 2013.

The assessed requirement of MOP for

Rabi 2013-14 was 14.88 LMT. The season


Rabi 2013-14


LMT were the imports during the


import of MOP helped in ensuring



availability of MOP at all India level was



only 10.93 LMT during Rabi 2013-14.


16


Season wise Summary

4.6.1 Following table summarizes the season-

wise position of Demand, Availability

and Sales of chemical fertilizers (i.e.

Urea, DAP, NPK & MOP), for last

four seasons. Bar Chart placed at

Annexure V:

17

Crop season Demand

Assessment

Cumulative

Availability

Cumulative

Sales

1

2

3

4

Kharif 2012

Urea

DAP

NPK

MOP

150.82

69.40

55.53

21.98

137.47

49.84

44.60

14.07

135.80

40.78

39.44

10.98

Rabi 2012-13

Urea

DAP

NPK

MOP

164.61

54.18

55.99

25.84

171.31

56.03

40.26

11.08

165.81

51.51

37.88

10.35

Kharif 2013

Urea

DAP

NPK

MOP

153.18

64.59

54.83

20.25

155.73

40.96

36.21

12.74

150.99

32.30

32.61

10.99

Rabi 2013-14

Urea

DAP

NPK

MOP

163.72

45.26

52.53

14.88

155.76

40.34

47.03

12.33

153.55

36.25

42.56

10.93

(In LMT)


18

Rail Movement

4.7.1 By close coordination and cooperation

with Railways, timely availability of

Rakes was ensured. Railways trans-

ported more than 80% of fertilizers,

w h i c h n o t o n l y e n s u r e d t i m e l y

availability of fertilizers at State level

but also faster evacuation of fertilizers

from ports and plants.


19

CHAPTER-5

Plan Performance5.1.1 Year-wise consumption, production and

import of fertilizers in nutrients terms

are given in Annexure-VI.

5.1.2 The production of fertilizers in nutrient

terms during 2012-13 was 121.94 lakh

MT of nitrogen and 35.41 lakh MT of

phosphate. The production for 2013-14 is

123.78 lakh MT of nitrogen and 37.14

lakh MT of phosphate. Sector-wise

targets and achievements in respect of

production and capacity utilization from

2009-10 onwards are given in Annexure-

VII & VIII.

5.1.3 The Plan outlay for 2013-14 (BE) as

approved by the Planning Commission

was Rs.2112.71 crores. This comprised

of Rs.1843.71 crore as Internal & Extra

Budgetary Resources (IEBR) to be

sourced f rom four prof i t making

Plan outlay for 2013-14

companies and Rs.269.00 crore as the

Gross Budgetary Support (GBS). Out of

the GBS, an amount of Rs.253.43 crore

was allocated to three loss making PSUs,

namely Brahmaputra Valley Fertilizers

Corporation Ltd. (BVFCL), Fertilizers &

Chemicals Travancore Limited (FACT)

and Madras Fertilizers Limited (MFL).

An amount of Rs.13.56 crore was

provided for the scheme of Management

of Information Technology (MIT) and

Rs.2.00 crore under the Science &

Technology Programme. Department of

Fertilizers is exploring the possibilities of

Joint ventures (JVs) abroad. Since there

was no firm proposal, only a token

provision of Rs.0.01 crore was kept. GBS

a m o u n t i n g t o R s . 2 5 . 0 0 c r o r e f o r

Brahmaputra Valley Fertilizers Corpora-

tion Ltd. (BVFCL) was the provisioning

of the Department of Fertilizers earmark-

ed for the North East Region.

Break-up of Plan outlay 2013-14 is as under:

RCF 978.29 978.29 338.32 338.32 259.93 259.93

FAGMIL 44.05 44.05 9.13 9.13 10.30 10.30

PDIL 18.17 18.17 8.81 8.81 3.00 3.00

NFL 803.20 803.20 962.37 962.37 516.02 516.02

BVFCL 25.00 25.00 0.91 0.91 0.00 0.00 FACT 211.43 211.43 0.01 0.01 0.00 0.00

MFL 17.00 17.00 0.01 0.01 0.00 0.00

Budget Estimates (BE) Revised Estimates (RE) Actual Expenditure

Name of Scheme/ company

GBS IEBR Total GBS IEBR Total GBS IEBR Total

(Rs. in crores)


20

Budget Estimates (BE) Revised Estimates (RE) Actual Expenditure

Name of Scheme/ company

GBS IEBR Total GBS IEBR Total GBS IEBR Total

(Rs. in crores)

MIT 13.56 13.56 6.56 6.56 2.13 (App)

2.13 (App)

S&T 2.00 2.00 1.50 1.50 0.19 (App)

0.19 (App)

JV abroad

0.01 0.01 0.01 0.01 0.00 0.00

Total 269.00 1843.71 2112.71 9.00 1318.63

1327.63 2.32 789.25 791.57


21

CHAPTER-6

Measures of Support for fertilizersSubsidy Policy For Decontrolled Phos-phatic &

Potassic (P&K) Fertilizers

6.1.1 Timely availability of fertilizers, as input

to the farmer at affordable prices, is vital

for growth of agriculture sector in the

country. Subsidy or concession schemes

have been an integral part of Govern-

ment policy to sustain agricultural

productivity which in turn plays critical

role in ensuring the food security and in

promoting rural livelihood and employ-

ment.

6.1.2 Government of India passed Fertilizer

Control Order (FCO) under Essential

Commodities Act (EC Act) in the year

1957 to regulate sale, pricing and quality

of fertilizers. Subsequently Movement

Control Order was passed in 1973 to

regulate the distribution of fertilizer.

6.1.3 Till 30th September 2000, the fertilizers

subsidy was being administered by

Department of Agriculture & Co-

operation (DAC) and thereafter it was

continued by Department of Fertilizers

with changed parameters from time to

time.

6.1.4 On the recommendation of the Marathae

Committee, the Government introduced

Retention Price Scheme (RPS) for

nitrogenous fertilizers in November

1977. Subsequently, this was extended

to phosphat ic and other complex

fertilizers from February 1979 and to

Single Super Phosphate from May 1982,

which continued up to 1991. Later on,

subsidy was also extended to imported

phosphatic and potassic fertilizers.

6.1.5 In early 1990s, the country was facing

mounting fiscal deficit and there was a

threat of foreign exchange crisis. In

order to overcome the situation the

Govern-ment announced an increase of

40% in the price of fertilizers in July,

1991. Some of the fertilizers which were

under the subsidy scheme were decont-

rolled. Subsequently, appreh-ending low

con-sumption of fertilizer due to high

prices and consequently low agriculture

produc-tivity, Government rolled back

10% of increase in urea price.

6.1.6 In December 1991, the Government set

up a Joint Parliamentary Committee

(JPC) on Fertilizer Pricing to review the

existing methods of computation of

retention prices for different manufac-

tures of fertilizers and to suggest

measures for reducing fertilizers prices

without straining the exchequer. The JPC

submitt-ed its report on 20th August

1 9 9 2 . T h e m a i n c o n c l u s i o n s a n d

recommendations of the Committee were

that the rise in subsidy was mainly due

to increase in the cost of imported

fertilizer, de-valuation of rupee in July

1991 and the stagnant farm gate prices

from 1980 to 1991. The Committee did

not favour total decontrolled of ferti-

lizers but recommended decon-trolled of

import based phosphatic and Potassic

fertilizers along with a marginal 10%

reduction in the consumer price of Urea.


22

6.1.7 Based on the recommendations of JPC,

Government of India decontrolled all

Phosphatic and Potassic (P&K) fertilizers

namely DAP, MOP, NPK complex

fertilizers and SSP with effect from 25th

August 1992 which were under RPS

since 1977 whereas Urea remained under

RPS.

6.1.8 Since subsidy was retained on the

nitrogenous fertilizers (Urea) while

phosphatic fertilizers were decontrolled,

the prices of phosphatic fertilizers in the

market became comparatively high. As

a result, production and consumption of

nitrogenous fertilizers increased and

consumption of P&K fertilizers dec-

reased. This led to severe imbalance

consumption of nitrogenous, phosphatic

and Potassic fertilizers. Apprehending

imbalanced in fertilization of the soil,

un-affordability of fertilizers due to

increase in phosphatic and potassic

fertilizer prices, the Government of

India announced ad hoc concession for

phosphatic and potassic fertilizers from

Rabi 1992 to cushion the impact of

price hike and to encourage balanced

fertilization.

6.1.9 Initially, the ad-hoc Concession Scheme

was applicable to DAP, MOP and NPK

Complex fertilizers. This scheme was

subsequently extended to SSP from 1993-

94. Concession was disbursed to the

manufacturers/importers by the State

Governments during the period 1992

-93 to 1993-94 based on the grants

provided by Department of Agriculture

& Cooperation.

6.2.1 In 1997-98, Department of Agriculture &

Cooperation started indicating an all

Introduction of MRP

India uniform Maximum Retail Price

( M R P ) f o r D A P / N P K / M O P . T h e

responsibility of indicating MRP in

respect of SSP rested with the State

G o v e r n m e n t s . T h e M R P o f P & K

fertilizers were revised on 28.2.2002,

which continued upto 31.3.2010 in case

of DAP and MOP. However, in case of

complex fertilizers, the MRP was revised

on 18.6.2008. The Special Freight

Subsidy Reimbursement Scheme was

also introduced in 1997 for supply of

fertilizers in difficult areas of J&K and

North-eastern States, which continued

upto 31.3.2008. The total delivered cost

of fertilizers being invariably higher than

the MRP indicated by the Government,

the difference in the delivered price of

fertilizers at the farm gate and the MRP

was compensated by the Government as

subsidy to the manufacturers/importers.

6.2.2 The subsidy on SSP was paid by the

Central Government whereas the MRP

was f ixed by the respective State

Government till March 2008. For a

period from May 2008 to September

2 0 0 9 , t h e M R P o f t h e S S P w a s

announced by DOF on all India basis.

MRP of SSP was lef t open w.e . f .

1.10.2009 till 30.4.2010 and a fixed

subsidy of Rs.2000 PMT was paid on

SSP.

6.3.1 The computation of subsidy on P&K

fertilizers was based on Cost Price Study

on DAP and MOP conducted by Bureau

of Industrial Costs and Prices (BICP)

now called Tariff Commission (TC).

The subsidy rates were decided on the

cost plus approach on quarterly basis

Subsidy on P&K fertilizers under Concession

Scheme


23

w.e.f. 1.4.1999. The total delivered cost

of the fertilizers being invariably higher

than MRP fixed by the Government, the

difference between delivered price of

fertilizers at farm gate level and the

MRP was compensated by Government

in the form of subsidy.

6.3.2 The Government introduced a new

methodology for working out subsidy on

complex fertilizers w.e.f. 1.4.2002 based

on the recommendation of TC. The

complex manufacturers were divided

into two groups based on feed stock for

sourcing nitrogen i.e. Gas and Naphtha.

With passage of time, DAP industry

started using different raw materials

such as Rock Phosphate for producing

phosphoric acid. DOF framed a proposal

s u g g e s t i n g m e t h o d o l o g y t o l i n k

phosphoric acid price with inter-national

DAP price. The matter was referred to

Expert Group under chair-manship of

Prof. Abhijit Sen. The report of this

Group was submitted in October 2005

and considered by Inter ministerial

group. TC conducted fresh cost price

study of DAP/MOP and NPK complexes

and submitted its report in December

2007. Based on this TC report, the

subsidy was calculated on monthly basis

till 31.3.2010.

6.4.1 The MRP of P&K fertilizers provided to

farmers were much lower than its

delivered cost. This led to increase in

consumption of fertilizers during the last

three decades and consequently increase

in food grain production within the

country. However, it was observed in

last few years that the marginal response

of agricultural productivity to additional

Impact of Concession Scheme

fertilizer usage in the country had fallen

sharply, leading to near stagnation in

agricultural productivity and conse-

quently agricultural production. The

disproportionate NPK application, rising

multi-nutrient deficiency and lack of

application of organic manures leading

to reduction in carbon content of the

soil, was attributed to the stagnating

agricultural productivity. The fertilizer

sector worked in a highly regulated

environment with cost of production

and selling prices being determined by

the Government of India, due to which

fertilizer industry suffered from low

profitability as compared to other

sectors . The growth of fert i l izers

industry was stagnated with virtually no

investments for the past 11 years in urea

sector and for over eight years in P&K

sector. The fertilizer industry had no

incentive to invest towards moderni-

zation and improving efficiency.

6.4.2 The innovation in fertilizer sector also

suffered as very few new products were

introduced by fertilizer companies, since

they got outpriced by subsidized

fertilizers. The industry had no incentive

to focus on farmers leading to poor farm

extension services, which was necessary

to educate farmers about the modern

fertilizer application techniques, soil

health and promotion of soil test based

application of soil and crop specific

fertilizers.

6.4.3 The subsidy outgo of Government had

increased exponentially by 500% during

the past five years (2005-06 to 2009-10)

under the Concession Scheme with

about 94% of the increase due to

increase in international prices of

fertilizers and fertilizer inputs, and only


24

6% attributable to increase in consump-

tion.

6.4.4 It was, thus, observed that over the last

few years the product based subsidy

regime (erstwhile concession scheme)

had been proving to be a los ing

proposition for all the stake holders viz

farmers, industry and the Government.

Accordingly, considering all the issues

relating to agriculture productivity,

balanced fertilization and growth of

indigenous fertilizer industry, competive-

ness amongst the fertilizer companies

and to overcome the deficiency of

concession scheme, the Government

introduced Nutrient Based Subsidy

(NBS) Policy for P&K fertilizers w.e.f

1.4.2010.

6.5.1 Under the NBS Policy, the Government

announces a fixed rate of subsidy (in Rs.

per Kg basis), on each nutrient of

subsidised P&K fertilizers, namely

Nitrogen (N), Phosphate (P), Potash (K)

and Sulphur (S), on annual basis taking

i n t o a ccou n t a l l r e l e v a n t f a c t or s

including international prices, exchange

rate, inventory level and prevailing

M a x i m u m R e t a i l P r i c e s o f P & K

fertilizers. The per Kg subsidy rates on

the nutrients N, P, K, S is converted into

per Tonne subsidy on the various

subsidised P&K fertilizers covered under

NBS Policy.

6.5.2 At present 22 grades of P&K fertilizers

n a m e l y D A P , M A P , T S P , M O P ,

Ammoni-um Sulphate (produced by

M/s FACT), SSP and 16 grades of NPKS

complex fertilizers are covered under the

NBS Policy.

Nutrient Based Subsidy (NBS) Policy (w.e.f

1.4.2010)

6.5.3 Under the Policy, MRP of P&K fertilizers

has been le f t open and fer t i l izer

manufac-turers/marketers are allowed to

fix the MRP at reasonable rates. In

effect, the domestic prices are deter-

mined by demand supply mechanism.

6.5.4 Under the policy, any variant of the

subsidised P&K fertilizers with secon-

dary and micronutrients (except Sulphur

'S'), as provided for under FCO, is also

eligible for subsidy. There is separate

additional subsidy for micronutrients

namely Boron and Zinc. The secondary

and micro-nutrients (except 'S') in such

fertilizers attracts a separate per tonne

subsidy to encourage their application

along with primary nutrients.

6.5.5 An Inter-Ministerial Committee (IMC)

has been constituted with Secretary

(Fertilizers) as Chairperson and Joint

Secretary level representatives of Depart-

ment of Agriculture & Cooperation

(DAC), Department of Expenditure

(DOE), Planning Commission and

Department of Agricultural Research and

Education (DARE). This Committee

recommends per nutrient subsidy for

'N', 'P', 'K' and 'S' before the start of the

financial year for decision by the

Government (Department of Fertilizers).

The IMC recommends a per tonne

additional subsidy on fortified subsidi-

zed fertilizers carrying secondary (other

than 'S') and micronutrients. The

Committee also recommends inclusion of

new fertilizers under the subsidy regime

based on application of manufacturers/

importers and its need appraisal by the

Indian Council for Agricultural Research

(ICAR), for decision by the Government.


25

6.5.6 The distribution and movement of

fertilizers along with import of finished

fertilizers, fertilizer inputs and produc-

tion by indigenous units is monitored

through the online web based “Fertilizer

Monitoring System (FMS)” as was being

done under the Concession Scheme for

P&K fertilizers.

6.5.7 20% of the decontrolled fertilizers

produced/imported in India has been

placed in the movement control under

the Essential Commodities Act 1955

(ECA). Department of Fertilizers regulat-

es the movement of these fertilizers to

bridge the supplies in underserved

areas.

6.5.8 In addition to NBS, freight for the

movement and distribution of the

decontrolled fertilizers by rail and road

is being provided to enable wider

availab-ility of fertilizers even in the

remotest places in the country.

6.5.9 Import of all the subsidized P&K

fertilizers, including complex fertilizers

has been placed under Open General

License (OGL). NBS is available for

imported complex fertilizers also except

Ammonium Sulphate. However, in case

of Ammonium Sulphate (AS) the NBS is

applicable only to domestic production

by M/s FACT.

6.5.10 Though the market price of subsidized

fertilizers, except Urea, is determined

based on demand-supply dynamics, the

fertilizer companies are required to print

Retail Price (RP) along with applicable

subsidy on the fertilizer bags clearly.

Any sale above the printed MRP is

punishable under the EC Act.

6.5.11 Manufacturers of customized fertilizers

and mixture ferti l izers have been

permitted to source subsidized fertilizers

from the manufacturers/ importers after

their receipt in the districts as inputs for

manufacturing customized fertilizers and

mixture fertilizers for agricultural

purpose. However, no separate subsidy

is provided on sale of customized

fertilizers and mixture fertilizers.

6.5.12 A separate additional subsidy is also

provided to the indigenous manufac-

turers producing complex fertilizers

using Naphtha based captive Ammonia

to compensate for the higher cost of

production of 'N' for a maximum period

of two years during which the units are

required to convert to gas or use

imported Ammonia as feedstock. The

quantum of additional subsidy is

finalized by Department of Fertilizers in

consultation with DOE, based on study

and recommendations by the Tariff

Commission.

6.5.13 The NBS is passed on to the farmers

through the fertilizer industry. The

payment of NBS to the manufac-

turers/importers of P&K fertilizers is

released as per the procedure notified by

the Department.

6.6.1 P&K Fertilizers except SSP : 85% (90%

with Bank Guarantee) of the subsidy

claims of fertilizer companies is paid as

'on account' payment on receipt of

fertilizers in the district on certification

by the Company's Statutory Auditor.

The balance 15-10% is released on State

government's certification of quantity

Procedure for Payment of subsidy under NBS

Department of FertilizersDepartment of Fertilizers

26

in m-FMS and fertilizer receipt confir-

mation by retail dealers through mobile

Fertilizer Monitoring System (m-FMS).

6.6.2 SSP: 85% (90% with Bank Guarantee) of

the claim of subsidy is paid as 'on

account' payment on 1st point sale of

fertilizers in the districts on certification

by the Company's Statutory Auditor.

The balance 10-15% claim is released

subject to State Government's certifi-

cation on quantity and quality in m-FMS

as well as fertilizer receipt confirmation

by retail dealers through m-FMS.

Per Kg and Per Metric Tonne subsidy rates

under NBS Policy

6.7.1 Based on the recommendations of the

Inter Ministerial Committee, the Govern-

ment has announced the per Kg rates of

NBS for the nutrients namely 'N', 'P', 'K'

& 'S' for the financial years 2010-11,

2011-12, 2012-13, 2013-14 and 2014-15 as

under:

*Including Rs 300 per MT for secondary freight from rake point to retail points.** Excluding the secondary freight of Rs 300 PMT.

6.7.2

of P&K fertilizers covered under the

NBS Policy during the financial years

2010-11, 2011-12, 2012-13, 2013-14 and

2014-15 is given in the Annexure-IX.

The Per MT subsidy on different grade Subsidy for fortified fertilizers:

6.8.1 As per the NBS Policy a fixed Subsidy is also provided on fortified fertilizers with micro-nutrients namely Boron and Zinc. The rates of subsidy during the years, 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15 are as under:

Sl. No.

Nutrients for fortification as per FCO

Additional subsidy per MT of fortified fertilizers (in Rs. PMT)

1. Boron ‘B’ 300

2. Zinc ‘Zn’ 500

NBS rates (Rs. per Kg)

Nutrients 1st Apr - 31st

Dec 2010 *

1st Jan- 31st

Mar 2011**

2011-12

2012-13 2013-

14

2014-

15

‘N’ (Nitrogen) 23.227 23.227 27.153 24.000 20.875 20.875

‘P’ (Phosphate) 26.276 25.624 32.338 21.804 18.679 18.679

‘K’ (Potash) 24.487 23.987 26.756 24.000 18.833 15.500

‘S’ (Sulphur) 1.784 1.784 1.677 1.677 1.677 1.677


27

Additional subsidy on complex fertilizers

produced using costly feedstock

6.9.1 As per NBS Policy, additional compen-

sation has been provided to indigenous

manufacturers producing complex

fertilizers using Naphtha/Fuel Oil/LSHS

as feedstock to compensate for their

higher cost of production of 'N' for two

years w.e.f. 1.4.2010 to 31.3.2012, during

which the companies were asked to

convert their feedstock to gas or use

imported Ammonia. As per this FACT,

MFL, and GNFC received additional

compensation. Beyond 31.3.2012 the

Government has approved additional

compensation only to FACT upto

4.10.2013. The rates of additional

compensation provided to these units

are as under:

Name of the company

Grades of Fertilizers Rates (Rs/MT) of additional compensation (Provisional)

FACT(Cochin) 20-20-0-13 3121

20.6-0-0-13 3658

MFL, Manali 20-20-0-13 5434

17-17-17-0 4640

GNFC, Bharuch 20-20-0-0 2534

6.9.2

sation was announced on provisional

basis subject to final recommendation of

Tariff Commission.

6.10.1 The freight subsidy for distribution/

movement of subsidized P&K fertilizers

(except SSP) under the NBS Policy w.e.f.

1.4.2010 to 31.12.2010 was restricted to

the rail freight, whereas the secondary

freight (from rake point to districts) was

assumed to be part of the fixed subsidy.

Freight reimbursement on account of

d i rec t road movement was made

payable as per the actual claim subject

to the equivalent rail freight upto a

maximum of 500 Kms.

The above ad-hoc additional compen-

Freight subsidy Policy

6.11.1 W.e.f. 1.1.2011 to 31.3.2012, freight on

account of Primary Movement (by rail

from the plant or the port to various

rake points) and Secondary Movement

(by road from nearest rake points to the

block headquarters in the Districts) of all

P&K fer t i l izers (except SSP) was

reimbursed as per the Uniform Freight

Subsidy policy applicable to urea during

the period. Freight subsidy for Direct

Road Movement (by road from plant or

port to blocks) of all P&K fertilizers

(except SSP) was reimbursed as per

actual claim subject to the equivalent rail

freight upto a maximum of 500 Kms.

The rates for reimbursement of freight

for direct road movement from 1.4.2010

to 31.3.2012 were as under:

Movement(K.M.) Rates Rs. per MT Upto 100 108 101-200

183

201-300

256

301-400

327 401-500

400


28

6.11.2 W.e.f. 1.4.2012, freight subsidy for P&K

fertilizers is as under:

(i) Freight on account of Primary

Movement of all P&K fertilizers

(except SSP) is reimbursed on the

basis of actual rail freight, as per

the railway receipts.

(ii) No reimbursement on account of

Secondary Movement of all P&K

fert i l izers ( including SSP) , i s

provided.

(iii) Freight subsidy for Direct Road

Movement of all P&K fertilizes

(excluding SSP) is reimbursed as

per the actual claims subject to

e q u i v a l e n t r a i l f r e i g h t t o b e

announced by DOF time to time.

However, the maximum allowable

distance under the direct road

movement shall be 500 KMs.

(iv) Special compensation on account of

Secondary movement for all P&K

fertilizers (except SSP) is provided

for difficult areas namely Himachal

Pradesh, Uttarakhand, Sikkim, J&K,

7 North Eastern states and A&N

Islands.

6.12.1 The country is fully dependent on

imports in Potassic sector and to the

extent of 90% in Phosphatic sector in the

form of either finished products or its

raw material. Subsidy being fixed, any

fluctuation in international prices has

effect on the domestic prices of P&K

fertilizers. A Statement showing MRP of

P&K fertilizers during the year 2010-11

to 2013-14 is at Annexure-X.

Prices (MRP) of P&K fertilizers under NBS

regime

6.12.2 Under NBS policy, companies are

allowed to fix the MRP on their own.

The intention behind introduction of

NBS was to increase competition among

the fertilizer companies to facilitate

availabi-lity of diversified products in

t h e ma r k e t a t r e a son a b l e p r i ce s .

However, the prices of P&K fertilizers

have gone up substan-tially and doubts

have been raised about reasonableness of

the prices fixed by the companies. The

prices have gone up substantially on the

account of increase in prices of raw

materials / f inished fert i l izers in

international market, depreciation of

Indian rupee w.r.t US Dollar and also

due perhaps to larger profit margins by

the companies. This has lead to lot of

hue and cry from the various quarters

and has also lead to imbalance in use of

fertilizers. Accordingly, in order to check

the prices fixed by P&K com-panies, the

Government vide notification dated

8.7.2011 directed the fertilizer companies

to fix the prices of P&K fertilizers at

reasonable level under the NBS regime.

In order to ensure reasonableness of

prices fixed by fertilizer companies,

while announcing the NBS Policy and

rates for the year 2013-14, the following

clauses have been incorporated in NBS

Policy applicable with effect from

1.4.2012:

(i) It shall be mandatory for all the fertilizer

companies to submit, along with their

claims of subsidy, certified cost data in

the prescribed format and as per the

requirement for the purpose of monitor-

ing of MRPs of P&K fertilizers fixed by

the fertilizer companies.

(ii) In cases, where after scrutiny, unreason-

ableness of MRP is established or where


29

there is no correlation between the cost

of production or acquisition and the

MRP printed on the bags, the subsidy

may be restricted or denied even if the

product is otherwise eligible for subsidy

under NBS. In proven case of abuse of

subsidy mechanism, DOF, on the

recommendation of IMC may exclude

any grade/grades of fertilizers of a

particular company or the fertilizer

company itself from the NBS scheme.

(iii) The reasonableness of MRP will be

determined with reference to the MRP

printed on the bags.

Year Subsidy on P&K fertilizers

Subsidy Regime for P&K fertilizers

Subsidy on Urea

Subsidy Regime for urea fertilizer

Total

2005-06 6596.19 Concession Scheme

12793.45

New Pricing

Scheme

19389.64

2006-07 10298.12 17721.43 28019.55

2007-08 16933.80 26385.36 43319.16

2008-09 65554.79 33939.92 99494.71

2009-10 39452.06 24580.23 64032.29

2010-11 41500.00 NBS

regime

24336.68 65836.68

2011-12 36107.94 37683.00 73790.94 2012-13 30576.12 40016.01 70592.13

2013-14 29426.86 41824.36 71251.22

2014-15 (BE) 24670.30 47400.00 72070.30

(in Rs. crore)

Quality of Fertilizers

6.13.1 Government of India has declared

fertilizer as an essential commodity

under the Essential Commodities Act,

1955 (ECA) and has notified Fertilizer

Control Order, 1985 (FCO) under this

Act. As per the provision of the FCO,

the fertilizers, which meet the standard

of quality laid down in the order,

should only be sold to the farmers. The

State Governments are supposed to

check the quality of the fertilizers to

ensure supply of quality of fertilizers by

the manufacturers/importers of ferti-

lizers as prescribed under the FCO and

are fully empowered to take action

under EC Act, if the fertilizers are found

to be non/sub standard. The quality of

the imported fertilizers is checked by the

fertilizer quality control laboratories of

the Government of India. It can only be

sold if it conforms to quality as per FCO

specification.

6.13.2 The penal provision under the ECA,

1955 for violation of quality standards

includes prosecution of offenders and

sentence if convicted up to seven years

imprison-ment besides cancellation of

Subsidy outgo on P&K fertilizers during the previous years


30

authorization certificate and other

administrative action. The Department of

Fertilizers does not pay any subsidy on

sale of non-standard fertilizers and in

case it has been paid, a recovery along

with penal interest is made. In order to

ensure this, Depart-ment of Fertilizers

obtains quality certificate of all fertilizers

on which subsidy is paid.

6.13.3 The Department of Fertilizers has taken

various preventive measures to ensure

quality of SSP which has always been an

issue. The some of the measures are as

under:

a. To conduct first time technical inspec-

t ions by PDIL/FEDO of the then

existing SSP units/new units in order to

ascertain the technical competence of the

uni t s to manufac ture SSP o f the

standards laid down under the FCO.

b. To conduct six monthly inspections of

the existing SSP units by PDIL/FEDO in

order to ascertain as to whether the

uni t s a re adher ing to the po l i cy

guidel ines of subsidy scheme for

claiming payment of subsidy and to

ensure quality.

c. To recommend and notify the various

grade of rock phosphate of various

origins/countries suitable for manufac-

turing SSP under the concession scheme

as per the FCO after obtaining reco-

mmendation from PDIL/FEDO. SSP

units are allowed to use only notified

rock phosphates.

d. The Government also checks the quality

of imported Rock Phosphate through

PDIL/FEDO in some cases to ensure the

quality of SSP.

e. The Department conducts periodic

inspections of SSP units. The Depart-

ment has also started inspection of SSP

units at very short notice for ensuring

quality.

f. Subsidy is provided subject to monthly

quality checks of SSP by the State

government.

g. There is separate payment procedure for

SSP. Full payment of subsidy is made

only after State Government certifies the

quality of SSP sold in the States.

6.14.1 At present, there are 30 urea units in our

country. Out of these thirty urea units,

27 urea units use Natural Gas (using

either domestic gas/LNG or both) as

feedstock and fuel and remaining three

urea units use Naphtha as feedstock and

fuel. The details of feed stock used, re-

assessed capacity and actual production

of each urea unit for the year 2013-14

are placed at Annexure–XI

6.15.1 Until 31st March, 2003, the subsidy to

urea manufacturers was being regulated

in terms of the provisions of the

erstwhile Retention Price Scheme (RPS).

Under RPS, the difference between

retention price (cost of production as

assessed by the Government plus 12%

post tax return on net worth) and the

statutorily notified sale price was paid

as subsidy to each urea unit. Retention

price used to be determined unit wise,

which differed from unit to unit ,

d e p e n d i n g u p o n t h e t e c h n o l o g y ,

feedstock used, the level of capacity

utilization, energy consumption, distance

UREA

New Pricing Scheme (NPS)


31

from the source of feedstock/raw

materials, etc. Though the RPS did

achieve its objective of increasing

investment in the fertilizer industry, and

thereby creating new capacities and

enhanced fertilizer production along

w i t h i n c r e a s i n g u s e o f c h e m i c a l

f e r t i l i z e r s , t h e s c h e m e h a d b e e n

criticized for being cost plus in nature

and not providing incent ives for

encouraging efficiency.

6.15.2 Given the importance of fertilizer pricing

and subsidization in the overall policy

environment, which has direct impli-

cations with reference to the growth and

development of agriculture and sustain-

ability of the fertilizer industry, the need

for streamlining the subsidy scheme in

respect of urea producing units had

been felt for a long time. A High

Powered Fertilizer Pricing Policy Review

Committee (HPC) was constituted,

under the chairmanship of Prof. C.H.

Hanumantha Rao, to review the existing

system of subsidization of urea, to

suggest an alternative broad-based,

scientific and transparent methodology,

and recommend measures for greater

cohesiveness in the policies applicable to

different segments of the industry. The

HPC, in its report submitted to the

Government on 3rd April 1998, inter-

alia, recommended that unit-wise RPS

for urea may be discontinued and,

instead, a uniform Normative Referral

Price be fixed for existing gas based

urea units and also for DAP and a

Feedstock Differential Cost Reimbur-

sement (FDCR) be given for a period of

five years for non-gas based urea units.

6.15.3 The Expenditure Reforms Commission

(ERC), headed by Shri K.P. Geetha-

krishnan, had also examined the issue of

rationalizing fertilizer subsidies. In its

report submitted on 20th September

2000, the ERC recommended, inter-alia,

dismantling of existing RPS and in its

place the introduction of a Concession

S c h e m e f o r u r e a u n i t s b a s e d o n

feedstock used and the vintage of plants.

6.15.4 The recommendations of ERC were

examined in consultation with the

concerned Ministries/Departments. The

views of the fertilizer industry and the

State Governments/Union territories,

and economists/research institutes were

also obtained. After due examination of

all these views, a New Pricing Scheme

(NPS) for urea units for replacing the

RPS was formulated and notified on

30.1.2003. The new scheme took effect

from 1.4.2003. It aimed at inducing the

urea units to achieve internationally

competitive levels of efficiency, besides

bringing in greater transparency and

simplification in subsidy administration.

6.15.5 New Pricing Scheme (NPS) for urea was

introduced w.e.f. 1st April, 2003. The

Stage-I of NPS was of one year duration

from 1st April, 2003 to 31st March, 2004

and Stage-II was of two year duration

from 1st April to 31st March, 2006. With

the Stage-III of NPS being implemented

w.e.f. 1st October, 2006, the Stage-II

of NPS stood extended upto 31st

September, 2006.

6.16.1 There has been a substantial increase in

the demand of fertilizers in last few

years. The major challenge before the

Government today is to increase availa-

New Pricing Policy For Urea–

Stage-III


32

bility of urea within the country through

enhanced indigenous production and

committed joint ventures abroad for

Indian market, reduction in cost of

production and an effective monitoring

system to ensure equitable distribution

and timely availability of fertilizers to

the farmers in all parts of the country.

6.16.2 Department of Fertilizers had notified

the policy on 08.03.2007 for Stage – III of

New Pricing Scheme for urea manufac-

turing units w.e.f 01.10.2006 to 31.03.

2010. The provisions of this Policy were

extended upto 31.03.2010 till further

orders. The policy notification dated

08.03.2007 is placed at Annexure-XII.

6.17.1 Recently, the Government has notified

the Modified NPS-III for existing urea

units on 2nd April, 2014 in order to

address the issue of under recoveries of

the existing urea units due to freezing

Fixed Cost at the level of costed year

2002-03. The policy will be implemented

for a period of one year from the date

of issue of notification. The policy

envisages the continuation of calculation

of concession rates of urea units as per

NPS-III with certain amendments. As

per the said policy, the existing urea

uni ts wi l l be pa id the maximum

additional fixed cost (towards increase in

the four components, viz., salaries &

wages, contract labour, selling expensed

and repair & mainte-nance) of Rs.

350/MT to existing urea units or actual

increase in above four components of

fixed cost during the year 2012-13 as

compared to the year 2002-03, whichever

is lower. However, in respect of KFCL

and BVFCL-II units, for which cost data

Modified NPS-III for existing urea units

of four components is not available

either for the year 2002-03 or 2012-13,

the actual increase in these four

components as per the certified cost data

for the latest year over and above Rs.

521/MT (weighted industry average

during 2002-03) subject to maximum of

Rs. 350/MT will be allowed.

6.17.2 The policy also provides for the grant of

the minimum fixed cost of Rs. 2300/MT

or actual fixed cost prevailing during

2012-13, whichever is lower, after taking

into account the aforesaid additional

fixed cost. This will be based on

certified fixed cost data for the year

2012-13, to be provided by all urea units.

Further, in order to protect the efficient

units which have converted to gas and

are more than 30 years old, the policy

has the provision of compensating these

units by way of grant of the special

compensation of Rs. 150/MT.

6.17.3 The provision for continuation of the

production of high cost naphtha based

urea units namely SPIC Tuticorin, MFL

Manali and MCFL Mangalore is also

made under modified NPS-III till the

gas availability and connectivity is

provided to these units or June, 2014

whichever is earlier. The copy of

notification dated 2nd April, 2014 is

placed at Annexure–XIII.

6.18.1 A pricing policy was announced on

29.1.2004 for setting up new urea

projects and expansion of existing urea

projects for augmenting the domestic

production capacity of urea to meet the

growing demand for enhancing the

agricultural production in the country.

New Investment Policy- 2008


33

The policy aimed at enabling the

entrepreneurs to decide about their

investment plans in the fertilizer sector.

The policy was expected to encourage

setting up of plants with international

efficiency standards for fresh investment

in new projects and expansion of

existing units. The policy was based on

the principle of Long Run Average Cost

(LRAC).

6.18.2 The above policy was not successful in

attracting investment in this sector. The

non-availability of natural gas, which is

the critical feedstock for production of

urea, has also been one of the major

constraints in further addition of

indigenous capacity for production of

urea. However with the projected

improved availability of gas from 2009

onwards, it is expected that investment

in fertilizer sector will also take place.

Further, vide notification dated 4th

September 2008, Government had

notified the New Investment Policy for

urea sector to attract the much required

investment in this sector is placed at

Annexure-XIV. The policy was based

on IPP benchmark.

6.18.3 The policy was expected to lead to

savings to the Government in the form

of availability of Urea at a price below

IPP and will also lead to indirect savings

by bringing down the import price due

to reduction in imports. The New

Investment Policy aimed at revamp,

expansion, revival of existing urea units

and setting up of Greenfield/Brown-

field projects. The policy was likely to

substantially bridge the gap in next

five years between the consumption

and domestic production subject to

confirmed and adequate availability of

gas at reasonable prices. The salient

features of the New Investment Policy-

2008 are as under:-

1. The policy is based on Import

Parity Price (IPP) benchmarked

with suitable floor and ceiling

prices of USD 250/MT and USD

425/MT respectively.

2. Revamp project: Any improvement

in capacity of exist ing plants

through investment upto Rs. 1000

crore, in the existing train of

ammonia-urea production may be

treated as revamp of existing units.

The addit ional urea from the

revamp of existing units may be

recognized at 85% of IPP with the

floor and ceiling price as indicated

above.

3. Expansion projects: Setting up of a

new ammonia-urea plant (a separate

new ammonia-urea train) in the

premises of the existing fertilizer

plants, utilizing some of the com-

mon utilities may qualify for being

treated as expansion project. The

investment should exceed a mini-

mum limit of Rs. 3000 crore. The

urea from the expansion of existing

units may be recognized at 90% of

IPP, with the floor and ceiling price

as indicated above.

4. Revival / Brownfield projects:

The urea from the revived units of

Hindustan Fertilizer Corporation

Limited(HFCL) and Fert i l izer

Corporation of India Limited (FCIL)

may be recognized at 95% of IPP

with prescribed floor & ceiling

price, if the revival of closed units

takes placed in public sector.


34

5. Greenfield projects: The pricing of

Greenfield projects may be decided

based on a bidding process which

will be for a discount over IPP,

after firming up of the location

(States) of the proposed new plants.

6. Gas transportation charges: An

additional gas transportation cost

may be paid to units undertaking

expansion and revival on the basis

of actuals (upto 5.2 Gcal per MT of

urea) as decided by the Regulator

(Gas) subject to a maximum ceiling

of USD 25 per MT of urea.

7. Allocation of Gas: Only non-APM

gas may be considered for the new

investment in urea sector.

8. Coal gasification based Urea

Projects: The Coal gasification

based urea projects may also be

treated on par with a revival or a

Greenfield project as the case may

be. In addition, any other incen-

tives or tax benefits as provided by

Government for encouraging coal

gasification technology will also be

extended to these projects.

9. Joint Ventures abroad: The Joint

Venture projects abroad in gas rich

countries are also proposed to be

encouraged through firm offtake

contracts with pricing decided on

the basis of prevailing market

conditions and in mutual consulta-

tion with the joint venture com-

pany. However, the principle for

deciding upon the maximum price

will be the price achieved under

Greenfield projects or 95% of IPP

as proposed for revival projects (in

absence of any Greenfield projects)

with a cap of USD 405 CIF India

per MT and a floor of USD 225 CIF

India per MT (inclusive of handling

and bagging costs).

10. Time period for proposed invest-

ment policy: Only those revamp

projects which start production of

additional capacities within four

years of notification of the new

policy would qualify for the dis-

pensation recommended above.

Similarly production from expan-

sion and revival (brownfield) units

that come about within five years

of notification of the new policy

would qualify for dispensation

provided in the policy. If the

production does not come through

within the stipulated time period,

such brownfield projects will be

treated similar to a Greenfield

projects wherein price will be

decided through limited bidding

options. The time period for setting

up of new Joint Ventures would

also be five years under the new

investment policy.

6.19.1 The policy notification of 2008 resulted

in fructification of sixteen Revamp

projects with an increase in Urea

production of about two million tonnes

per annum. Annexure-XV gives the

unit wise details of “cut off” for revamp

capacity of the urea units and Annexure

-XVI gives the list of 16 revamped urea

units.

6.20.1 Department of Fertilizers has moved a

note for seeking approval of CCEA for

Implementation of NIP-2008

Amendment to New Investment Policy-2008 in

urea sector


35

amendments to New Investment Policy,

2008 (NIP-2008) and to establish a

Unified Pricing Formula in order to

incentivize and protect the additional

production of urea beyond re-assessed

capacity from existing urea units which

have taken up revamp under NIP-2008.

6.21.1 The Government had notified the New

Investment Policy (NIP)-2012 on 2nd

January, 2013 to facilitate fresh invest-

ment in urea sector in future to reduce

India's import dependency in urea

production. Copy of policy notification

is placed at Annexure-XVII.

6.21.2 The salient features of NIP – 2012 are as

follows:-

�The policy supports gas based

plants only.

�It has structure of a flexible floor

and ceiling price calculated at

delivered price of gas from US $6.5

to US $ 14/mmbtu.

�The floor price has been deter-

mined at a Return on Equity (RoE)

of 12% and the ceiling price at a

RoE of 20%.

�For Greenfield/Revival and Brown-

field Projects, the floor and ceiling

shall increase in tandem with

increase in delivered gas price i.e.

every USD 0.1/mmbtu increase in

delivered gas price will increase the

floor and ceiling by USD 2/MT

upto delivered gas price of USD

14/mmbtu.

�Beyond delivered gas price of USD

14/mmbtu, only floor will be

increased.

New Investment Policy – 2012

�For Revamp Projects, floor and ceil-

ing have been linked to delivered

gas price of USD 7.5/mmbtu and

floor and ceiling shall increase by

USD 2.2/MT for every increase in

delivered gas price of 0.1/mmbtu.

�It supports revival of closed units.

�It encourages investment by Indian

industry in Joint Venture abroad in

resource rich countries

�The policy incentivizes units to

produce urea in granulated or

coated/fortified form to improve

the efficiency in the use of Urea

with additional amount of USD

10/MT allowed in floor and ceiling

prices.

�For units in North Eastern states,

the special dispensation regarding

gas price that is being extended by

GOI/State governments will be

available to any new investment.

Suitable adjustments will be made

to applicable floor and ceiling price

in case the delivered price (after

allowing for special dispensation)

falls below USD 6.5 per mmbtu,

subject to approval of Ministry of

Finance.

�The policy is applicable to all units

whose production starts within five

years from the date of notification

and has dispensation of guaranteed

buy back for eight years from date

of start of production.

6.22.1 The following 14 companies (including

PSUs) responded to the NIP-2012 for

setting up new Brownfield/Greenfield

PROPOSALS FROM VARIOUS COMPANIES

Projects. In addition, one private sector

company proposed a joint venture

Ammonia-Urea project in Nigeria (in

response to provisions under NIP 2012

for overseas/joint projects).

1 IFFCO-KALOL Brownfield A mmonia-Urea Expansion Plant at Kalol

Cooperative Gujarat

S.No. Company Projects Ownership State/Country

2 IGFL-Jagdishpur Brownfield Expansion urea project at Jagdishpur.

Private Uttar Pradesh

3 CFCL-Gadepan Expansion of Ammonia -Urea units at Gadepan -Kota.

Private Rajasthan

4 KRIBHCO-Hazira

Brownfield Hazira fertilizer unit – Phase-II.

Coopertive Gujarat

5 TCL-Babrala Expansion of Urea project at Babrala.


6 GNVFC-Bharuch

Brownfield Ammonia -Urea project at Dahej.

State JV Gujarat

7 GSFC-Vadodara Greenfield Ammonia -Urea project at Dahej.

State PSU Gujarat

8 NFCL -Kakinada

Expansion of Ammonia -Urea project at Kakinada.

Private Andhra Pradesh


36

9 MATIX Fertilizers & Chemicals ltd.

Greenfield Ammonia -Urea Fertilizers Complex at Panagarh, West Bengal.

Private West Bengal

10 BCCL (Shriram Group)

Greenfield Coal Gasification Ammoinia -Urea project at Paradip, Odissa.

Private Odisha

11 RCF-Thal Brownfield Ammonia -Urea Expansion project at Thal -III of RCF

CPSU Maharashtra

12 KF&CL- Kanpur Brownfield Ammonia -Urea Project at Panki-Kanpur.


13 KSFL-Shahjahanpur

Brownfield Urea Ammonia project at Shahjahanpur-II.


14 FACT-Kochi Brownfield Ammonia -urea project at Kochi.

PSU Kerala

15 NFCNL -Nigeria NFCNL Ammonia -Urea project at Nigeria – JV.

Private Nigeria


37

Amendment in NIP-2012

MRP of urea

6.23.1 As per deliberation and discussion held

in the meeting on 01.07.2013 under

Chairmanship of PS to Hon'ble Prime

Minister, it was decided to move an

amendment in New Investment Policy-

2012 through CCEA for substituting the

phrase “guaranteed buyback” with

expression that subsidies will be given

only upon domestic sale as at present

with proper safeguards.

6.23.2 Accordingly, Department of Fertilizers

had f ina l ized the CCEA Note o f

amendment in NIP – 2012 and placed it

before CCEA for approval. CCEA Note

was considered and approved by CCEA

on 28.02.2014. However, this Depart-

ment will notify the amendment in NIP-

2012 after approval of the new Govern-

ment.

6.24.1 The MRP of urea is statutorily controlled

by the Government and was Rs. 4830/-

per MT since 2003 in all the states. It

has been increased to Rs. 5310/- per MT

w.e.f. 1st April, 2010 (exclusive of the

central excise duty, central sales tax,

countervailing duty, the sales tax and

other local taxes wherever levied) and

R s . 5 3 6 0 / - p e r t o n n e w . e . f . 0 1 s t

November, 2012 by including Rs. 50-/-

PMT as retailer margin which will will

be paid to retailers for acknowledging

the receipt and reporting the stock

(under m-FMS) as additional incentive in

the retailer margin. The details of the

MRP of urea is placed at Annexure–

XVIII.

Policy for Conversion from Naphtha/FO/

LSHS to Gas based urea units

6.25.1 To encourage the conversion of existing

Fuel Oil/Low Sulphur Heavy Stock

(FO/LSHS) based urea units to gas, the

Department of Fertilizers had notified a

policy on 6th March, 2009 for conversion

and restart of existing urea units to

increase indigenous production and also

efficiency in production of fertilizers.

The policy provided a Special Fixed Cost

towards reimbursement of the cost of

conversion to the urea unit after its

conversion to gas is completed. The

conversion of these units has led to

increase in efficiency of urea production

in the country and also add to usage of

natural gas, which is the most efficient

and cleaner fuel/feedstock for produc-

tion of urea in the country.

6.25.2 Three naphtha based plants namely,

Chambal Fertilizers & Chemicals Limited

(CFCL), Gadepan-II and IFFCO Phulpur-

I & II have already converted to NG/

LNG. Shriram Fertilizers & Chemicals

Limited (SFC) Kota also started using

gas w.e.f. 22nd September, 2007.

6.25.3 All four units based on FO/LSHS plants

viz., three units of NFL and one unit of

GNVFC have converted to gas during

2012-13. ZAL– Goa, a naphtha based

urea unit has also converted to natural

gas as feedstock during 2012-13. Kanpur

Fertilizers and Cement Limited (KFCL),

a shut down naphtha based unit re-

started production in June, 2013. At

present, only three Naphtha units viz.,

SPIC-Tuticorin, MFL-Manali and MCFL-

Mangalore are in process for conversion

from Naphtha to Gas feedstock.


38

Policy for uniform freight subsidy on all

fertilizers under the fertilizer subsidy regime

6.27.1 Fertilizer subsidy is provided by the

Government with the objective of

ensuring timely availability of fertilizers

to farmers at affordable prices. The

aforesaid twin objectives stand fulfilled

only if the fertilizers are easily available,

especially during the peak demand

period, in all parts of the country.

Freight for urea has been always driven

by considerations of serving the farming

population at large including those in

remote and hilly areas. Being essential

commodity, efficient distribution of urea

can add to the efficiency of the manufac-

turing unit.

6.27.2 Prior to 01st April, 2008, a separate

f re ight subs idy was re leased for

indigenous urea units under the New

Pricing Scheme (NPS) Stage III. The

railway freight was paid on actual and

the road freight on the basis of actual

leads upto the district level (primary

godowns) and a normative per KM rate.

Beyond the primary godowns, the

secondary freight was paid on the basis

of average leads and normative per KM

rate. Hence, the actual freight was paid

upto the district level and normative

freight beyond that point to the block.

6.27.3 Department of Fertilizers had notified

the policy on 17th July, 2008 for uniform

freight subsidy on all fertilizers under

the fertilizer subsidy regime is placed at

Annexure-XIX. It was decided that

freight subsidy may be paid separately

on receipt of all subsidized fertilizers in

the districts/blocks. The freight subsidy

is calculated by two methods, namely,

rail freight and road freight. The rail

freight is paid on actual, and the road

6.25.4 The aforementioned high cost naphtha

based urea units namely SPIC Tuticorin,

MFL Manali and MCFL Mangalore have

been permitted to the production till the

gas availability and connectivity is

provided to these units or June, 2014

whichever is earlier, beyond which

subsidy for naphtha based plants will

not be paid. However, no new naphtha

based plants will be permitted in Green-

field investment.

6.26.1 Vide notification dated 2nd June, 2008,

Department of Fertilizers had notified

the policy for encouraging production

and availability of fortified and coated

fertilizers in the country. It was decided

that the indigenous manufacturers/

producers of the subsidized fertilizers

may be allowed to produce fortified/

coated subsidized fertilizers up to a

maximum of 20% of their total produc-

tion of respective subsidized fertilizers.

The manufacturers/producers are allow-

ed to sell the FCO approved fortified/

coated subsidized fertilizers, except for

Zincated Urea and Boronated SSP at a

price up to 5% above the MRP of the

subsidized fertilizer. For Zincated Urea

and Boronated SSP, the manufacturers

are allowed to charge up to 10% above

MRP of Urea and SSP respectively.

6.26.2 The ceiling of production of Neem

Coated urea which has been incor-

porated in Schedule 1 of the Fertilizer

Control Order, 1985 has been increased

from the limit of 20% to a maximum

of 35% of their total production vide

notification dated 11th January, 2010.

Policy for encouraging production and

availability of fortified and coated fertilizers

in the country


39

State ACTN over and above MRP ACTN over and above MRP

Rs./MT of urea Rs./Bag of 50 KGS of urea w.e.f 01.04.2011 to 03.04.2012

Gujarat

200.00

10.00

Uttar Pradesh

289.00

14.45 w.e.f 04.04.2012 to

25.04.2013

Gujarat

189.00

9.45 Uttar Pradesh

364.00

18.20

w.e.f 26.04.2013 to upto

Gujarat

410.00

20.50

Uttar Pradesh

515.00

25.75

freight is paid on a normative average

district lead (average of the actual leads

of block headquarters from the nearest

rail rake point) and a normative per KM

rate.

6.27.4 As per the policy Stage-III of New

Pricing Scheme for urea manufacturing

units dated 8th March, 2007 and

Uniform Freight Subsidy Scheme of 17th

July, 2008, the Department of Fertilizers

requested Tariff Commission to fix Per

Tonne Per Km (PTPK) base rates for

road transportation in the case of

secondary movement of fertilizers from

unloading Rake Point to retail points.

The Tariff Commission conducted the

study and submitted the report to

Department of Fertilizers on 'Finalizing

PTPK rates for Transportation of Ferti-

lizers by road.' As per the recommen-

dations made by the Tariff Commission

in their report, the Government had

issued a notification on 1st September,

2011 notifying the district wise revised

road transportation rates for urea

dispatches by all the units with effect

from 1st April, 2008. It was decided

that these rates will be escalated by WPI

(composite road transport index) every

year. Accordingly, Department of

Fertilizers has notified normative PTPK

rates based on the Tariff Commission

recommendations and escalated on the

basis of the composite road transport

index for the year 2010-11 and 2011-12

on 18th March, 2014, which is placed at

Annexure-XX.

6.28.1 As per the New Pricing Scheme (NPS) -

III for urea policy, the additional VAT is

not considered for reimbursement to the

urea units during the subsidy reimbur-

sement. But the urea units in Uttar

Pradesh (UP) and Gujarat have paid the

additional VAT in spite of the fact that

there is no provision for reimbursement

of additional VAT levied by State

Government in NPS-III. To resolve this

issue, the Department of Fertilizers had

issued the notification dated 29th March,

2011 and 31st March, 2011 regarding

recovery of incidence of non-reim-

bursable input taxation levied by the

aforesaid State Governments from time

to time in the urea subsidy regime.

The details of the ACTN for the last three years

are as follows:

Recovery of the incidence of non-reimbursable

input taxation levied by State Governments

from time to time in subsidy regime

6.27.2 Under these notifications, the urea units

are allowed to recover additional

incidence of non-reimbursable taxes paid

to the state governments from the urea

sold in these states by increasing

additional MRP in form of Additional

Cost due to Non-Recognized input

taxation (ACTN) and deposit the same

with Government. Thereafter, the same

is redistributed on quarterly basis to the


concerned urea producing units. The

fertilizer companies has informed the

Department of Fertilizers that the

amount of ACTN due to additional

VAT, levied by the State Governments

for urea sold in the States from 1-10-

2 0 0 6 t o 3 1 - 0 3 - 2 0 1 1 i s n o t b e i n g

reimbursed by the Government of

Gujarat and UP. The Government has

taken up the matter with concerned

State Governments for reimbursement.

6.27.3 The Department of Fertilizers is awaiting

the response from the Government of

Gujarat regarding reimbursement of

additional taxation levied by State

Government on input such as Natural

Gas, Coal etc. used for manufacturing

Urea during the past period from 1-10-

2006 to 31-03-2011. The matter was also

taken up with the Special Secretary,

Government of Uttar Pradesh many

times. But in absence of response from

these state governments, the matter

could not be resolved. Subsequently, the

issue was also referred to Ministry of

Finance/ Department of Expenditure

which intimated that the Government is

not in favour of charging ACTN from

farmers on their future purchases of

urea to compensate the manufacturers

for their past period losses.

6.28.1 The availability of gas is one of the

major limiting factor to the growth of

urea industry in the country. Presently,

the availability of domestic natural gas

is not even sufficient to meet the

demand of existing gas based urea units

in the country. Due to shortage of

domestic gas, many FO/LSHS/Naphtha

based urea plants which have converted

to gas recently, are meeting its require-

Requirement and availability of gas to

fertilizer sector

ment of gas by using costly RLNG.

Further, Empowered Group of Ministers

(EGoM) on Gas Pricing and Commercial

Utilization of gas in their meeting held

on 23.08.2013 decided as under:

(i) to maintain at 31.5 MMSCMD the

level of supplies of domestic gas to

the Fertilizer sector and give the

sector first priority in meeting the

requirements of any shortfall below

the level of 31.5 MMSCMD from

any additional production of NELP

gas;

(ii) the entire additional NELP gas

production available during the

years 2013-14, 2014-15 and 2015-16,

after meet-ing the supply level of

31.5 MMSCMD to the Fertilizer

sector, be supplied to the Power

sector. The plant-wide allocation of

additional production of NELP gas

available during these years shall

be done by the Ministry of Power;

and

(iii) to allow supply of NELP gas to

Power plants based on short term

Power Purchase Agreements (PPAs)

in all cases where medium/long-

term PPAs are practicable in view

of limited balance tenure of the Gas

Supply and Purchase Agreements

(GSPAs).

6.28.2 The level of supplies of domestic gas to

the fertilizer sector has been capped at

31.5 mmscmd. The break up of 31.5

mmscmd is placed at Annexure-XXI.

The requirement of Natural Gas for

the year 2013-14 and additional Natural

Gas requirement for the years 2014-

15 and 2017-18 is placed at Annexure-

XXII.

40

CHAPTER-7

Public Sector Undertakings


There are nine Public Sector Enterprises under

administrative control of the Department of

Fer t i l izers . A s ta tement indicat ing the

profitability of these PSUs has been given at

Annexure-XXIII.

Brahmaputra Valley Fertilizer Corpo-

ration Limited (BVFCL) was incor-

p o r a t e d o n 5 t h A p r i l 2 0 0 2 a f t e r

segregation of Namrup Units in Assam

from Hindustan Fertilizer Corporation

Ltd. It has two operating Ammonia-Urea

Units namely Namrup-II and Namrup-III

situated at Namrup, Assam.

Its Corporate Office is also situated at

Namrup. The other establishments of the

company are Liaison Offices at NOIDA

& Kolkata and Marketing Offices at

Guwahati, Siliguri & Patna.

The authorized share capital and paid

up capital of the company as on

31.03.2014 were Rs.510 Crores and

Rs.365.83 Crores respectively.

To be a significant producer of nitro-

genous fertilizer in an efficient, econo-

mical and environment friendly manner

and provide a package of agricultural

services in Eastern India.

Brahmaputra Valley Fertilizer Corporation

Limited (BVFCL)

7.1.1 Overview

7.1.2 Vision/ Mission

41

7.1.3 Industrial/ Business Operations

7.1.3.1 Financial performance (Rs. in Crore)

Parameter 2012-13 2013-14

(Provisional)

Total Income 597.36 464.43

Profit before Tax -32.64 -126.43

Net Profit -32.64 -126.43

Dividend Nil Nil

Net Worth -445.28 -571.75

ProductProduction

Capacity

Actual Production

2012-13 2013-14

Urea –Namrup-II

120000 109428 70684

Urea –Namrup-III 270000 281265 235387

Urea - Total 390000 390693 306071

7.1.3.2 Physical performance

** Namrup-II capacity has been considered at 50%, as only

one stream of Urea Plant could be run due to limitation in

supply of Natural Gas to 1.72 MMSCMD.

7.1.4 Performance Highlights:

7.1.4.1 There has been overall improvement in

performance of both Namrup-II and

Namrup-III Plants during the year

2012-13 with record production. The

(In MT)


42

average capacity utilization during the

year for Namrup-I I I P lants was

104.17%.

7.1.4.2 Performance of Namrup-II and Namrup-

III plants during the year 2013-14 was

below expectations. While average

capacity utilization for Namrup-II and

Namrup-III plants during the months

of December 13 and January 14 were

h i g h a t 1 1 7 . 8 8 % a n d 1 2 9 . 3 0 %

respectively, overall outputs from both

the plants have been relatively lower

during the year. This is attributed

mainly due to Natural Gas Supply

constraints from supplier M/S Oil

India Ltd, annual turnaround to carry

out renovation jobs and a major

breakdown in the Namrup-II Plant.

7.1.4.3 One of the major impediments in

operating Namrup-II Plant at higher

load is remained limitation in Natural

Gas supply of 1.72 MMSCMD. This has

restricted maximum plant load of

Namrup-II to 50%. The performance

of Namrup-II Plant was severely

affected during 2013-14 due to major

breakdown in i t s Synthes is Gas

Compressor.

7.1.4.4 Further, Namrup-II plant is plagued by

obsolete technology, frequent equip-

ment failures and non availability of

original spares.

7.1.4.5 The company also produced 27.35 MT

of bio-fertilizer during the year 2013-14.

A view of Namrup Plant, BVFCL

7.1.5 Strategic Issues

7.1.5.1 BVFCL is incurring financial losses

since inception due to low capacity

utilization & high energy consumption.

The plants are underperforming due to

obsolete technology, frequent equip-

ment failures and shortage of natural

gas. The capacity of the plant is much

below the present day minimum

economic size. The company is facing

acute shortage of experienced and

qualified manpower which is affecting

its performance.

7.1.5.2 To mitigate the problems and for long

term survival of the company, short

term and long term measures have

been taken.

7.1.5.2.1 Short term measures: During the year

2013-14, following renovation jobs were

carried out to improve performance of

the plants:

i. Replacement of 1st Compartment

of RG Boiler of Namrup-II.

ii. Replacement of tube bundle of

RG Boiler in Namrup-III; comp-

lete renovation of RG Boiler with

changing of refractory.

iii. Replacement of catalysts of LT,

H T , S e c o n d a r y R e f o r m e r &

Methanator in Namrup-II.

iv. Replacement of defective Primary

Reformer tubes was done based

on results of creep test of tubes in

Namrup-III.

v. Overhauling Synthesis Gas Comp-

ressor in Namrup-II and Namrup-

III.

vi. In-situ replacement of tubes of

intercooler & bypass cooler of NG

Booster compressor, F-100 of

Process refrigeration Compressor,

lube oil cooler of PAC, Nitrogen

cooler etc was done in Namrup-II.

For long term viability, setting up a

new Brown field Ammonia-Urea Plant

(Namrup-IV) at Namrup has been

proposed. The proposal has received in-

principle approval of the Planning

Commission for setting up the project

under Joint Venture. Department is in

the process of submitting a compre-

hensive proposal to CCEA for financial

restructuring of the company which

also includes a new plant (Namrup-IV).

7.1.5.2.2 Long term measures:

7.1.6 Human Resource Management

7.1.6.1 Manpower as on 31.03.2014


43

Group Total Employees

Number of Employees belonging to

SC

ST

Ex Service men

Physically Handicapped

OBC

A

317

28

25

2

-

96

B

323

22

53

-

-

112

C

288

23

55

-

1

90

D

16

4

2

-

-

2

Total 944 77 135 2 1 300


44

training. Efforts were made to fill up

the vacancies at the level of General

Manager/ Deputy General Manager

by fresh recruitment which was not

successful.

Training programmes for upgrading

technical knowledge & skill and Beha-

vioral & Managerial skills were carried

during the year 2013-14. 16 internal

training programmes/ seminars/

workshops were organized at Namrup

with 109 participants and 14 persons

received external training during the

year 2013-14.

7.1.7.1 The Corporation provides educational

facilities to the children of employees,

contract workers and the wards of the

Township & the nearby villages. The

Company is running one Higher

Secondary School, one Kendriya

Vidyalaya, one Secondary School and

one Primary School. The Company

extended its patronage earlier for

establishment of Namrup College, one

B.Ed College for higher education and

establishment of a State Dispensary at

Namrup. Recently, the Company also

extended its helping hand in pro-

moting two new schools, a Junior

College and an Assamese medium

school by providing separate building

and other infrastructure at nominal

charges.

7.1.7.2 A 60 bedded hospital with modern

equipments is available to extend

medical facilities to employees & their

dependents. Residents of the nearby

localities and contract workers are also

provided treatment at nominal fee.

7.1.6.3.2 Training:

7.1.7 Corporate Social Responsibility and

Sustainable Development:

7.1.6.2 Redressal of Public Grievances and

Welfare Measures

7.1.6.2.1 Welfare of Minorities

7.1.6.2.2 Welfare, Development and Empower-

ment of Women

7.1.6.2.3 Welfare of SCs & STs

7.1.6.3 Recruitment and Training

7.1.6.3.1 Recruitment:

BVFCL is taking due care of minorities

at the time of recruitment, promotions

etc. A representative of the minority

com-munity is also included in the

Selection Committee for recruitment

and promotion.

BVFCL lays emphasis in development

of employees without any gender

discri-mination. Emphasis is given on

employing women and many women

candidates have been recruited in

recent past. A Complaints Committee

under the Chairmanship of a lady

officer has been constituted to look

after any matter of sexual harassment

of women employees at the workplace.

Till date, no complaint has been

received by the committee. There is no

discrimination against any woman at

any point of time.

The matter of employment of persons

belonging to SC/ST & other backward

classes is taken care at the time of

recruitment and promotions. Reser-

vation policy has been followed as per

Government guidelines. Out of total

employee's strength of 944, there are

77 SCs and 135 STs on the rolls of the

Company (as on 31.03.2014).

3 9 M a n a g e m e n t T r a i n e e s w e r e

absorbed as regular employees during

2013-14 after successful completion of

2013-14 shows improvement as

compared to the previous year .

During the financial year 2013-14, the

production of Factamfos was 660079

MT as compared to 537081 MT during

the year 2012-13. S imilarly the

production of Ammonium Sulphate for

the year 2013-14 was 178792 MT as

compared to 126238 MT during the

year 2012-13. The financial results

(provisional) for the year 2013-14

shows a net loss of Rs.274 crore as

compared to Rs.354 crore during the

previous year.

FACT's mission is to be a significant player in

fertilizers, petrochemicals and other

businesses such as engineering and

technology services.

7.2.2 Vision / Mission


45

7.1.7.3 BVFCL also extended various facilities

like Drinking Water, Market, Land for

Re l ig ious / Cul tura l and o ther

institutions and accommodation for

Telephone Exchange, Post Office,

Employment Exchange and Civil

Defence Office, to the residents of

Namrup and adjoining areas.

7.1.7.4 As BVFCL is not making profit, no

specific expenditure for Sustained

Development is earmarked. It tries to

attain SD objectives through saving /

conservation activities. During the year

2013-14, schemes for tree plantation

and conversion of street lights to

energy efficient LED lights were

executed.

7.2.1.1 The Fertilizers And Chemicals Travan-

core Limited (FACT) incorporated in

the year 1943 was one of the first large

scale fertilizer plants in India. Located

at Udyogamandal, Kerala, FACT

started production in 1947. Initially in

the private sector promoted by the

Seshasayee Brothers, FACT became a

PSU in the year 1960 and towards the

end of 1962, Government of India

became the major shareholder of

FACT.

7.2.1.2 From a modest beginning, FACT has

grown and diversified into a multi-

division/multifunction Organization

with core activities in manufacture and

marketing of Fertilizers and Petro-

chemicals, Design, Engineering &

Consultancy and in Fabrication &

Erection of Industrial Equipment.

7.2.1.3 The production and financial perfor-

mance of the company for the year

The Fertilizers And Chemicals Travancore

Limited (FACT)

7.2.1 Overview

7.2.3 Industrial / Business Operations

7.2.3.1 Financial Performance

Parameter 2012-13 2013-14

Total Income 2441 2223

Profit before Tax

(-)354 (-) 265

Net profit (-)354 (-) 265

Dividend Nil Nil

Net-worth (-)192 (-)457

(Rs. in Crore)

7.2.3.2 Physical Performance

Product Production Capacity

Actual Production

2012-13 2013-14

Factamfos 20:20

633500 537081 660079

Ammonium Sulphate

200000

126238

178792

Caprolactam 50000

15544

Nil

(In MT)


46

7.2.4 Performance Highlights

7.2.4.1 The fertilizer production performance of

the Company which was on an average

level during the first quarter of the

financial year 2013-14 has improved

steadily reaching excellent levels of

production during the second and third

quarter of the financial year 2013-14.

7.2.4.2 Captive production of ammonia was

stopped in January 2014 due to exor-

bitantly high price of LNG. To continue

production of fertilizers, FACT changed

over its operations to imported amm-

onia. Operations with imported ammo-

nia limits the achievable production to

around 75% of the normal production

due to logistic constraints affecting the

maximum quantity of imported ammo-

nia that can be handled and this has

affected the production during 4th

quarter.

7.2.4.3 From the beginning of the year 2013-14,

production of Ammonium Sulphate has

been through the direct neutralization

route since caprolactam production has

been stopped due to financial non-

viability.

7.2.4.4 During Financial Year 2013-14, FACT

Marketing Division sold 6,27,996 MT

Factamfos and 1,66,419 MT of Ammo-

nium Sulphate. Bagged gypsum sale was

44,524 MT. The sale of organic manure

during the year 2013-14 was 8,849 MT

against 4,550 MT during the previous

year showing a growth of 95%. Total

sale of bagged products was 8,97,855 MT

compared to 7,69,203 MT during the last

year, which translates to a growth of

16.7%. FACT's Market Share in South

India for Complex 20:20 and Ammo-

nium Sulphate for financial year 2013-14

were 30.90% and 79.11% respectively

against 27% and 85% in financial year

2012-13. The entire sales were on cash

and carry basis.

7.2.4.5 Import of fertilizers was limited to one

shipment of 25,963 MT of Complex

20:20:0:13.

7.2.5.1 FACT has successfully converted its

ammonia plant operations to LNG as

feedstock on 4th October 2013 but

captive production of ammonia was

stopped during January 2014 because of

exorbitantly high cost of LNG. The

delivered price of LNG from the 3rd

parcel offered by Petronet LNG Limited

in January 2014 was around US$ 24.35

per MMBTU, higher than even the

equivalent Naphtha prices. FACT's

request for compensation for the high

cost of LNG, to ensure a level playing

field for its operations is under consi-

deration of the department. From

January 2014 onwards, fertilizer produc-

tion is maintained using imported

ammonia. The achievable production is

limited to around 75% of the normal

production levels due to logistic const-

raints in ammonia movement and also

delays experienced in arrival of ship-

ments due to extraneous reasons.

7.2.5.2 The company has submitted to a formal

reference to Board for Industrial and

Financial Reconstruction (BIFR) as per

the provisions of Sick Industrial Com-

panies (Special provision) Act 1985

(SICA-1985).

7.2.5 Strategic issues

7.2.5.3 To come out of the sickness and

sustained operations, the Company has

submitted a Financial Restructuring

Package to the Government of India

which is under the consideration of the

Government.


7.2.6.1 Manpower as on 31.3.2014


47

Group Total employees

Number of employees belonging to SC ST Ex-

Servicemen PH OBC

A

390

57

10

0

3

58

B

1441

171

54

10

22

420 C

519

62

12

10

6

210 D

445

68

14

2

29

191

TOTAL 2795 358 90 22 60 879

7.2.7 Redressal of Public Grievances and Wel-

fare Measures

7.2.7.1 A Public Grievance Cell is functioning in

the Company, as per norms laid down

by Government of India.

7.2.7.2 A machinery for redressal of employees

grievances exists in the Company. Gene-

rally, the grievances are related to work,

work place, shift arrangement, grant of

increment, promotion, salary fixation,

transfer, etc. An aggrieved employee

may submit a complaint / request for

settling the grievance in the Division

and if still aggrieved with the decision

of the Division Head, it may be submi-

tted before the appropriate Grievance

Committee. Separate grievance commi-

ttees exist for examining and redressal of

grievances of managerial and non-

managerial employees. The individual

concerned is given an opportunity to

present his grievance in person before

the committee, if required. The resp-

ective committee will deliberate on the

grievance and give their recomm-

endations to the management for appro-

priate action. In addition, there is an

SC/ST Grievance Cell that looks into

complaints received from SC/ST emplo-

yees.

The Company has provided the follo-

wing faci l i t ies for the Welfare of

Minority Communities.

a) Land for Mosque near FACT

Junction, Udyogamandal

b) Land for Christian Cemetery in

Udyogamandal

c) Pathway to St:Joseph's Church near

JNM Hospital, Udyogamandal.

d) Land for CSI Church, Ambalamedu

(25.51 cents)

e) Land for Catholic Church, Ambala-

medu (44.73 cents)

f) Land for Marthoma Church, Am-

balamedu (45.01 cents)

g) Land for Jacobite Syrian Church,

Ambalamedu (40 Cents)

h) Land for Mosque, Ambalamedu (40

cents)

7.2.7.3 Welfare of Minorities.


48

I) 4 separate cemeteries to above 4

Christian Churches in Ambala-

medu.

j) Burial ground for Muslims (Khaba-

ristan) in Ambalamedu

k) Burial ground for Muslims in

Udyogamandal

7.2.7.4.1 Equal opportunity has been provided

to women in recruitment to posts

both in technical and administrative

disciplines. Exception has been made

only for jobs involving shift-work

round the clock. Equal remuneration

is paid to employees of both genders

doing the same type of work. There

is no discrimination on grounds of

7.2.7.4 Welfare, Development and Empower-

ment of Women

gender. This has enabled some of our

women officers to excel in their

respective field of activities leading to

their being chosen for the coveted

Merit Award given for outstanding

performance and achievements.

7.2.7.4.2 Women executives occupy key posi-

tions in the Management cadre as

J o i n t G e n e r a l M a n a g e r s , C h i e f

Managers/ Chief Engineers & Dy.

Chief Managers/ Dy.Chief Engineers

in various Engine-ering disciplines

l ike Chemical , Electr ical , Civi l ,

Computer, Industrial Engineering etc.

and administrative disciplines like

Finance, Human Resources, Materials,

Marketing etc.

7.2.7.4.3 Under the Maternity Benefit Act,

women employees are entitled for

Hon’ble Union Minister for Chemicals and Fertilisers Shri Ananth Kumar inaugurates the Remote

Operated High Volume Long Range Fire Monitor at Ammonia handling section of FACT

Udyogamandal, Kochi. Shri Jaiveer Srivastava, CMD, FACT, is also seen.


49

maternity leave of 90 days and

medical benefits associated with

pregnancy, delivery, miscarriage etc.

Under the provisions of the Factories

Act, the working hours of women

employees covered under the Act is

restricted between 6 am and 7 pm.

Nursing mothers are given two

intervals of 15 minutes each as

feeding time, or alternatively as a

working arrangement of 30 minutes at

a stretch, for feeding their infants, up

to a maximum of fifteen months after

confinement.

7.2.7.4.4 As per GOI Orders, women emplo-

yees undergoing family planning

operation are given special leave up

to 2 weeks. A crèche is also provided

for the welfare of women employees.

Non-statutory Welfare measures

implemented for Women employees.

7.2.7.4.5 The Company sponsors a Ladies Club

for the recreational activities of

women employees and wives of male

employees. There is also an associ-

ation of women employees, by the

name FACT Women' Welfare Associ-

ation, whose activities are welfare

oriented. Two buildings are allotted

to FACT Women's Welfare Organi-

sation at concessional rate for running

Women's hostel. Additional maternity

leave of 45 days has been introduced

for mothers with less than 2 children.

Based on the GoI Orders, there is a

full fledged and active Complaints

Committee to look into complaints of

atrocities/harassment meted out to

women employees at work place. Not

7.2.7.4.6 Security at Work

less than half of the members are

women including an external member

who is a lady Professor of a reputed

Social Work College.

The Company has taken all measures

for maintaining reservation of SCs /

STs in employment in accordance

with the Presidential directives. In

view of the specific directions issued

by the Government of India to fill the

backlog vacancies in recruitment

reserved for SC/ST, a special recrui-

tment drive was launched in the year

2008-2009 and so far 4 attempts were

made for filling 56 such vacancies (31

SC & 25 ST). 4 ST vacancies were

filled during the year under report.

So far, 31 SC & 19 ST candidates have

been appointed. For f i l l ing the

remaining 6 ST vacancies, action is in

progress.

In service training to company

employees is arranged through the

Training Depart-ment. Maximum

representation is ensur-ed for SC / ST

employees to attend in house train-

ings. For engagement of Apprentices

under the Apprentices Act, represen-

tation as per rules is provided.

An SC / ST Grievance Cell is functio-

ning at Corporate Level comprising

the Chairman, who is also the Chief

Liaison Officer for matters pertaining

to reserva-tion of SC / ST and their

7.2.8 Welfare of SCs & STs

7.2.8.1 Employment /Fresh recruitment

7.2.8.2 Training

7.2.8.3 SC / ST Grievance Cell


50

grieva-nces in the company, Liaison

Officers of the various divisions and

two officers each belonging to SC and

ST. The grievances received are

examined in detail by the Cell and

appropriately redressed and if found

necessary they are called by the cell

to present their cases in person. The

employee concerned is informed of

the decision / action taken on the

grievances by the Grievance Cell.

Further, there are associations repre-

senting SC / ST empl-oyees and these

associations also take up individual

grievances of SC / ST empl-oyees

with the management for direct

redressel.

Due consideration is given for allot-

ment of Residential Quarters to SC /

ST employees. Details of residential

quarters allotted to SC/ST employees

are given below.

7.2.8.4 Allotment of Residential Quarters

Total Number of EmployeesOccupying Quarters

SC ST

669 143 32

As on date no application for allotment of

quarters received from SC/ST employees is

pending.

During the financial year 2013-14, major

thrust was given on appointment of

Dealers under SC/ST categories. Wide

publicity through Website and Verna-

cular Press across southern states

ensured for soliciting their applications.

7.2.8.5 Reservation of Dealership

Accordingly 122 (96 SC and 27 ST)

dealers were app-ointed during the

financial year 2013-14.

In order to ensure the revival of FACT

and help it sustain & grow over the

years the company has drawn up a

roadmap outlining its path of progress.

The scheme for the revival of FACT can

be categorized as short term, medium

term and long term plans. These plans

are expected to ensure the survival and

growth of the company helping it

improve its turnover, productivity and

profitability. The brief details of these

plans are summarized below:

FACT has requested the following

assistance from the Government of India.

a) Sanctioning of the Financial restruc-

turing proposal to prevent erosion

of its net worth, reduce interest

and ease the working capital strain

b) Providing a level playing field for

LNG pric ing by al locat ion of

domestic gas or implementation of

a price support mechanism

c) Plan fund support for essential

renewals, replacements & other

schemes

d) Finalisation of an adequate compen-

sation for Naphtha from 2010,

which takes into account the incr-

ease in the price of Naphtha and

7.2.9 Roadmap for sustainability

7.2.9.1 Short Term Plan


51

requirements which will be man-

ageable with existing suppliers. The

est imated investment for this

project is Rs 145 crore. For this

project, a DPR has been prepared

by FEDO based on the technical

study report provided by the

or iginal process l icensor in

October 2012.

b) Setting up a 2000 TPD Sulphuric

acid plant to reduce imbalance in

availability of Sulphuric acid

Implementation of this project

intends to avoid imbalance between

p r o d u c t i o n a n d d e m a n d o f

Sulphuric acid for meeting produc-

tion requirements. Taking into

consideration the revamp of the

Phosphoric acid plant and provid-

ing for expansion of NP capacity, it

is proposed to set up a 2000 TPD

Sulphuric acid plant at Cochin

d i v i s i o n . T h e n e w 2 0 0 0 T P D

Sulphuric acid plant will not only

help the company reduce depend-

ency on external Sulphuric acid but

will also offer an opportunity to

optimize cost by power generation

from the waste steam which is

generated from the Sulphuric acid

plant. The estimated cost of this

project is Rs 330 crore.

c) NP expansion at Cochin division

It is proposed to enhance the

capacity of NP production at

Cochin division by setting up a

1000 TPD NP plant. The estimated

investment for this plant is Rs.200

furnace oil in the place of the adhoc

compensation

FACT is hopeful of receiving approval of

these financial assistance paving way for

operation of its plants in full capacity

and earn a reasonable profit on continu-

ous basis.

Ensuring availability of raw materials

and removal of imbalances in Interme-

diates and enhancing NP production

capacity

One of the main reasons for the lower

level of physical performance of the

company has been the dependence on

imported raw materials, mainly phos-

phoric acid. The international phosphoric

acid market is controlled by a few big

players who dominate and not only

decide the pricing but also its availabil-

ity. The company has drawn up plans to

reduce dependency on imported phos-

phoric acid by implementation of the

following projects:

a) Revamping the capacity of captive

phosphoric acid production facility

at Cochin division from 360 TPD

to 500 TPD.

The present capacity of the phos-

phoric acid plant at Cochin division

is 360 TPD. In order to meet the

phosphoric acid requirements, it is

proposed to revamp the capacity of

this plant to 500 TPD. Dependence

on imported acid will then be

restricted to meet the balance

7.2.9.2 Medium Term Plan


52

crore. FEDO has prepared a DPR

for the project and conducted

Environmental Impact Assessment

study & Public hearing. EIA

report incorporating comments of

public hearing has been submitted

to Ministry of Environment and

Forest (MOEF) for final environ-

mental clearance.

d) Technological upgradation and

optimization of plant capacities at

Udyogamandal

It is also proposed to optimize the

capacities of the old, small capacity

plants at Udyogamandal by the

following strategies:

e) Setting up a high capacity Sulph-

uric acid plant at Udyogamandal

catering to the requirement of

Sulphuric acid, oleum and sulphur

dioxide in the complex. This plant

will also aid in meeting the steam

and power requirements partly in

the complex from the waste steam

generated.

f) Setting up a 3000 TPD NP plant at

Udyogamandal to replace the two

low capacity plants presently in

operation. The sulphuric acid

requirement for this plant will be

met from the new sulphuric acid

plant. The estimated investment

for this plant will be Rs 625 crore.

Pre feasibility study on these proj-

ects is completed. The implementa-

tion of schemes depend on the

availability of external Phosphoric

Acid through outsour-cing or Joint

Venture. These projects have been

conceived to address the problem

of vintage and sub optimal capacity

of the existing plants at Udyoga-

mandal.

Ammonia-Urea complex at Cochin

Division

FACT was a manufacturer of Urea until

2003. The 1000 TPD Urea production

was stopped in 2003 when the opera-

tions became unviable under the Group

pricing scheme. In order to restore its

position in the Urea market in the

South, the company proposes to set up a

2800 TPD Ammonia plant coupled with

a 3500 TPD Urea plant. The sizing of the

Ammonia plant will ensure meeting the

Ammonia requirements for NP produc-

tion and Urea production at Cochin

division. The Urea plant is assured of

availability of feedstock LNG and

infrastructure facilities like land and

utilities & railhead connectivity. The

estimated investment for this project is

Rs 5070 crore.

7.2.10.1 During the year 2013-2014, the com-

pany continued to give priority on

various social Responsibility measures

including supply of drinking water to

more than 3000 households of Eloor

Municipality .

7.2.10.2 During the financial year 2013-14 FACT

continued its Village Adoption Prog-

ramme. During the year FACT adopted

Attapadi Tribal village in Palakkad,

Kerala. Various skilled activities are

envisaged for tribal men and women

7.2.9.3 Long Term Plan

7.2.10 Corporate Social Responsibility


Product ProductioCapacity

n ProductionPerformance

2012-13 2013-14

Gypsum

10.25

10.25

2012-13

9.52

2013-14

8.03


53




During the current year 2013-14, the

Company has produced 8.03 lakh MT as

against the revised annual target of 9.5

lakh MT. The sales during 2013-14 were

9.29 lakh MT as against sales of 8.42

lakh MT for the previous year. The

production was kept low to liquidate the

earlier stock.

During the year 2013-14, the Company

has achieved a Profit Before Tax of Rs.

52.11 crore against the revised targets of

43.40 crore & a net profit of Rs. 30.46

crore during the year 2013-14. The actual

PBT for the year 2012-13 was Rs. 38.50

crore (Profit before Exceptional items &

tax) and net profit of Rs. 28.49crore.

Company paid a dividend of Rs. 5.72

crore @ Rs. 7.80 per share of Rs. 10/-

each and a dividend tax amounting to

Rs. 97.16 lakh thereon.

for their social upliftment in the

adopted village.

The FCI Aravali Gypsum and Minerals

India Limited was incorporated under

the Companies Act, 1956 as a Public

Sector Undertaking on 14.02.2003 after

being hived off from the Jodhpur

Mining Organisation (JMO) of Fertilizer

Corporation of India Ltd. (FCIL). The

author ized share cap i ta l o f the

Company is Rs. 10 crore and the paid

up capital is Rs. 7.33 crore as on

31.03.2014.

To become a leader in Mining of

minerals including gypsum for recla-

mation of land, improving the health

of the soil with sulphur nutrients,

infrastructure development through

supply of Run of Mines gypsum to

cement industries and producing

various types of Fertilizers.

The Company's mission is to establish

and carry on in India or in any part of

the World all kinds of business relating

to Gypsum and other minerals and

their by-products and manufacture of

various types of fertilizers, all organic

and inorganic chemical compounds

including by products, derivatives and

mixtures thereof.

FCI Aravali Gypsum and Minerals India

Limited (FAGMIL)

7.3.1 Over view

Vision / Mission

7.3.2.1 Vision

7.3.2.2 Mission

(In LMT)

(Rs. in Crore)



Parameter 2013-14

Total Income 103.91

Profit Before Tax 52.11

Net Profit 30.46

Dividend 9.31

Net Worth

2012-13

87.44

42.27

28.48

5.42

131.07 150.64


54

7.3.5.2 Redressal of Public Grievances

7.3.5.2.1 For Public grievance-

7.3.5.2.2 For Staff Grievance-

Grievance Cell is functioning to redress

the public & staff grievances and no

grievance is pending as on date.

Head Office at Jodhpur receives the

public grievances, which are redressed

by the Grievance Cell. At present, no

grievance is pending.

a. The employees who are working in

various Mines are advised to

submit their grievances through the

respec t ive Area Managers to

General Manager.

b. The employees working at Head

O f f i c e , J o d h p u r , r o u t e t h e i r

grievances through Sectional Heads

to General Manager. At present, no

grievance is pending.

7.3.5.3 Welfare Measures

7.3.5.3.1 Welfare, Development and Empower-

ment of Women


7.3.5.4 Recruitment and Training (2013-14)

7.3.5.4.1Recruitment

During the year, 1 female employee

was recruited out of total 11 in the

month of April, 2013.

The company is also implementing

various schemes for the welfare of

SC/ST employees.


7.3.5.1 Manpower as on 31-03-2014

Group Total Employees

Number of employees belonging to

SC ST Ex-Service man

Physically Handicapped

OBC

A 31 7 1

0 0 2

B 14

0 0 0 0 4

C 17

2

1 0 0 3

D

08

1

0 0

0

0

TOTAL 70 10 2 0 0 9

Group Total Recruitment in nos.

A

04

B

0

C

07

D

0

TOTAL 11

7.3.5.4.2 Training


55

S.No. Programme No. of employees

trained

Place Period Mandays

1. Workshop on "Time Management and Decision Making"

Officer= 28, Worker =07

Jodhpur 13.07.2013 35

2. Training Programme on "Unicode"

Officer= 09 Jodhpur 06.09.2013 9

3 Workshop on "Team Playing Skills"


Jodhpur 22.11.2013 37

4. Workshop on "Mining and Environment"


Jodhpur 18.12.2013 38

5. Workshop on “Preventive Vigilance Investigation, Department Enquiry and Law on Termination”

Officer=1 New Delhi

10-12 Feb, 2014

3

6. Workshop on "General Financial Management & Taxation"


Jodhpur 22.02.2014 35

7. Workshop on “Leadership Development Programme &

Body Language”


Jodhpur 22.03.2014 39


Sustainable Development (CSR/SD)

The company undertakes socio economic

and community development programs

through Self Help Groups (SHG) to

promote education, and for improve-

ment of living conditions in villages

located in the vicinity of the mines. For

this, the company has developed a CSR

scheme. This year, Rs. 96 Lakh was

appropriated to CSR & SD fund out of

which Rs. 85.47 lakh was spent on

promoting education, providing medical

aid, afforestation, construction of Old

age homes/ night shelters and bus

stands etc. & Rs. 14.49 lakh was spent

on sustainable development. The

Company also installed a mobile soil

testing van for testing the soil of villages

nearby its mines to make the farmers

aware about the type of crops which

could be sown in that climatic condi-

tions and for that what type of fertilizers

are required.

The company achieved “Excellent” rating

of MOU for the year 2012-13 with MoU

Composite Score of 1.11 & has been

ranked first among all Fertilizers PSUs &

7.3.7 Awards


56

“Steel & other Minerals group” &

qualified for Prime Minister's MoU

Excellence Award for consecutive second

year.

The Company intends to install an SSP

Plant in Rajasthan. A feasibility report

has already been prepared for installing

an SSP plant and accordingly it is

expected that SSP production shall be

started by the mid of 2015-16 for which

a land measuring 11 Hectare (approx.)

has been acquired in district Chittorgarh

during the year 2013-14. The Environ-

mental Clearance for the project is under

process.

7.3.8 Other Developments

7.3.8.1 SSP Plant:

7.3.8.2 Construction of Office Building

The Fertilizer Corporation Of India Limited

(FCIL)

The Company intends to construct an

Office building for which the Jodhpur

Development Authority has allotted land

during the year 2013-14.

7.4.1 The Fertilizer Corporation of India

Limited (FCIL) has its closed units

located at Sindri (Jharkhand), Gorakhpur

(Uttar Pradesh), Ramagundam (Andhra

Pradesh) and Talcher (Orissa) and an

uncommissioned unit at Korba (Chhatti-

sgarh). Against the authorized share

capital of the Company of Rs.800 crore,

the paid up share capital was Rs.750.92

Crore as on 31.3.2014.

Inaugural Function for Construction of Class Rooms under CSR at Karnisar Village with Suratgarh MLA - Shri RAJENDAR SINGH BHADU


57

detailed study and recommendations for

a revival option, ECOS on 24.8.2009

selected a suitable Revival Model and

recommended the same for seeking the

approval of GoI.

Following PSUs have shown interest in

the reviva l o f some uni ts o f the

Company:

a. Rashtriya Chemicals & Fertilizers

Ltd. (RCF), Coal India Ltd. (CIL) &

Gas Authority of India Ltd. (GAIL)

for Talcher unit

b. Engineers India Ltd. (EIL) &

National Fertilizers Ltd (NFL). for

Ramagundam unit

c. Steel Authority of India Ltd. (SAIL)

for Sindri Unit

Considering the above, ECOS, in its

4th meeting held on 4.3.2011 recom-

mended permitting revival of units

by these PSUs on nomination basis

by offering 11% equity participation

to FCIL against the usage of its

assets and land of FCIL, subject to

approval of CCEA. The remaining

two units at Gorakhpur and Korba

have been recommended to be

revived through bidding.

The process of revival and the

Draft Rehabilitation Scheme (DRS),

as recommended by ECOS, was

approved by Govt. on 4.8.2011.

7.4.5 Based on the proceedings before BIFR

during 2012-13, a meeting of ECOS was

held on 23.1.2013. Based on the direc-

tion of BIFR & ECOS, a proposal for

revival of closed units of FCIL was

placed before Cabinet Committee on

Economic Affairs (CCEA) for approval.

7.4.2 The Company was declared sick in

November, 1992 by the Board for

Industrial and Financial Reconstruction

(BIFR).

7.4.3 In view of the continuing losses of the

Company, stemming from technical and

financial non-viability of operations, the

Government decided to close down FCI

P l a n t s i n S e p t e m b e r 2 0 0 2 a n d a

Voluntary Separation Scheme (VSS) was

offered to all its 5712 employees. All the

employees, who opted for VSS have

since been released, except 17 employees

presently on roll, who are engaged for

discharging statutory obligations, includ-

ing safety & security of properties/

assets of the various units of the

Company. Vide orders dated 17.5.2004

conveyed BIFR opinion for winding up

of the Company to High Court of Delhi.

Pursuant to the prayer of the Depart-

ment of Fertilizers and the Company,

the High Court in its hearing held on

30.8.2010 remitted the matter back to

BIFR for revival of the fertilizer units of

the Company.

7.4.4 Considering the shortage of domestic

production of urea for meeting the

growing demand in the country and

availability of well-developed infrastruc-

t u r e i n t h e v a r i o u s u n i t s o f t h e

Company, the Cabinet decided in April

2007 to consider the feasibility of reviv-

ing the fertilizer units. Subsequently,

Cabinet constituted an Empowered

Committee of Secretaries (ECOS) on

30.10.2008 to consider various options of

revival and further approved 'in princi-

ple' to consider waiver of GoI Loan &

Interest, in case of availability of a viable

fully tied up revival proposal. After


58

7.4.6 CCEA approved the following proposal

on 9.5.2013:

(i) Waiver of GoI Loan amounting to

Rs.2739.27 crore and interest on GoI

loan amounting to Rs.7904.47 crore

as on 31.3.2012.

(ii) Waiver of Guarantee Fees on LIC

loan amounting to Rs.9.69 crore.

(iii) Waiver of consequent tax liabilities

on account of making net worth

positive.

(iv) Directive to be given to SAIL, CIL

& EIL to pay commitment fee of

Rs.25 crore to FCIL to enable the

Comp-any to make its net worth

positive.

(v) GoI Guarantee for the Inter Corpo-

rate Loan of Rs.171 crore from

SAIL, CIL, RCF, NFL & EIL to

FCIL.

(vi) Provision of fund by SAIL to FCIL

for R&R activities at Sindri Unit of

FCIL.

(vii) Authorized ECOS to act, as & when

necessary, in furtherance of revival

process of units.

7.4.7 BIFR in its hearing held on 27.6.2013 de-

registered FCIL from the purview of

SICA 1985/ BIFR.

7.4.8 At present, RCF, CIL & GAIL are

actively progressing for the revival/

setting up of a Coal-based Fertilizer

Plant (Ammonia-Urea & Ammonium

Nitrate) at Talcher Unit of FCIL.

7.4.9 EIL & NFL are actively progressing in

the revival/ setting up of a Gas-based

Ammonia-Urea Plant at Ramagundam

unit of FCIL. The Sindri unit is to be

revived by SAIL.

7.4.10 The revival of remaining closed units of

FCIL at Korba and Gorakhpur would be

taken up through bidding route once the

revival of Sindri, Talcher and Ramag-

undam units is on track.

7.5.1 Hindustan Fertilizer Corporation Limited

(HFCL) emerged as a separate company

following reorganization of the erstwhile

FCIL and NFL group of companies in

e a r l y 1 9 7 8 . T h e n e w l y f o r m e d

Corporation under its ambit of control

got the operating Units at Durgapur (W.

Bengal), Barauni (Bihar) and Namrup. A

fertilizer –cum – chemical project at

Haldia (W. Bengal) was also annexed

to HFCL. Namrup Unit has been

demerged from HFCL and formed into a

new Company, namely, Brahmaputra

Valley Fertilizer Corporation Limited

(BVFCL) w.e.f. 01.04.2002.

7.5.2 The Govt. of India declared closure of

plants HFCL in September, 2002 and

majority of its employees were released

under VSS. HFCL, at present has three

closed plants, one each at Barauni in

Bihar and Durgapur and Haldia in West

Bengal. Presently, HFCL has only 8

regular employees on roll.

7.5.3 The Company was declared sick and was

referred to BIFR in the year 1992 and

since then it is under BIFR. In view of

the continuing losses of the company,

Hindustan Fertilizer Corporation Limited

(HFCL)

OVER VIEW:


59

stemming from technical and financial

viability of operations, the Government

decided to close down HFCL Plants in

September 2002 . Consequent ly , a

Voluntary Separation Scheme (VSS) was

offered to all its employees. All the

employees, who opted for VSS have

since been released, except 8 employees

who are engaged in discharging statu-

tory obligations, including safety &

security of properties/assets of the

various units of the Company. BIFR in

their meeting held on 2.4.2002 confirmed

their prima facie opinion regarding

winding up of the Company. BIFR vide

their orders dated 17.5.2004 conveyed

their opinion to High Court of Delhi.

Th is re ference was reg is tered as

Company Petition (CP) No.183/2004 in

the High Court. Pursuant to the prayer

of the Department of Fertilizers and the

Company, the High Court in its hearing

held on 30.8.2010 remitted the matter

back to BIFR for revival of the fertilizer

units of the Company.

7.5.4 Considering the shortage of domestic

production of urea for meeting the

growing demand in the country and

availability of well-developed infrastruc-

ture in various closed units of the

Company, the Cabinet decided in April

2007 to consider the feasibility of reviv-

ing the fert i l izer Units of HFCL.

Subsequently, Cabinet constituted an

Empowered Committee of Secretaries

(ECOS) on 30.10.2008 to consider various

options of revival and further approved

'in principle' to consider waiver of GoI

Loan & Interest, in case of availability of

a viable fully tied up revival proposal.

After detailed study and recommenda-

tions for a revival option, ECOS on

24.8.2009 selected a suitable Revival

Model and recommended the same for

seeking the approval of GoI. The ECOS

recommends revival of three units of

HFCL through bidding route.

7.5.5 The Cabinet Committee on Economic

A f f a i r s ( C C E A ) i n A u g u s t , 2 0 1 1

approved recommendations of the ECOS

with the stipulation that Board for

Industrial and Financial Restructuring

(BIFR) proceedings be expedited. The

CCEA also approved the Draft Rehabi-

litation Scheme (DRS) for revival of

HFCL. DRS was placed before BIFR for

its approval. BIFR held various hearings

where they directed the Government

and the company to sort out pending

issues with Govt. of West Bengal and to

initiate process of formulation of Cabinet

Note after arriving at settlement of land

with Govt. of West Bengal.

7.5.6 A meeting was held on 28.01.2013 to

review the progress made in revival of

closed FCIL and HFCL units. It was

decided that proposal of revival of

HFCL units will be taken up once the

revival of FCIL units is on track.

7.5.7 Accordingly, CCEA while considering the

proposal for revival of FCIL units in its

meeting held on 9.5.2013 'Inter-alia'

approved that revival of HFCL Units

will be taken up once the revival of

FCIL units is on track.

7.6.1.1 Madras Fertilizers Limited (MFL) was

incorporated in December 1966 as a Joint

Venture between GOI and AMOCO

India Incorporation of USA (AMOCO)

with GOI holding 51% of the equity

Madras Fertilizers Limited (MFL)

7.6.1 Overview


60

ity of 2,47,500 MT of Ammonia, 2,92,050

MT of Urea and 5,40,000 MT of NPK.

A major revamp/expansion was carried

out in 1998 at a cost of Rs. 601 crore,

enhancing the annual installed capacity

to 3,46,500 MT of Ammonia, 4,86,750 MT

of Urea and 8,40,000 MT of NPK. With

effect from 01.04.2003, GOI introduced a

New Pricing Scheme - I for Urea and

a l s o a d o p t e d T a r i f f C o m m i s s i o n

Recommendations for the Complex

fertilizers. In the year 2003-04, the

accumulated loss eroded the total net

worth and therefore the Company was

referred to BIFR. However with imple-

mentation of Amendment to NPS III

w.e.f Apr 01, 2009 and also with

improvement in plant performance,

Company's operations became viable

and started earning profits from 2009-10

onwards.

7.6.2.1 Board for Industrial and Financial

Reconstruction (BIFR) has registered

the Company as Case No.501/2007 and

declared it Sick under Section 15 of

SICA in its hearing held on April 2,

2009 and appointed State Bank of India

(Commercial Branch, Chennai) as the

Operating Agency (OA) to prepare a

Draft Rehabilitation Scheme (DRS).

7.6.2.2 The initial proposal submitted by OA

with an option of write-off of GOI loan

outstanding principal and interest was

n o t a p p r o v e d b y t h e P l a n n i n g

Commission as well as Department of

Expenditure. BIFR in its hearing on

May 7, 2012, directed OA to submit a

fully tied-up DRS with various options

by organizing a joint meeting with the

stakeholders to get their consent along

7.6.2 Reference to BIFR

share capital. In the year 1972, NIOC

acquired 50% of the AMOCO's share

and the shareholding pattern became

51% GOI and 24.5% each of AMOCO

and NIOC.

7.6.1.2 In 1985, AMOCO disinvested their

shares, which were purchased by GOI

and NIOC in the proportions of their

respective shares as on 22.07.1985. The

revised share holding pattern was GOI

67.55% and NIOC 32.45%. Subsequent

to the Issue of Rights shares in 1994 for

part financing of the Project, the share

holding of GOI & NIOC stand at 69.78%

and 30.22%.

7.6.1.3 During 1997, MFL had gone for Public

Issue of 2,86,30,000 shares with face

value of Rs.10 and a premium of Rs. 5

per share. Of these, 2,58,09,700 shares

were subscribed. The present Paid-up

share capital and the shareholding

pattern are as follows:

Shareholder

Paid(Rs. in Cr)

-up Capital

Share Holding %

GOI

95.85

59.50

NIOC

41.52

25.77

Public

23.73

14.73

Total

161.10

100.00

7.6.1.4 Though the Company has an authorised

share capital of Rs. 365 Cr comprising of

Rs. 175 Cr as equity and Rs. 190 Cr as

preference share capital, the preference

share capital is yet to be issued and

subscribed. As on 31.03.2014, the paid

up equity is Rs. 161.10 Cr.

7.6.1.5 MFL commenced commercial production

in 1971, with an annual installed capac-


61

with the approvals from the Ministries

concerned.

7.6.2.3 DOF organized a joint meeting with the

various ministries during June 2012

and arrived at the option of the total

waiver of interest and penal interest

and 40% waiver of GOI loan principal

as of 31.3.2012. Accordingly, the

Company prepared a draft DRS consid-

ering total waiver of interest and

penal interest and 40% waiver of GOI

loan principal and submitted to BIFR

and stakeholders. BIFR in its hearing

held on August 27, 2012, directed the

OA to submit DRS after obtaining

consent from M/s.Naftiran Intertrade

Co Ltd (NICO, Co- Promoter) and

various Ministries.

7.6.2.4 As per the directives of the BIFR, DOF

had prepared a BRPSE note based on

the reply given by the Company for

the queries raised by various Ministries

viz . Department of Expenditure,

Department of Public Enterprises and

Planning Commission.

7 .6 .2 .5 Based on the decis ion taken by

Chairman (BRPSE) on 13.8.2013, a

meeting was convened by Secretary

(Fertilizers) & Secretary (BRPSE) on

September 4, 2013 to identify a work-

able solution for making operation of

the company economically viable since

existing revival proposal did not get

support from stake holding ministries.

It was felt that existing proposal would

not substantially reduce energy con-

sumption and hence an alternate

proposal is needed to be put up.

7.6.2.6 The alternate proposal of (a) Contin-

uation of existing dispensation for Urea

and NPK till conversion to Gas (b)

Waiver of entire interest on GOI loans

(c) Repayment of outstanding GOI loan

in full (Rs. 554 Cr) in 10 equal yearly

installments (interest rate of 4% p.a.)

after two year moratorium was not

found to be sustainable on long term

basis.

7.6.2.7 Company then suggested setting up of a

n e w l a r g e c a p a c i t y , g a s b a s e d

Ammonia/ Urea plant by 2017-18 since

gas is expected to be available by 2016-

17 when Ennore LNG Terminal is

expected to be commissioned. Till that

time, Company plans to seek approval

of Government to permit operating the

ex i s t ing p lant wi th Naphtha as

feedstock and thereafter permit the

Company to invest Rs. 4500 Cr for the

new plant (2,200 MTPD Ammonia &

3,850 MTPD Urea) using latest technol-

ogy, so that urea can be produced with

specific energy consumption of 5.0

Gcal/MT. In this case, Government

would loose in first four years when

naphtha based operation is supported

but it would gain in subsequent years

when new gas based plant becomes

operational.

7.6.2.8 In the light of the above, Company has

proposed a revised restructuring

proposal to BRPSE consisting of the

following :

� Outstanding loan worth Rs. 554.24

Crore (as on 31st December 2013)

� Outstanding interest worth Rs. 331.66

Crore along with penal interest thereon

(as on 31st December 2013)

� Continuation of special dispensation in pricing mechanism under NPS stage III upto conversion to Natural Gas

Waiver of liabilities

Liberal and flexible Govt. Policy



For the First Time since inception:

Ø Highest Urea Production:

Ø486750 MT-100% Capacity Utilization

Ø All-time low energy consumption:

Ø 10.086 Gcal/MT Ammonia & 7.386 Gcal/

62

� Continuation of additional subsidy for

sourcing “N” through Naphtha based

Captive Ammonia Under NBS upto

conversion to Natural Gas.

7.6.3.1 To become a significant player aiming

to set benchmark standards and to

bring a positive force in the industry in

particular Southern Region through

sheer performance and unstinted

growth.

� To ensure timely availability of quality

fertilizers and keep flagship product

'VIJAY' as the farm hold name;

� To play a significant role for sustain-

able agricultural productivity with

focus on Integrated Plant Nutrient

Management ;

7.6.3 Vision

7.6.3.2 MISSION

Parameter 2012-13 2013-14

Total Income 2346.24 2605.97

Profit before tax 24.44 105.80

Net Profit 24.44 100.40

Dividend Nil Nil

Net-worth (306.23) (206.19)

7.6.4 Industrial / Business operations


(Rs. in Crore)

� To provide employees with an exciting,

enabling and supportive environment

to be innovative and entrepreneurial in

an ethical working place based on

merito-cracy and equal opportunity;

� To be a committed Corporate

Citizen in protecting the environ-

ment , complying with Safe ty

Standards and Corporate Social

Responsibility.

During 2013-14, the Company produced 147.22 MT of Bio-fertilizer. Production of Bio-fertilizer is limited

to sales.

Annual Capacity (MT) Actual Production (MT)

Pre-Revamp Post-Revamp 2012-13 2013-14

Ammonia 2,47,500 3,46,500 2,60,804 2,85,925

Urea 2,92,050 4,86,750 4,35,771 4,86,750

NPK 5,40,000 8,40,000 1,00,125 44,860

(In MT)7.6.4.2 Physical Performance

MT Urea (10.334 Gcal/MT Ammonia &

7.492 Gcal/MT Urea during 2010-11,

10.908 Gcal/MT Ammonia & 7.822

Gcal/MT Urea during 2012-13)

Ø Highest Number of days:

Urea Plant crossed day's installed capac-

ity (1475 MTPD) on 284 days (last best:

267 days)


63

7.6.7 H u m a n R e s o u r c e s M a n a g e m e n t

7.6.7.1 Manpower as on 31.3.2014

Group Total

Employees

Number of employees belonging to

SC ST EX-SERVICEMEN PH OBC

A 282 54 2 - 2 12

B 237 50 3 1 - 8

C 215 74 1 9 3 67

D - - - - - -

TOTAL 734 178 6 10 5 87

Ø

Urea production per on-stream day: 1546 MTPD (last best: 1524 MTPD)

�Stoppage of subsidy for Naphtha based Urea Plants from 01.07.2014 is a major strategic issue having very high impact on viability of MFL Plant.

�Conversion to Natural Gas feed-

stock depends upon the availability

of LNG at Chennai.

�In order to sustain its operation,

MFL has to concentrate on produc-

tion and marketing of NPK com-

plex fertilizers using imported

Ammonia.

�MFL is contemplating to source

cheaper Ammonia by having tie-up

with CIL. Also, tender has been

floated for supply of Ammonia on

Highest Rate:

7.6.6 Strategic issues

import parity price.

�In the present fertilizer marketing

scenario, farmers purchase capabil-

ity has come down due to exorbi-

tant rate of Phosphatic fertilizers.

Hence, marketing has proposed to

produce and market Granulated

Mixture Fertilizers for the farmers

who prefer low cost fertilizers.

�Under basket approach, presently

we are marketing Vijay Organic

Manure and Vijay Neem along with

Bio-fertilizers produced by MFL.

All the above products would be

marketed in a larger way so as to

improve and sustain Organic / Eco

friendly farming.

�Company is contemplating trading

of Agro Chemicals with latest

molecules f rom reputed agro

chemical manufacturers so that it

can make good profit.


64


Welfare measures


7.6.7.2.2 Welfare, Development and Empo-

werment of Women

7.6.7.2.3 Welfare of SCs and STs

Minority representative has been

nominated in the selection committee

of MFL as per the guidelines of the

DOPT.

MFL is providing equal opportunities

for the women employees. Women's

Forum is active in MFL and Women's

day is celebrated with much fanfare.

The women employees are given

oppor-tunities to participate in

external seminars and delegations. To

promote gender equality, MFL is

conducting sports events periodically,

exclusively for women employees,

and distributing prizes to encourage

and motivate them.

25 women employees from MFL were

nominated for the various National &

Regional Meets of Forum of Women

in Public Sector (WIPS) held during

2013-14.

13 SC Contract Labourers working

with our existing Janitorial contract

h a v e b e e n a p p o i n t e d a s P l a n t

Attendant Trainees. On completion

of 2 years of training, they will be

absorbed in Grade I position. During

the first year of training period, they

will be paid with a consolidated

amount of Rs.15,000/- p.m and

second year of training period, they

will be paid with a consolidated

amount of Rs.16,500/- p.m.

GM - P&A's position falls under SC

point under direct recruitment. As

per recruitment Policy, GM - P&A

was appointed and confirmed in E8

Scale of Pay.

Recasting of roster effective 02/07/

1997 was completed during April 2013.

27 SC employees benefited due to

recasting of roster, by way of promo-

tion/preponement of promotions.

Position No of employees benefited

E1 12

E2 14

E3 1

7.6.7.2.4 Recruitment and Training (2013-14)

The following recruitments were made

during 2013-14:

Name of the Position No. of Employeesrecruited

General Manager – F&A 1

Dy.General Manager–P&A 1

Technical Assistant(Operations)

8

Lab Analyst 7

Total 17


65

Social Related

Gramin Vikas Trust Rs.50 lac was paid towards Relief and Rehabilitation activities in the flood affected area of Odisha.

Prime Minister's National Relief Fund

Rs. 25,000/- was sent to Prime Minister’s Relief fund for Relief and Rehabilitation activities in the flood affected area of Uttrakhand.

MFL SC / ST Employees Welfare Association

A sum of Rs.30,000/- was spent for Celebration of Dr AmbedkarJayanthi, by MFL SC / ST Employees Welfare

Association, MFL, Manali, Tamil Nadu

Tamilnadu Blind Association In order to take care of the Blind Association’s interests, MFL is giving indirect revenue by giving small works, related to carpentry and purchase of Janitorial materials.

7.6.8

Towards Corporate Social Responsibility, the Company provided budget for the following

activities during the year:

Corporate Social Responsibility and Sustainable Development (CSR/SD)

Program Plan for 2014-15

Projection

Apr-Sep 2014

(Nos.)

Projection

Oct’14 - Mar’15

(Nos.)

Annual Budget

(Rs.)

Soil Sample collection – Micro

Nutrient

5500 3300 2200

55000

Micro Nutrient 550 330 220

Bio Demonstration 72 44 28 43200

Farmers Contact Program 30500 18300 12200 -

Exhibitions 11 6 5 33000

Sustainability Development

Potable water pipe line to Public and its Maintenance.

We ensure regular supply of potable water through pipelines from MFL to Harikrishnapuram (Manali), a neighborhoods village (around 500 families).

Servicing of computers already issued to the Schools

Based on the need and request from the schools, Service Engineers are deputed for maintenance.


66

Other Developments

7.6.9.1 Activities for Gas Conversion:

Heads of Agreement signed with IOCL

on 17.09.2013, without any financial

commitment, for supply of Natural Gas

from IOCL's proposed Ennore LNG

Terminal, which would become opera-

tional by the year 2017.

MFL requested IOCL to continue supply

of Naphtha from CPCL at discounted

rate / RLNG rate until gas is made

available to MFL.

It has been proposed to have a Tri-

partite Meeting among IOCL, CPCL &

MFL to arrive at methodology and cost

workings, which will be beneficial to all

the t h r e e C o m p a n i e s . M F L h a s

received the draft GSA from IOCL.

7.6.9.2 Renewal certification audit for ISO

9001:2008 (QMS) was conducted by

IRQS during Dec 02 &03, 2013 for MFL

production unit. IRQS have renewed the

QMS certification for ISO 9001:2008 for

MFL for next three years and issued the

Certificate on 30.12.2013.

7.6.9.3 Vigilance activities for the period July

11, 2012 to July 12, 2013 were reviewed

by the MFL Board of Directors at the

268th Board meeting held on July 29,

2013.

7.6.9.4 As advised by the Central Vigilance

Commission (CVC), Vigilance Awareness

Week (VAW) - 2013 was observed in

Madras Fertilizers Limited (MFL) from

2 8 t h O c t o b e r ( M o n d a y ) t o 2 n d

November (Saturday), 2013.

National Fertilizers Limited (NFL):

7.7.1 Overview

7.7.2 Vision / Mission


NFL, a Schedule 'A' & a Mini Ratna

(Category-1) Company, having its

registered office at New Delhi, was

incorporated on 23rd August 1974. Its

Corporate Office is at NOIDA (U.P). It

has an authorized capital of Rs. 1000

crore and a paid up capital of Rs. 490.58

crore out of which Government of

India's share is 90% and 10% is held by

financial institutions & others.

NFL's mission is to be a market leader

in Fertilizers and a significant player in

all its other business, reputed for cus-

tomer satisfaction, reasonable reward to

shareholders, ethics, professionalism and

concern for ecology and the community.

7.7.3.1 NFL has five gas based Urea plants viz

Nangal & Bathinda in Punjab, Panipat in

Haryana and two units at Vijaipur

(Madhya Pradesh) . The plants a t

Panipat, Bathinda & Nangal have

recently been converted from fuel oil

feedstock to natural gas as feedstock.

Vijaipur plants have also been revamped

for energy saving & capacity enhance-

ment. Total annual installed capacity of

the Company is 35.68 LMT of Urea.

7.7.3.2 NFL is engaged in manufacturing and

marketing of Urea, Neem Coated Urea,

Bio-Fertilizers (solid & liquid) and other

allied Industrial products like Nitric

Acid, Ammonium Nitrate, Sodium

Nitrite, Sodium Nitrate etc.


67

7.7.3.6 Financial Performance:

7.7.3.7 Physical Performance:


�The company achieved best ever

urea production of 36.36 LMT

during 2013-14 against 32.11 LMT

during 2012-13. Neem coated Urea

production of 12.64 LMT (35% of

the total Urea production) during

the year is also highest so far

against previous best of 10.83 LMT

during 2012-13.

�Best ever dispatches of urea of

36.90 LMT from plants achieved

during the year.

�The Company has registered best

ever urea sale of 36.87 LMT during

2013-14 against 31.63 LMT during

2012-13.

�NFL has achieved record produc-tion and dispatch of Bio-fertilizers of 557 MT & 605 MT respectively during the year surpassing previous best of 447 MT & 548 MT respec-tively during 2012-13.

�Industrial products of worth Rs. 50.53 crore & Bio-Fertilizers (liquid & solid) of Rs. 3.69 crore were sold during 2013-14. Turnover of traded Agri products (Compost, Seeds, Bentonite Sulphur & Pesticides) was Rs. 36.51 crore in 2013-14 as against Rs. 30.08 crore of 2012-13.

�The Company registered a sales turnover of Rs. 8062 crore during 2013-14 against Rs. 6758 crore during 2012-13.

Parameter 2012-13 2013-14

Total Income 6758 8062

Profit Before Tax / (Loss) (231) (161)

Net Profit / (Loss)

(171)

(89)

Dividend

-

-

Net Worth

1584

1494

(Rs. in Crore)

Product Production

Capacity Actual Production

2012-13 2013-14

Urea 35.68 32.11 36.36

(In MT)7.7.3.3 NFL is also doing trading business in

various agro-inputs like certified quality

seeds , compost / Vermi compost

manure, agrochemicals like Insecticides

/ Herbi-cides, Bentonite Sulphur etc.

Company has also taken up initiative for

setting up Single Super Phosphate (SSP),

Heavy water, Bentonite Sulphur plants

etc. which are at the decision making

stage.

7.7.3.4 NFL marketing network comprises of

Central Marketing Office at NOIDA,

three Zonal Offices at Bhopal, Lucknow

& Chandigarh, 13 State Offices and 37

Area Offices spread across major part of

India.

7.7.3.5 NFL has been mandated to revive the

closed plants of Fertilizer Corporation of

India Limited (FCIL) at Ramagundam in

collaboration with M/s EIL and M/s

FCIL by setting up a Urea plant of

annual capacity of 12.71 LMT. NFL is in

Joint Venture (33.33% share) in "Urvarak

Videsh Limited" (UVL) with M/s.

KRIBHCO and RCF as equal partners.

The main objective of the joint venture

company is to explore investment

opportunities abroad and within the

country in nitrogenous, phosphatic and

potassic sectors and to render consult-

ancy services for setting up projects in

India and abroad.


68

Farmers at Demonstration Plot developed by NFL with balanced use of fertilizers.

Group Total Employees SC ST Ex-Servicemen Physically Handicapp

ed

OBC

A 1506 316 85 3 6 88

B 1818 503 134 27 20 108

C 626 149 35 10 17 102

D 118 96 2 1 2 6

Total 4068 1064 256 41 45 304


7.7.5.1 Manpower as on 31.03.2014


Welfare Measures

Company has framed a 'Grievance

Redressal Procedure' for its employees

on the basis of model grievance proce-

dure notified by DPE and its objective is

to provide easily accessible machinery

for expeditious settlement of grievances,

thus leading to increased satisfaction on

the job, improved productivity and

efficiency of the organization. Public

Grievances Cells have been set up at

unit level.

The organization believes in equality of

all communities and follows all Govt.

regulations on empowerment of minori-

ties such as representation of the minor-

ity communities on interview boards.



69

Management for discussing and redres-sing issues related to SC/ST employees.

As a mark of respect to Dr. B. R.

Ambedkar, his birth anniversary and

Parinirvan Diwas were observed at all

Units/Offices of the Company in a

befitting manner. A stadium at Bathinda

Unit, Multi-purpose Hall at Vijaipur

Unit and one Bhawan at Panipat Unit

h a v e b e e n n a m e d a f t e r D r . B . R .

Ambedkar.

Programme on implementat ion of

Presidential Directives is held at Units

from time to time and SC/ST employees

are deputed for such programmes

conducted by external agencies. During

2013-14, 3517 man day training was

imparted to SC/ST employees.

No recruitment has been made during

2013-14. However, recruitment action

for filling up the posts of Management

Trainees (Batch 2014-15) is under pro-

cess.

NFL organized a number of trainings

during the year to hone up the skills

and instill behavioral & personality

develop-ment traits in all supervisory

staff and managerial cadre. These

trainings were identif ied through

Performance Manage-ment System by

synchronizing organiza-tional needs with

individual needs. During 2013-14, 13722

man-days training (in-house as well as

external) was imparted to employees.

The company has incurred an expendi-

ture of Rs. 78.54 lakh towards CSR

7.7.5.3 Recruitment and Training (2013-14)


Sustainable Development (CSR/SD)

7.7.5.2.2 Welfare, Development and Empo-werment of Women


Female employees comprise 5.46% of the

total workforce of the Company. The

Company is headed by female CMD.

The Company has adopted adequate

measures to facilitate a congenial work

atmosphere for its women employees.

There is no instance of any Gender

inequality and both men and women

employees are enjoying equal rights.

The working atmosphere is very cordial

and harmonious.

Further, Committees have been constitu-

ted at all Units/Offices of the Company

to inquire into the complaints of sexual

harassment. NFL Employees (Conduct,

Discipline & Appeal) Rules and Standing

Orders have also been amended to

include sexual harassment of women at

workplace as 'Misconduct'. Gender sensi-

tization programmes were conducted

and training programmes specifically for

women employees were organized at the

various Units/Offices of the Company.

An Implementation Cell is already

functional in all Units / Offices of the

Company to oversee the implementation

of Presidential Directives on Reservation

Policy for SCs/STs. Liaison Officer has

been appointed in each Unit/Office to

ensure due compliance of orders and

instructions pertaining to reservation for

SC/ST and other concessions admissible

to them. The Liaison Officer normally

belongs to Middle/Senior Management

level.

Meetings are periodically held at Unit level as well as at corporate level with the SC/ST Welfare Associations by the


70

activities during 2013-14. The CSR

activities undertaken by NFL during the

year are as under:

�Provided school furniture, water

cooler, ceiling fans & swings etc. in

a Govt. primary school in a village

Raghav Nagar , Udham Singh

Nagar district of Uttrakhand.

�Provided 86 benches and 1 RO

system for safe drinking water

supply in a secondary school at

village Gill Patti, district Bathinda.

�Assistance in construct ion of

Auditorium cum gallery class room

in Betnoti College Betnoti, and a

science laboratory at Badshahi

College in Mayurbhanj, which is a

backward district of Odisha.

�Provided assistance in construction

of class rooms at B.C High School

Kasafal, Balasore and girls hostel

with toilets at Aurobindo College,

d i s t r i c t M a y u r b h a n j , O d i s h a

through Gramin Vikas Trust (GVT

Kribhco).

�Provided computer & computer

training to school children/Youth

of village Torni, district Khandwa,

M.P.

�Constructed a multipurpose Mahila

Mandal Bhawan in village Bella

Dhyani, Nangal.

7.7.6.1 Children Education

7.7.6.2 Women empowerment

�Conducted Skil l Development

Train-ing Program for 30 girls on

stitching and embroidery in 3

nearby villages of Nangal unit by

M/s NITCON, Chandigarh.

�Conducted Stitching training prog-

ram and provided one sewing

machine each to 30 women trainees

of village Gill Patti, district Bathin-

da. Similar training was also given

to 20 women of village Raghav

Nagar, Udham Singh Nagar district

of Uttrakhand,

�Provided assistance in construction

of a multipurpose community

center and Mother Teresa Club at

block Betnoti district Mayurbhanj

through GVT.

�Installed Solar street lights with

new LED lamps at various places

of village Torni, district Khandwa,

MP.

�Installed solar water heating system

and Solar lights at Prashanti Old

age home at Srikakulam AP.

�Installed 10 nos. Solar Street lights

in village Gill Patti, Bathinda and

20 nos. street lights in Nangal

kheri, Garhi Besik, Goyla Khurd

and Khoikipur villages of district

Panipat.

�A sum of Rs. 3.37 lakh was provid-

ed through GVT towards relief &

various rehabilitation activities in

Odisha after 'Phailen' cyclone.

7.7.6.3

resources

Promotion of non- conventional energy

7.7.7 Sustainable Development:

7.7.7.2 Use of cleaner and greener fuel

7.7.7.1 NFL has taken various initiatives in

adopting best practices for environment

management, energy conservation and

social upliftment leading to sustainable

development.

�One o f the ma jor mi les tones

achieved by NFL in this direction is

switch-over of al l i ts fuel oil

feedstock plants at Nangal, Panipat

and Bathinda, to Natural Gas (NG),

the cleaner and energy efficient fuel.

With this initiative, Company's 100%

urea production is now based on gas

as feedstock. In addition to above,

specific energy consumption has

also come down by more than 20 %.

�NFL has also switched over the

support fuel in the coal fired boilers

at Panipat, Bathinda & Nangal to

NG from fuel oil. This has eliminat-

ed use of costly fuel oil besides

improving reliability and reducing

carbon footprint.


71

Panipat Plant, NFL


72

7.7.8

7.7.8.1 Panipat Unit received National Level

Safety Awar "SHRESHTHA SURAKSHA

PURASKAR" by National Safety Council

(NSC), Mumbai (India) for 2012.

7.7.8.2 NFL Bathinda Unit won the NSC safety

award "Parsansa Patra" for 2012.

7.7.8.3 Panipat unit has received "National

Safety Award (Runner-Up)" for the

performance year 2011, from DGFASLI

under Ministry of Labour & Emplo-

yment. The Award was presented by

Union Minister for Labour & Emplo-

yment on 18th September 2013 at

Vigyan Bhawan, New Delhi.

7.7.8.4 Panipat Unit has also bagged National

Level Safety Award "Shreshtha Suraksha

Puraskar" from National Safety Council,

Mumbai (India) among manufacturing

sector (Group-B) for the year 2012.

7.7.8.5 Bathinda Unit has been awarded two

"Prashansha Patra" for Safety in Manufa-

cturing Sector and construction for

Ammonia Feedstock Changeover Project

(AFCP) on 4th October 2013 at New

Delhi on behalf of National Safety

Council (NSC) of India.

7.7.8.6 NFL has been awarded running Rajbha-

sha Shield (First Prize) from Town

Official Language Implementation

Committee, Noida for giving outstand-

ing performance in the use of Rajbhasha

Hindi during 2011-12

7.7.8.7 Panipat Unit received FAI award for

excellence in Safety for 2012-13.

7.7.8.8 National Safety Council of India (NSCI)

awarded fourth level safety Award

"Prashansa Patra" (Certificate) for 2013 to

Awards Bathinda Unit in recognition of effective

implementation of Occupational Safety

Hazard Management System & Proce-

dures.

7.7.8.9 Bathinda Unit has received first prize

"Punjab State Safety award 2013" from

the Department of Labour, Punjab in

recognition of largest reduction in

Accident Frequency Rate in Chemical

Industry.

Projects & Development India Ltd.

(PDIL) is a Mini Ratna, Category-1 and

an ISO 9001:2008 Certified premier

Consultancy and Engineering PSU. PDIL

has been playing a pivotal role in the

growth of Indian Fertilizer Industry. It

has over six decades of experience and

expertise in providing Design, Engin-

eering and related project execution

services from concept to commissioning

of various projects. Apart from fertiliz-

ers, PDIL also provides services in other

sectors l ike Oi l & Gas, Ref inery,

Chemicals, Infrastructure, Offsites and

Utilities. In addition, PDIL is an appro-

ved Third Party Inspection agency &

undertakes works of Third Party

Inspection and Non-Destructive Testings.

The company is also engaged in the

manufacturing of catalysts for the

fertilizer industries and refinery indus-

tries. The authorized share capital of the

company is Rs. 60 crore and paid capital

is Rs. 17.30 crore as on 31.03.2014.

To be a leading engineering and project

management consultancy organization.

Projects & Development India Ltd. (PDIL)

7.8.1 Overview

7.8.2 Vision/Mission

7.8.2.1 Vision


73


7.8.4.1 Services Offered

7.8.4.1.1 Pre-Project Services

Market Demand S tudy Repor ts ,

Techno-Economic Feasibility Studies,

Detailed Project Reports, Site Selection,

Risk Analysis, EIA Studies, etc.

7.8.2.2 Mission

To create and deliver integrated techno-

commercial solution optimum in cost,

quality and time to all customers.

To pursue relentlessly world class

quality in engineering consultancy and

project management by imbibing best

practices.

To develop, upgrade and improve the

manufacturing process of Catalyst and

other products in line with the ever

evolving need of customers.

7.8.3 Industrial /Business Operations


Parameter 2012-13 2013-14(Prov.)

Total Income 83.58 69.02

Profit Before Tax (PBT)

15.33 (2.58)

Net Profit (PAT) 10.71 (2.58)

Dividend 3.81 -

Net Worth 137.11 134.53

(Rs. in Crore)

7.8.3.2 Physical Performance (Catalyst division)

Product Production Capacity

Actual Production

2012-13 2013-14

Catalyst 1260 MT

185 MT

212 MT

7.8.4.1.2 Project Services

7.8.4.1.3 Other Specialized Services

7.8.4.2 Projects Executed / Under Execution

7.8.4.2.1 Fertilizer Sector

a) Project Implementation Services -

Engineering, Procurement &

C o n s t r u c t i o n M a n a g e m e n t

( E P C M ) S e r v i c e s - D e s i g n ,

D e t a i l e d E n g i n e e r i n g ,

P r o c u r e m e n t A s s i s t a n c e ,

W a r e h o u s e M a n a g e m e n t ,

Inspection & Expediting, Project

M a n a g e m e n t , C o n s t r u c t i o n

Supervision, Commissioning and

Performance Guarantee Tests.

b) Project Management Consultancy

(PMC) Services

c) L u m p s u m T u r n k e y ( L S T K )

Projects

Revamp/ Retrofit/ De-bottlenecking

Studies, Health Study & End-to-End

Survey, Environmental Engineering,

Energy Audit/ Safety Audit, PDS–3 D

Piping Model, Process Simulation and

Optimization, Hazop Study, Due

Diligence Assignments, etc.

7.8.4.1.4 Third Party Inspection and Non

Destructive Testing (NDT) Services

including Project & Third Party

Inspection (Shop & Field Inspection)

and NDT Services for plants in various

industrial sectors.

During the year, the company success-

fully completed the jobs of PMC

s e r v i c e s f o r A m m o n i a S y n G a s

Generation plant of GNFC,Bharuch,


74

Detailed Engineering services for Thal

Ammonia Revamp Project of RCF,

Hazira Revamp of Ammonia-Urea

complex for KRIBHCO, Energy Saving

& Capacity Enhancement Projects of

NFL, Vijaipur, Methanol Plant at

GSFC, etc. Apart from the above, other

major jobs like PMC services for

Ammonia Urea Complex at Algeria,

Detailed Engineering services for

Ammonia Plant of Matix Fertilizers,

P M C s e r v i c e s f o r F e e d s t o c k

Changeover Project of NFL's three

plants at Panipat, Bathinda & Nangal

are under completion stage. Further,

assignments of Detailed Engineering

services for Thal Urea Revamp Project

of RCF and Engineering Consultancy

Services for Ammonia plant Feedstock

Conversion Project from Naphtha to

CNG for MFL, Chennai are also

progressing well.

During the year 2012-13 & 2013-14, the

major orders secured by PDIL are :-

a) Providing PMC Services (Post

award of LSTK Contract) for setting

up of a gas based Greenfield

2200MTPD Ammonia and 3850

MTPD Urea plant along with

necessary offsites & utilities at

Gabon for M/s Gabon Fertilizer

Company S.A., Gabon.

b) Detailed Engineering, Procurement

Assistance and construction super-

vision for utilities for proposed

expansion project at Port Harcourt,

Nigeria for M/s Indorama Eleme

Petrochemicals limited (IEPL),

Nigeria.

c) PMC for Part-I for Early works of

NFCL Kakinada Pro ject -3 for

NFCL, Hyderabad.

d) Consultancy services for the pro-

posed JV Ammonia-Urea fertilizer

project to be executed on LSTK

basis at Ghana for RCF, Mumbai.

e) Preparation of ITB document &

Evaluation of bids for selection of

LSTK contractor and preparation of

DPR for Brownfield Ammonia-Urea

p l a n t a t B h a r u c h f o r G N F C ,

Bharuch.

f) Providing PMC services during early

work phase for selection of EPC

c o n t r a c t o r f o r 2 3 0 0 M T P D

Ammonia and 4000 MTPD Urea

plant at Port Harcourt, Nigeria for

IEPL, Nigeria.

g) Preparation of ITB document &

evaluation of bids for selection of

L S T K C o n t r a c t o r f o r H a z i r a

Fert i l izer Project Phase-II for

KRIBHCO, Hazira.

h) LSTK tender services for develop-

ment of GSFC's project at Dahej for

GSFC, Dahej.

i) Engineering Consultancy services

for Ammonia storage tank and

associated facilit ies for KSFL,

Noida.

j) Consultancy services for lining up

of LSTK contract for installation of

P u r g e G a s R e c o v e r y e t c f o r

NFL,Vijaipur.

k) Consultancy services for LSTK

selection for SSP project at NFL

panipat.


75

to Tuticorin LPG plant for BPCL,

Noida, Providing Design/ detailed

engineering services for construction of

new apparatus field structure at LPG

Terminal Kandla for M/s Fabtech

Projects & Engineers Pvt Ltd, Pune,

etc.

During the year, the company success-

fully completed the job of providing

Detailed Engineering services for

Ammonium Sulphate plant at Rourkela

for RSP, Rourkela. Other major jobs of

PMC services for Hydrogen Generation

plant of CPCL, Manali Refinery and

H2-N2 plant on BOO basis of IOCL at

Paradeep Refinery are under comple-

tion stage. PMC for automation of

retail outlets of M/s HPCL & IOCL are

being continuously done. Apart from

this, jobs of providing Engineering

Consultancy services for tank farm

consisting of 7 H3PO4 tanks and for

raw water pumping facilities for

JIFCO's Fertilizer complex at Eshidiya

Jordan are also progressing well.

PDIL has undertaken many projects in

Chemical sector such as Methanol

Plant, Hydrogen Plant, Methyl Amines,

Sulphuric Acid, Phosphoric Acid,

Nitric Acid, Sodium Nitrite/Nitrate,

Ammonium Nitrate and Ammonium

Bi-Carbonate. PDIL has provided

consultancy services to GAIL for GSU

& GPU modification job at their Pata

Petrochemical Plant and Detailed

Engineering Services to GSFC, Baroda

for Methanol Plant. M/s Shriram EPC

has associated PDIL for providing

Projects executed / under execution

7.8.4.2.3 Chemicals Sector

l) Detail Engineering Design, prepara-

tion of tender documents and

Project Management services for

proposed Phospho Gypsum stack at

IFFCO Pardeep.

m) Project cost estimation for super

revamp project of Casale group.

n) Technical Evaluation of LSTK bid

for Gas based Greenfield 2200

MTPD Ammonia & 3850 MTPD

Urea etc for Gabon Ferti l izer

company.

o) Engineering services for FCW

system to prevent any potential

failures and improving the reliabil-

ity of FCW system for OMIFCO.

p) Feasibility Study for Ammonia,

TAN/CAN Project at Algeria for

Joint Venture of ASMIDAL Group

and Qatar Petroleum International

– Recently awarded.

PDIL has established its credentials in

the Oil and Gas sector and has shown

its presence by securing jobs from

almost all the prestigious public sector

undertakings in the Oil and Gas sector.

PDIL secured a major assignment of

Carrying out BDEP study and provid-

ing PMC services for installation of

mounded bullets for M/s Chennai

Petroleum Corporation Ltd, Chennai.

Apart from this, PDIL also bagged

other orders like Preparation of DFR,

EIA, RRA for LPG pipeline from SHV

7.8.4.2.2 Oil & Gas and Refinery Sector

Jobs Secured


76

B a s i c D e s i g n E n g i n e e r i n g f o r

A m m o n i u m S u l p h a t e P l a n t a n d

Ammonia Liquor Treatment Plant of

Rourkela Steel Plant at Rourkela.

PDIL has established credentials in

infrastructure sector also and has been

providing PMC Services/ Review

Consultancy services for Housing

projects of the Ministry of Defence.

PDIL has designed, engineered, ten-

dered and procured many Offsites and

Utilities packages for a large number

of clients. These include DM Water

Plants, Effluent Treatment Plants,

Captive Power Plants, Material handl-

ing Plants, and Atmospheric Ammonia

Storage and Handling facilities.

PDIL has executed many prestigious

projects in Fertlizer sector abroad like

EPCM serv ices for M/s Burrup

Fertilizers Projects Ltd, Australia, PMC

services for M/s Alger ia Oman

Fertlizer Project, Algeria etc. PDIL is

also executing the job of providing

EPCM services for tank farm and raw

water pumping house for M/s JIFCO,

Jordan. During the year , PDIL made

an excellent breakthrough in securing

assignments abroad. PDIL secured a

prestigious job of providing PMC

Services for a gas based Greenfield

2200 MTPD Ammonia and 3850 MTPD

Urea plant along with necessary

offsites & utilities at Gabon for M/s

Gabon Fertilizer Company S.A., Gabon.

7.8.4.2.4 Infrastructure Sector

7.8.4.2.5 Offsites and Utilities

7.8.4.2.6 Assignments Abroad

PDIL also bagged assignments from

IEPL, Nigeria for providing Detailed

Engineering services for Offsites/

Utilities and PMC services during

Early Work for Fertilizer Expansion

Project at Port Harcourt, Nigeria. Apart

from these, several other assignments

viz. carrying out a study for evaluating

the energy consumption of Ammonia

and Urea plants for OMIFCO, Oman,

rendering Consultancy Services for

existing problems in Ammonia - Urea

Plant for M/s Notore, Nigeria and

preparation of Feasibility Reports for

GTSP plant & for DAP/NPKS plant in

Tanzania for M/s Minjingu Mines &

Fertilizers Ltd, Tanzania were also

secured by PDIL.

PDIL is a recognized Third Party

Inspection Agency for Inspection &

Quality Assurance Services and under-

takes TPI Services for many organiza-

tions like IOCL, RINL/VSP, BHEL,

BPCL, HPCL, NLC, NDMC, PWD,

State PHEDs, ONGC, DTL etc. It

provides services for Shop & Field

Inspection of Equipment & Machinery,

Electricals, Instruments, Electrical

Safety Audit Inspections, Terminal

Automation System of Oil Terminals,

Depots & Retail outlets and Work

Assessment & Evaluation of Vendors.

It provides NDT services for plants in

v a r i o u s s e c t o r s l i k e F e r t i l i z e r ,

Chemical, Refineries, Oil & Gas, Cross

Country pipeline etc. PDIL specialized

NDT services include Automatic

Ultrasonic scanning, Infra-Red Thermo-

Vision/imaging, Eddy current testing,

7.8.4.2.7 Third Party Inspect ion & NDT

Services


77

Cooperat ive and Private Sector .

Besides Fert i l izer Plants , PDIL's

Catalysts are used in Refineries also.

PDIL's Vanadium Pentoxide Catalysts

have been supplied to many Sulphuric

Acid Plants in India as well as abroad.

PDIL has two full fledged Design

Engineering Centers situated at the

prime locations in the Country at

NOIDA (NCR-New Delhi) & Baroda.

Further, PDIL has its catalyst manufac-

turing unit at Sindri (Jharkhand). Apart

from this, PDIL has its Inspection

offices at various locations throughout

I n d i a v i z . M u m b a i , K o l k a t a ,

C h e n n a i , V i z a g , B a n g a l o r e &

Hyderabad.

PDIL's both the design engineering

centers are equipped with State-of-the-

Art computer and software facilities

such as AutoCAD 2012, Microstation,

Plant Design System (PDS), Smart

P l a n t E l e c t r i c a l , S m a r t P l a n t

Instrumentation, Smart Plant P&ID,

Frame Work Plus, Smart Plant Review,

CAESAR II, PV Elite, Mocroprotal,

STAAD Pro, Aspen Plus, Syner GEE

Gas, ASD Pipe Router, ASD Pipe

Support Optimizer, PHA-Pro, Safeti

Micro, Conval, ETAP, Primavera, MS

Project and a large no. of state of the

art, work specific software for carrying

out design engineering work. PDIL is a

member of Heat Transfer Research

INC., U.S.A. giving it the right to use

Xchanger Suite of Software. All the

offices of PDIL are connected through

VPN.

7.8.5 In house strengths of PDIL

7.8.5.1 IT & Other Infrastructure Facilities

Vibration signature analysis etc. PDIL

undertakes Inspection, statutory testing

& safety Certification of storage tanks

for petroleum products as well as

ammonia. PDIL is the Rate Contract

holder for TPT services for NLC and

RINL. PDIL also secured job for PMC

services for implementation of MB Lal

Committee recommendations at 36

locations of HPCL and also the job of

Inspection of High mast signages at

1500 locations of IOCL.

Department of Fertilizers (DoF) contin-

ued to engage PDIL for Techno-

commercial Audit of SSP Plants

located throughout India. The Audits

are undertaken and the reports with

TAC observations and comments are

submitted to DoF on a continuous

basis.

PDIL's Catalysts Division located at

Sindri (Jharkhand) manufactures and

supplies a wide range of commercially

proven catalysts used in Ammonia

Plants and other Industries. Catalysts

manufactured by PDIL are Secondary

R e f o r m i n g , I r o n - C h r o m i a , H i g h

T e m p e r a t u r e C O S h i f t , C o p p e r

Promoted High Temperature Shift,

Conventional Low Temperature Shift,

High Copper Low Temperature Shift,

Methanation & Super Methanation, De-

S u l p h u r i z a t i o n , a n d V a n a d i u m

Pentoxide.

PDIL's Catalysts are in use in almost

a l l the o ld and new generat ion

Ammonia Plants in India in the Public,

7.8.4.2.8 Technical Audit

7.8.4.2.9 Manufacturing of Catalysts


78

7.8.5.2 ERP Project

7.8.5.3 DMS Project

7.8.6 Human Resources

With implementation of SAP ERP,

PDIL has been able to integrate its

activities on a single platform. Go live

of SAP was done on February 8, 2011.

PDIL has implemented "Documentum"

of EMC2 as its Electronic Document

Management System. This will further

help PDIL to preserve all its docu-

ments in electronic form.

7.8.6.1 PDIL is having highly competent and

experienced technical manpower. At

present, PDIL is having 481 employees

of various disciplines such as Chemical

Engineering, Mechanical Engineering,

Civ i l & S t ruc tura l Engineer ing ,

Electrical Engineering, Instrumentation

Engineering, Computer Science &

Information Technology, etc. from

reputed Engineering Institutes. With

the vast experience & technical exper-

tise of these resources, PDIL is having

sufficient skilled manpower to execute

the number of mega projects simulta-

neously.

In line with Government Guidelines

issued from time to time, PDIL contin-

ues to extend required number of

facilities to SC/ST/OBC employees.

7.8.6.2 Employment to SC/ST/OBC/ PH

persons

Manpower as on 31.03.2014 (Number of Employees belonging to)

Group Total Employees SC ST Ex-Service men Physically handicapped

OBC

A 383 50 18 - - 66

B

24

5

-

-

-

5

C

19

4

1

-

-

2

D

-

-

-

-

-

-

On contract

39

2

-

-

-

5

Total

465

61

19

-

-

78

7.8.6.3 Complaints/Grievances redressal mecha-

nism is in place. Regarding implementa-

tion of National Policy for Persons with

Disabilities, for easy/ hassle free mobil-

ity of employees with disability, ramps

have been constructed and in respect of

welfare, development and empowerment

of women and for mainstreaming gender

issues, there is complete equality gender

in PDIL.

7.8.7 Corporate Social Responsibility

PDIL has been pursuing CSR activities

as per policy duly approved by the

Board as well as directives issued by

Govt. of India from time to time. The

objective of CSR policy is to alleviate the

social imbalances and helping the

community in which i t operates .

Accordingly, PDIL Board has approved


79

tancy Sector, which was conferred

by Hon'ble Prime Minister of India,

Dr. Manmohan Singh on 15.12.2010.

a) Use of Spent LTS Catalyst as Raw

Material for the preparation of fresh

LTS Catalyst. Project is in progress

and is expected to be finished by

end of September, 2014.

b) Use of Spent Nickel Catalyst as

Raw Material for the preparation of

fresh Nickel Catalyst. Project is

under progress.

c) Development of Chlorine Guard

Catalyst for Protection of LTS

Catalyst. Project has completed

and Final Report submitted to DoF

in March, 2014.

SSP Laboratory located in Noida has

been accredited by NABEL for three

years with effect from 24.02.2014 in

accordance with ISO 17025-2005 in the

discipline of Chemical Testing.

7.9.1.1 RCF is a leading fertilizer and chemicals

manufacturing company in India in the

Public Sector. It was established on 6th

March, 1978 by the reorganization of

erstwhile Fertilizer Corporation of India

Ltd. into five new companies viz.

Fertilizer Corporation of India (FCI),

7.8.9 Other Developments

7.8.9.1 R&D Activities

7.8.9.1.1 DoF Sponsored Projects

7.8.9.1.2 SSP related Activities

Rashtriya Chemicals Fertilizers (RCF)

7.9.1 Overview: -

the detailed CSR policy in the year 2012

on the basis of guidelines issued by

DPE, which was further modified on

lines with revised DPE guidelines. The

Company has been undertaking CSR

activities e.g. education of slum children,

education of under-privileged children,

free health checkup camps, Skill/

Development/Capacity building of

under-privileged/ marginalized women,

Socio- Economic Empowerment of

SC/ST students etc. Projects valued

Rs.79.94 Lakhs were approved under

CSR, during the year 2013-14.

PDIL has got "Excellent" MOU rating for

the year 2011-12. The company has been

receiving 'Excellent' rating since the first

year of its signing MOU in 2006-07. For

the year 2012-13, the company has

achieved the ' Good' rating in view of

the less business secured due to lack of

investments in Fertilizer Sector. The

company is hoping for a better order

book position and performance subject

to take off of the investment proposals

of fertilizer companies.

P D I L h a s w o n p r e s t i g i o u s M o U

Excellence Award for 2007-08 under the

category of "Turnaround CPSE", which

was confer red by Hon 'b le Pr ime

Minister of India, Dr. Manmohan Singh

on 15.10.2009. PDIL won prestigious

MoU Excellence Award for 2008-09 for

top performing CPSE's in the Consul-

7.8.8 MOU with DoF

7.8.8.1 Memorandum of Understanding (MoU)

7.8.8.2 MoU Awards


80

Hindustan Fertilizer Corporation Limited

(HFC), Projects & Development India

Limited (PDIL), National Fertilizers

Limited (NFL) and Rashtriya Chemicals

& Fertilizers Limited (RCF). Presently

the authorized share capital of RCF is

Rs. 800 Crore & paid up capital of Rs.

551 .69 Crore . Company has been

accorded coveted "Miniratna" status in

1997.

7.9.1.2 Company operates two units viz. one at

Trombay (Mumbai) and the other one at

Thal, Raigad district of Maharashtra,

about 100 KM from Mumbai. Company

has portfolio of products which includes

Urea, Complex Fertilizers and Industrial

Chemicals . The Uj jwala Urea and

Complex fertilizer Suphala brands of

fertilizers manufactured by RCF carry

high brand equity and are recognized

brands all over the country. These

products are taken to the farthest cor-

ners of the country by extensive RCF

dealers' network spread throughout the

country.

7.9.1.3 Besides Urea and Complex fertilizers,

RCF also produces bio-fertilizers, micro-

nutrients and 100% water soluble fertil-

izers. Apart from these products, RCF

produces 20 industrial chemicals such as

Methanol, Ammonium bicarbonate,

Methyl Amine, Formic Acid, Dimethyl

Formamide etc. which find elaborate

applications in many industries like

dyes, solvents, leather, pharmaceuticals

and a host of other industries.

7.9.1.4 RCF always strives for upkeep of the

plants through modernizing and upgrad-

ing technology. Revamping and de-

bottlenecking is the secret that has kept

the company thriving for four decades.

As part of modernization, RCF has

modernized its Ammonia – I, Nitric

Acid, Methanol and ANP plants at its

Trombay unit. This has facilitated plants

to sustain operations and meet techno-

logical challenges of improved efficiency,

lower energy consumption and maintain

environmental norms. It has also

resulted in company achieving the

highest standards of safety and product

quality. Company has also completed

another ambitious project viz. Ammonia

revamp at Thal unit which enabled

company to produce an additional 3.0

Lakh MT of Urea and save precious

foreign exchange.

7.9.1.4 Every year RCF signs Memorandum of

Understanding (MoU) with Government

of India. The performance is evaluated

independently by the Department of

Public Enterprises. RCF has been consis-

tently achieving best rating of "Excellent"

since 2002-03.

To be the world class corporate in the

field of fertilizers and chemicals with

dominant position in Indian market,

ensuring optimal utilization of resources

taking due care of environment and

maximizing value of stake holders.

Exponential growth through business

excellence with focus on maximizing

stakeholder value by manufacturing and

selling fertilizers and chemicals in a

reliable, ethical and socially responsible

manner.

7.9.2 Vision and Mission

7.9.2.1 Vision:

7.9.2.2 Mission:


81

Plant New Record Previous best

Urea 19,93,800 MT 19,51,200 MT in 2012-13

7.9.4.2 Thal Unit:

Yearly Highlights:

Successful commissioning of the third

phase of Thal Ammonia revamp scheme.

After this daily production of Urea has

crossed 6,000 MT.

Parameter 2012-13 2013-14

Total Income 7019.78 6795.10

Profit before Tax 380.12 367.32

Net Profit 280.90 249.89

Dividend 96.81 96.81

Net Worth 2355.29 2508.39

7.9.3.2 Physical Performance:

Product Production ProductionPerformance Capacity

2012-13 2013-14

Urea (Thal) 20,00,000 19,51,200 19,93,800

Urea (Trombay) 3,30,000 3,84,110 3,52,910

Suphala (15:15:15) 4,20,000 4,74,685 3,33,295

Suphala( 20:20:0) 2,70,000 1,35,329 1,84,125

(In MT)


7.9.4.1 Trombay Unit:

Following records were achieved during

year 2013-14:

Yearly Highest Production:

Lowest Ever Specific Energy Consumption: (MKCal / MT)

Ammonia-I:

7.9.3 Industrial/ Business Operations: -


(Rs. in Crore)

Sr. No. Plant New record Previous Best

1 Ammonia-I 1,29,915 MT 1,20,050 MT in 2011-12

2 STP 52,13,690 M3 47,98,760 M3 in 2012-13

3 TG Power 89,538 MWH 85,144 MWH in 2011-12

4 Water Soluble MAP 382.22 MT 286.65 MT in 2012-13

5 Liquid Biola 1,07,340 Lit 60,720 Lit in 2012-13

6 Microla 263,530 Lit 2,10,000 Lit in 2012-13

Period New record Previous best

Yearly 9.805 10.154 in 2011-12

Urea:


Yearly 7.072 7.096 in 2012-13

Following records were achieved during

year 2013-14.

Yearly Highest Production:


82

Lowest Ever Specific Energy Cons-umption:

(MKCal / MT)

Ammonia:


Yearly 8.596 8.848 in 2012-13

Urea


Yearly 6.100 6.220 in 2012-13

7.9.5 Strategic Issues: -

Some of the strategic issues affecting the company are as follows:

� High cost of imported gas

� Controlled regime where MRP of Urea is fixed by Govt..

� Inadequate gas supply of domestic gas to be made up with purchase of costly imported LNG.

� Import dependence on Rock Phosphate and Potash.

� Human Resource Management: -

7.9.6.1 Manpower as on 31st March 2014:

Group Total Number of Employees Belonging toEmployees

SC STEx-

Service men

Physically Handicapped OBC Minority

A 1453 223 52 1 11 136 81

B 1241 156 80 2 4 16 63

C 1159 154 114 3 19 193 82

D 114 9 11 1 4 51 11

Total 3967 542 257 7 38 396 237

7.9.6.2

7.9.6.2.1 Company has put in place highly

effective Grievance Redressal System.

Any citizen having complaints in

respect of the production or services

rendered may approach the Company.

Similarly any aggrieved customer /

dealer or any other c i t izen can

approach the Company for any failure

of the quality / price charged /

conduct of any officer / employee and

will be dealt as under.

7.9.6.2.2 The grievances can be addressed to a

special officer of the Company not

be low the rank o f Dy . Genera l

Redressal of Public Grievances and

Welfare Measures.

Manager who will act as the Nodal

Officer for redres-sal. The name,

address and telephone numbers. of the

officers are available on Company's

website www.rcfltd.com.

7.9.6.2.3 A separate Grievance Redressal System

is developed by the Company to

handle issues related to staff also. For

this, a Grievance Redressal Committee

has been formed. This committee

comprises equal representatives from

M a n a g e m e n t a n d W o r k m e n . A

Grievance Cell has also been formed,

where all employees can register their

grievances. Replies are given within

two weeks.

7.9.6.3 Welfare of Minorities:

7.9.6.4 Welfare, Development and Empow-erment of Women:

RCF has policy whereby a representa-tive of the minorities is included in the Recruitment Selection Board.

RCF as an organization has always been fair in treating employees with-out any gender bias. Opportunities for growth, training, challenging jobs, learning are equally available to both men and women employees of RCF. There are considerable number of women in the batch of apprentice trainees in technical areas.

Women are working in technical / non-technical / managerial positions and some of them have risen to the level of senior management positions in the organization.

All the welfare and employee benefit

schemes are equally applicable to male

and female employees of RCF.

Under the special schemes and policies

for women employees, RCF has set up

�Special Cell for Women Employees

(as per Communicat ion f rom

National Commission on Women)

�Committee for Sexual Harassment

Cases (as per Supreme Court

Guidelines)

�Special Medical check-ups/camps.

All the benefits in accordance with the

legal requirements such as Maternity

Benefits, Nursing Breaks, etc. are given

to women employees.


83

Shri R.G. Ranjan, Chairman & Managing Director, RCF and Shri. Shaktikanta Das, IAS, Secretary, DoF, govt. of India, signed Memorandum of Understanding (MoU) in presence of Shri. Shamlal Goyal, IAS, Joint Secretary (DoF), Shri. Neeraj Singhal, Director, PSU (DoF) for the year 2014-15 in the meeting held at New Delhi. RCF has been getting

excellent rating from Government of India on its MoU rating for the past ten years.


84

given industrial training as a part of industrial academic interface.

7.9.7.1 RCF strongly believes in discharging

its Corporate Social Responsibility and

always targeted its CSR activities

towards empowering the under privi-

leged.

A host of CSR activities are under-

taken by the company. Some of them

are elaborated below:

RCF has constructed a primary school

at Thal as well as a secondary and

higher secondary school in Kurul

(District Raigad). RCF is mainly

concentrating on imparting training to

t h e s t u d e n t s i n C o m p u t e r a n d

Information & Technology subjects.

Administratively, the schools are run

by Deccan Education Society, Pune, for

which RCF pays the service charges.

Complete expenditure incurred on

infrastructure, educational material and

salaries of the teachers is borne by

RCF. Yearly, around 2000 children get

benefited from this activity.

RCF, Thal supplies drinking water to

its nearby villages like Thal, Vaishet,

Navgaon, Boris, Gunjis, Kurul and

Kihim Colony free of cost. The main-

tenance of water pipelines in these

villages is also looked after by the

Company. Around 16000 residents of

the villages are availing this facility

given by the Company.


Sustainable Development (CSR/SD): -

7.9.7.2 Running of School:

7.9.7.3 Drinking Water Supply to Nearby

Villages:

RCF is one of the pioneer members in

the Forum of Women in Public Sector

(WIPS) since its inception (1990). It is

a corporate member of this forum and

has been representing in all activities

of the forum with total support and

participation in all activities. Some

RCF women officers have been work-

ing with the forum as heads of

taskforces, members of committees and

have contributed in policy making and

development of women to a great

extent. Many women employees in the

company have won awards also for

performance excellence.

As a part of regular training, RCF

incorporates awareness building for all

officers (Men and Women) on the

Sexual Harassment Guidelines and also

covers gender sensitization issue.

The guidelines regarding the reserva-

tion and in Recruitment and Promo-

tion for SCs and STs are strictly

followed.

At RCF, recruitment is carried out only after thorough study of the manpower requirement across various domains. There is comprehensive system in place to identify the training needs of the employees and based on the analysis and feedback, various training sessions are organized for their profes-sional advancement. Company also organizes various training sessions which he lp persona l growth o f employees such as financial literacy, environmental awareness etc. Com-pany has full-fledged training centre where not only company employees but large number of students are also

7.9.6.5 Welfare of SCs and STs:

7.9.6.6 Recruitment and Training (2013-14):


85

tered free primary health care to lakhs

of needy people. On an average 25

Villages are covered in weekly cycles

and around 25000 Patients are bene-

fited from free medical services includ-

ing supply of medicines. Through this

facility, ailments like Blood pressure,

Low Hemoglobin Levels, Malaria

Hepatit is , Dengue, Typhoid and

Diabetes, etc. are treated on regular

basis, One doctor is always present in

the van. It is equipped with GPS

system to enable RCF to track it on

real time basis. It is properly equipped

with medical instruments like Torch,

Nebulizer, Stethoscope, Blood Pressure

Machine, Magnifying Glass, Weighing

Scale, Pulse Oxymeter, Malaria Kit,

Dengue Kit, Hepatitis Kit, Typhoid Kit

etc. Company has been operating 3

Medical vans around Chembur area

and one van is operated in the villages

nearby Thal unit.

In the year, 2013-14 RCF has also

started a unique programme under

which Centre for Social Responsibility

and Leadership has established a unit

of Abhayanand Super 30 in Mumbai.

Under this, about 30 underprivileged

but talented students of Greater

Mumbai and Maharshtra state are

provided 11 months of free residential

coaching for admission to IIT/NIT and

other premier engineering colleges.

Academic Mentor of this programme is

Shri Abhayanand, co-founder of Super

30 Patna. For selection under this

programme annual income should be

around Rs 2.5 Lakhs. RCF through

"Centre for social responsibility and

7.9.7.7 RCF SUPER- 30:

7.9.7.4 Road Repairs in Villages:

7.9.7.5 Mid Day Meal Scheme:

7.9.7.6 Mobile Medical Van:

RCF Thal has constructed asphalted

roads in the villages adjacent to it at

the time of factory erection in the year

1980. These roads are straightway

connected to Thal and Navgaon

villages from the boundary wall of the

Company. Company does regular

repairs of these roads as per the

requirement put forward by Gram

Panchayat.

RCF is involved in providing Mid Day

Meal to needy school students in and

around Chembur area with the pur-

pose of providing proper nutrition to

the students in those areas. ISKCON, a

renowned Food Relief Foundation,

provides good and healthy meals to

the needy children on behalf of RCF.

In all 6000 students are availing the

benefit of this scheme.

In the baseline survey, undertaken by

Tata Institute of Social Science(TISS) in

Thal area, it was highlighted that

major problem in that area is lack of

primary health facility for common

ailments like cough, cold and most of

times villagers have to travel long

distances to get the treatment for such

minor ailments. Keeping this in view,

it was decided to start Mobile Medical

Van facility. The service is run by

premier health care organization

Wockhardt Foundation. RCF has taken

the initiative to commission the first

mobile van in 2007 through Wockhardt

Foundation and since then, adminis-


86

�'Best Technical Innovation Award' for Suphala Plant at FAI Annual Seminar 2013.

�Greentech Environment Excellence Award - 2013 in Gold category was conferred upon RCF, Thal Unit.

�Golden Peacock Award 2012-13 for

excellence in Safety & Health by

Institute of Directors.

Some of the milestones achieved

during the year are:

�Successful installation of solar power facility on rooftop at 5 company locations.

�Company has received 5,65,262 CERs during the year 2013-14 for its CDM project implemented in Nitric Plants at Trombay unit.

�Completion of third phase of Ammonia revamp at Thal.

7.9.8.2 Thal Unit

7.9.9 Other Development: -

leadership" provides free boarding,

food, normal medical care, technical

coaching and mentoring, counseling

and daily-weekly mock tests. Progra-

mme is designed to ensure radical

transformation of 3 generations i.e.

past, present and future.

�Greentech Safety Award - 2013 in Silver category for excellence in safety management among fertilizer industries, instituted by Greentech Foundation was conferred upon RCF, Trombay Unit.

�Greentech Environment Excellence Award 2012-13 in Gold category, instituted by Greentech foundation for outstanding performance in environment management.

�Sustainability Award 2013 for excellence in Safety, Health & E n v i r o n m e n t i n C h e m i c a l & Petrochemical Sector was conferred by FICCI.

7.9.8 Awards

7.9.8.1 Trombay Unit

Mobile medical Van for facilitating for Slam People near Trambay and Thal Unit of RCF.

CHAPTER-8

8.2.1 The Department of Agriculture &

Cooperation is promoting Integrated

Nutrient Management (INM) through

soil test based balanced and judicious

use of chemical fertilizers, bio-fertilizers

and locally available organic manures

like Farm Yard Manure (FYM), vermin-

compost and green manure to maintain

soil health and its productivity. A

centrally sponsored scheme viz, “Nutri-

ent Project on Management of Soil

Health & Fertility” (NPMSHF) has been

introduced during 2008-09. The compo-

nents of the new scheme include setting

up/ strengthening of Soil Testing

Laboratories (STLs)/Mobile STLs/

Fertilizer Quality Control Laboratories

(FQCLs), trainings demonstrations and

promotion of organic manure/soil

amendment/ micro nutrients during

11th Plan period.

During 2010-11, an amount of Rs. 20.82

crore was released for setting up 16 new

Static STLs, 10 new Mobile STLs,

strengthening of 9 existing STLs, 1 new

FOCL under PPP Mode for advisory

purpose and strengthening of 1 FQCL.

During 2011-12, an amount of Rs. 15.02

crore was released for setting up of 2

new mobile STLs, strengthening of 15

e x i s t i n g S T L s , 1 n e w F Q C L a n d

strengthening of 6 FQCLs. During 2012-

13 an amount of Rs. 12.73 crore was

released mainly as second installment

for the above activities.

During 2013-14, B.E. of Rs. 30.00 crore

has been kept.

8.2.2. In order to make available large variety

of fertilizer to the farmers as per their

requirement, fertilizers are notified

under FCO. At present, 13 straight

nitrogenous fertilizers, 8 straight phos-

phatic fertilizers, 5 straight potassic

fertilizers, 2 Sulphur fertilizers, 19 NPK

complex fertilizers and 17 NP fertilizers,

25 customized fertilizers, 14 fortified

fertilizers, 16 water soluble fertilizers are

notified under the FCO. To encourage

use of Organic fertil izer and Bio-

fertilizer, eight Bio-fertilizers namely;

Rhizobium, Azotobacter, Azospirillum,

Phosphate Solubilising Bacteria, Zinc

Solubilising Bacteria, Mycorrhizae,

P o t a s h M o b i l i z i n g b a c t e r i a a n d

Acetobacter have been incurred in the

f e r t i l i z e r ( C o n t r o l ) O r d e r , 1 9 8 5 .

Generalized specifications of organic

manures and other organic fertilizer,

namely, City Waste Compost, Vermi-

Compost and Phosphate Rich Organic

Manure (PROM) has been included in

the FCO. Composition of castor de-oiled

cake has also been specified in FCO,

1985.”


87

Integrated Nutrient Management

CHAPTER-9

Mobile FertilizerMonitoring System (mFMS)


89

�Phase IV: Subsidy payment to the

farmer on the basis of details of

sales made to him/her.

9.3 As per the decision taken in the meeting

on Direct Transfer of Fertilizer Subsidy

chaired by Principal Secretary to PM on

6.5.2013, it was discussed and decided

that Direct Benefit Transfer (DBT) in

fertilizers was complex matters as there

are problems in targeting, determining

entitlements and preparing beneficiary

databases. Therefore, for the moment it

would be better to keep DBT away from

fertilizers. However, it was decided that

DoF would take steps to build up a

digital database of 'buyers'. In view of

above, Phase-III & Phase-IV have been

put on hold and DoF focusing on

implementation of Phase-I & Phase-II.

9.4 Phase - I of the project focuses on the

information visibility of Fertilizer availa-

bility at the last point of sale. The

existing Fertilizer Monitoring System

(FMS - www.urvarak.co.in) that tracks

availability at the district level is being

extended, through the mobile Ferti-

l izer Monitoring System (mFMS –

www.mFMS.nic.in) to the last mile (i.e.

retailer) to track the movement and

availabil i ty. In Phase-I retai ler is

required to acknowledge the receipt of

sale made to him by either Company or

Wholesaler.

9.1 Consequent to Finance Minister Budget

speech, a Task force by the Finance

Ministry was constituted to recommend

an implementable solution for direct

transfer of subsidies on kerosene, LPG

and fertilizers to the intended beneficia-

ries. In June 2011, the Taskforce submit-

ted its Interim Report to the Finance

Ministry, proposing an IT-driven Core

Subsidy Management System (CSMS) to

leverage the 'Aadhaar' unique identity

numbers for distribution of subsidy.

9.2 In the interim report, the taskforce

recommended a phased approach for

direct disbursement of fertilizer subsidy

to the intended beneficiaries. Following

4 Phase of implementation were worked

out:

�Phase I: Information visibility till

the retailer's level where part

subsidy is disbursed to the manu-

facturers on the basis of the infor-

mation of retail acknowledgements

reported in mFMS

�Phase II: Part subsidy payment to

the manufacturers on the basis of

the information of retailer sales of

fertilizers captured in mFMS.

�Phase III: Subsidy payment to the

retail customer on the basis of

fertilizer sales made to him/her.


90

Phase I of mobile Fertilizer Monitoring

System (mFMS) has been operational

since 1st November, 2012, and is rolled

out through all the registered fertilizers

manufacturers (116), wholesalers (20,000)

and retailers (~2 lakhs) across the

country. Accordingly, a portion of the

subsidy (5-15% depending on the grade

of fertilizer) is given to manufacturers

only when the retailer acknowledges the

receipt in the Mobile Fertilizer Manage-

ment system (mFMS). An incentive of

INR 50 PMT is also given to the retailers

in this phase for acknowledging the

transactions.

9.5 National Workshop and Regional Level

Workshops have been conducted for

familiarization and orientation of State

Agriculture Officers of their roles and

responsibilities.

9.6 Phase II of mFMS plans to capture last

point sale i.e. retailer's sale to the end-

use buyer. Pilot of Phase-II was rolled

out in 6 districts (Nawanshahar-Punjab,

East Godavari- Andhra Pradesh, Sonipat-

Haryana, Bilaspur- Himachal Pradesh,

Ajmer- Rajasthan, and Madurai- Tamil

Nadu) on 1st August 2013.

9.7 The key objectives of this phase are:

�Recording product details of the

fertilizer sold and buyer's details..

�Release of balance subsidy to

manufact-urers based on the cap-

ture of above mentioned informa-

tion

9.8 Further, DoF has decided to extend this

phase in 6 more districts (Bhadrak –

Odisha, Raighar – Maharashtra, Ranchi –

Jharkhand, Sehore – Madhya Pradesh,

Tinsukia – Assam, Narmada – Gujarat).

In this phase, combination of various

last mile models to capture sales and

buyer's details (including PoS, comput-

ers, cards etc) are being considered.

CHAPTER-10

Vigilance10.1.1 The vigilance activities of the Depart-

ment are extended to the Department as

well as to 9 Public Sector Undertakings.

The matter of its jurisdiction over the

some Multi State cooperative societies is

sub-judice. The Vigilance Division is

headed by Joint Secretary, who is desig-

nated as Chief Vigilance Officer of the

Depart-ment. The CVO is assisted by a

Director, Under Secretary and a Section

Officer along with other vigilance staff.

Vigilance related activities are carried

out within the framework provided by

t h e D e p a r t - m e n t o f P e r s o n n e l &

Training, Central Vigilance Commission

and Department of Public Enterprise.

The Department plays pro-active role in

ensuring the prompt disposal of the

complaints and in framing preventive

guidelines. Efforts are made by the

Department to simplify the procedures

in the PSUs to promote trans-parency in

their working which reduces the chance

of corruption.

10.2.1 The number of pending vigilance (Disci-

plinary Proceeding) cases in the PSUs

was 25 as on 31.12.2013. The Department

has been regularly monitor-ing the

pending complaints/investiga-tions by

having close interaction with the con-

cerned CVOs of PSUs and constant

efforts are being made to ensure the

timely disposal of disciplinary proceed-

ings.

Vigilance Activities During 2013

Celebrations of Vigilance Awareness Week

SURVEILLANCE AND DETECTION

PUNITIVE ACTION

10.3.1 The Vigilance Awareness Week was

celebrated in this Department from

28.10.2013 to 02.11.2013. During the

week, banners were displayed at differ-

ent places in the Department to create

vigilance awareness among the staff. A

p l e d g e w a s a d m i n i s t e r e d b y t h e

Secretary (F) to the staff and an essay

competition was held on the occasion.

The PSUs under the administrative

control of this Department have also

reported regarding such celebration.

10.4.1 Agreed list of public servants as well as

List of Public Servants of Doubtful

Integrity for the year 2013 have been

finalized.

10.5.1 Up to 01.01.2013, there were 35 com-

plaints in the Department from various

sources including the CVC. 13 more

c o m p l a i n t s w e r e r e c e i v e d u p t o

November 2013. 23 complaints have

been disposed off till date. The balance

complaints are at various stages of

examination and are under process. No

complaint is either pending or being

contemplated against the officials of this

Department


91

CHAPTER-11

Right to Information Act, 2005


11.1.1 The Right to Information Act, 2005 (RTI)

was assented by the President of India

on 15.6.2005 and notified on 21.6.2005.

Some of the Sections of the Act, namely,

sections 4(10, 5(1) & (2), 12,13,15,16,24,

27 & 28 relating to obligations of Public

Author i t i es for maintenance and

computerization of record/information,

designation of Public Information Offi-

cers constitution of Central Information

Commission and State Information Com-

mission, exclusion of certain organiza-

tions etc. came into force immediately.

The remaining provisions of the RTI Act

came into force on the 120th day of its

enactment i.e. 12th October 2005.

11.1.2 In compliance of the RTI Act, the

Department has designated CPIOs and

Appellate Authorities. The respective

PSUs under the administrative control of

the Department have been directed to

ensure compliance of the RTI Act. Some

of the important steps taken by the

Department in compliance of the Act are:-

a. Created a separate link for RTI Act

on its website http://fert.nic.in

placing a handbook on RTI giving

general information about the

Depart-ment required under the

Act.

b. Orders designating CPIOs and

Appellate Authorities with required

details are placed on the website,

which are updated from time to

time.

93

c. Counter opened at Public Informa-

tion Centre of DoF at Room no. G-

12, Ground Floor, A wing, Shastri

Bhawan, for applications as well as

prescribed fee under the RTI Act.

d. Appointment of Nodal Officer

intimated to Department of Post

enabling providing of services by

that Department as CAPIOs across

the country.

11.1.3 The Department has started registration

of applications and appeals under the

RTI Act on the Management Information

System (RTI-RAMIS) software available

on the website of CIC (http://rti.gov.in).

11.1.4 The Department has started receiving

RTI applications/Appeals on the newly

launched RTI web portal of DoPT,

http://rtionline.gov.in/RTIMIS

11.1.5 During the year 2013-2014, 137 applica-

tions and 08 appeals were received

physically out of which 130 applications

and 08 appeals were disposed off during

the said year and the remaining 5 out of

137 applications are under process for

sending reply to the applicants and 2

applications have been rejected under

section 8(j) of the RTI Act, 2005. 80

applications and 07 appeals were receiv-

ed online, out of which 67 applications

and 04 appeals were disposed off during

the period, 10 applications 03 appeals are

under process, 03 applications were

rejected under section 8(j) of the RTI Act

205.

Progressive use ofOfficial Language Hindi

CHAPTER-12


95

12.1 Progressive use of Official Language

Hindi

12.1.1 As per the instructions issued from time

to time by the Department of Official

Language, Ministry of Home Affairs,

Department of Fertilizers is making

constant endeavour for implementing

the Official Language of the Govt of

India. The work pertaining to the

p r o g r e s s i v e u s e o f H i n d i i n t h e

Department, in its attached office (FICC)

and the 9 PSUs, is under the administra-

tive control of Joint Secretary (Adminis-

tration). For his assistance, posts of two

Deputy Directors (OL), two Assistant

Directors (OL), three Senior Translators,

one Junior Translator and one Assistant

are there. Department of Fertilizers

continued its efforts towards greater use

of Hindi in official work during 2013-

2014 keeping in view the Annual

Programme issued by the Depart-ment

of Official Language, Ministry of Home

Affairs, for implementation of the

Official Language Policy of the Govern-

ment of India.

12.1.2 All the 260 Computers (PCs) in the

Department are equipped with Unicode

bilingual facility. Adequate reading

material in Hindi has been made avail-

able in the library of the Ministry of

Chemicals & Fertilizers. Efforts were

made to promote the use of Hindi in all

the correspondence. All off icers/

employees of the Department are having

working knowledge of Hindi. Besides, a

number of effective measures have been

taken for the promotion of use of Hindi

in the Department and in its attached

office of FICC and in various PSUs

under its administrative control. Details

of these measures are summarized

below:-

12.2.1 In pursuance of the Official Language

Policy of the Govt. of India, all docu-

ments covered under Section 3(3) of the

Official Language Act 1963, are being

issued both in English and Hindi. In

order to ensure correspondence in Hindi

to Central Government offices located in

Regions 'A', 'B' and 'C', action plan

based on the checkpoints identified in

the Department has been prepared to

ensure compliance of the Official

Language Policy. All the letters received

in Hindi are invariably replied to in

Hindi. Efforts were made to reply the

letters in Hindi which were received in

English from regions 'A' & 'B'. Efforts to

increase the original correspondence in

Hindi with the State Governments are

also being made.

12.3.1 The Department has prepared a time bound programme to impart in-service

12.2 Implementation of Section 3(3) of the

Official Language Act.

12.3 Hindi Training


96

training to all its officers/employees who do not possess working knowledge of Hindi/Hindi Stenography/Hindi Typing, under which 6 employees were nominated and 1 employee successfully completed the Hindi Stenography Training.

12.4.1 The quarterly/Half yearly/Annual

Reports were prepared and sent to the

Department of Official Language and

a b o v e r e p o r t s r e c e i v e d f r o m t h e

PSUs/Offices under the administrative

c o n t r o l o f t h e D e p a r t m e n t w e r e

reviewed.

12.5.1 Annual Programme issued by Depart-

ment of Official Language for the year

2013-14 was received and circulated to

its sections and PSUs/offices under the

administrative control of the Depart-

ment.

12.6.1 An Official Language Implementation

Committee (OLIC) has been constituted

u n d e r t h e c h a i r m a n s h i p o f J o i n t

Secretary (Adm.) in the Department.

This committee regularly reviews the

progress made in the use of Hindi in the

Department and its attached office FICC

and 9 PSUs on quarterly basis. It gives

appropriate suggestions and recom-

mends measures to be taken for the

effective implementation of the official

language policy.

12.7.1 With a view to render advice for effec-

tive implementation of the Official

12.4 Reports relating to Official Language, Hindi

12.5 Annual Programme

12.6 Official Language Implementation Committee (OLIC)

12.7 Hindi Salahkar Samiti

Language Policy of the Government, the

meeting of Hindi Salahkar Samiti (Hindi

Advisory Committee) of the Ministry of

Chemicals and Fertilizers, which is the

joint committee of the Department of

Petrochemicals, Department of Pharma-

c e u t i c a l s a n d t h e D e p a r t m e n t o f

Fertilizers, was held on 17.05.2013 in

Bhubneshwar, Odisha under the chair-

manship of the Minister of State for

Chemicals and Fertilizers (Independent

Charge).

12.8.1 The incentive scheme for noting/drafting

in Hindi introduced by the Department

of Official Language is continued. This

scheme carries two first prizes of 2000/-

each, three second prizes of 1200/- each

and five third prizes of 600/- each.

12.9.1 An incentive scheme for officers for

giving dictation in Hindi is in operation

in the Department. Under this scheme,

there is a provision of two cash prizes of

2000/- each (one for Hindi speaking and

other for Non-Hindi speaking).

12.10.1 In order to encourage the use of Hindi

i n o f f i c i a l w o r k a m o n g s t o f f i-

cers/employees of the Department, an

appeal was made by the Honourable

Minister of State (Independent Charge)

on 14th September, 2013. During the

Hindi fortnight, which was organized in

the Department from 12th September,

2013 to 26th September, 2013, various

competitions such as Hindi Essay writ-

12.8 Incentive Scheme for original not

ing/drafting work in Hindi

12.9 Cash prize scheme for dictation in

Hindi

12.10 Hindi Day/Hindi Fortnight

ing, Hindi typing, short extempore

speech in Hindi, noting and drafting in

Hindi (separately for Hindi and non-

Hindi employees) , Hindi General

Knowledge and poem recitation compe-

t i t ions in Hindi were organized.

Officers/employees took part very

enthusiastically in these competitions

and 10 officers and 20 employees won

prizes. Secretary (F) distributed the

prizes to the winners.

12.11.1 The Scheme named 'Prati Din Ek Shabd',

w h i c h h a s b e e n l a u n c h e d i n t h e

Department is continued for the last six

y e a r s . U n d e r t h i s s c h e m e , o n e

word/phrase in Hindi and its English

equivalent is being displayed on the

White Board installed on the second

floor 'A' wing Shastri Bhavan. These

words/phrases are generally of adminis-

trative and technical in nature which are

used in day-to-day official work.

12.11 Prati Din Ek Shabd

12.12 Hindi Workshops

12.13 Inspections regarding progressive use of Hindi

12.12.1 During the year 3 Hindi workshops, one

f o r S e c t i o n O f f i c e r s / P S , o n e f o r

Assistants and PAs and one for LDC's &

UDC's were organized in the Depart-

ment to overcome the hesitation of

working in Hindi and encourage the

officials to do their more and more work

in Hindi.

12.13.1 In order to oversee the implementation

of the official language policy, seven

sections of the Department and 4

offices/units of different PSUs were

inspected by the Deputy Director

(O.L.)/Assistant Director (OL) of the

Department during the year. In addition,

t h e f i r s t S u b - C o m m i t t e e o f t h e

Parliamentary Committee on Official

Language inspected 3 offices of PSUs

under the administrative control of the

Department.


97

CHAPTER-13

Welfare of SCs, STs, OBCs andPhysically Handicapped Persons

13.1. During the year under review to imple-

ment Government's instructions regard-

ing recruitment and promotion of

candidates belonging to the Scheduled

Castes (SCs), Scheduled Tribe (STs),

Other Backward Classes (OBCs) and

Physically Handicapped (PHPs) catego-


99

ries in various groups of services in the

Department utmost care has been exer-

cised. The representation of these catego-

ries in the Department which comprises

DoF, PAO and FICC as on 31.03.2014 is

displayed in pie-chart.

CHAPTER-14

SEVOTTAM


101

14.1.1 The Sevottam model has been developed

with the overarching objective of

improving the quality of public service

delivery in the country. The model has

three components viz. Citizen's Charter,

Public Grievance Redressal and excel-

lence in Service Delivery with an overall

objective of keeping citizens better

informed and their empowerment in

order to be able to demand better

services, grievance redressal and contin-

uous improved delivery system.

14.2.1 The Department of Fertilizers is commit-

ted to the effective and responsive

administration and excellence in service

delivery and has completely imple-

mented the SEVOTTAM framework of

Government of India. The Department

has created a Sevottam complaint

Citizen's/Clients Charter as well as

Sevottam compliant Grievance Redressal

mechanism under Results Framework

Document (RFD). Citizen's/Client's

Charter of Department of Fertilizers has

been prepared and displayed on the

Department's website. As per the RFD

the Vision of the this department is

"Achieving fertilizers security for the

country for sustainable agricultural

growth supported by a robust domestic

fertilizer industry" and Mission is "En-

suring adequate and timely availability

of fertilizers to the farmers through

planned production and imports and

distribution of fertilizers in the country

and planning for self sufficiency in urea

production".

14.2 Implementation Of Sevottam

14.2.2 Till date, the Department of Fertilizers

has submitted RFDs for 2009-10, 2010-11,

2011-12, 2012-13 and 2013-14 which have

been duly approved by the Government.

The RFD for the year 2013-14 is at Annexure-XXIV.

14.2.3 The Department offers services to

C i t i z e n s , C e n t r a l P u b l i c S e c t o r

Enterprises under the Department,

Fertilizer producing companies, import-

ers of fertilizers / fertilizer raw material

suppliers, Department of Agriculture

and Cooperation etc, as per the service

standards indicated in the Citizen's/

Client's Charter which are as under :-

�Timely grant of clearance for setting

up /augmenting of fertilizer pro-

duction unit.

�Timely payment of subsidy to

fertilizer companies fertilizers.

�Timely fixing of production/inputs

targets for the fertilizer companies.

�Recommendations to Revenue

Department for concessional rate of

custom duty under Project Import

Scheme in Fertil izer sector in

respect of imported machinery and

equipments for capital goods.

�Timely payment of bills to vendors.

�Prompt grievance redressal.

�Decision on proposals for capacity

expansion technical upgradation,

modernization of plants, machinery,

etc.


14.2.4 A Grievance Redress Mechanism has

been set up in the Department with an

objective of speedy redressal and effec-

tive monitoring of grievances. A Nodal

Officer of the rank of Joint Secretary has

been designated as Director of Public

Grievance. Separated Nodal Officers

have been designated for redressal of

Staff Grievances and Grievances of

pensioners. Service recipients can either

lodge their grievances on Centralized

Public Grievance Redress and Monit-

oring System (CPGRAMS) at the Griev-

ance Portal of Department of Adminis-

trative Reforms and Public Grievances

(DARPG) at http://pgportal.gov.in or at

the centralized Pensioners Grievances

Redressal and Monitoring System

(CPENG-RAMS) at pensioners' Portal of

Department of Pension & Pensioners"

Welfare at http://pensionersportal.

gov.in/CPENGRAMS (for grievances of

pensioners) or at the website of the

Department of Fertilizers or they can

give it in person or send it by post or e-

mail or by fax to the Director of public

Grievance of the department. Grievances

received in Department of Fertilizer are

monitored in Centralized Public Griev-

ance Redressal and Monitoring System

(CPGRAMS). The grievances are trans-

ferred to concerned CPSEs and the

status of disposal is monitored. During

2013-14 Department of Fertil izers,

received 327 public grievance cases,

directly or through other Departments,

out of which 283 cases were disposed

and 39 cases are at different stages of

processing.

102

ANNEXURES(I-XXIV)


103

� Planning for fertilizers production,

including import of Urea through

designated canalizing agencies.

� Allocation and supply linkages for

movement and distribution of fertilizers

in terms of assessment made by the

Department of Agriculture & Coop-

eration.

� Administration of concession schemes

and management of subsidy for con-

trolled as well as decontrolled fertilizers,

including quantum of conces-sion for

decontrolled fertilizers.

� Administration of the Fertilizers (Move-

ment Control) order 1973.

� Policy and pricing matters relating to

urea.

� All matters pertaining to disinvestment

of fertilizers PSUs.

� All matters pertaining to Fertilizers

Annexure-IList of subjects falling within the jurisdiction of Department of Fertilizers

Projects, Joint venture/Joint Sector

Companies.

� External assistance for new Fertilizers

Projects.

� Matters relating to Fertilizers Industry

Coordination Committee (FICC), an

attached office of DOF, which is con-

cerned with cost aspects of Urea

Production/for determination of subsidy

and disbursement of subsidy on indige-

nous urea.

� Matters connected with supply and

availability of Fertilizers raw materials

and marketing of fertilizers.

� Fixation of remuneration rate for han-

dling imported Urea.

� Work relating to planning, monitoring

and valuation of fertilizers production.

� All matters relating to WTO in the

fertilizers sector.


104


105

Minister (C&F) : Shri Ananth Kumar

Minister of State for C&F : Shri Nihalchand

Secretary : Shri Inderjit Pal (Additional Charge)

Addl. Secretary & Financial Adviser : Shri Rajiv Yadav

Joint Secretary : Shri Sham Lal Goyal

Shri Satish Chandra

Shri Sushil Kumar Lohani

Joint Secretary level officer : Shri K.M. Gupta

Directors & equivalent Officer : Shri Neeraj Singhal

Shri Vijay Ranjan Singh

Shri D.P. Srivastava

Shri Gobinda Gopal Mitra, (FICC)

Shri Sushil Pal

Shri S. Anandan

Shri Rajiva Kumar

Capt. Vikram Singh Rana

Deputy Secretary & equivalent Officer : Shri Rakesh Kumar

Shri H.C. Bhanot, (FICC)

Smt. Surinder Kaur, (FICC)

Shri Mukesh Bhardwaj

Shri Tapan Dutta

Shri Anand Kumar Pal, (FICC)

Shri V.K. Sharma, Sr. PPS

Controller of Accounts : Shri Arvind Kumar

Annexure-IIList of officers in the Department (as on 30.06.2014)

Annexure-III


106

PUBLIC SECTOR:

S. NO. Name of the Company Headquarters Incorporated in

1. Rashtriya Chemicals and Fertilizers Ltd (RCF) Mumbai March, 1978

2. National Fertilizers Ltd (NFL) Noida August, 1974.

3. Madras Fertilizers Ltd (MFL) Chennai December, 1966

4. The Fertilizers and Chemicals Travancore Ltd (FACT)

Udyogmandal September, 1943

5. Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL)

Guwahati April, 2002

6. FCI Aravali Gypsum and Minerals India Ltd (FAGMIL)

Jodhpur February, 2003

7. Projects and Development India Ltd (PDIL) Noida March, 1978

8. Fertilizer Corporation of India Ltd. (FCIL) New Delhi January, 1961

9. Hindustan Fertilizer Corporation Ltd (HFCL) New Delhi March, 1978

LIST OF PUBLIC SECTOR UNDERTAKING/COOPERATIVE SOCIETY UNDER

THE ADMINISTRATIVE CONTROL OF DEPARTMENT OF FERTILIZERS


107

Annexure-IV

Name of Company/Annual Installed

Capacity

Plant 2013-14 2013-14 2013-14

NFL:Nangal-II Urea 220.1 181.5 82.5

NFL:Bhatinda Urea 235.3 257.8 109.6

NFL:Panipat Urea 235.3 235.1 99.9

NFL:Vijaipur Urea 460.0 462.9 100.6

NFL:Vijaipur Expn. Urea 490.5 534.7 109.0

TOTAL (NFL) 1641.2 1672.0 101.9

BVFCL:Namrup-II Urea 110.4 32.5 29.4

BVFCL:Namrup-III Urea 124.2 108.3 87.2

TOTAL (BVFCL) 234.6 140.8 60.0

FACT:Udyogamandal A/S , 20:20:0:13 77.0 70.6 91.7

FACT:Cochin-II 20:20:0:13 97.0 98.9 102.0

TOTAL (FACT) 174.0 169.5 97.4

RCF:Trombay 15:15:15 63.0 49.1 77.9

RCF:Trombay-IV 20.8:20.8, 20:20 54.0 37.5 0.0

RCF:Trombay-V Urea 151.8 162.2 106.9

RCF:Thal Urea 785.1 917.0 116.8

TOTAL (RCF) 1053.9 1165.8 110.6

MFL:Chennai Urea / 17:17:17/20:20 366.7 231.5 63.1

SAIL:Roulkela CAN 120.0 0.0 0.0

By Product A/S 38.4 4.7 12.2

Total(Public) 3628.8 3384.3 93.3

IFFCO:Kandla 10:26:26 / 12:32:16 / DAP 351.5 213.6 60.8

IFFCO:Kalol Urea 250.5 276.2 110.3

IFFCO:Phulpur-I Urea 321.1 299.8 93.4

IFFCO:Phulpur-II Urea 460.0 437.4 95.1

IFFCO:Aonla-I Urea 460.0 507.4 110.3

IFFCO:Aonla-II Urea 460.0 494.1 107.4

IFFCO:ParadeepDAP / 10:26:26 / 20:20 / 12:32:16

322.0 267.9 83.2

TOTAL(IFFCO) 2625.1 2496.4 95.1

KRIBHCO:Hazira Urea 795.4 1016.6 127.8

Total(Co-operative) 3420.5 3513.0 102.7

Total(Pub.+Coop.) 7049.3 6897.3 97.8

Name of Products Production Percentage capacity utilization

( in '000' MTs)Public Sector

Cooperative Sector

UNIT-WISE INSTALLED CAPACITY, PRODUCTION AND CAPACITY UTILIZATION

FOR THE YEAR 2013-14 FERTLIZER NUTRIENTS

Nitrogen


108

Private Sector

GSFC:Vadodara Urea / DAP / 20:20 / A/S 288.1 266.0 92.3

GSFC:Sikka-I DAP / 12:32:16/ 10:26:26 58.7 42.8 72.9

GSFC:Sikka-II DAP / 12:32:16 71.3 43.1 60.4

TOTAL(GSFC-Sikka) 130.0 85.9 66.1

GNFC:Bharuch Urea / CAN / 20:20 356.7 369.2 103.5

KSFL:Shahjahanpur Urea 397.7 476.2 119.7

CIL:Vizag 28:28 / 14:35:14 / 20:20 / 16:20 / 10:26:26 / DAP 200.0 200.7 100.4

CIL:Ennore16:20 / 20:20

52.8 28.8 54.5

CIL:KakinadaDAP / 10:26:26 / 20:20 / 14:35:14 / 12:32:16 346.5 196.4 56.7

SFC:Kota Urea 174.3 185.5 106.4

KFCL Urea 332.1 144.1 43.4

ZIL:GoaUrea / DAP / 19:19:19 / 10:26:26 / 12:32:16 305.8 235.0 76.8

SPIC:TuticorinUrea / DAP / 20:20 / 17:17:17

370.7 189.7 51.2

MCF:Mangalore Urea / DAP / 20:20 / 16:20/10:26:26 222.4 203.1 91.3

TAC:Tuticorin A/C 16.0 0.0 0.0

TCL:HaldiaDAP / 10:26:26 / 12:32:16/ 14:35:14 / 15:15:15 121.5 68.4 56.3

IGL:Jagdishpur Urea 397.7 476.3 119.8

Hin.Ind.Ltd.:Dahej DAP / 10:26:26 / 12:32:16 72.0 41.2 57.2

DFPCL:Taloja 23:23:00/ 24:24:00, 52.9 57.5 108.7

NFCL:Kakinada-I Urea 274.8 297.5 108.3

NFCL:Kakinada-II Urea 274.8 358.8 130.6

TOTAL(NFCL) 549.6 656.3 119.4

CFCL:Gadepan-I Urea 397.7 455.7 114.6

CFCL:Gadepan-II Urea 397.7 437.3 110.0

TOTAL(CFCL) 795.4 893.0 112.3

TCL:Babrala Urea 397.7 522.8 131.5

PPL:ParadeepDAP / 14:35:14 / 20:20 / 12:32:16 / 10:26:26 / 28:28 129.6 180.3 139.1

By Product A/S 7.5 3.8 50.7

5717.0 5480.2 95.9

12766.3 12377.5 97.0

Total (Private Sector)

Total(Pub+Coop+Pvt)


109

Phosphate

2013-14

Public Sector

FACT:Udyogamandal 20:20:0:13 29.7 33.1 111.4

FACT:Cochin-II 20:20:0:13 97.0 98.9 102.0

Total(FACT) 126.7 132.0 104.2

RCF:Trombay 15:15:15 63.0 49.1 77.9

RCF:Trombay-IV 20.8:20.8/ 20:20 54.0 37.5 0.0

Total(RCF) 117.0 86.6 74.0

MFL:Chennai 20:20 / 19:19:19 / 17:17:17 142.8 7.6 5.3

Total(Public) 386.5 226.2 183.5

Cooperative Sector

IFFCO:Kandla DAP / 10:26:26 / 12:32:16 910.0 555.9 61.1

IFFCO:ParadeepDAP / 10:26:26 / 20:20 / 12:32:16 793.2 586.7 74.0

Total( Co-op.) 1703.2 1142.6 67.1

Total(Pub.+Coop.) 2089.7 1368.8 65.5

GSFC:Vadodara DAP / 20:20 115.9 53.5 46.2

GSFC:Sikka-I DAP , 12:32:16 150.0 88.5 59.0

GSFC:Sikka-II DAP 182.2 110.2 60.5

TOTAL(GSFC-Sikka) 332.2 198.7 59.8

GNFC:Bharuch 20:20 28.5 37.8 132.6

CFL:Vizag 14:35:14 / 28:28 / 10:26:26 / 20:20 / DAP

200.0 206.5 103.3

CFL:Ennore 16:20 / 20:20 66.0 36.0 54.5

CIL:Kakinada DAP / 12:32:16 / 20:20 / 14:34:14 / 10:26:26

885.5 428.6 48.4

ZIL:Goa DAP / 19:19:19 / 10:26:26 / 12:32:16

214.5 133.4 62.2

SPIC:Tuticorin DAP / 17:17:17 / 20:20 218.5 98.8 45.2

MCF:Mangalore DAP / 20:20 / 16:20 109.2 61.7 56.5

TCL:Haldia DAP / 10:26:26 / 12:32:16/ 14:35:14

336.9 176.0 52.2

Hin.ind.Ltd.:Dahej DAP / 10:26:26 / 12:32:16 184.0 105.2 57.2

DFPCL:Taloja 23:23/ 24:24, 52.9 57.5 108.7

PPL:Paradeep DAP / 14:35:14 / 20:20 / 12:32:16 / 10:26:26 / 28:28

331.2 319.2 96.4

SSP Units SSP 1619.4 676.3 41.8

4694.7 2589.2 55.2

6784.4 3958.0 58.3

Percentage capacity utilization

2013-14

(Fig. in '000'MT)

Name of Company/Plant Name of Products

2013-14

Annual Installed

Capacity

Production

Private Sector

Private Sector

Total (Private Sector)

Total(Pub+Coop+Pvt)

Season Wise Summary

Annexure-V


110


111

YEAR CONSUMPTION

N P K TOTAL N P K TOTAL N P K TOTAL

1981-82 40.69 13.22 6.73 60.64 31.44 9.49 0.00 40.93 10.54 3.43 6.44 20.41

1982-83 42.24 14.37 7.27 63.88 34.24 9.80 0.00 44.04 4.25 0.63 6.44 11.32

1983-84 52.86 17.07 7.99 77.92 34.85 10.48 0.00 45.33 6.56 1.43 5.56 13.55

1984-85 54.87 18.86 8.38 82.11 39.17 12.64 0.00 51.81 20.08 7.45 8.71 36.24

1985-86 56.61 20.05 8.08 84.74 43.28 14.28 0.00 57.56 16.80 8.16 9.03 33.99

1986-87 57.16 20.79 8.50 86.45 54.10 16.60 0.00 70.70 11.03 2.55 9.52 23.10

1987-88 57.17 21.87 8.80 87.84 54.66 16.65 0.00 71.31 1.75 0.00 8.09 9.84

1988-89 72.51 27.21 10.68 110.40 67.12 22.52 0.00 89.64 2.19 4.07 9.82 16.08

1989-90 73.86 30.14 11.68 115.68 67.47 17.96 0.00 85.43 5.23 13.11 12.80 31.14

1990-91 79.97 32.21 13.28 125.46 69.93 20.52 0.00 90.45 4.14 10.16 13.28 27.58

1991-92 80.46 33.21 13.61 127.28 73.01 25.62 0.00 98.63 5.66 9.67 12.36 27.69

1992-93 84.27 28.44 8.84 121.55 74.30 23.06 0.00 97.36 11.37 6.89 10.82 29.08

1993-94 87.89 26.69 9.08 123.66 72.31 18.16 0.00 90.47 15.88 7.22 8.57 31.67

1994-95 95.07 29.31 11.25 135.63 79.45 24.93 0.00 104.38 14.76 3.80 11.09 29.65

1995-96 98.23 28.98 11.56 138.77 87.77 25.58 0.00 113.35 19.93 6.47 13.15 39.55

1996-97 103.01 29.77 10.30 143.08 85.99 25.56 0.00 111.55 11.67 2.46 6.13 20.26

1997-98 109.01 39.14 13.73 161.88 100.86 29.76 0.00 130.62 13.62 6.72 11.40 31.74

1998-99 113.54 41.12 13.32 167.98 104.80 31.41 0.00 136.21 6.35 9.68 15.42 31.45

1999-00 115.92 47.99 16.78 180.69 108.90 33.99 0.00 142.89 8.33 15.03 17.39 40.75

2000-01 109.20 42.15 15.67 167.02 109.61 37.43 0.00 147.04 1.54 3.96 15.41 20.91

2001-02 113.10 43.82 16.67 173.59 107.68 38.60 0.00 146.28 2.69 4.29 17.01 23.99

2002-03 104.74 40.19 16.01 160.94 105.64 39.10 0.00 144.74 0.66 1.70 14.38 16.74

2003-04 110.76 41.24 15.98 167.98 106.34 36.32 0.00 142.66 1.32 3.38 15.48 20.18

2004-05 117.14 46.24 20.61 183.99 113.38 40.67 0.00 154.05 4.09 2.96 20.45 27.50

2005-06 127.23 52.04 24.13 203.40 113.54 42.21 0.00 155.75 13.85 11.21 27.47 52.53

2006-07 137.74 55.43 23.34 216.51 115.78 45.17 0.00 160.95 26.88 13.23 20.69 60.80

2007-08 144.19 55.15 26.36 225.70 109.00 38.07 0.00 147.07 36.77 12.53 26.53 75.83

2008-09 150.90 65.06 33.13 249.09 108.7 34.64 0.00 143.34 38.44 29.27 33.80 101.51

2009-10 155.80 72.74 36.32 264.86 119.0 43.21 0.00 162.21 34.47 27.56 29.44 91.47

2010-11 165.58 80.50 35.14 281.22 121.56 42.22 0.00 163.78 44.92 38.02 40.69 123.63

2011-12 173.00 79.14 25.76 277.90 122.59 41.01 0.00 163.60 52.40 44.27 33.35 130.02

2012-13 180.36 59.55 18.13 258.04 121.94 35.41 0.00 157.35 46.90 27.78 12.30 86.98

2013-14 165.25 54.58 19.76 239.59 123.78 37.14 0.00 160.92 38.08 15.9 13.33 67.31

PRODUCTION IMPORTS

Annexure-VI YEAR-WISE, NUTRIENT-WISE CONSUMPTION,

PRODUCTION AND IMPORT OF FERTILIZERS (In LMT)

Annexure-VII SECTOR-WISE PRODUCTION OF NITROGENOUS

AND PHOSPHATIC FERTILIZER NUTRIENTS

('000' MT)

Nutrient

Target Actual Target Actual Target Actual Target Actual Target Actual

Public Sector 3054.8 3118.1 3079.8 3166.7 3200.9 3176.6 3313.2 3185.0 3491.3 3384.3

Co-operative Sector 3280.8 3404.3 3363.5 3459.1 3359.8 3353.0 3566.7 3592.2 3589.7 3513.0

Private Sector 5749.0 5378.0 6010.0 5530.8 9195.5 5729.1 6041.2 5416.8 5923.5 5480.2

Total(Nitrogen) 12084.6 11900.4 12453.3 12156.6 15756.2 12258.7 12921.1 12194.0 13004.5 12377.5

Public Sector 207.3 227.7 236.5 227.2 292.4 237.3 310.9 223.0 276.7 226.2

Co-operative Sector 937.0 1194.1 1242.2 1287.7 1311.8 1329.8 1192.0 1284.6 1367.8 1142.6

Private Sector 2986.8 2899.1 3366.2 2707.8 3319.7 2536.6 3252.3 2033.1 3195.8 2344.9

Total(Phosphate) 4131.1 4320.9 4844.9 4222.7 4923.9 4103.7 4755.2 3540.7 4840.3 3713.7

2010-11

Phosphate(P)

2013-14

Nitrogen(N)

2012-13 2009-10 2011-12


112


113

Annexure-VIIISECTOR-WISE CAPACITY UTILIZATION

OF NITROGENOUS AND PHOSPHATIC FERTILIZERS

(% age)

Nutrient 2009-10 2010-11 2011-12 2012-13 2013-14 *

Public Sector: 89.2 90.5 90.8 91.1 94.7

Co-operative Sector: 107.4 109.1 105.8 113.3 102.7

Private Sector: 100.0 105.1 106.5 100.7 94.7

Total(Nitrogen): 98.8 100.9 101.8 101.2 96.8

Public Sector: 56.6 56.5 58.9 55.4 65.5

Co-operative Sector: 69.7 75.2 74.1 75 67.1

Private Sector: 82.5 77.1 72.1 57.9 54.6

Total(Phosphate): 76.8 75.0 72.9 62.9 58.5

Nitrogen(N)

Phosphate(P)

(a) Per Kg NBS rates for nutrients NPKS for the 2010-11 to 2014-15 :

NBS rates (Rs. per Kg)

Nutrients

1st

Apr -

31st

Dec 2010 *

1st

Jan-

31st

Mar

2011**

2011-12

2012-13

2013-14

2014-15

‘N’ (Nitrogen)

23.227

23.227

27.153

24.000

20.875

20.875

‘P’ (Phosphate)

26.276

25.624

32.338

21.804

18.679

18.679

‘K’ (Potash)

24.487

23.987

26.756

24.000

18.833

15.500

‘S’ (Sulphur) 1.784 1.784 1.677 1.677 1.677 1.677

*Including Rs. 300/-

per MT for secondary freight from rake point to retail

points.

** Excluding the secondary freight of Rs. 300/-

PMT, which was

being paid separately on per ton per Km basis.

NA means not covered under Subsidy regime.

(b) Per MT subsidy on different P&K fertilizers during 2010-11

to 2014-15:

Sl. No.

Fertilizer Grades(FG)

(N P K S nutrient)

2010-11

2011-12

2012-13

1.4.2010 to

31.12.2010

1.1.2011 to

31.3.2011

2013-14

2014-15

1. DAP (18-46-0-0)

16268

15968

19763

14350

12350

12350

2.

MAP (11-52-0-0)

16219

15897

19803

13978

12009

12009

3.

TSP (0-46-0-0)

12087

11787

14875

10030

8592

8592

4.

MOP (0-0-60-0)

14692

14392

16054

14400

11300

9300

5.

SSP (0-16-0-11)

4400

4296+200

5359

3676

3173

3173

6.

16-20-0-13

9203

9073

11030

8419

7294

7294

7.

20-20-0-13

10133

10002

12116

9379

8129

8129

8.

20-20-0-0

9901

9770

11898

9161

7911

7911

9.

28-28-0-0

13861

11678

16657

12825

11075

11075

10.

10-26-26-0

15521

15222

18080

14309

11841

10974

11.

12-32-16-0

15114

14825

17887

13697

11496

10962

12.

14-28-14-0

14037

13785

16602

12825

10789

10323

13.

14-35-14-0

15877

15578

18866

14351

12097

11630

14.

15-15-15-0

11099

10926

12937

10471

8758

8258

15.

17-17-17-0

12578

12383

14662

11867

9926

9359

16.

19-19-19-0

14058

13839

16387

13263

11094

10460

17.

Ammonium Sulphate

(20.6-0-0-23)

5195

5195

5979

5330

4686

4686

18.

16-16-16-0

(w.e.f. 1.7.2010)

11838

11654

13800

11169

9342

8809

19.

15-15-15-9

(w.e.f. 1.10.2010)

11259

11086

13088

10622

8909

8409

20.

24-24-0-0

(from 1.10.10 to

29.5.12

and w.e.f. 22.6.2012)

11881

11724

14278

10993

9493

9493

21.

DAP Lite(16-44-0-0) (w.e.f.

1.2.11)

NA

14991

18573

13434

11559

11559

22.

24-24-0-8 (wef

12.11.13 to

14.2.15) without subsidy on S

NA

NA

NA

NA

9493

9493

23.

23-23-0-0 (upto22.6.2012)

11386

11236

13686

10535

NA

NA

24.

DAP 4S (w.e.f. 25.2.13 to

7.11.13)

without subsidy on S

NA

NA

NA

14350

12350

NA

25.

DAP Lite -

II (14-46-0-0)

(w.e.f. 30.8.2011 to

29.8.2012)

NA

NA

18677

13390

NA

NA

26.

MAP Lite (11-44-0-0)

(w.e.f. 30.8.2011 to 29.8.2012)

NA

NA

17276

12234

NA NA

27.13-33-0-6

(w.e.f. 30.8.2011 to 29.8.2012)

NA

NA

1430210416

NA NA

Annexure-IX


114


115

Sl. No. Fertilizer Grades(FG) (N P K S nutrient)

1. DAP (18-46-0-0)

2. MAP (11-52-0-0)

3. TSP (0-46-0-0)

4. MOP (0-0-60-0)

5. SSP (0-16-0-11)

6. 16-20-0-13

7.

20-20-0-13

8.

20-20-0-0

9.

28-28-0-0

10.

10-26-26-0

11.

12-32-16-0

12.

14-28-14-0

13.

14-35-14-0

14.

15-15-15-0

15.

17-17-17-0

16.

19-19-19-0

17. Ammonium Sulphate

(20.6-0-0-23)

18.

16-16-16-0

(w.e.f. 1.7.2010)

19.

15-15-15-9

(w.e.f. 1.10.2010)

20.

24-24-0-0

(from 1.10.10 to

29.5.12

and w.e.f.

22.6.2012)

21.

DAP Lite(16-44-0-0) (w.e.f. 1.2.11)

22.

24-24-0-8 (wef

12.11.13 to 14.2.15) without subsidy

on S

Annexure-X


116

III

IIIIV

III

IIIIV

III

IIIIV

I

IIIII

IV

1DA

P : 1

8-46

-0-0

9950

9950

9950

1075

012

500

1820

020

297

2000

024

800

2650

026

500

2650

026

520

2500

024

607

2460

72

MAP

: 11

-52-

0-0

9950

NA

NA

NA

1820

020

000

2000

020

000

2420

024

200

NA

NA

NA

NA

NA

3TS

P : 0

-46-

0-0

8057

8057

8057

8057

8057

8057

1700

017

000

1700

0N

AN

A17

000

NA

1700

017

000

NA

4M

OP

: 0-0

-60-

050

5550

5550

5550

5560

6411

300

1204

012

040

1669

523

100

2400

018

750

1863

817

750

1775

017

750

516

-20-

0-13

6620

6620

6620

7200

9645

1440

015

300

1530

015

300

1820

018

200

1820

017

280

1771

017

510

1701

06

20–2

0–0-

13

7280

7280

7395

8095

1140

014

800

1580

015

800

1900

024

800

1917

624

800

2049

019

166

2350

023

500

723

–23–

0-0

NA

NA

NA

7445

7445

7445

810

–26–

26-0

81

97N

A83

0010

103

1091

016

000

1663

316

386

2190

022

225

2222

522

225

2221

322

200

2116

021

160

912

–32–

16-0

8637

8237

8637

9437

1131

316

400

1650

016

400

2230

023

300

2250

024

000

2330

023

300

2147

521

105

1014

–28–

14-0

NA

NA

NA

NA

1495

017

029

NA

NA

NA

NA

NA

NA

NA

NA

NA

1114

–35–

14-0

NA

NA

NA

9900

1162

215

148

1742

417

600

1760

023

300

2330

023

300

2330

023

300

2181

021

810

1215

–15–

15-0

NA

NA

NA

7421

8200

1100

011

500

1150

013

000

1560

015

600

1560

015

600

1515

015

150

1515

013

AS: 2

0.3-

0-0-

2386

0086

0076

0087

0076

0011

300

1030

610

306

1101

311

013

1101

311

013

1110

611

106

1118

411

689

1420

-20-

0-0

5943

NA

6243

7643

9861

1400

015

500

1870

018

700

2445

024

450

1850

015

561

1526

218

000

1800

015

28–2

8–0-

0N

AN

AN

A11

181

1181

015

740

1851

218

700

2472

024

720

2390

523

905

2390

523

410

2190

721

907

1617

–17–

17-0

1771

020

427

2052

220

572

2067

220

672

2294

724

013

2323

117

19–1

9–19

-018

093

1947

019

470

1947

0N

AN

A0

2091

520

915

18SS

P(0-

16-0

-11)

*32

0032

0032

0032

0032

0062

00-9

900

9270

1030

092

7019

16-1

6-16

-071

0071

0071

0015

200

1520

015

200

1800

018

000

1700

020

DAP

lite

(16-

44-0

-0)

NA

1176

017

600

1950

019

500

1950

024

938

2493

824

938

2493

823

875

2290

022

000

2115

-15-

15-0

968

0093

0012

900

1575

014

851

1500

015

000

1500

0N

AN

A0

1567

022

24-2

4-0-

077

6890

0011

550

1415

114

297

1480

216

223

1622

318

857

1885

717

896

1789

617

896

2313

-33-

0-6

1620

017

400

1740

017

400

1740

017

400

24M

AP li

te (1

1-44

-0-0

)16

000

1800

018

000

1800

021

500

2150

025

DAP

lite

-II(1

4-46

-0-0

)14

900

1869

018

300

1830

024

800

2480

0 M

RP

is e

xclu

sive

of T

axes

Fert

ilize

rs g

rade

men

tione

d at

Sr N

o 7,

23,2

4,25

are

not

und

er s

ubsi

dy s

chem

e pr

esen

tly.

Blan

k sp

ace/

NA

mea

ns n

ot a

vaila

ble

in th

e m

arke

t/not

und

er s

ubsi

dy s

chem

e

Excl

uded

from

NBS

Pol

icy

4000

to 6

300

6500

to 7

500

Excl

uded

from

NBS

Pol

icy

Hig

hest

Max

imum

Rat

ail P

rice

(MR

P) in

Rs/

MT

of P

&K fe

rtiliz

ers

fixed

by

the

ferti

lizer

com

pani

es u

nder

the

Nut

rient

Bas

ed S

ubsi

dy re

gim

e

#G

rade

s of

Fer

tilize

rs10

-11(

Qtr.

Wis

e)11

-12(

Qtr.

Wis

e)20

12-1

3(Q

tr. W

ise)

2013

-14

(Qtr.

Wis

e)


117

Annexure-XIS. No. Unit Location Sector Reassessed

Capacity (MT) Actual

Production

(2013-14)

Gas Based Units

1.

Brahmaputra Valley Fertilizers Corporation Limited (BVFCL) –

Namrup - II

Assam

Public

240000

70600

2.

Brahmaputra Valley Fertilizers Corporation Limited (BVFCL) –

Namrup-III

Assam

Public

315000

235300

3.

Indian Farmers Fertilizer Cooperative (IFFCO)-Aonla-I

Uttar Pradesh

Coop.

864600

1103000

4.

Indian Farmers Fertilizer Cooperative (IFFCO)-Aonla-II

Uttar Pradesh

Coop.

864600

1074200

5.

Indian Farmers Fertilizer Cooperative (IFFCO)-Phulpur-I

Uttar Pradesh

Coop.

551100

651700

6.

Indian Farmers Fertilizer Cooperative (IFFCO)-Phulpur-II

Uttar Pradesh

Coop.

864600

951000

7.

Indian Farmers Fertilizer Cooperative (IFFCO)-Kalol

Gujarat

Coop.

544500

600400

8.

National Fertilizers Limited (NFL) –

Vijaipur -

I

Madhya Pradesh

Public

864600

1006300

9.


Vijaipur -

II

Madhya Pradesh

Public

864600

1162500

10.


Nangal

Punjab

Public

478500

394600

11.


Panipat

Haryana

Public

511500

511100

12.


Bhatinda

Punjab

Public

511500

560300

13.

Krishak Bharati Cooperative (Kribhco)-Hazira

Gujarat

Coop.

1729200

2209900

14.

Rashtriya Chemicals & Fertilizers Limited (RCF)-

Thal

Maharashtra

Public

1706897

1993400

15.

Rashtriya Chemicals & Fertilizers Limited (RCF)-Trombay

Maharashtra

Public

330000

352600

16.

Nagarjuna Fertilizers & Chemicals Limited (NFCL) –

Kakinada-I

Hyderabad

Private

597300

646800

17.

Nagarjuna Fertilizers & Chemicals Limited (NFCL) –

Kakinada-II

Hyderabad

Private

597300

780100

18.

Chambal Fertilizers & Chemicals Limited (CFCL)-Gadepan -

I

Rajasthan

Private

864600

990600


118

24.

Zuari Agro Chemicals Limied (ZACL) –

Goa

Goa

Private

399300

376300

25.

Gujarat Narmada Valley Fertilizers Company Limited (GNVFC) -Bharuch

Gujarat

Private

636900

696400

26.

Gujarat State Fertilizers & Chemicals Limited (GSFC)-Vadodara

Gujarat

Private

370590

322100

27.

Indo-Gulf Fertilizers Limited -

Jagdishpur

Uttar Pradesh

Private

864600

1035500

Naphtha Based Units

28.

Mangalore Chemicals & Fertilizers Limited (MCFL)-

Mangalore

Karnataka

Private

379500

378900

29.

Madras Fertilizers Limited (MFL) -Manali

Tamil Nadu

Public

486750

486800

30.

Southern Petrochemicals Industries Limited (SPIC)-Tuticorin

Tamil Nadu

Private

620400

286200

19. Chambal Fertilizers & Chemicals Limited (CFCL)-Gadepan - II

Rajasthan Private 864600 950600

20. Tata Chemicals Limited (TCL) -

Barbala

Uttar Pradesh Private 864600 1136500

21.

Kribhco Shyam Fertilizers Limited (KSFL) -

Shahjahanpur

Uttar Pradesh

Private

864600

1035300

22.

Kanpur Fertilizers & Cement Limited (KFCL), Kanpur

Uttar Pradesh

Private

722000

313200

23.

Shriram Fertilizers & Chemicals Limited (SFC) –

Kota

Rajasthan

Private

379500

403200

S. No. Unit Location Sector Reassessed Capacity (MT)

Actual Production

(2013-14)

Gas Based Units

Annexure-XIIAnnual Report 2013-14

119

No. 12012/3/2006-FPP

Government of India

Ministry of Chemicals & Fertilizers

(Department of Fertilizers)

Shastri Bhawan, New Delhi.

th8 March 2007

To,

The Executive Director,

Fertilizer Industry Coordination Committee,th

8 Floor, Sewa Bhawan,

R. K. Puram,

New Delhi.

Subject:Policy for Stage-III of New Pricing Scheme for urea manufacturing units.

Sir,

thI am directed to refer to this Department's letter No. 12019/5/98-FPP dated 30 January 2003 and

No. 12019/19/2003-FPP, Dated 29-7-2003 vide which the salient features of Stage- I & II of New Pricing

Scheme (NPS) introduced w.e.f 1.4.2003, were communicated. It was, inter alia, communicated that

the modalities of Stage-III would be decided by the Department of Fertilizers (DOF) after review of

the implementation of Stage-I and Stage-II. It has been decided to implement Stage-III of NPS with

certain modifications as contained in the succeeding paragraphs.

(A) Duration.

2. The Policy for NPS Stage-III will be effective from 1.10.2006 to 31.3.2010. Stage-II Policy has been

extended upto 30.9.2006. The policy for incentivizing additional production of urea during Stage-

III of NPS will be applicable from the date of notification and till then the additional production of

urea by units beyond 100% of their capacity will be governed by the existing policy of sharing of

the net gain between the Government and the unit in the ratio of 65:35.


120

(B) Grouping of urea units

3. During Stage-III of NPS, the following measures will be taken to calculate concession rates of urea

units :-

(i) Existing six group classification will continue as given in Annexure. I-A.

(ii) Group averaging will be done after updation of all costs upto 31.3.2003.

(iii) Capacity utilization levels of 93% for pre-92 Naphtha and FO/LSHS based plants and 98% for

pre-92 gas, post-92 gas, post-92 Naphtha and mixed energy based plants will be considered for

calculating the base concession rates of urea units as on 31.3.2003.

(iv) Transportation cost of gas will be computed and paid separately.

(v) The updated notional concession rates of all urea units as on 1.4.2003 so determined on the

pattern followed during Stage-I of NPS will form the basis to calculate the concession

rate payable to each urea unit during Stage-III of NPS commencing from 1.10.2006. No outlier

benefit will be admissible to any unit in Stage-III of NPS.

(vi) On the base concession rate so determined for each unit, only escalation and de- escalation

on components of variable cost on actual basis subject to pre-set energy norms given in Stage –

III.

(vii) A deduction of Rs 50/MT from the concession rates of pre-92 Naphtha and FO/LSHS based

and Rs. 75/MT from the other units for the reduced capital related charges (CRC) will be made.

(viii) The respective pre-set energy consumption norm of each urea unit during Stage-II of NPS or

the actual energy consumption achieved during the year 2002-03, whichever is lower, will be

recognized as the norm for Stage-III of NPS.

(ix) Saving on energy over the pre-set norms will be paid as per the basic rate of the weighted

average of feed/fuel used during Stage-III of NPS.

(C) Resumption of urea production by units under shutdown.

4. Resumption of production by urea units currently not in production, viz, RCF-Trombay-V, FACT-

Cochin and Duncans Industries Limited (DIL)-Kanpur is allowed based on natural

gas/LNG/CBM/Coal gas. Upon resumption, the base concession rate of these units will be the

Stage-III concession rate of the group to which they belonged, or their own concession rate

updated till 31.3.2003 for all costs and thereafter adjusted for the feedstock changeover, whichever

is lower.

(D) Conversion of non-gas based units to NG/LNG.

5. (i) All functional Naphtha and FO/LSHS based units should get converted within a period of 3

years (of these, Shriram Fertilizers & Chemicals Ltd (SFC) Kota is expected to convert by the end of

the current financial year). On the expiry of the aforementioned period, the Government will not

subsidize the high cost urea produced by the non-gas based urea units and rate of concession of

such units will be restricted to the lower of the prevalent import parity price (IPP) or their own rate.

Units not able to tie up gas will have to explore alternative feedstock like Coal Bed Methane(CBM)

and coal gas.


121

(II) In order to provide incentives for conversion to gas, since there is no recognition of investment

made by units for conversion, there will be no mopping up of energy efficiency for a fixed period of

5 years for Naphtha based as well as for FO/LSHS based units. Capital subsidy will be considered

for FO/LSHS based units for which DOF will notify a separate scheme in consultation with

Department of Expenditure(DOE) Ministry of Finance.

(iii) For conversion of the non-gas based Urea Plants to Natural Gas (NG) / Liquefied Natural Gas

(LNG), a Committee headed by Petroleum Secretary, comprising of Secretaries of Planning

Commission, Department of Fertilizers and Department of Expenditure has been constituted for

facilitating the connectivity and supply of gas to non-gas based units converting to gas and to

develop appropriate mechanism for fixing the price of gas in a transparent manner.

(E) Incentives for additional urea production.

6. The following measures are decided to be implemented to incentivise additional Urea production

in the country:-

(i) No permission will be required from the Government for production beyond 100% of re-

assessed urea capacity of the unit.

(ii) All production between 100% and 110% of the existing reassessed capacity, if so required by the

government as per the approved production plan will be incentivized on the existing net gain

sharing formula between the Government and the unit in the ratio of 65:35 respectively with the

proviso that the total amount paid to the units, after including the component of variable cost will

be capped at the unit's own concession rate.

(iii) Units increasing production beyond 110% may be compensated at their concession rate,

subject to the overall cap of IPP.

(iv) While procuring additional urea beyond 100% of the reassessed capacity of urea units, a merit

order system of procurement will be followed. In other words, the units which supply urea at the

least cost would be given preference in procurement.

(v) The cost of feedstock/fuel allowed will be in the ratio of gas/LNG/Naphtha etc. with reference

to actual ratio of consumption of annual actual production of urea up to that portion of the

incremental production of urea required by the Government for sale to agriculturalists.

Energy/inputs for non-agricultural sale/exports and surplus ammonia shall be allocated on

costlier feed/fuel basis.

(vi) To the extent that the Government does not require any quantities of additional production for

direct sale to agriculturalists, the concerned units would be free to dispose of the remaining

quantities by way of exports, sale to complex manufacturers etc. without seeking prior permission

of DOF.

(vii) Government will not subsidize the additional production, if not required by it for agricultural

consumption.

(F) Distribution and Movement Issues

7. The following measures have been decided to be implemented for movement of Urea to District

level and below :-


122

(i) The Government will continue to retain the authority to direct movement of urea stock up to

50% of production depending upon the exigencies of the situation.

(ii) States would be required to allocate the entire quantity of planned urea arrivals i.e., both

regulated and de-regulated urea in a District-wise, month-wise and supplier wise format.

(iii) Each unit will maintain a district level stock point in the districts where it is required to supply

urea. These district level stock points will be the primary Godowns.

(iv) Subsidy to individual units will be reimbursed based on conformity to planned movement up

to district level for both controlled and de-controlled urea. The monitoring of the movement and

distribution of urea throughout the country will be done by an On-line computer-based

monitoring system. The time limit of existing payment system i.e., 45 days will be adhered to.

It will be ensured that no certification by State Governments is required for release of subsidy to

urea Units. Subsidy will be paid only when the urea reaches the district.

(v) The Department will operate a buffer stock through the State Institutional Agencies /Fertilizer

Companies in States up to a limit of 5% of their seasonal requirement.

(vi) The Department will work through the agricultural department of the states to realize the

objective of adequate and timely availability of urea at the Block level.

8. The freight reimbursement to urea units under NPS-III will be done as follows:-

(i) Primary Freight will be reimbursed on the basis of actual leads for rail movement;

(ii) Reimbursement of railway freight will be as per the actual expenditure;

(iii) For the road component of the primary freight, road leads will be as per actual distance to the

primary godown and per tonne Km. rates will be escalated by the composite road transport

index { weighted average of the Wholesale Price Indices (WPIs) of HSD oil, Motor Tyres, Truck

Chassis and All Commodities};

(iv) One time enhancement of 33% will be granted on the road component of primary freight to offset

the impact of Supreme Court directed maximum truckload limit of 9 MT on road vehicles;

(v) Tariff Commission will be requested to fix average leads and per tonne km base rates for road

transportation in the case of secondary movement. These rates will be escalated by WPI

(composite road transport index) every year;

(vi) Pending finalization of leads and rates by the Tariff Commission, secondary freight which was

frozen at 2002-03 rates during Stages I & II of NPS will be escalated by the increase/decrease in

WPI (composite index) since 2002-03;

(vii) The Freight computed and paid as per the policy shall not exceed the actual freight expenditure

incurred by the units.

(viii) The existing scheme for special freight subsidy will continue for supplies to the North Eastern

States and Jammu & Kashmir.


123

(G) Policy in respect of high cost units (producing at higher than IPP):

9. In order to disincentivise high cost production of 8 Naphtha and FO/LSHS based units whose cost

of production is higher than the prevalent IPP, to facilitate their early conversion to gas, these

units are allowed to produce 100% of capacity should they adhere to an agreed timetable for

conversion to gas and tie up of gas/LNG/CBM/Coal gas. If they do not, they will be given only

75% of the difference between the rate of concession and variable cost component (i.e., 75% of the stbalance fixed costs beyond 93% of capacity utilization) in the 1 year (1.4.2007) and 50% of the fixed

ndcost beyond 93% capacity utilization from 2 year (1.4.2008) onwards.

(H) Policy for import of urea.

10. The existing system of import of urea through designated State Trading Enterprises (STEs) i.e.

Minerals & Metals Trading Corporation (MMTC), State Trading Corporation (STC) and Indian

Potash Limited (IPL) will continue.

(I) Policy for Joint Ventures Abroad

11. To encourage setting up of JV fertilizer plants abroad in countries where gas is available in

abundance and is much cheaper, the JVs for production of urea will be set up abroad subject to the

condition that the Government will enter into / encourage long term buy back arrangements with

JVs abroad depending upon merits. Accordingly, suitable mechanisms be evolved for effectively

securing long term fertilizer related supplies, including through investments and joint ventures

abroad.

(J) Other Measures

12. Cost of bags

The cost of bags, which was frozen during Stage-I & II of NPS, will now be allowed based on

moving weighted average cost of bags to compensate for the rise in prices over the last three

years. For the year 2006-07, the weighted average of the cost of bags for each unit will be for the

three years beginning 2002-03 and accordingly thereafter.

13. Taxes on inputs

For Stage-III, it is decided that sales tax on inputs and other taxes recognized under RPS will be

paid on actual basis. Where Value Added Tax (VAT) has been introduced, such of the above taxes

as are subsumed in it will be recognized to the extent they are non-vattable.

In case of any issue/dispute relating to interpretation of the policy, the decision of Department

of Fertilizers shall be final. The above provisions will remain in force during the Stage-III of NPS or

until further orders, whichever is earlier.

Yours faithfully,

Sd/-

(Deepak Singhal)

Joint Secretary to the Government of India


124

Annexure-XIIINo. 12012/3/2010-FPP

Government of India



***

ndNew Delhi, the 2 April, 2014

To

The Executive Director,

Fertilizer Industry Coordination Committee(FICC),

8th Floor, Sewa Bhawan,

New Delhi.

Subject: Modified NPS-III for existing urea units.

Sir,

2. Duration of Modified NPS-III

The Modified NPS-III policy will be implemented for a period of one year from the date of issue of this

notification. Thereafter, the policy will be reviewed taking into account prevailing energy scenario,

production and supply scenario, international trend of urea prices etc., at that time.

3. Concession rates of urea units

The calculation of concession rates of urea units shall continue as per NPS-III and its amendments subject

to the following modifications:

3.1 Additional Fixed cost

n respect of KFCL and BVFCL-II units, for which cost data of four components is not available

either for the year 2002-03 or 2012-13, the actual increase in these four components as per the certified cost

I am directed to convey the approval of Government of India for Modified NPS-III for existing urea units

as under:

(a) The maximum additional fixed cost (towards increase in the four components, viz., salaries &

wages, contract labour, selling expenses and repair & maintenance) of Rs. 350/MT to existing urea units

or actual increase in above four components of fixed cost during the year 2012-13 compared to the year

2002-03, whichever is lower will be paid. This will be based on the certified cost data for above four

components for the year 2012-13 to be provided by all urea Units.

(b) I


125

data for the latest year over and above Rs. 521/MT(weighted industry average during 2002-03) subject to

maximum of Rs. 350/MT will be allowed.

3.2 Minimum Fixed Cost

3.3 Special compensation to Urea Plants which have Completed 30 Years and Converted to Gas

3.4 It has been decided

4. Continuing the production from high cost units

The production of the high cost naphtha based urea units namely SPIC Tuticorin, MFL Manali and MCFL

Mangalore will continue under modified NPS-III till the gas availability and connectivity is provided to

these units or June, 2014 whichever is earlier, beyond which subsidy for naphtha based plants will not be

paid. However, no new naphtha based plants will be permitted in Greenfield investments.

5. Reimbursement to naphtha & FO/LSHS based units

The existing system of recognizing costlier feed/fuel stock of naphtha/FO/LSHS will continue and

existing system of incentivizing these units for energy savings on the basis of actual input mix including

100% Naphtha/FO/LSHS as in force will continue up to June 2014 or till such time they convert to gas

whichever is earlier.

6. Continuing Pre set Energy norm of Naphtha units converting to gas

The data of investment for conversion from Naphtha as feedstock to gas and actual energy consumption

achieved after conversion from each unit will be obtained and based on this data, the Department of

Fertilizers, in consultation with Department of Expenditure, shall work out the period for which existing

pre set norms will be allowed, which shall not be more than five years from the date of conversion so that

each unit may be in position to recover the investment with interest thereon from energy savings.

7. Continuance of amended provisions notified under NPS-III

The following amended provisions notified under NPS-III will continue:

th(a) The provision as contained in Para (ii) of Notification No.12012/19/2007-FPP dated 10 July,

2009 regarding reduction in fixed cost of each urea unit due to group averaging principle under

NPS-III to 10% of normated fixed cost computed under the base concession rates thereby

removing the pricing anomaly arising out due to group averaging.

th(b) The provision as contained in Para (iii) of Notification No.12012/19/2007-FPP dated 10 July,

2009 regarding the detailed parameters for buffer stocking schemes of urea.

th(c) The provisions as contained in Notification No.12014/1/2008-FPP dated 6 March, 2009

regarding resumption of urea production by RCF-Trombay unit.

The minimum fixed cost of Rs. 2300/MT or actual fixed cost prevailing during 2012-13,whichever is

lower, after taking into account the compensation at 3.1 (a) and (b) above, will be paid. This will be based

on certified fixed cost data for the year 2012-13, to be provided by all urea units.

The special compensation of Rs. 150/MT will be paid to gas based urea plants which have converted to

gas and are more than 30 years old. This is in addition to para 3.1 and 3.2 above.

to phase out old and inefficient units in due course of time after addition of

new capacity.


126

th(d) The provisions of Notification No.12014/1/2008-FPP dated 6 March, 2009 regarding

amendment of NPS-III- the policy for restart of existing urea units, the permission granted to

DIL/KFCL-Kanpur to restart production on LNG in June 2013 will be covered under the above

notification.

(e) Notification No.12014/1/2008-FPP dated 6th March 2009 regarding policy for Conversion of thFO/LSHS urea units to Natural Gas; Provisions under notifications dated 8 February, 2010 for

Conversion of Fuel Oil/ Low Sulphur Heavy Stock (FO/LSHS) based Urea units at Bathinda, th

Nangal & Panipat of NFL to Natural Gas (NG); Provisions under notifications dated 14

December, 2009 for Conversion of Fuel Oil/ Low Sulphur Heavy Stock (FO/LSHS) based Urea

unit at Gujarat Narmada Valley Fertilizer Corporation to Natural Gas (NG).

8. The capacity utilization of two units in post 92 Naphtha based groups namely IFFCO Phulpur-

II and CFCL-II, is increased from 95% to 98% on par with gas based units. FICC may re-work

the group average of fixed cost for these units.

9. Production above reassessed capacity

(a) The production above reassessed capacity (RA) is presently governed by gain sharing with

respect to IPP as under:

(i) Beyond 100% of RA and upto 110% of RA: Gain sharing between Government and unit in the ratio

of 65:35 with respect to IPP subject to concession rate.

(ii) Beyond 110% of RA and upto cut off level: At concession rate subject to overall cap of IPP.

(iii) Beyond cut off level: At 85% IPP.

(b) The production at cut off levels are fixed under Investment Policy (No. 12012/12/2007-FPP dated

04.09.2008) based on highest achieved Metric Tonnes Per Day (MTPD) during 2003-04 to 2006-07.

No change is made in the method for incentivizing additional production. The cut off level as per

the Investment Policy of 2008 will continue without any change.

10. Distribution and Movement

The distribution and movement of Urea shall be governed by the policy for freight and movement and

amendments thereof from time to time. The movement of Urea will continue to be done in accordance

with the monthly supply plan drawn by Department of Fertilizers. Movement & Distribution of entire

100% of urea both imported & indigenous will be regulated by movement division through the monthly

supply plan

Import of Urea

The provisions of import through three STEs as given in the existing policy of urea at para 10 of thnotification dated 8 March, 2007 may continue till the time the same is reviewed , if required.

12. Joint ventures abroad

The scheme for Joint ventures abroad covered under NPS-III policy would be covered by New Investment

Policy 2012.

.

11.


127

13. Taxes on inputs

The policy with regard to recognition of new taxes levied by State Governments from time to time and ththose not recognized under RPS has been notified vide Notification dated 8 March, 2007, will continue.

The NPS-III policy issued vide notification number 12012/3/2006-FPP dated 8th March, 2007 and

as amended from time to time was extended by DoF on provisional basis till further orders vide thnotification number 12012/9/2009-FPP dated 17 March 2010. NPS-III Policy is deemed to be continued

till the date of this notification.

15. In case of any issue/dispute relating to interpretation of the policy, the decision of Department

of Fertilizers shall be final.

Yours faithfully,

(Satish Chandra)

Joint Secretary

Ph: 23386800

14.


128

No.12012/12/2007-FPP

Government of India



******


thDated the 4 September, 2008.

To,

CMD/MDs

RCF/MFL/BVFCL/NFL/KRIBHCO/IFFCO/GSFC/GNVFC/SFC/NFCL/

CFCL/TCL/ZIL/INDO-GULF/SPIC/KSFL/MCFL/FACT/FCIL/HFCL/IPL

All Urea manufacturing units

Subject: Policy for new investments in urea sector and long-term offtake of urea from joint

ventures abroad.

Sir,

I am directed to convey the approval of the Government on policy for New Investments in Urea

Sector both indigenous and abroad, in supersession of the existing policy for investment made in new and th

expansion projects of Urea issued vide letter No.12019/11/2003-FPP(I) dated 29 January,2004. The

salient features of the New Investment policy are as under:

1. Import parity price: Import Parity Price for a month would be derived based on the prevailing

prices in three months preceding the month under consideration as indicated below.

Import Parity Price (IPP): The import parity price (IPP) for a particular month will be the lower of the

actual average CIF price of urea imported in India during preceding three months and the IPP reported in

the fertilizer magazines for the same preceding three months, as detailed below:

IPP x = FOB Arabian Gulf + Freight

Where,

IPP x = Import Parity Price for month (x)

FOB Arabian Gulf = Average FOB reported price of urea for AG in the three magazines as listed

below, during preceding three month (x - 1) to (x - 3).

Annexure-XIV


129

Freight = Average freight for AG in the three magazines listed below, during preceding three

month (x - 1) to (x - 3).

The exchange rate will be taken as the average of preceding three months for arriving at the price in

INR. The three fertilizer magazines to be used for arriving at IPP prices will be as below:

(a) Fertiliser Market Bulletin, UK;

(b) Fertiliser Week by British Sulphur, UK; and

(c) Fertecon Weekly Nitrogen Fax, UK.

2. Floor & Ceiling price: The floor for urea price be kept at USD 250 per MT. The ceiling for urea price

is fixed at USD 425 per MT. The floor and ceiling prices are based on the feedstock price of USD 4.88

per MMBTU, which is the price of RIL gas plus estimated taxes. In case of any sharp increase

(more than double the current price) in price of feedstock in future, the floor and ceiling will be

adjusted to take care of increased cost of production. Further, the above will be reviewed after five

years keeping in view the prevailing gas prices and the investment costs. In the event that

Government guarantees an assured price (subsidized price) of gas to the fertilizer sector/unit,

then for the period for which that the assured price prevails, the floor and ceiling will be

accordingly recalculated.

3. Revamp projects: Any improvement in capacity of existing plants through investments upto

Rs.1000 crore, in the existing train of ammonia-urea production will be treated as revamp of

existing units. The additional urea from the revamp of existing units will be recognised at 85% of

Import Parity Price with the floor and ceiling price as indicated in para-2 above. The urea

produced from existing units beyond, their reassessed capacity under NPS or the maximum

achieved capacity by a unit for 330 days in last four years (2003-07), whichever is higher ( cut off

quantity ), will be recognised as the production under revamp of the existing unit. However, the

urea produced under revamp quantity will only be eligible for the above dispensation once the

total production of the unit crosses 105% of the cut off quantity or 110% of the reassessed capacity,

whichever is higher. The cut off quantities for various units can be seen at Annexure-I.

4. Expansion projects: Setting up of a new ammonia-urea plant (a separate new ammonia-urea

train) in the premises of the existing fertilizer plants, utilizing some of the common utilities will

qualify for being treated as an expansion project. The investment should exceed a minimum limit

of Rs.3000 cr. The urea from the expansion of existing units will be recognised at 90% of IPP, with a

floor and ceiling price as indicated in para-2 above.

5. Revival/Brownfield projects: The Urea from the revived units of HFCL and FCIL will be

recognised at 95% of IPP, with floor and ceiling as indicated in para-2 above, if the revival of closed

units takes place in public sector.

6. Greenfield projects: The price of Urea from the Greenfield projects will be determined through a

bidding route. The following will be followed incase of Greenfield projects.

i) The Department will identify the location (deficit States) for setting up of Greenfield projects, or in

coastal areas, encourage the urea units to add DAP/Complex fertilizers to their product lines.


130

ii) The Greenfield projects will be offered for bidding with a minimum floor price {of USD 250 per

MT}and an appropriate ceiling price {of USD 425 / MT}, which will be decided at the time of

bidding based on domestic gas prices and the IPP. A commitment to offtake a minimum of 50% of

production of the unit in case of IPP falling below the floor price will be provided by the

Government.

iii) The bidder will have to indicate the price as a percentage discount below the prevailing IPP for

urea. The feedstock linkage and price has to be entirely on the account of the bidder.

iv) The detailed guidelines in the matter will be circulated separately.

7. Gas transportation charges: An additional gas transportation cost will be paid to units

undertaking expansion and revival on the basis of actuals (upto 5.2 Gcal per MT of urea) as

decided by the Regulator (Gas) subject to a maximum ceiling of USD 25 per MT of Urea. The cap

will be subject to Composite Road Transport Index as applied in case of road transportation costs

under the freight policy. However, in case of each revival project, the DPR should justify the

higher gas transportation costs, if any, in terms of other savings accruing as a result of the location

choice.

8. Allocation of gas: No APM gas will be allocated towards production from the new investments as

discussed above. All APM gas will be allocated towards production in existing plants under the

currently approved New Pricing Scheme Stage-III and its subsequent modifications. The actual

mix excluding APM gas will be provided towards production under revamp.

9. Coal Gasification based Urea Projects: The same will be treated on par with a brownfield or a

Greenfield project as the case may be. In addition, any other incentives or tax benefits as

provided by Government for encouraging coal gasification technology will also be extended to

these projects.

10. Joint Ventures abroad: The joint venture projects abroad in gas rich countries will be encouraged

through firm offtake contracts with pricing decided on the basis of prevailing market conditions

and in mutual consultation with the joint venture company. However, the principle for deciding

upon the maximum price will be the price achieved under Greenfield projects or 95% of IPP as

applicable to brownfield projects (in absence of any Greenfield project) with a cap of USD 405 CIF

India per MT and a floor of USD 225 CIF India per MT (inclusive of handling and bagging costs).

The offtake commitments from new JV projects abroad would be limited to a maximum of 5

million tonnes. However this ceiling can be reviewed, and additional committed offtake and any

deviation of price principle thereof can be decided upon by Department of Fertilizers in

consultation with the Department of Expenditure keeping in view that this does not constrain

setting up of Greenfield projects in the country.

11. Time period for proposed investment policy: It is proposed that only those revamp projects

which start production of additional capacities within four years of Notification of the new policy

would qualify for the dispensation recommended above. Similarly, only production from

expansion and revival (brownfield) units that comes about within five years of Notification of the

new policy would qualify for dispensation provided in the policy. If the production does not come

through within the stipulated time period, such brownfield projects will be treated similar to a


131

Greenfield project wherein price will be decided through limited bidding options. The time

period for setting up of new JVs would also be five years under the new policy. Once the

production under various projects start within the given time period, the pricing dispensation will

be available till the continuance of the fertilizer subsidy regime and sale of urea under the same.

12. The policy will be effective from the date of notification. However, the additional production

under revamp beyond cut-off quantities will be computed on an annual basis.

Yours faithfully,

Sd/-

(Rajesh Agrawal)

Deputy Secretary to the Government of India

Annexure-XV


132

1 2 3 4 5 6 (7)= (6):(3) 8

(MT/yr.) (MTPD) (MT/year) Percent

1 BVFCL - Namrup-III 315000 855 256500 315000 100% 346500

2 IFFCO - Aonla-I 864600 2783 918390 918390 106% 964310

3 Indo-Gulf -Jagdishpur 864600 3000 990000 990000 115% 1039500

4 Kribhco - Hazira 1729200 5335 1760550 1760550 102% 1902120

5 NFL - Vijaipur-I 864600 2731 901230 901230 104% 951060

1 NFCL-Kakinada-I 597300 2173 717090 717090 120% 752945

2 CFCL Gadepan-I 864600 2862 944460 944460 109% 991683

3 TCL-Babrala 864600 2901 957330 957330 111% 1005197

4 KSFL-Shahjahanpur 864600 2757 909810 909810 105% 955301

5 NFCL-Kakinada-II 597300 2083 687390 687390 115% 721760

6 IFFCO-Aonla-II 864600 2776 916080 916080 106% 961884

7 NFL-Vijaipur-II 864600 2731 901230 901230 104% 951060

1 SFC-Kota 379500 1158 382140 382140 101% 417450

2 IFFCO-Phulpur-I 551100 1764 582120 582120 106% 611226

3 MCFL-Managalore 379500 1228 405240 405240 107% 425502

4 MFL-Madras 486750 1480 488400 488400 100% 535425

5 SPIC-Tuticorin 620400 2036 671880 671880 108% 705474

6 ZIL-Goa 399300 1330 438900 438900 110% 460845

1 IFFCO-Phulpur-II 864600 2864 945120 945120 109% 992376

2 CFCL-Gadepan-II 864600 2731 901230 901230 104% 951060

1 GNVFC-Bharuch 636900 2050 676500 676500 106% 710325

2 NFL-Nangal 478500 1548 510840 510840 107% 536382

3 NFL-Bhatinda 511500 1607 530310 530310 104% 562650

4 NFL-Panipat 511500 1629 537570 537570 105% 564449

1 GSFC-Baroda 370590 1155 381150 381150 103% 407649

2 IFFCO-Kalol 544500 1707 563310 563310 103% 598950

3 RCF-Thal 1706760 5363 1769790 1769790 104% 1877436

Note : 19461600 20644560 20703060 21900516

Cut off for

revamp

capacity

Cut off for

revamp

capacity as a

percentage of

reassessed

capacity

Statement indicating unit-wise details of cut off for revamp capacity

Group-IV : Post-1992 naphtha

Sl.

No.

Name of fertilizer

unit

Reassess

ed/ 8th

PP urea

capacity

Highest

rate of

producti

on

achieved

2003-07

Maximum

achieved

production

for 330

days (2003-

04 to 2006-

07)

1. For all units except BVFCL-Namrup-III, streamdays = 330 days/year. For Namrup-III,

streamdays = 300 days/year.

2. The figures of actual rate of urea production (in MTPD) for all the units for the years 2003-04

to 2006-07 have been rounded-off to respective nearest integer.

Target

production

for receiving

IPP based

price beyond

cut off

quantity

Group-V : FO/LSHS

Group-VI : Mixed feedstock

Group-I : Pre-1992 gas

Group-II : Post-1992 gas

Group-III : Pre-1992 naphtha


133

Annexure-XVIThe detail of Urea manufacturing Units which completed the revamp under the Policy is as under:

Sr.

No.

Name of The

unit

Reassessed

Capacity

Revamp

Capacity

Cut off

Quantity

Addl.

Capacity

Created

Revamp Cost

`/ Cr `/MT

1 CFCL- I Kota 864600 1023000 944460 78540 303.58 38653

2 CFCL-II Kota 864600 999000 901230 97770 130.48 13346

3 IFFCO-Aonla 864600 999900 918390 81510 95.46 11711

4 IFFCO-Aonla

exp. 864600 999900 916080 83820 70.48 8408

5 IFFCO-Kalol 544500 600000 563310 36690 29.86 8138

6 IFFCO-P,PUR 551100 697950 582120 115830 123.32 10647

7 IFFCO-P,PUR

EXP. 864600 999900 945120 54780 62.02 11322

8 INDOGULF-

Jagdishpur 864600 1072500 990000 82500 141.38 17137

9 KRIBHCO-

Hazira 1729200 2194500 1760550 433950 1226.3 28259

10

KSFL

864600

990000

909810

80190

65.42

8158

11

NFCL-Kakinada

597300

767250

717090

50160

107.89

21509

12

NFCL-Kakinada

exp.

597300

752730

687390

65340

144.67

22141

13

NFL-Vijaipur

864600

999900

901230

98670

276

27972

14

NFL-Vijaipur

Exp.

864600

1066230

901230

165000

374

22667

15

RCF-Thal

1706897

1999800

1769790

230010

488

21216

16

TATA

864600

1155000

957330

197670

204

10320

Total

14372297

17317560

15365130

1952430

3648.7

273165

Annexure-XVII


134

No. 12012/39/2011-FPP

Government of India

Ministry of Chemical & Fertilizers

Department of Fertilisers

Shastri Bhavan, New DelhindDated the 02 January 2013.

To

All Chief Secretaries of State Governments

CMD/MDs

RCF/MFL/BVFCL/NFL/KRIBHCO/IFFCO/GSFC/GNVFC/SFC/NFCL/CFCL/TCL ZAL/INDO-

GULF/SPIC/KSFCL/MCFL/FCIL/HFCL/FACT/IPL/MATIX/KFCL

All Urea Manufacturing units

Subject: New Investment Policy - 2012

Sir

I am directed to convey the approval of Government of India for New Investment Policy–2012

(NIP-2012) in order to facilitate fresh investments in urea sector. The salient features of the NIP-2012 are

as under:-

1 Itprovides a structure of a floor price and a ceiling price for the amount payable to Urea units,

which will be calculated based on the delivered gas price (inclusive of charges & taxes) to

respective urea units. The floor and ceiling price of each urea unit shall be operative with respect to

the computed Import Parity Price(IPP) (Annexure-1). The IPP defined for urea under the

investment policy of 2008 is the average C&F price without any applicable custom duties and

handling and bagging charges at the port. If the computed IPP (payable) is between the floor and

the ceiling price for that gas cost, it is the IPP (payable) which will be used. If the IPP (payable) is

above or below the ceiling or the floor respectively, it is the ceiling or floor price that will be

acceptable as the case may be.

T2 he criteria according to which plants will qualify under different categories namely Revamp,

Expansion, Revival and Greenfield shall be as below:

2.1 Revamp projects: Any improvement or incremental increase in capacity of existing plants by way

of capital investment in the existing train of ammonia-urea production will be treated as revamp of

existing units.

2.2 Expansion or Brownfield projects: Setting up of a new ammonia-urea plant (a separate new

ammonia-urea train) in the premises of the existing fertilizer plants, utilizing some of the common

utilities will qualify for being treated as an expansion project. The investment should exceed a

minimum limit of Rs.3000 crore.


135

2.3 Revival of closed urea units: The three closed urea units of Hindustan Fertilizer Corporation Ltd.

(HFCL) at Barauni, Durgapur and Haldia, and five closed urea units of Fertilizer Corporation of

India Ltd. (FCIL) at Sindri, Talcher, Ramagundam, Gorakhpur and Korba being proposed for

revival shall fall under 'Revival of closed urea units'.

2.4 Greenfield Projects:

3

4

Any urea unit which shall be set-up at the project site where no previous

similar manufacturing facilities existed i.e. acquisition of land followed by construction of an

ammonia-urea plant with storage facilities, transportation facilities, water and sewage treatment

etc. shall be treated as a Greenfield project.

Greenfield /Revival of Closed HFCL & FCIL Projects

(i) At a delivered gas price of upto USD 6.5 per mmbtu for Greenfield/Revival Urea units

(a) the Floor price is fixed at USD 305 per MT of Urea

(b) the Ceiling price is fixed at USD 335 per MT of Urea

(ii) For each 0.1 USD per mmbtu revision in delivered gas price, it will correspondingly change the

(a) Floor and Ceiling price by USD 2 per MT up to a delivered gas price of USD 14 per mmbtu.

(b) Floor by USD 2 per MT for delivered gas price exceeding USD 14 per mmbtu.

(iii) The urea from Greenfield/Revival of closed urea units of HFCL and FCIL unitswill be recognized

at a uniform rate of 95% of IPP (C&F) subject to floating floor and ceiling prices mentioned at 3 (i)

and 3 (ii) above.

Substantial Expansion or Brownfield Projects

(i) At a delivered gas price of upto USD 6.5 per mmbtu for Expansion/Brownfield Urea units




(a) Floor and Ceiling price by USD 2 per MT up to a delivered gas price of USD 14 per mmbtu.

(b) Floor by USD 2 per MT for delivered gas price exceeding USD 14 per mmbtu

(iii) The urea from Expansion / Brownfield Urea units will be recognized at a uniform rate of 90% of

IPP (C&F) subject to floating floor and ceiling prices mentioned at 4 (i) and 4 (ii) above.

5 Revamp Projects

(i) At a delivered gas price of upto USD 7.5 per mmbtu for new Revamp Urea units





136

(a) Floor and Ceiling price by USD 2.2 per MT up to a delivered gas price of USD 14 per

mmbtu.

(b) Floor by USD 2.2 per MT for delivered gas price exceeding USD 14 per mmbtu.

(iii) The urea from Revamp Urea units will be recognised at a uniform rate of 85% o f I P P ( C & F )

subject to floating floor and ceiling prices mentioned at 5 (i) and 6 (ii) above. These will be

applicable for all output above the “cut-off” point.

(iii-a) Cut-Off Quantity - The urea produced from existing units beyond their reassessed capacity under

NPS or the maximum achieved capacity by a unit for 330 days in last four years (2003-07),

whichever is higher (cut off quantity), is recognised as the production under revamp of the

existing unit. However, the urea produced under revamp quantity will only be eligible for the

above dispensation once the total production of the unit crosses 105 per cent of the cut off quantity

or 110 per cent of the reassessed capacity, whichever is higher.

(iv) No Administered Pricing Mechanism (APM) gas shall be considered for allocation for production

beyond cut-off quantity.

(v) The Urea units, which have undertaken revamp and are already availing the provisions of the

Investment Policy of 2008, will remain under the Investment Policy of 2008 In the event of

doubling of gas price from USD4.88 per MMBTU (base price including applicable taxes) for a unit

under the Investment Policy of 2008, appropriate revision will be worked out under that Policy, in

consultation with the Department of Expenditure.

(vi) Any further revamp undertaken by an already revamped unit, will be considered to be eligible

under the same Revamp policy as that applicable to the original revamp. In case a unit under the

policy of 2008 undertakes further revamp and the additional quantity is more than 10% of the

present production (maximum production in any continuous one year period of the last three

years, which should not be less than the quantity produced in similar period of previous years

after implementation of NIP-2008 policy), the Urea unit may opt for the dispensation as

mentioned at 5 (i, ii and iii). Once new investment policy gets applied on the unit for the extra

production beyond 10% of existing production as discussed above, the entire revamp

production from the unit (existing & new combined) will be recognised as per NIP-2012. The

option will have to be exercised by the unit within three months of start of new increased

production.

6 Non-operation of ceiling price and IPP if delivered gas price exceed USD 14 per mmbtu.

In the event the delivered gas price crosses USD 14 per mmbtu, the units (whether revamp,

expansion, brownfield, greenfield or revival) shall be paid only the floor price based on the

delivered gas price as mentioned at 3(ii)(b), 4(ii)(b) and 5(ii)(b). All other conditions like ceiling

price and recognition of urea w.r.t IPP shall become non-operational.

7 Operational Principles- The following is adopted for operating the policy:

7.1 The increase/decrease of the floor and ceiling price will be calculated at the end of each quarter, on

the basis of average gas price of previous three months. Accordingly, IPP shall also be calculated

for each quarter for each plant.

.


137

7.2 The price of the delivered gas will be calculated based on delivered gas price as certified by

MoPNG/Central PSU/State PSU.

7.3 The policy shall be applicable to urea units to be based on gas i.e. natural gas (domestic/RLNG)

and CBM. In case of CBM, price of NG equivalent of CBM as given by Public agency will be

considered. For revival of closed urea units based on coal gasification and Greenfield

projectsbased on coal gasification, a dispensation that is the same as that of CBM will be extended

after arriving at equivalent NG price.

7.4 While fixing the floor and ceiling price of Greenfield, Revival, Brownfield and Expansion urea

units, It has been presumed that the delivered cost of CBM/Actual mix of gas to the urea unit shall

not be less than USD 6.5/mmbtu.

8 Time period for the investment policy

8.1 It is proposed that only those units whose production starts within five years from the date of

notification of the policy would be covered under the policy. The dispensation of guaranteed buy-

back under this policy will be available to the units for a period of eight years from the date of start

of production. Thereafter, the units will be governed by the Urea policy prevalent at that time.

9 Mandating of Granulated Urea / Coated Urea

9.1 In order to improve the efficiency in the use of Urea, as a part of product management strategy, all

new urea capacities in the country are mandated to produce Urea in granulated form

orcoated/fortified Urea. Taking into account the additional investment on account of a

granulation plant and the incremental operating costs, an additional amount of USD 10 per MT, is

allowed in the floor and ceiling prices for all plants – Greenfield/Revival/Brownfield–producing

Granulated Urea.

9.2 As part of the present policy, an additional 5% / 10% additional MRP may be allowed in case of

Neem coated / Zincated Urea.

10 Joint Venture Units

10.1 Decision regarding Urea off-take agreement for Joint Venture units set up abroad shall be taken on

case-to-case basis, based on the prevalent IPP of Urea, price and availability of indigenous gas, cost

of gas being offered to the JV and demand supply gap of Urea in the country. The guiding principle

shall, however, be that the offered supply on C&F basis from the JV should be equal to or less than

the floorprice for domestic Greenfield units at a gas cost of USD 6.5 per mmbtu.Thus extending the

floor price corresponding to a gas price of USD 6.5 per mmbtu to the JV's abroad will actually mean

getting imported gas at a delivered priceofUSD 6.5 per mmbtu which will result in substantial

saving to GOI. While fixing the floor and ceiling price for a JV abroad, subject to a maximum

floorprice corresponding to a delivered gas price of USD 6.5 per mmbtu fordomestic units, a

higher return may be considered keeping in view factors such as risks involved, likely time and

cost overruns, etc. Approval of CCEAwould be obtained in each case.

11 Dispensation for Units in North East

11.1 For units coming up in the North Eastern States, the special dispensation regarding pricing of gas

that is being extended by the Central Government/ State Government will also be available to any


138

new Investments in the region as well. Suitable adjustments will be made to the applicable floor

and ceiling prices in case the delivered price (after allowing for the special dispensation) falls

below USD 6.5 per mmbtu, subject to approval of Ministry of Finance.

12. As per the budget provisions announced for 2012-13, capital investment in fertiliser sector has

been made eligible for Viability Gap Funding (VGF) under the Scheme for Support to PPP in

infrastructure sector. However no VGF shall be allowed to Urea units in Public or Private sector. In

case incentives under VGF are required to be extended to Fertilizer units being set up in remote

areas/difficult terrains like north east or units which are based on coal gasification, where the

capex involved is substantially higher, the same will be examined by DOF in consultation with

DoE on case to case basis.

13 The broad stages for setting up a urea project are given at Annexure–2. Since the policy envisages

payment of subsidy/ incentives to the urea units by the Government, all the urea units who plan to

set-up urea units in the country should mandatorily provide information at beginning and

completion of each stage of the project as given at Annexure–2. This is also required to assess the

demand and production gap in the country as well as the cost of gas expected to be used in

production of urea from new investments.

14. The policy will be effective from the date of notification.

Yours sincerely

( Satish Chandra )


Tele : 23386800

Copy to:

1. Secretaries of the Department of Expenditure, Department of Revenue, Department of Economic

Affairs, Department of Agriculture & Cooperation, Department of Commerce, Department of

Industrial Policy & Promotion, Planning Commission, Ministry of Petroleum & Natural Gas .

2. Director General, The Fertilizers Association of India, 10-Shaheed Jit Singh Marg, New Delhi-

110067

3. All Officers/Sections in the Department of Fertilizers and office of FICC, RK Puram, New Delhi

4. Director(NIC)

Copy also to :-

Smt. Anu Garg, Joint Secretary, Prime Minister's Office, South Block, New Delhi.


139

Annexure-1of NIP-2012

Import parity price: Import Parity Price for a month would be derived based on the prevailing prices in

three months preceding the month under consideration as indicated below.

Import Parity Price (IPP): The import parity price (IPP) for a particular month will be the lower of the

actual average CIF price of urea imported in India during preceding three months and the IPP reported in

the fertilizer magazines for the same preceding three months, as detailed below:

IPP x = FOB Arabian Gulf + Freight

Where,

IPP x = Import Parity Price for month (x)

FOB Arabian Gulf = Average FOB reported price of urea for AG in the three magazines as listed

below, during preceding three month (x - 1) to (x - 3).

Freight = Average freight for AG in the three magazines listed below, during preceding three

month (x - 1) to (x - 3).

The exchange rate will be taken as the average of preceding three months for arriving at the price in

INR. The three fertilizer magazines to be used for arriving at IPP prices will be as below:

(a) Fertiliser Market Bulletin, UK;

(b) Fertiliser Week by British Sulphur, UK; and

(c) Fertecon Weekly Nitrogen Fax, UK.


Annexure-2 of NIP-2012

Broad stages of a urea project

Following are the broad stages for setting up an Ammonia-Urea Project:-

a) Pre-feasibility Report

b) Techno Economic Feasibiltiy Report & its approval from the company's Board of Director.

c) Finalization of Project site.std) 1 Stage Environment Clearance from MoEF

e) Technology Evaluation and Selection or EPC (LSTK) bid preparation & Evaluation.

f) Detailed/Bankable Project/Feasibility Report preparation and approval from the company's

Board of Director.

g) Environment Impact Assessment Report preparation and final clearance from MoEF

h) Raw Material and Utilities tie-up for the project

i) Finalization of EPCM or EPC (LSTK) Contractor.

j) Achieving Financial Closure

k) Award of job to EPCM or EPC Contractor.

l) Signing of Agreement between various agencies

m) Mobilization Advance to EPCM or EPC Contractor.

n) Physical Progress Achieved - 25%

o) Physical Progress Achieved – 50%

p) Physical Progress Achieved – 75%

q) Commissioning of Project & Start of commercial production.

140


Annexure-XVIII

Maximum Retail Prices of Urea (Rates in Rs. Per MT)

Year Urea

1991-92

Upto 24.7.91 2350

From 25.7.91 3300

1992-93

Upto 24.8.92 3060

From 25.8.92 =2760

1993-94 2760

1994-95

Upto 9.6.94 2760

From 10.6.94 3320

1995-96 3320

1996-97

Upto 20.2.97 3320

From 21.2.97 3660

1997-98 3660

1998-99

Upto 1.6.98 3660

From 2.6.98 to 12.6.98 4160

From 13.6.98 to 28.1.99 3660

From 29.1.99 4000

1999-2000

Upto 28.2.2000 4000

From 29.2.2000 4600

2000-2001 4600

2001-2002

Upto 27.2.2002 4600

From 28.2.2002 4830

2002-2003

Upto 27.2.2003 4830

From 28.2.2003 to 11.3.2003 5030

From 12.3.2003 to 31.3.2010 4830

From 1.4.2010 to 31.10.2010 5310

From 1.11.2012 5360

141

Annexure-XIX


142

No. 12012/12/2008-FPP

Government of India




Dated the 17th July, 2008

To

CMD/MDs

RCF/MFL/BVFCL/NFL/KRIBHCO/IFFCO/GSFC/GNVFC/SFC/NFCL/

CFCL/TCL/Z!L/INDO-GULF/SPIC/KSFL/MCFL/FACT/FCIL/HFCL/IPL.

SSP Manufacturers as per List annexed.

Subject: Policy for uniform freight subsidy on all fertilizers under the fertilizer subsidy regime.

Sir,

I am directed to convey the approval of the Government for a separate uniform freight subsidy policy on

all subsidised fertilizers covered under the New Pricing Scheme Stage-III (NPS-III) for indigenous urea

and the Concession Scheme on P&K fertilizers being administered by the Department. The policy will

also' be applicable on imported Urea- : subject to contractual obligations, If any. The 'salient features of the

policy are as below:-

a) The rail freight expenditure for transportation of fertilizers will be paid as per the actual

expenditure based on actual lead.

b) The road freight towards transportation of fertilizers from nearest railway rake point to block, or

from manufacturing unit lport directly by road to block, consists of two elements- lead distance

and per KM rate. This element of subsidy will be paid as below:

i) The lead distance for each block In the district will be based on the average District lead

(average of leads from nearest rail rake point to block headquarters),

ii) The per KM road freight will be paid on the basis of average of existing per KM rate for each

State In the country, being adopted by FICC for reimbursement of freight subsidy for

indigenous urea, under NPS-III.

iii) !t will be implemented retrospectively w.e.f. 1.4.08.


143

c) The normative per KM rate will be annually .escalated/de-escalated based on a composite road

transport index (weighted average of the WPls of HSD oil, Motor Tyres Truck Chassis and All

Commodities) as already being done under NPS-III.

d) The manufacturing units (especially. the SSP' units) not having railway siding. Facilities, will also

be reimbursed the road transportation costs from their unit to the nearest rail rake point based on

actual leads and the per tonne per KM rate, as computed. in paras above.

e) The freight subsidy will be paid on actual movement of fertilizers up to the block level based on

monthly district-wise/block movement plans. The subsidy will be released only after the fertilizer

reaches the District/Block as per the monthly plan. Any additional supply beyond 10% of the

monthly plan will be eligible for subsidy only after 120 days of Its receipt in the district, provided it

is accounted for in the subsequent month's plan.

f) The State Governments will be responsible for confirming the receipts of fertilizers as indicated In

the movement .plan in the FMS. They are required to either confirm or deny the receipts of

fertilizers within 30 days, whereafter the final freight subsidy will be released to the

manufacturers/importers. However, in case of any report of any non-receipt/shortfall. The

difference in freight subsidy will be suitably recovered. .

stg) The policy is proposed to be implemented from 1 April, 2008. Where the concession price of a st

fertilizer includes a fixed freight subsidy, payments so made from 1 April, 2008 till the date of

Notification will be adjusted against the freight subsidy to be paid under this.. policy. For SSP, the stfirst stage is proposed to be implemented from 1 October. 2008. .

h) The special freight re-imbursement scheme for J&K and North Eastern States stands withdrawn as

the freight will be now based on actual leads.

2. The rnanufacturers/importers will make separate claims for freight subsidy on monthly basis in

the prescribed proformas which will be separately circulated along with guidelines for the same.

A freight module under FMS, for generation of freight claims are being separately worked out and

will be put in place shortly. In the Interim, it Is proposed to pay the freight on the basis of average

per ton rates indicated below.

i) Indigenous Urea Rs.616 per MT

ii) imported Urea Rs.850 per MT

iii) Indigenous DAP/MAP Rs.770 per MT

iv) Imported DAP/MAP/TSP Rs.850 per MT

v) MOP Rs.823 per MT

vi) Complex Fertilizers Rs.616 per MT

vii) SSP (w.e.f. 1.10.08) Rs.816 per MT

3. The base concession rates and final concession rates for P&K fertilizers will be devoid of. freight

element. from 1ct April. 2008 onwards and for SSP from 1st October, 2008 onwards. The


144

provisions of New Pricing Scheme Stage-III for freight subsidy on indigenous urea will stand

amended w.e..f. 1st April, 2008 .

4. The manufacturers/importers will have to ensure provision of details of movement and receipts

of fertilizers in various districts/blocks in the country, on the Fertilizer Monitoring System (FMS),

in order to be eligible for freight subsidy.

5. The above will be applicable till further orders.

Yours faithfully,

(Deepak Singhal)


Tel No. 23381204

Copy to;

1. Chief Secretaries of all State Governments and Union Territories

2. Secretaries of the Department of Expenditure, Department of Revenue, Department of Economic

Affairs, Department of Agriculture & Cooperation. Department of commerce. Department of

Industrial Policy & Promotion, Planning Commission. .'

3. Director General. Fertilizer Association of India, 10, Shaheed Jit Singh Marg. New Delhi - 11,0

067

4. All Officers/sections in the Department of Fertilizers and Office of FICC. '

Copy also to:

Smt. Vini Mahajan, Joint Secretary, Prime Minister's Office, South Block, New Delhi.


145

Annexure-XX

No. 12012/9/2007-FPP

Government of India



Shastri Bhawan, New Delhi

thDated the 18 March, 2014

To

Chief Executives of all Fertilizer Units,

Chief Secretary of all States/UT

Subject : - Road freight rates for UREA manufacturing/ importing units under the Uniform Freight

Subsidy scheme.

Sir,

stIn continuation of this Department's notification of even number dated 01 September, 2011 and

all subsequent amendments thereon on the subject mentioned above, I am directed to state that it has been

decided to notify the secondary freight rates for urea for financial years 2010-11 and 2011-12 as per the

Annexure.

2. However, in case of creation of a new district by division, the freight rate as applicable to that

particular (old) district from which it is carved out shall be applicable to such new district. In case

of creation of new district from more than one district, the average freight rates of all the old stdistricts shall apply. All notified districts provided in the annexure to the notification dated 1

September, 2011 and not mentioned in FMS shall be included immediately. In respect of the st

districts mentioned more than once in this Department's Notification dated 1 September, 2011,

the entry of district with the lower value will be considered for the purpose of freight subsidy.

3. To finalise the Freight rates in respect of the districts, viz., (i) Kurnool (Andhra Pradesh); (ii) East

Delhi; (iii) North Delhi; (iv) North-West Delhi; (v) South-West Delhi; (vi) Palwal (Haryana); (vii)

The Dangas (Gujarat); (viii) Yadgir (Karnatka); (ix) Goa; (x) Singroli (Madhya Pradesh); (xi)

Koraput (Odisha) (xii)Baleshwar (Odisha); (xiii) Mahe (Pudducherry); (xiv) Ganga Nagar

(Rajasthan); (xv) Budaun (U.P.); (xvi) Chatrapati Sahuji Maharaj Nagar (U.P.) and (xvii) Daman


146

stwhich are not available in Notification dated 1 September, 2011 is being referred to Tariff

Commission for recommendations. However, till the time the PTPK rates for these districts are

made available by Tarrif Commission, the adhoc rates as prevalent may be taken in account for

freight subsidy.

4. Freight subsidy claims on the basis of the above rates may be preferred for the above mentioned

period in the prescribed proforma. Freight subsidy amount received by the units on the basis of

road transportation ad hoc rates notified earlier will be adjusted towards final claim.

5. However, these rates are subject to revision on account of audit observations/revision due to any

correction in data/working and computation noticed at a later stage.

6. The revised freight rates in respect of North Eastern Region and hilly areas will be notified in due stcourse and therefore, the rates as notified earlier vide this Department's Notification dated 1

September, 2011 will continue till the revised rates are notified.

7. This issue with the concurrence of Internal Finance Division vide Dy.No.3934/AS&FA/2013

dated 02.12.2013.

Yours sincerely

(Vijay Ranjan Singh)

Director (Fertilizers)

Tele : 23386398

1. Principal Director of Audit, Economic & Service Ministry, AGCR Building, IP Estates, New Delhi.

2. Controller of Accounts, Department of Fertilizers, Janpath Bhawan, New Delhi.

3. Director General, The Fertilizers Association of India, FAI House, 10-Shahidjit Singh Marg,

New Delhi-110067.

4. Joint Secretary-cum-Central Registrar of Cooperative Societies.

5. Department of Agriculture & Cooperative, Krishi Bhawan, New Delhi. th

6. Secretary (TC), Ministry of Commerce and Industry, Tarrif Commission, 7 Floor, Lok Nayak

Bhawan, New Delhi-110003.

7. Ministry of Finance/Department of Expenditure (PF-II), North Block, New Delhi.

Copy also to:

JS(SC), JS(SG) & JS(SLG)

Director ((Movement)/Director (FA){UB}/Director |(PPF)/ Director (Finance) /Joint Director

(I&A)(FICC)

Director (NIC)/DOF- for website/DD(OL)-for Hindi translation.


147

No. 12012/9/2007-FPP

Government of India



Shastri Bhawan, New DelhistDated the 1 April, 2014

To

Chief Executives of all Fertilizer Units,

Chief Secretary of all States/UT

CORRIGENDUM

Subject :- Road freight rates for UREA manufacturing/importing units under the Uniform Freight

Subsidy scheme.

Sir,

This is with reference to Department of Fertilizers' notification of even number dated 18.03.2014 on

the above mentioned subject, wherein a list of districts of States was enclosed. It is noticed that districts

from states of J&K and Jharkhand and few districts from states of Haryana and Karnataka were left out

inadvertently in said list. In view of this, a fresh list incorporating all districts has been annexed with this

notification. The other paras i.e. from 2 to 7 of the aforementioned notification remain same.

Yours sincerely

(Vijay Ranjan Singh)

Director (Fertilizers)

Tele : 23386398

Encl: As above

1. Principal Director of Audit, Economic & Service Ministry, AGCR Building, IP Estates, New Delhi.

2. Controller of Accounts, Department of Fertilizers, Janpath Bhawan, New Delhi.

3. Director General, The Fertilizers Association of India, FAI House, 10-Shahidjit Singh Marg,

New Delhi-110067.

4. Joint Secretary-cum-Central Registrar of Cooperative Societies.

5. Department of Agriculture & Cooperative, Krishi Bhawan, New Delhi. th

6. Secretary (TC), Ministry of Commerce and Industry, Tarrif Commission, 7 Floor, Lok Nayak

Bhawan, New Delhi-110003.

7. Ministry of Finance/Department of Expenditure (PF-II), North Block, New Delhi.

Copy also to:

JS(SC), JS(SG) & JS(SLG)

Director ((Movement)/Director (FA){UB}/Director |(PPF)/ Director (Finance) /Joint Director

(I&A)(FICC)

Director (NIC)/DOF- for website/DD(OL)-for Hindi translation.


148

ANNEXURE

State

Districts

Normative Rates

2010-11

Normative Rates

2011-12

1

2

3

4

Andhra Pradesh

Adilabad

2.17

2.3

Anantapur

3.26

3.44

Chittoor

3.66

3.86

Cuddapah

4.48

4.73

East Godavari

2.26

2.39

Guntur

1.91

2.01

Hyderabad

2.28

2.4

Kadapa

3.91

4.13

Karimnagar

2.62

2.77

Khammam

1.88

1.99

Krishna

2.31

2.44

Nellore

2.67

2.81

Mahbubnagar

2.45

2.59

Medak

2.16

2.28

Nalgonda

2.04

2.16

Nellore

2.61

2.76

Nizamabad

3.27

3.45

Prakasam

2.33

2.46

Rangareddy

2.7

2.85

Srikakulam

3.38

3.57

Visakhapatnam

2.75

2.91 Vizianagaram

3.21

3.39

Warangal

2.4

2.53

West Godavari

2.29

2.41 Assam

Barpeta

5.72

6.04

Bongaigaon

6.31

6.67

Cachar

6.31

6.67

Darrang

4.48

4.73

Dhubri

2.84

3

Dibrugarh

6.31

6.67

Goalpara 2.84 3 Golaghat 6.31 6.67

Jorhat 6.31 6.67

Kamrup 6.31 6.67

Karimganj 4.48 4.73

Lakhimpur 6.31 6.67


149

Marigaon 4.48 4.73

Nagaon 6.31 6.67

Nalbari 4.48 4.73

Sonitpur 6.31 6.67

Tinsukia 6.31 6.67

Bihar Araria 2.16 2.28

Arwal 2.58 2.72

Aurangabad 4.48 4.73

Banka 2.82 2.98

Begusarai 6.31 6.67

Bhagalpur 5.59 5.9

Bhojpur 6.31 6.67

Buxar 3.38 3.57

Darbhanga 4.45 4.7

Deoria 4.48 4.73

East Champaran 4.48 4.73

Gaya 4.48 4.73

Gopalganj 4.48 4.73

Jamui 2.01 2.12

Jehanabad 3.97 4.19

Kaimur 3.47 3.66

Katihar 4.48 4.73

Khagaria 5 5.28

Kishanganj 5.29 5.58

Lakhisarai 2.59 2.73

Madhepura 3.13 3.31

Madhubani 4.36 4.6

Munger 2.34 2.47

Muzaffarpur 6.31 6.67

Nalanda 5.13 5.42

Nawada 4.55 4.81

Patna 4.75 5.02

Purnia 3.97 4.19

Rohtas 5.99 6.32

Saharsa 4.48 4.73

Samastipur 4.48 4.73

Saran 4.48 4.73

Sheikhpura 3.33 3.52

Sheohar 1.88 1.99

Sitamarhi 3.33 3.52

Siwan 5.89 6.22

Supaul 2.77 2.92


150

Dhamtari 3.61 3.82

Durg 4.48 4.73

Jagdalpur 2.83 2.99

Janjgir-Champa 3.38 3.57

Jashpur 2.84 3

Kabirdham 3.44 3.63

Kanker 2.84 3

Kawardha 2.84 3

Korba 4.42 4.66

Koriya 3.59 3.79

Mahasamund 3.38 3.57

Narayanpur 3.7 3.91

Palamu 4.48 4.73

Raigarh 3.38 3.57

Raipur 4.48 4.73

Rajnandgaon 4.48 4.73

Surguja 2.87 3.03

Dadra & Nagar Haveli D&N 3.01 3.18

Goa North Goa 2.84 3

South Goa 2.2 2.32

Gujarat Ahmedabad 2.96 3.12

Amreli 2.65 2.8

Anand 4.48 4.73

Banas Kantha 2.83 2.99

Baroda 2.32 2.45

Bharuch 4.2 4.44

Bhavnagar 2.88 3.04

Dahod 3.21 3.39

Dangs 2.84 3

Gandhinagar 3.88 4.1

Jamnagar 3.11 3.29

Junagadh 2.8 2.96

Kheda 4.48 4.73

Kutch 1.88 1.99

Mahesana

3.8

4.02

Narmada

3.46

3.65

Vaishali 4.48 4.73

West Champaran 4.48 4.73

Chattisgarh Bastar 3.97 4.19

Beejapur 2.84 3

Bilaspur 4.28 4.52

Dantewada 2.84 3


151

Navsari 3.78 3.99

Panch Mahals 3.77 3.98

Patan 2.97 3.13

Porbandar 2.78 2.93

Rajkot 3.88 4.1

Sabar Kantha 3.59 3.79

Surat 4.48 4.73

Surendranagar 3.11 3.29

Tapi 3.35 3.53

Vadodara 3.5 3.7

Valsad 3.64 3.84

Haryana Ambala 4.34 4.58

Bhiwani 4.48 4.73

Faridabad 3.93 4.15

Fatehabad 4.64 4.9

Gurgaon 3.37 3.56

Hisar 3.64 3.84

Jhajjar 4.48 4.73

Jind 4.28 4.52

Kaithal 5.4 5.7

Karnal 6.31 6.67

Kurukshetra 5.49 5.79

Mahendragarh 3.42 3.62

Mewat 3.08 3.25

Panchkula 3.73 3.93

Panipat 3.81 4.03

Rewari 6.31 6.67

Rohtak 5.92 6.25

Sirsa 4.42 4.66

Sonipat 5.41 5.71

Yamunanagar 4.31 4.55

Jammu & Kashmir Jammu 6.31 6.67

Jharkhand Bokaro 1.88 1.99

Chatra 2.44 2.58

Deoghar 4.48 4.73

Dhanbad 1.88 1.99

Dumka 4.48 4.73

East Singhbhum 1.88 1.99

Garhwa 3.04 3.22

Giridih 2.39 2.52

Godda 2.2 2.32

Gumla 2.84 3


152

Hazaribag 2.73 2.89

Jamtara 2.61 2.76

Koderma 2.62 2.77

Latehar 2.63 2.78

Lohardaga

2.89

3.05

Pakur

1.88

1.99

Palamu

3.09

3.26

Ranchi

4.48

4.73

Sahibganj

2.52

2.66

Seraikela

2.62

2.77

Simdega

2.45

2.59

West Singhbhum

2.21

2.33

Karnataka

Bagalkot

2.77

2.92

Bangalore Urban

4.23

4.46

Bangalore Rural

3.36

3.54

Belgaum

2.75

2.91

Bellary

3.47

3.66

Bidar

2.7

2.85

Bijapur

3.54

3.73

C. Mangalore

3.59

3.79

Chamrajnagar

3.33

3.52

Chickmagalur

3.5

3.7

Chikkballapur

3.25

3.43

Chitradurga

2.59

2.73

Davangere

4.48

4.73

Dharwad

2.92

3.09

Gadag

2.32

2.45

Gulbarga

3.15

3.32

Hassan

4.23

4.46

Haveri

2.42

2.56

Kodagu

2.84

3

Kolar

2.61

2.76

Koppal

3.79

4

Mandya

4.43

4.68

Mysore

3.4

3.59

North Kannada

2.12

2.24

Raichur

3.69

3.9

Ramanagaram

3.1

3.27

Shimoga

3.3

3.49

South Kannada

3.11

3.29

Tum-kur

2.73

2.89

Udupi 3.76 3.97


153

Kerala Alappuzha 4.48 4.73

Ernakulam 4.48 4.73

Idukki 2.84 3

Kannur 4.23 4.46

Kasargod 2.84 3

Kollam 3.87 4.09

Kottayam 6.05 6.38

Kozhikode 4.19 4.43

Malappuram 3.61 3.82

Palakkad 4.48 4.73

Pathanamthitta 4.48 4.73

Thiruvananthapuram 2.84 3

Thrissur 4.48 4.73

Wayanad 4.48 4.73

Madhya Pradesh Aliraj Pur 2.12 2.24

Anuppur 2.07 2.19

Ashoknagar 1.88 1.99

Balaghat 3.5 3.7

Barwani 2.52 2.66

Betul 4.15 4.38

Bhind 3 3.17

Bhopal 4.06 4.29

Burhanpur 3.35 3.53

Chhatarpur 2.71 2.86

Chhindwara 2.61 2.76

Damoh 2.96 3.12

Datia 2.53 2.67

Dewas 3.29 3.47

Dhar 2.93 3.1

Dindori 2.03 2.14

Guna 2.07 2.19

Gwalior 3.09 3.26

Harda 4.48 4.73

Hoshangabad 4.48 4.73

Indore 4.48 4.73

Jabalpur 2.31 2.44

Jhabua 3.18 3.36

Katni 3.41 3.6

Khandwa 3.38 3.57

Khargone 3 3.17

Mandla 2 2.11

Mandsour 2.5 2.64


154

Shujalpur

3.39

3.58 Sidhi

2.28

2.4

Tikamgarh

2.49

2.63

Ujjain

3.75

3.96

Umaria

3.13

3.31

Vidisha

3.9

4.12 Maharashtra

Ahmednagar

4.17

4.4

Akola

4.22

4.45

Amravati

4.43

4.68

Aurangabad

3.27

3.45

Beed 2.75 2.91 Bhandara 2.87 3.03

Buldhana 3.26 3.44

Chandrapur 3.36 3.54

Dhule 3.76 3.97

Gadchiroli 2.26 2.39

Gondia 2.88 3.04

Hingoli 2.93 3.1

Jalgaon 3.41 3.6

Jalna 3.45 3.64

Kolhapur 4.48 4.73

Latur 3.29 3.47

Mumbai 4.48 4.73

Nagpur

4.48

4.73

Morena

2.91

3.07

Narsinghpur

2.11

2.23

Neemuch

2.23

2.36

Panna

3.36

3.54

Raigarh

3.07

3.24

Raisen

4.37

4.62

Rajgarh

3.23

3.42

Ratlam

4.24

4.48

Rewa

3.18

3.36

Sagar

2.72

2.87

Satna

2.82

2.98

Sehore

4.08

4.31

Seoni

2.49

2.63

Shahdol

2.39

2.52

Shajapur

3.37

3.56

Shivpuri

2.46

2.6

Shoepurkalan

2.06

2.18


155

Nanded

2.71

2.86

Nandurbar

3.13

3.31

Nashik

4.47

4.72

Osmanabad

2.78

2.93

Parbhani

3.02

3.19

Pune

3.5

3.7

Raigarh

2.21

2.33

Ratnagiri

4.48

4.73

Sangli

4.48

4.73

Satara

4.05

4.28

Sindhudurg

2.84

3

Solapur

3.58

3.78

Thane

1.88

1.99

Wardha

5.01

5.29

Washim

4.48

4.73

Yavatmal

3.9

4.12

Odisha

Angul

2.84

3

Balangir

6.31

6.67 Baleswar

3.74

3.95

Bargarh

4.37

4.62 Bhadrak

4.48

4.73

Balangir

6.31

6.67

Boudh

2.84

3

Cuttack

5.9

6.23

Deogarh

2.84

3

Dhenkanal

4.48

4.73

Gajapati

2.84

3

Ganjam 4.48 4.73 Jagatsinghapur 4.48 4.73 Jajpur 4.48 4.73

Jharsuguda 4.48 4.73

Kalahandi 4.13 4.36

Kandhamal 2.84 3

Kendrapara 4.48 4.73

Kendujhar 2.84 3

Keonjhar 4.48 4.73

Khordha 4.48 4.73

Malkangiri 2.84 3

Mayurbhanj 2.84 3

Nabarangapur 2.84 3

Nayagarh

4.42

4.66


156

Nuapada 4.48 4.73

Puri 4.48 4.73

Rayagada 2.84 3

Sambalpur 4.04 4.26

Sonepur 3.58 3.78

Sundergarh 2.57 2.71

Pudducherry Karaikal 2.84 3

Pondicherry 2.74 2.9

Yanam 2.38 2.51

Punjab Amritsar 3.62 3.83

Barnala 3.07 3.24

Bathinda 4.48 4.73

Faridkot 4.45 4.7

Fatehgarh Sahib 4.19 4.43

Firozpur 4.48 4.73

Gurdaspur 3.83 4.04

Hoshiarpur 3.68 3.89

Jalandhar 3.83 4.04

Kapurthala 3.74 3.95

Ludhiana 4.15 4.38

Mansa 4.48 4.73

Moga 4.48 4.73

Mohali 2.89 3.05

Muktsar 4.76 5.03

Nawanshahr 2.74 2.9

Patiala 3.66 3.86

Rupnagar 1.88 1.99

Sangrur 5.25 5.55

Tarntaran 3.66 3.86

Rajasthan Ajmer 1.88 1.99

Alwar 3.06 3.23

Banswara 2.28 2.4

Baran 3.3 3.49

Barmer 1.88 1.99

Bharatpur 3.33 3.52

Bhilwara 2.67 2.81

Bikaner 1.88 1.99

Bundi 2.62 2.77

Chittorgarh 2.98 3.14

Churu 1.88 1.99

Dausa 2.74 2.9

Dholpur 2.52 2.66


157

Dungarpur 3.11 3.29

Hanumangarh 4.48 4.73

Jaipur 2.92 3.09

Jaisalmer 1.88 1.99

Jalor 2.15 2.27

Jhalawar 1.95 2.06

Jhunjhunu 2.07 2.19

Jodhpur 1.88 1.99

Karauli 3.74 3.95

Kota 2.69 2.84

Nagaur 2 2.11

Pali 2.63 2.78

Pratapgarh 2.2 2.32

Rajsamand 2.32 2.45

Sawai Madhopur 3.06 3.23

Sikar 2.1 2.21

Sirohi 2.39 2.52

SriGanganagar 2.74 2.9

Tonk 1.9 2

Udaipur 2.63 2.78

Tamil Nadu Ariyalur 2.57 2.71

Chennai 3.12 3.3

Coimbatore 4.48 4.73

Cuddalore 4.31 4.55

Dharmapuri 4.1 4.33

Dindigul 3.83 4.04

Erode 3.58 3.78

Kanchipuram 2.8 2.96

Kanyakumari 2.84 3

Karur 3.6 3.8

Krishnagiri 2.44 2.58

Madurai 3.57 3.77

Nagapattinam 3.66 3.86

Namakkal 3.95 4.17

Nilgiris 4.48 4.73

Perambalur 3.87 4.09

Pudukkottai 3.68 3.89

Ramanathapuram 2.84 3

Salem 3.7 3.91

Sivaganga 3.97 4.19

Thanjavur 4.48 4.73

Theni 2.84 3


158

Faizabad 3.77 3.98

Farrukhabad 4.37 4.62

Fatehpur 3.17 3.34

Firozabad 3.46 3.65

Gautam Buddha Nagar 3.97 4.19

Ghazipur 4.03 4.25

Ghaziabad 3.95 4.17

Gonda 3.2 3.38

Gorakhpur 3.68 3.89

Hamirpur 3.8 4.02

Hardoi 3.41 3.6

Thoothukudi 2.84 3

Tiruchirappalli 4.25 4.49

Tirunelveli 2.62 2.77

Tiruvallur 3.37 3.56

Tiruvannamalai 2.84 3

Tiruvarur 4.1 4.33

Vellore 3.99 4.22

Viluppuram 3.3 3.49

Virudhunagar 2.84 3

Uttar Pradesh Agra 3.28 3.46

Aligarh 3.21 3.39

Allahabad 3.19 3.37

Ambedkar Nagar 3.91 4.13

Auraiya 3.13 3.31

Azamgarh 3.61 3.82

Bagpat 3.26 3.44

Bahraich 4.1 4.33

Ballia 3.23 3.42

Balrampur 3.6 3.8

Banda 4.48 4.73

Barabanki 3.73 3.93

Bareilly 3.75 3.96

Basti 3.65 3.85

Bijnor 3.91 4.13

Bhadohi 3.59 3.79

Bulandshahr 3.48 3.67

Chandauli 4.13 4.36

Chitrakoot 3.97 4.19

Deoria 3.6 3.8

Etah 3.29 3.47

Etawah 3.31 3.5


159

Hathras 3.04 3.22

Jalaun 3.19 3.37

Jaunpur 2.89 3.05

Jhansi 2.84 3

Jyotiba Phule Nagar 3.96 4.18

Kannauj 2.94 3.11

Kanpur Dehat 2.82 2.98

Kanpur Nagar 3.66 3.86

Kashganj 1.88 1.99

Kaushambi 3.36 3.54

Kushinagar 2.49 2.63

Lakhimpur Kheri 3.44 3.63

Lalitpur 1.88 1.99

Lucknow 3.69 3.9

Maharajganj 3.55 3.75

Mahoba 3.9 4.12

Mainpuri 3.35 3.53

Mathura 3.07 3.24

Mau 3.65 3.85

Meerut 3.54 3.74

Mirzapur 3.03 3.2

Moradabad 3.33 3.52

Muzaffarnagar 3.37 3.56

Pilibhit 3.75 3.96

Pratapgarh 3.23 3.42

Rae Bareli 3.4 3.59

Rampur 3.7 3.91

Saharanpur 3.29 3.47

Sant Kabir Nagar 4.31 4.55

Sant Ravidas Nagar 3.1 3.27

Shahjahanpur 3.66 3.86

Shrawasti 4.48 4.73

Siddharthnagar 3.38 3.57

Sitapur 3.56 3.76

Sonbhadra 3.12 3.3

Sultanpur 2.96 3.12

Unnao 3.45 3.64

Varanasi 4.13 4.36

Uttarakhand Almora 1.88 1.99

Bageshwar 1.88 1.99

Chamoli 1.88 1.99

Champawat 1.88 1.99


160

Dehradun 3.93 4.15

Haridwar 3.68 3.89

Nainital 3.12 3.3

Pauri Garhwal 4.48 4.73

Pithoragarh 2.04 2.16

Rudraprayag 2.38 2.51

Tehri Garhwal 2.79 2.94

Udham Singh Nagar 4.56 4.82

Uttarkashi 1.88 1.99

West Bengal Bankura 4.2 4.44

Bardhaman 4.33 4.57

Birbhum 3.93 4.15

Cooch Behar 3.89 4.11

Darjiling 4.48 4.73

East Midnapore 3.88 4.1

Hooghly 3.55 3.75

Howrah 3.73 3.93

Jalpaiguri 4.32 4.56

Kolkata 2.84 3

Malda 2.84 3

Murshidabad 4.2 4.44

Nadia 4.48 4.73

North 24 Parganas 4.44 4.69

North Dinajpur 3.01 3.18

Puruliya 3.46 3.65

South 24 Parganas 3.19 3.37

South Dinajpur 2.04 2.16

West Midnapore 4.48 4.73


161

Annexure-XXI

Su

pp

ly t

o F

ert

iliz

er

pla

nts

du

rin

g 2

01

2-1

3

(MM

SC

MD

)

Rav

va

Oth

er

To

tal

To

tal

To

tal

SI

No

.

Nam

e o

f th

e P

lan

t

Sta

te

AP

M

No

n-

PM

T@

A

PM

T@

Rav

va

Sate

lite

KG

Do

me

stic

Do

me

stic

T

erm

L

NG

S

po

t L

NG

Im

po

rted

sup

ply

1

NA

GA

RJU

NA

FE

RT

ILIZ

ER

S

An

dh

ra

0.8

5

0.0

9

0.2

1

1.7

1

2.8

5

0.0

0

2.8

5

2

CO

RA

MA

ND

AL

A

nd

hra

0

.01

0.0

1

0.0

1

Bra

hm

ap

utr

a V

all

ey

Fe

rtil

izer

Co

rpo

rati

on

Lim

ite

d

Ass

am

1.4

37

3

(BV

FC

L)

0

1.4

4

0.0

0

1.4

4

4

Zu

ari

a A

gro

Ch

em

icals

Go

a

0.0

0

0.0

5

0

0.0

5

0.0

5

5

GU

JAR

AT

NA

RM

AD

A V

AL

LE

Y G

uja

rat

0.2

6

0.0

7

0.3

3

0.6

6

0.3

0

0.0

9

0.3

9

1.0

5

6

KR

ISH

AK

BH

AR

AT

I G

uja

rat

1.7

6

0.4

7

0.2

2

0.0

9

1.3

5

3.8

9

0.1

7

0.0

5

0.2

1

4.1

0

7

GU

JAR

AT

ST

AT

E

Gu

jara

t

0.5

9

0.1

5

0.0

7

0.0

4

0.7

1

1.5

6

0.1

3

0.1

3

1.6

9

8

IND

IAN

FA

RM

ER

S

Gu

jara

t

0.0

1

1.2

0

1.2

1

0.0

0

0.0

0

1.2

1

9

NA

TIO

NA

L F

ER

TIL

IZE

RS

H

ary

an

a

0.0

0

0.0

0

0.2

0

0.2

0

0.2

0

10

N

AT

ION

AL

FE

RT

ILIZ

ER

S

Mad

hy

a

1.7

0

0.4

7

0.2

8

0.0

3

0.5

7

3.0

5

0.5

6

0.0

7

0.6

3

3.6

8

11

R

.C.F

. L

TO

., T

HA

L U

NIT

Mah

ara

shtr

a

1.5

7

0.3

9

0.1

0

2.0

1

4.0

7

0.0

0

4.0

7

12

R

.C.F

. L

TD

., T

RO

MB

AY

UN

IT

Ma

ha

rash

tra

'0.9

8

0.0

3

0.8

7

1.8

8

0.0

0

1.8

8

13

D

EE

PA

K F

ER

TIL

ISE

RS

AN

D

Mah

ara

shtr

a

0.3

2

0.0

1

0.1

6

0.4

9

0.0

8

0.0

1

0.0

9

0.5

8

14

N

AT

ION

AL

FE

RT

ILIZ

ER

S

Pu

nja

b

0.0

0

0.2

5

0.2

5

0.2

5

15

C

HA

MB

AL

FE

RT

ILIS

ER

S A

ND

Ra

jast

ha

n

0.5

8

0.1

2

0.0

2

1.1

3

1.8

5

1.8

0

0.1

5

1.9

5

3.8

0

16

S

HR

IRA

M F

ER

TIL

ISE

RS

&

Ra

jast

ha

n

0.5

7

0.5

7

0.0

1

0.0

1

0.5

8

17

T

AT

A C

HE

MIC

AL

S L

TD

. U

ttar

Pra

de

sh

0.5

7

0.0

5

0.1

3

0.0

2

0.7

6

1.5

3

0.3

4

0.0

1

0.3

5

1.8

8

18

K

RIB

HC

O S

HY

AM

U

ttar

Pra

de

sh

0.5

7

0.0

9

0.1

5

0.0

4

0.9

1

1.7

6

0.1

0

0.0

2

0.1

2

1.8

8

19

IN

DO

GU

LF

FE

RT

ILIS

ER

S

Utt

ar

Pra

de

sh

0.5

7

0.1

4

0.0

2

0.2

4

0.9

7

0.7

8

0.3

2

1.1

0

2.0

7

20

IN

DIA

N F

AR

ME

RS

U

ttar

Pra

de

sh

1.1

9

0.2

4

0.2

9

0.0

8

1.6

6

3.4

6

0.4

9

0.0

1

0.5

0

3.9

6

21

IN

DIA

N F

AR

ME

RS

u

tta

r P

rad

esh

0

.25

0

.25

2.6

9

0.0

1

2.7

0

2.9

5

To

tal

12

.95

1

.94

1

.40

0

.48

0

.09

0.2

1

14

.43

0.0

0

31

.50

7

.49

1.1

9

8.6

8

40

.18


162

Annexure-XXII

S.

No.

Requirement

of daily Gas

(2013-14)

Additional Gas

requirement of

natural gas (2014-15)

Additional Gas

requirement of natural

gas (2017-18)

A

Naphtha based

1.

MCFL-Mangalore

1.00

2.

SPIC-Tuticorin

1.66

3.

MFL-Manali

1.54

Sub-Total of Naphtha based plants

4.20

B

Gas Based

4.

NFL-Panipat

0.900

5.

NFL-Nangal

1.000

6.

NFL-Bathinda

0.900

7.

GNVFC-Bharuch

2.150

8.

BVFC-Namrup-II

0.98

9.

BVFC-Namrup-III

1.04

10.

IFFCO-Aonla-I

2.230

11.

IFFCO-Aonla-II

2.160

12.

Kribhco-Hazira

4.750

13.

NFL-V Pur

4.250

14.

NFL-V Pur-II

15.

KSFL-Shahjahanpur

2.110

16.

CFCL-I

2.160

17.

TATA

2.123

18.

NFCL-Kakinada

3.150

19. NFCL - Kakinada –

II

20. Indogulf-Jagdishpur 2.230

21. RCF-Trombay 2.050

22. IFFCO – Phulpur 1.360

23. IFFCO-Phulpur-EXP 2.340

24. SFC-Kota 0.620

25. CFCL-II 2.100 26. GSFC Baroda 2.486 27. IFFCO-Kalol 1.300 28.

RCF-Thal

4.750

29.

ZAL-Goa

1.193

30.

KFCL-Kanpur

1.349

Green Field Projects

(Matrix Fert. & Chemical Burdwan)

2.4 CBM

Expected expansion/Brownfield

units ( 4 units)

4*2.4= 9.6

Revival units (Ramagundan and

Sindri)

2*2.4=4.8

Sub

Total

51.684

6.6

14.4

(In MMSCMD)


163

Annexure-XXIIIPROFITABILITY OF THE PUBLIC SECTOR UNDERTAKINGS UNDER

THE ADMINISTRATIVE CONTROL OF DEPARTMENT OF FERTILIZERS

Nam

e of

the

Un

der

tak

ing

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

Fert

ilize

r C

orpo

rati

on o

f Ind

ia

Lim

ited

(FC

I)

Clo

sed

Com

pany

.

H

ind

ust

an F

erti

lizer

Cor

pora

tion

Ltd

(HFC

L)

Clo

sed

Com

pany

.

R

asht

riya

Che

mic

als

and

Fer

tiliz

ers

Lim

ited

(RC

F)

234.

87

245.

12

249.

23

280.

90

249.

80

Nat

iona

l Fer

tiliz

ers

Lim

ited

(NFL

)

171.

51

139.

00

127.

00

(-)1

71

(-)9

0

Pro

ject

and

Dev

elop

men

t Ind

ia

Lim

ited

(PD

IL)

14.4

8

21.0

2

26.0

8

10.7

1

(-)2

.58*

The

Fer

tiliz

ers

and

Che

mic

als

Tra

vanc

ore

Lim

ited

(FA

CT

)

(-)1

03.8

3

(-)4

9.33

19.8

0

(-)3

54

(-)2

65

Mad

ras

Fert

ilize

rs L

imit

ed (M

FL)

6.88

169.

86

111.

99

24.4

4

100.

04

Bra

hmap

utr

a V

alle

y Fe

rtili

zer

Cor

pora

tion

Lim

ited

(BV

FCL

)

(-)2

7.86

(-)8

5.09

(-)1

28.8

1

(-)3

2.64

(-)1

26.4

8*

FCI-

Ara

vali

Gyp

sum

an

Min

eral

s

Ind

ia L

imit

ed (F

AG

MIL

)

8.67

24.0

527

.07

28.4

830

.46

Net

Pro

fit

(+)/

Net

Lo

ss(-

)

( in

Rs

cro

res)

* p

rov

isio

nal


165

Annexure-XXIV

(Results-Framework Document)for

R F D

Department Of Fertilizers

(2013-2014)

Government of India


166

Section 1:Vision, Mission, Objectives and Functions

Achieving fertilizer security for the country for sustainable agricultural growth supported by a robust domestic fertilizerindustry

Mission

Ensuring adequate and timely availability of fertilizers to the farmers at affordable prices through planned production and

imports and distribution of fertilizers in the country and planning for self sufficiency in Urea production

Objectives

1 Ensuring policy framework for indigenous production and import of fertilizers and their supply

2 Assessing requirements, Planning and arranging for production and import of fertilizers for meeting requirements

3 Movement and distribution of fertilizers in coordination with States .

4 Timely disbursement and management of subsidy.

5 Improving and monitoring the performance of PSUs.

6 Research & Development Programme

Functions

Planning, promotion of Fertilizer Industry.1

Planning and monitoring of production, import and distribution of fertilizer.2

Management of financial assistance by way of subsidy/concession for indigenous and imported fertilizers.3

Administrative responsibility for CPSUs.4

Administration of Fertilizers (Movement Control) Order, 19605

Vision


167

Sec

tion

2:In

ter

se P

rior

ities

am

ong

Key

Obj

ectiv

es, S

ucce

ss in

dica

tors

and

Tar

gets

Obj

ectiv

eW

eigh

tA

ctio

nU

nit

Tar

get /

Cri

teri

a V

alue

Wei

ght

80%

100%

70%

60%

90%

Ver

y G

ood

Fai

r P

oor

Exc

elle

nt G

ood

Suc

cess

Indi

cato

r

Ens

urin

g po

licy

fram

ewor

k fo

r in

dige

nous

prod

uctio

n an

d im

port

of f

ertil

izer

s an

d th

eir

supp

ly

28.0

0S

ubm

issi

on o

f CC

EA

not

eon

pol

icy

for

exis

ting

urea

units

byo

nd N

PS

III

App

rova

l of C

CE

A.

Dat

e29

/11/

2013

31/0

1/20

1428

/02/

2014

31/1

2/20

1331

/10/

2013

2.00

[1]

[1.1

][1

.1.1

]

Fur

ther

act

ion

on M

OU

sign

ed w

ith G

hana

for

setti

ng u

p of

Ure

a pl

ant

sign

ing

of J

VD

ate

31/0

1/20

1429

/03/

2014

31/0

3/20

1428

/02/

2014

31/1

2/20

131.

00[1

.2]

[1.2

.1]

com

mis

sion

ing

ofge

ophy

sica

l stu

dyD

ate

31/0

1/20

1428

/02/

2014

21/0

3/20

1407

/02/

2014

17/0

1/20

141.

00[1

.2.2

]

CC

EA

not

e fo

r re

viva

l of

clos

ed U

rea

units

of F

CIL

App

rova

l of C

CE

AD

ate

30/1

1/20

1331

/01/

2014

28/0

2/20

1431

/12/

2013

31/1

0/20

133.

00[1

.3]

[1.3

.1]

CC

EA

not

e on

rev

ival

of

clos

ed U

rea

units

of H

FC

ILA

ppro

val o

f CC

EA

Dat

e28

/02/

2014

30/0

3/20

1431

/03/

2014

29/0

3/20

1431

/01/

2014

3.00

[1.4

][1

.4.1

]

Fin

alis

atio

n of

NB

S p

olic

yfo

r 20

14-1

5N

otifi

catio

nD

ate

24/0

3/20

1428

/03/

2014

31/0

3/20

1427

/03/

2014

21/0

3/20

142.

00[1

.5]

[1.5

.1]

Rev

ival

of a

t lea

st o

necl

osed

Nap

tha

base

d ur

eapl

ant.

In-p

rinc

iple

app

rova

lD

ate

31/1

0/20

1331

/12/

2013

31/0

1/20

1429

/11/

2013

30/0

9/20

132.

00[1

.6]

[1.6

.1]

At l

east

one

Gre

enfie

ldpr

ojec

t.In

-pri

ncip

le a

ppro

val

Dat

e29

/11/

2013

31/0

1/20

1428

/02/

2014

31/1

2/20

1331

/10/

2013

2.00

[1.7

][1

.7.1

]

At l

east

thre

e br

ownf

ield

proj

ects

.In

-pri

ncip

le a

ppro

val

Dat

e29

/11/

2013

31/0

1/20

1428

/02/

2014

31/1

2/20

1331

/10/

2013

2.00

[1.8

][1

.8.1

]

Stu

dy o

n w

orki

ng o

f NB

Ssu

bmis

sion

of

reco

mm

enda

tions

toth

e G

over

nmen

t

Dat

e28

/02/

2014

21/0

3/20

1428

/03/

2014

14/0

3/20

1431

/01/

2014

3.00

[1.9

][1

.9.1

]

Fac

ilita

tion

of J

oint

Ven

ture

s ab

road

by

Indi

anco

mpa

nies

.

For

mat

ion

of a

t lea

ston

e JV

.D

ate

29/1

1/20

1331

/01/

2014

28/0

2/20

1431

/12/

2013

31/1

0/20

133.

00[1

.10]

[1.1

0.1]


168

Sec

tion

2:In

ter

se P

rior

ities

am

ong

Key

Obj

ectiv

es, S

ucce

ss in

dica

tors

and

Tar

gets

Obj

ectiv

eW

eigh

tA

ctio

nU

nit

Tar

get /

Cri

teri

a V

alue

Wei

ght

80%

100%

70%

60%

90%

Ver

y G

ood

Fai

r P

oor

Exc

elle

nt G

ood

Suc

cess

Indi

cato

r

Layi

ng d

own

of o

bjec

tive

and

tran

spar

ent c

rite

ria

for

sele

ctio

n of

pro

posa

ls fo

rne

w c

apac

ities

in u

rea

inre

spon

se to

NIP

-201

2.

Pol

icy

notif

icat

ion.

Dat

e29

/11/

2013

31/0

1/20

1428

/02/

2014

31/1

2/20

1331

/10/

2013

2.00

[1.1

1][1

.11.

1]

Str

ateg

y pa

per

for

expa

nsio

n of

indi

geno

uspr

oduc

tion

capa

city

.

Str

ateg

y pa

per.

Dat

e21

/02/

2014

14/0

3/20

1421

/03/

2014

07/0

3/20

1431

/01/

2014

2.00

[1.1

2][1

.12.

1]

Ass

essi

ng r

equi

rem

ents

, Pla

nnin

g an

dar

rang

ing

for

prod

uctio

n an

d im

port

of

fert

ilize

rs fo

r m

eetin

g re

quire

men

ts

10.0

0F

inal

izat

ion

of fe

rtili

zer

requ

irem

ents

for

the

seas

on in

coo

rdin

atio

n w

ithD

epar

tmen

t of A

gric

ultu

rean

d C

oope

ratio

n an

d th

eS

tate

Gov

ernm

ents

disc

ussi

ons

and

mee

ting

for

Rab

ian

d fin

alis

atio

n

Dat

e24

/09/

2013

08/1

0/20

1315

/10/

2013

01/1

0/20

1317

/09/

2013

2.00

[2]

[2.1

][2

.1.1

]

Dis

cuss

ions

and

mee

tings

for

Kha

rif

and

final

izat

ion

Dat

e25

/03/

2014

29/0

3/20

1431

/03/

2014

27/0

3/20

1418

/03/

2014

2.00

[2.1

.2]

Pla

n fo

r pr

oduc

tion

and

impo

rt o

f fer

tiliz

ers

with

the

prod

ucer

s an

d im

port

ers

tom

eet t

he r

equi

rem

ents

disc

ussi

on a

ndm

eetin

g w

ithsu

pplie

rs fo

r R

abi

and

final

isat

ion

Dat

e27

/09/

2013

11/1

0/20

1318

/10/

2013

04/1

0/20

1320

/09/

2013

2.50

[2.2

][2

.2.1

]

Dis

cuss

ion

and

mee

tings

with

supp

liers

for

Kha

rif

and

final

izat

ion

Dat

e28

/03/

2014

30/0

3/20

1431

/03/

2014

29/0

3/20

1421

/03/

2014

2.50

[2.2

.2]

Mon

itori

ng o

f pro

duct

ion

vis-

a-vi

s in

stal

led

capa

city

.qu

arte

rly

repo

rts

with

in15

day

sof

end

of

31

02

41.

00[2

.3]

[2.3

.1]


169

Sec

tion

2:In

ter

se P

rior

ities

am

ong

Key

Obj

ectiv

es, S

ucce

ss in

dica

tors

and

Tar

gets

Obj

ectiv

eW

eigh

tA

ctio

nU

nit

Tar

get /

Cri

teri

a V

alue

Wei

ght

80%

100%

70%

60%

90%

Ver

y G

ood

Fai

r P

oor

Exc

elle

nt G

ood

Suc

cess

Indi

cato

r

quar

te

Mov

emen

t and

dis

trib

utio

n of

fert

ilize

rs in

coor

dina

tion

with

Sta

tes

.15

.00

Sta

te M

onth

ly p

lan

inco

nsul

tatio

n w

ith th

e S

tate

Agr

icul

ture

Dep

artm

ent a

ndth

e su

pplie

rs

Pre

pari

ng m

onth

lysu

pply

pla

n by

25t

hda

y of

the

prec

edin

gm

onth

day

ofth

em

onth

2628

2927

252.

00[3

][3

.1]

[3.1

.1]

mF

MS

pha

se II

nat

iona

l rol

lou

tco

mpl

ianc

e R

epor

tD

ate

24/0

3/20

1426

/03/

2014

28/0

3/20

1426

/03/

2014

21/0

3/20

142.

00[3

.2]

[3.2

.1]

Des

ign

final

isat

ion

of P

hase

IIIR

epor

tD

ate

21/0

3/20

1431

/03/

2014

31/0

3/20

1428

/03/

2014

14/0

3/20

143.

00[3

.3]

[3.3

.1]

Pilo

t on

usin

g in

land

wat

erw

ays

and

mov

emen

t of

fert

ilize

rs.

Pilo

t lau

nch

Dat

e28

/02/

2014

14/0

3/20

1421

/03/

2014

07/0

3/20

1421

/02/

2014

4.00

[3.4

][3

.4.1

]

Opt

imis

atio

n m

odel

on

supp

ly c

hain

man

agem

ent.

Rep

ort o

n th

e m

odel

Dat

e14

/02/

2014

28/0

2/20

1407

/03/

2014

21/0

2/20

1407

/02/

2014

2.00

[3.5

][3

.5.1

]

Rak

e av

aila

bilit

ym

onth

ly a

vaila

bilit

yof

rak

es a

sco

mpa

red

to ta

rget

% o

fta

rget

8060

5070

901.

00[3

.6]

[3.6

.1]

Ava

ilabi

lity

of c

oal &

qua

lity

com

plai

nts

rece

ived

and

redd

ress

alth

ereo

f

%80

6050

7090

1.00

[3.7

][3

.7.1

]

Tim

ely

disb

urse

men

t an

d m

anag

emen

t of

subs

idy.

18.0

0F

inal

izat

ion

of r

ates

of

subs

idy

for

N,P

,K, a

nd S

unde

r N

BS

pol

icy

Rat

e of

sub

sidy

for

the

next

yea

r fo

rN

,P,K

, and

S

Dat

e24

/03/

2014

28/0

3/20

1431

/03/

2014

27/0

3/20

1421

/03/

2014

4.50

[4]

[4.1

][4

.1.1

]

Fin

alis

atio

n of

Ure

a su

bsid

yra

tes

Ann

ual r

ates

for

Ure

a su

bsid

y fo

r th

eye

ar 2

012-

13

Dat

e06

/07/

2013

20/0

7/20

1327

/07/

2013

13/0

7/20

1329

/06/

2013

1.80

[4.2

][4

.2.1

]

Qua

rter

ly fi

nal r

ates

for

urea

Dat

e05

/10/

2013

19/1

0/20

1319

/10/

2013

12/1

0/20

1328

/09/

2013

0.90

[4.2

.2]


170

Sec

tion

2:In

ter

se P

rior

ities

am

ong

Key

Obj

ectiv

es, S

ucce

ss in

dica

tors

and

Tar

gets

Obj

ectiv

eW

eigh

tA

ctio

nU

nit

Tar

get /

Cri

teri

a V

alue

Wei

ght

80%

100%

70%

60%

90%

Ver

y G

ood

Fai

r P

oor

Exc

elle

nt G

ood

Suc

cess

Indi

cato

r

subs

idy

for

the

first

quar

ter

of 2

013-

14

Qua

rter

ly fi

nal r

ates

for

urea

sub

sidy

for

the

seco

nd q

uart

erof

201

3-14

Dat

e07

/01/

2014

21/0

1/20

1428

/01/

2014

14/0

1/20

1431

/12/

2013

0.90

[4.2

.3]

Qua

rter

ly fi

nal r

ates

for

urea

sub

sidy

for

the

third

qua

rter

of

2013

-14

Dat

e22

/03/

2014

30/0

3/20

1431

/03/

2014

29/0

3/20

1415

/03/

2014

0.90

[4.2

.4]

Pro

cess

ing

of c

laim

sre

ceiv

ed fr

om th

e su

pplie

rsP

aym

ent o

f sub

sidy

clai

m o

n in

dige

nous

urea

on

cont

inui

ngco

nces

sion

rat

e w

ithin

60

days

% o

fcl

aim

s95

8580

9010

01.

80[4

.3]

[4.3

.1]

Set

tlem

ent o

fes

cala

tion/

de-

esca

latio

n cl

aim

sre

gard

ing

indi

geno

us U

rea

base

d on

not

ifica

tion

of p

rovi

sion

alqu

arte

rly/

annu

alco

nces

sion

rat

esw

ith in

30

days

of

notif

icat

ion

% o

fcl

aim

sse

ttled

with

in 3

0da

ys o

fN

otifi

cati

on o

fra

tes

9585

8090

100

0.90

[4.3

.2]

98%

of t

he c

laim

edam

ount

for

impo

rted

urea

with

in 1

0w

orki

ng d

ays

ofre

ceip

t of

% o

fcl

aim

sse

ttled

9585

8090

100

1.80

[4.3

.3]


171

Sec

tion

2:In

ter

se P

rior

ities

am

ong

Key

Obj

ectiv

es, S

ucce

ss in

dica

tors

and

Tar

gets

Obj

ectiv

eW

eigh

tA

ctio

nU

nit

Tar

get /

Cri

teri

a V

alue

Wei

ght

80%

100%

70%

60%

90%

Ver

y G

ood

Fai

r P

oor

Exc

elle

nt G

ood

Suc

cess

Indi

cato

r

fully

doc

umen

ted

clai

ms

Set

tlem

ent o

fba

lanc

e cl

aim

for

impo

rted

ure

a w

ithin

30 w

orki

ng d

ays

ofse

ttlem

ent o

f 98%

paym

ent a

nd r

ecei

ptof

cla

im

% o

fcl

aim

sse

ttled

9585

8090

100

0.90

[4.3

.4]

Pay

men

t of O

nA

ccou

nt c

laim

equ

alto

85%

/90%

am

ount

with

in 1

0 da

ys o

fre

ceip

t of f

ully

docu

men

ted

clai

ms

for

Pho

spha

tic a

ndP

otas

sic

fert

ilize

rs

% o

fcl

aim

sse

ttled

9585

8090

100

2.25

[4.3

.5]

Pay

men

t of b

alan

ceam

ount

for

P&

Kw

ithin

30

days

of

initi

al p

aym

ent

subj

ect t

o sa

le o

ffe

rtili

zer

and

rece

ipt

of c

laim

% o

fcl

aim

sse

ttled

9585

8090

100

1.35

[4.3

.6]

Impr

ovin

g an

d m

onito

ring

the

perf

orm

ance

of P

SU

s.10

.00

Ful

film

ent o

f spe

cific

oblig

atio

ns u

nder

MO

U &

revi

ew o

f per

form

ance

of

PS

Us

Ful

fillm

ent o

fob

ligat

ions

und

erM

OU

%90

7060

8010

01.

00[5

][5

.1]

[5.1

.1]

Qua

rter

ly R

evie

wM

eetin

gs o

f the

PS

Us

with

in 4

5da

ys o

f the

end

No.

of

Mee

tings

2822

1824

323.

00[5

.1.2

]


172

Sec

tion

2:In

ter

se P

rior

ities

am

ong

Key

Obj

ectiv

es, S

ucce

ss in

dica

tors

and

Tar

gets

Obj

ectiv

eW

eigh

tA

ctio

nU

nit

Tar

get /

Cri

teri

a V

alue

Wei

ght

80%

100%

70%

60%

90%

Ver

y G

ood

Fai

r P

oor

Exc

elle

nt G

ood

Suc

cess

Indi

cato

r

Effi

cien

t Fun

ctio

ning

of t

he R

FD

Sys

tem

3.00

Tim

ely

subm

issi

on

of D

raft

RF

D20

14-1

5 fo

r A

ppro

val

On-

time

subm

issi

onD

ate

06/0

3/20

1408

/03/

2014

11/0

3/20

1407

/03/

2014

05/0

3/20

142.

0*

Tim

ely

subm

issi

on o

f Res

ults

for

2012

-13

On-

time

subm

issi

onD

ate

02/0

5/20

1306

/05/

2013

07/0

5/20

1303

/05/

2013

01/0

5/20

131.

0

Tran

spar

ency

/Ser

vice

del

iver

yM

inis

try/

Dep

artm

ent

3.00

Inde

pend

ent A

udit

ofim

plem

enta

tion

ofC

itize

ns’/C

lient

s’ C

hart

er (

CC

C)

% o

f im

plem

enta

tion

%95

8580

9010

02.

0*

Inde

pend

ent A

udit

ofim

plem

enta

tion

of P

ublic

Gri

evan

ce R

edre

ssal

Sys

tem

% o

f im

plem

enta

tion

%95

8580

9010

01.

0

Adm

inis

trat

ive

Ref

orm

s6.

00Im

plem

ent m

itiga

ting

stra

tegi

esfo

r re

duci

ng%

of i

mpl

emen

tatio

n%

9585

8090

100

1.0

*

* M

anda

tory

Obj

ectiv

e(s)

quar

ter

BR

PS

E-B

VF

CL

rest

ruct

urin

g.R

ecom

men

datio

nsof

BP

RS

ED

ate

17/0

1/20

1414

/02/

2014

28/0

2/20

1431

/01/

2014

31/1

2/20

132.

00[5

.2]

[5.2

.1]

BR

PS

E-M

FL

rest

ruct

urin

g.R

ecom

men

datio

nsof

BP

RS

ED

ate

17/0

1/20

1414

/02/

2014

28/0

2/20

1431

/01/

2014

31/1

2/20

132.

00[5

.3]

[5.3

.1]

BR

PS

E-F

AC

Tre

stru

ctur

ing.

Rec

omm

enda

tions

of B

PR

SE

Dat

e17

/01/

2014

14/0

2/20

1428

/02/

2014

31/0

1/20

1431

/12/

2013

2.00

[5.4

][5

.4.1

]

Res

earc

h &

Dev

elop

men

t Pro

gram

me

4.00

R &

D c

ell

sanc

tioni

ng o

f at

leas

t one

R &

Dpr

ojec

ts

Dat

e29

/11/

2013

31/0

1/20

1428

/02/

2014

31/1

2/20

1331

/10/

2013

1.00

[6]

[6.1

][6

.1.1

]

prep

erat

ion

ofm

oder

nisa

tion

plan

for

at le

ast o

ne lo

ssm

akin

g P

SU

Dat

e15

/11/

2013

17/0

1/20

1414

/02/

2014

20/1

2/20

1318

/10/

2013

1.00

[6.1

.2]

setti

ng u

p of

R&

Dce

ll in

the

Dep

t.D

ate

31/1

0/20

1331

/12/

2013

31/0

1/20

1429

/11/

2013

30/0

9/20

132.

00[6

.1.3

]


173

Sec

tion

2:In

ter

se P

riorit

ies

amon

g K

ey O

bjec

tives

, Suc

cess

indi

cato

rs a

nd T

arge

ts

Obj

ectiv

eW

eigh

tA

ctio

nU

nit

Tar

get /

Crit

eria

Val

ue

Wei

ght

80%

100%

70%

60%

90%

Very

Goo

d F

air

Poo

rE

xcel

lent

Goo

dS

ucce

ssIn

dica

tor

pote

ntia

l ris

k of

cor

rupt

ion

Impl

emen

t IS

O 9

001

as p

er th

eap

prov

ed a

ctio

n pl

an%

of i

mpl

emen

tatio

n%

9585

8090

100

2.0

Iden

tify,

des

ign

and

Impl

emen

tm

ajor

inno

vatio

ns.

Tim

ely

subm

issi

on o

f Act

ion

Pla

n fo

r en

ablin

g in

nova

tion

Dat

e16

/05/

2014

20/0

5/20

1421

/05/

2014

19/0

5/20

1415

/05/

2014

2.0

Iden

tific

atio

n of

cor

e an

d no

n-co

re a

ctiv

ities

of t

heM

inis

try/

Dep

artm

ent a

s pe

r 2n

dA

RC

rec

omm

enda

tions

Tim

ely

subm

issi

onD

ate

25/0

3/20

1427

/03/

2014

28/0

3/20

1426

/03/

2014

24/0

3/20

141.

0

Impr

ovin

g In

tern

alE

ffici

ency

/Res

pons

iven

ess.

2.00

Upd

ate

depa

rtm

enta

l stra

tegy

toal

ign

with

12t

h P

lan

prio

ritie

sT

imel

y up

datio

n of

the

stra

tegy

Dat

e17

/09/

2013

01/1

0/20

1308

/10/

2013

24/0

9/20

1310

/09/

2013

2.0

*

Ens

urin

g co

mpl

ianc

e to

the

Fin

anci

alA

ccou

ntab

ility

Fra

mew

ork

1.00

Tim

ely

subm

issi

on o

f AT

Ns

onA

udit

para

s of

C&

AG

Per

cent

age

of A

TN

ssu

bmitt

ed w

ithin

due

dat

e (4

mon

ths)

from

dat

e of

pres

enta

tion

of R

epor

t to

Par

liam

ent b

y C

AG

.dur

ing

the

year

.

%90

7060

8010

00.

25*

Tim

ely

subm

issi

on o

f AT

Rs

toth

e PA

C S

ectt.

on

PAC

Rep

orts

.P

erce

ntag

e of

AT

RS

subm

itted

with

in d

ue d

ate

(6

mon

ths)

from

dat

e of

pres

enta

tion

of R

epor

t to

Par

liam

ent b

y PA

C .d

urin

gth

e ye

ar.

%90

7060

8010

00.

25

Ear

ly d

ispo

sal o

f pen

ding

AT

Ns

on A

udit

Par

as o

f C&

AG

Rep

orts

pres

ente

d to

Par

liam

ent b

efor

e31

.3.2

012.

Per

cent

age

of o

utst

andi

ngAT

Ns

disp

osed

off

durin

gth

e ye

ar.

%90

7060

8010

00.

25

Ear

ly d

ispo

sal o

f pen

ding

AT

Rs

on P

AC

Rep

orts

pre

sent

ed to

Par

liam

ent

Per

cent

age

of o

utst

andi

ngAT

RS

dis

pose

d of

f dur

ing

the

%90

7060

8010

00.

25

* M

anda

tory

Obj

ectiv

e(s)


174

Sec

tion

2:In

ter

se P

rior

ities

am

ong

Key

Obj

ectiv

es, S

ucce

ss in

dica

tors

and

Tar

gets

Obj

ectiv

eW

eigh

tA

ctio

nU

nit

Tar

get /

Cri

teri

a V

alue

Wei

ght

80%

100%

70%

60%

90%

Ver

y G

ood

Fai

r P

oor

Exc

elle

nt G

ood

Suc

cess

Indi

cato

r

befo

re 3

1.3.

2012

year

.

* M

anda

tory

Obj

ectiv

e(s)

Sec

tion

3:Tr

end

Val

ues

of th

e S

ucce

ss In

dica

tors

Targ

et V

alue

for

Pro

ject

edV

alue

for

Obj

ectiv

eP

roje

cted

Val

ue fo

rA

ctio

nS

ucce

ss In

dica

tor

FY

11/

12

Uni

t

FY

13/

14F

Y 1

2/13

FY

14/

15

Act

ual V

alue

for

Act

ual V

alue

for

FY

15/

16

--

29/1

1/20

13D

ate

App

rova

l of C

CE

A.

Ens

urin

g po

licy

fram

ewor

k fo

rin

dige

nous

pro

duct

ion

and

impo

rt o

ffe

rtili

zers

and

thei

r su

pply

Sub

mis

sion

of C

CE

Ano

te o

n po

licy

for

exis

ting

urea

uni

ts b

yond

NP

S II

I

--

--

--

[1]

[1.1

][1

.1.1

]

--

31/0

1/20

14D

ate

sign

ing

of J

VF

urth

er a

ctio

n on

MO

Usi

gned

with

Gha

na fo

rse

tting

up

of U

rea

plan

t

--

--

--

[1.2

][1

.2.1

]

--

31/0

1/20

14D

ate

com

mis

sion

ing

ofge

ophy

sica

l stu

dy -

- -

- -

-[1

.2.2

]

--

30/1

1/20

13D

ate

App

rova

l of C

CE

AC

CE

A n

ote

for

revi

val o

fcl

osed

Ure

a un

its o

f FC

IL -

- -

- -

-[1

.3]

[1.3

.1]

--

28/0

2/20

14D

ate

App

rova

l of C

CE

AC

CE

A n

ote

on r

eviv

al o

fcl

osed

Ure

a un

its o

fH

FC

IL

--

--

--

[1.4

][1

.4.1

]

--

24/0

3/20

14D

ate

Not

ifica

tion

Fin

alis

atio

n of

NB

S p

olic

yfo

r 20

14-1

5 -

- -

- -

-[1

.5]

[1.5

.1]

--

31/1

0/20

13D

ate

In-p

rinc

iple

app

rova

lR

eviv

al o

f at l

east

one

clos

ed N

apth

a ba

sed

urea

pla

nt.

--

--

--

[1.6

][1

.6.1

]

--

29/1

1/20

13D

ate

In-p

rinc

iple

app

rova

lA

t lea

st o

ne G

reen

field

proj

ect.

--

--

--

[1.7

][1

.7.1

]

--

29/1

1/20

13D

ate

In-p

rinc

iple

app

rova

lA

t lea

st th

ree

brow

nfie

ldpr

ojec

ts.

--

--

--

[1.8

][1

.8.1

]

--

28/0

2/20

14D

ate

subm

issi

on o

fre

com

men

datio

ns to

the

Gov

ernm

ent

Stu

dy o

n w

orki

ng o

f NB

S -

- -

- -

-[1

.9]

[1.9

.1]

--

29/1

1/20

13D

ate

For

mat

ion

of a

t lea

ston

e JV

.F

acili

tatio

n of

Joi

ntV

entu

res

abro

ad b

yIn

dian

com

pani

es.

--

--

--

[1.1

0][1

.10.

1]


175

Sec

tion

3:Tr

end

Valu

es o

f the

Suc

cess

Indi

cato

rs

Targ

et V

alue

for

Pro

ject

edVa

lue

for

Obj

ectiv

eP

roje

cted

Valu

e fo

rA

ctio

nS

ucce

ss In

dica

tor

FY

11/

12

Uni

t

FY

13/

14F

Y 1

2/13

FY

14/

15

Act

ual V

alue

for

Act

ual V

alue

for

FY

15/

16

--

29/1

1/20

13D

ate

Pol

icy

notif

icat

ion.

Layi

ng d

own

of o

bjec

tive

and

trans

pare

nt c

riter

iafo

r se

lect

ion

of p

ropo

sals

for

new

cap

aciti

es in

ure

ain

res

pons

e to

NIP

-201

2.

--

--

--

[1.1

1][1

.11.

1]

--

21/0

2/20

14D

ate

Stra

tegy

pap

er.

Stra

tegy

pap

er fo

rex

pans

ion

of in

dige

nous

prod

uctio

n ca

paci

ty.

--

--

--

[1.1

2][1

.12.

1]

13/0

9/20

1120

/09/

2013

Dat

edi

scus

sion

s an

dm

eetin

g fo

r R

abi a

ndfin

alis

atio

n

Ass

essi

ng r

equi

rem

ents

, Pla

nnin

gan

d ar

rang

ing

for

prod

uctio

n an

dim

port

of f

ertil

izer

s fo

r m

eetin

gre

quire

men

ts

Fin

aliz

atio

n of

fert

ilize

rre

quire

men

ts fo

r th

ese

ason

in c

oord

inat

ion

with

Dep

artm

ent o

fA

gric

ultu

re a

ndC

oope

ratio

n an

d th

eS

tate

Gov

ernm

ents

19/0

9/20

1418

/09/

2015

04/0

9/20

12[2

][2

.1]

[2.1

.1]

17/0

2/20

1215

/03/

2013

Dat

eD

iscu

ssio

ns a

ndm

eetin

gs fo

r K

harif

and

final

izat

ion

14/0

3/20

1420

/03/

2015

12/0

2/20

13[2

.1.2

]

14/0

9/20

1123

/09/

2013

Dat

edi

scus

sion

and

mee

ting

with

sup

plie

rsfo

r R

abi a

ndfin

alis

atio

n

Pla

n fo

r pr

oduc

tion

and

impo

rt o

f fer

tiliz

ers

with

the

prod

ucer

s an

dim

port

ers

to m

eet t

here

quire

men

ts

26/0

9/20

1425

/09/

2015

10/0

9/20

12[2

.2]

[2.2

.1]

20/0

2/20

1216

/03/

2011

Dat

eD

iscu

ssio

n an

dm

eetin

gs w

ithsu

pplie

rs fo

r K

harif

and

final

izat

ion

21/0

3/20

1420

/03/

2015

15/0

2/20

13[2

.2.2

]


176

Sec

tion

3:Tr

end

Valu

es o

f the

Suc

cess

Indi

cato

rs

Targ

et V

alue

for

Pro

ject

edVa

lue

for

Obj

ectiv

eP

roje

cted

Valu

e fo

rA

ctio

nS

ucce

ss In

dica

tor

FY

11/

12

Uni

t

FY

13/

14F

Y 1

2/13

FY

14/

15

Act

ual V

alue

for

Act

ual V

alue

for

FY

15/

16

--

3w

ith in

15

days

of

end

ofqu

arte

quar

terly

rep

orts

Mon

itorin

g of

pro

duct

ion

vis-

a-vi

s in

stal

led

capa

city

.

--

--

--

[2.3

][2

.3.1

]

2326

day

of th

em

onth

Pre

parin

g m

onth

lysu

pply

pla

n by

25t

hda

y of

the

prec

edin

gm

onth

Mov

emen

t and

dis

trib

utio

n of

fert

ilize

rs in

coo

rdin

atio

n w

ith S

tate

s .

Sta

te M

onth

ly p

lan

inco

nsul

tatio

n w

ith th

eS

tate

Agr

icul

ture

Dep

artm

ent a

nd th

esu

pplie

rs

2525

25[3

][3

.1]

[3.1

.1]

--

24/0

3/20

14D

ate

com

plia

nce

Rep

ort

mF

MS

pha

se II

nat

iona

lro

ll ou

t -

- -

- -

-[3

.2]

[3.2

.1]

--

21/0

3/20

14D

ate

Rep

ort

Des

ign

final

isat

ion

ofP

hase

III

--

--

--

[3.3

][3

.3.1

]

--

28/0

2/20

14D

ate

Pilo

t lau

nch

Pilo

t on

usin

g in

land

wat

er w

ays

and

mov

emen

t of f

ertil

izer

s.

--

--

--

[3.4

][3

.4.1

]

--

14/0

2/20

14D

ate

Rep

ort o

n th

e m

odel

Opt

imis

atio

n m

odel

on

supp

ly c

hain

man

agem

ent.

--

--

--

[3.5

][3

.5.1

]

--

80%

of

targ

etm

onth

ly a

vaila

bilit

y of

rake

s as

com

pare

d to

targ

et

Rak

e av

aila

bilit

y90

90 -

-[3

.6]

[3.6

.1]

--

80%

com

plai

nts

rece

ived

and

redd

ress

al th

ereo

fA

vaila

bilit

y of

coa

l &qu

ality

9090

--

[3.7

][3

.7.1

]

--

24/0

3/20

14D

ate

Rat

e of

sub

sidy

for

the

next

yea

r fo

r N

,P,K

,an

d S

Tim

ely

disb

urse

men

t an

dm

anag

emen

t of s

ubsi

dy.

Fin

aliz

atio

n of

rate

s of

subs

idy

for

N,P

,K, a

nd S

unde

r N

BS

pol

icy

31/0

3/20

1531

/03/

2016

--

[4]

[4.1

][4

.1.1

]

--

06/0

7/20

13D

ate

Ann

ual r

ates

for

Ure

asu

bsid

y fo

r th

e ye

ar20

12-1

3

Fin

alis

atio

n of

Ure

asu

bsid

y ra

tes

--

--

--

[4.2

][4

.2.1

]


177

Sec

tion

3:Tr

end

Valu

es o

f the

Suc

cess

Indi

cato

rs

Targ

et V

alue

for

Pro

ject

edVa

lue

for

Obj

ectiv

eP

roje

cted

Valu

e fo

rA

ctio

nS

ucce

ss In

dica

tor

FY

11/

12

Uni

t

FY

13/

14F

Y 1

2/13

FY

14/

15

Act

ual V

alue

for

Act

ual V

alue

for

FY

15/

16

--

05/1

0/20

13D

ate

Qua

rter

ly fi

nal r

ates

for

urea

sub

sidy

for

the

first

qua

rter

of 2

013-

14

--

--

--

[4.2

.2]

--

07/0

1/20

14D

ate

Qua

rter

ly fi

nal r

ates

for

urea

sub

sidy

for

the

seco

nd q

uart

er o

f20

13-1

4

--

--

--

[4.2

.3]

--

22/0

3/20

14D

ate

Qua

rter

ly fi

nal r

ates

for

urea

sub

sidy

for

the

third

qua

rter

of 2

013-

14

--

--

--

[4.2

.4]

--

95%

of

clai

ms

Pay

men

t of s

ubsi

dycl

aim

on

indi

geno

usur

ea o

n co

ntin

uing

conc

essi

on ra

te w

ith in

60 d

ays

Pro

cess

ing

of c

laim

sre

ceiv

ed fr

om th

esu

pplie

rs

--

--

--

[4.3

][4

.3.1

]

--

95%

of

clai

ms

settl

edw

ithin

30

days

of

Not

ifica

tion

of ra

tes

Set

tlem

ent o

fes

cala

tion/

de-

esca

latio

n cl

aim

sre

gard

ing

indi

geno

usU

rea

base

d on

notif

icat

ion

ofpr

ovis

iona

lqu

arte

rly/a

nnua

lco

nces

sion

rate

s w

ithin

30

days

of

notif

icat

ion

--

--

--

[4.3

.2]

--

95%

of

clai

ms

98%

of t

he c

laim

edam

ount

for

--

--

--

[4.3

.3]


178

Sec

tion

3:Tr

end

Valu

es o

f the

Suc

cess

Indi

cato

rs

Targ

et V

alue

for

Pro

ject

edVa

lue

for

Obj

ectiv

eP

roje

cted

Valu

e fo

rA

ctio

nS

ucce

ss In

dica

tor

FY

11/

12

Uni

t

FY

13/

14F

Y 1

2/13

FY

14/

15

Act

ual V

alue

for

Act

ual V

alue

for

FY

15/

16

settl

edim

port

ed u

rea

with

in10

wor

king

day

s of

rece

ipt o

f ful

lydo

cum

ente

d cl

aim

s

--

95%

of

clai

ms

settl

ed

Set

tlem

ent o

f bal

ance

clai

m fo

r im

port

ed u

rea

with

in 3

0 w

orki

ng d

ays

of s

ettle

men

t of 9

8%pa

ymen

t and

rec

eipt

of

clai

m

--

--

--

[4.3

.4]

--

95%

of

clai

ms

settl

ed

Pay

men

t of O

nA

ccou

nt c

laim

equ

al to

85%

/90%

am

ount

with

in 1

0 da

ys o

fre

ceip

t of f

ully

docu

men

ted

clai

ms

for

Pho

spha

tic a

ndP

otas

sic

fert

ilize

rs

--

--

--

[4.3

.5]

--

95%

of

clai

ms

settl

ed

Pay

men

t of b

alan

ceam

ount

for

P&

K w

ithin

30 d

ays

of in

itial

paym

ent s

ubje

ct to

sale

of f

ertil

izer

and

rece

ipt

of c

laim

--

--

--

[4.3

.6]

--

90%

Ful

fillm

ent o

fob

ligat

ions

und

er M

OU

Impr

ovin

g an

d m

onito

ring

the

perfo

rman

ce o

f PS

Us.

Ful

film

ent o

f spe

cific

oblig

atio

ns u

nder

MO

U &

revi

ew o

f per

form

ance

of

PS

Us

--

--

--

[5]

[5.1

][5

.1.1

]

--

28N

o. o

fM

eetin

gsQ

uart

erly

Rev

iew

Mee

tings

of t

he P

SU

sw

ith in

45

--

--

--

[5.1

.2]


179

Sec

tion

3:Tr

end

Valu

es o

f the

Suc

cess

Indi

cato

rs

Targ

et V

alue

for

Pro

ject

edVa

lue

for

Obj

ectiv

eP

roje

cted

Valu

e fo

rA

ctio

nS

ucce

ss In

dica

tor

FY

11/

12

Uni

t

FY

13/

14F

Y 1

2/13

FY

14/

15

Act

ual V

alue

for

Act

ual V

alue

for

FY

15/

16

--

06/0

3/20

14D

ate

On-

time

subm

issi

onE

ffici

ent F

unct

ioni

ng o

f the

RF

DS

yste

mT

imel

y su

bmis

sion

of

Dra

ftR

FD

201

4-15

for

App

rova

l -

- -

- -

-*

--

02/0

5/20

14D

ate

On-

time

subm

issi

onT

imel

y su

bmis

sion

of R

esul

tsfo

r 20

12-1

3 -

- -

- -

-

--

95%

% o

f im

plem

enta

tion

Tran

spar

ency

/Ser

vice

del

iver

yM

inis

try/

Dep

artm

ent

Inde

pend

ent A

udit

ofim

plem

enta

tion

ofC

itize

ns’/C

lient

s’ C

hart

er

--

--

--

*

--

95%

% o

f im

plem

enta

tion

Inde

pend

ent A

udit

ofim

plem

enta

tion

of P

ublic

Grie

vanc

e R

edre

ssal

Sys

tem

--

--

--

* M

anda

tory

Obj

ectiv

e(s)

days

of t

he e

nd q

uart

er

--

17/0

1/20

14D

ate

Rec

omm

enda

tions

of

BP

RS

EB

RP

SE

-BV

FC

Lre

stru

ctur

ing.

--

--

--

[5.2

][5

.2.1

]

--

17/0

1/20

14D

ate

Rec

omm

enda

tions

of

BP

RS

EB

RP

SE

-MF

Lre

stru

ctur

ing.

--

--

--

[5.3

][5

.3.1

]

--

17/0

1/20

14D

ate

Rec

omm

enda

tions

of

BP

RS

EB

RP

SE

-FA

CT

rest

ruct

urin

g. -

- -

- -

-[5

.4]

[5.4

.1]

--

29/1

1/20

13D

ate

sanc

tioni

ng o

f at l

east

one

R &

D p

roje

cts

Res

earc

h &

Dev

elop

men

tP

rogr

amm

eR

& D

cel

l -

- -

- -

-[6

][6

.1]

[6.1

.1]

--

15/1

1/20

13D

ate

prep

erat

ion

ofm

oder

nisa

tion

plan

for

at le

ast o

ne lo

ssm

akin

g P

SU

--

--

--

[6.1

.2]

--

31/1

0/20

13D

ate

setti

ng u

p of

R&

D c

ell

in th

e D

ept.

--

--

--

[6.1

.3]


180

Sec

tion

3:Tr

end

Valu

es o

f the

Suc

cess

Indi

cato

rs

Targ

et V

alue

for

Pro

ject

edVa

lue

for

Obj

ectiv

eP

roje

cted

Valu

e fo

rA

ctio

nS

ucce

ss In

dica

tor

FY

11/

12

Uni

t

FY

13/

14F

Y 1

2/13

FY

14/

15

Act

ual V

alue

for

Act

ual V

alue

for

FY

15/

16

--

95%

% o

f im

plem

enta

tion

Adm

inis

trativ

e R

efor

ms

Impl

emen

t miti

gatin

g st

rate

gies

for

redu

cing

pot

entia

l ris

k of

corr

uptio

n

--

--

--

*

--

95%

% o

f im

plem

enta

tion

Impl

emen

t IS

O 9

001

as p

erth

e ap

prov

ed a

ctio

n pl

an -

- -

- -

-

--

95D

ate

Tim

ely

subm

issi

on o

f Act

ion

Pla

n fo

r en

ablin

g in

nova

tion

Iden

tify,

des

ign

and

Impl

emen

tm

ajor

inno

vatio

ns.

--

--

--

--

15/1

0/20

13D

ate

Tim

ely

subm

issi

onId

entif

icat

ion

of c

ore

and

non-

core

act

iviti

es o

f the

Min

istr

y/D

epar

tmen

t as

per

2nd

AR

C r

ecom

men

datio

ns

--

--

--

--

17/0

9/20

13D

ate

Tim

ely

upda

tion

of th

est

rate

gyIm

prov

ing

Inte

rnal

Effi

cien

cy/R

espo

nsiv

enes

s.U

pdat

e de

part

men

tal s

trate

gyto

alig

n w

ith 1

2th

Pla

n pr

iorit

ies

--

--

--

*

--

90%

Per

cent

age

of A

TN

ssu

bmitt

ed w

ithin

due

dat

e (4

mon

ths)

from

dat

e of

pres

enta

tion

of R

epor

t to

Par

liam

ent b

y C

AG

.dur

ing

the

year

.

Ens

urin

g co

mpl

ianc

e to

the

Fin

anci

alA

ccou

ntab

ility

Fra

mew

ork

Tim

ely

subm

issi

on o

f AT

Ns

onA

udit

para

s of

C&

AG

--

--

--

*

--

90%

Per

cent

age

of A

TR

Ssu

bmitt

ed w

ithin

due

dat

e (

6m

onth

s) fr

om d

ate

ofpr

esen

tatio

n of

Rep

ort t

oP

arlia

men

t by

PAC

.dur

ing

the

year

.

Tim

ely

subm

issi

on o

f AT

Rs

toth

e PA

C S

ectt.

on

PAC

Rep

orts

.

--

--

--

--

90%

Per

cent

age

of o

utst

andi

ngAT

Ns

disp

osed

off

durin

g th

eye

ar.

Ear

ly d

ispo

sal o

f pen

ding

ATN

s on

Aud

it P

aras

of C

&A

GR

epor

ts p

rese

nted

toP

arlia

men

t bef

ore

--

--

--

* M

anda

tory

Obj

ectiv

e(s)


181

Se

ctio

n 3

:Tr

en

d V

alu

es

of

the

Su

cce

ss In

dic

ato

rs

Targ

et V

alu

efo

rP

roje

cted

Va

lue fo

rO

bje

ctiv

eP

roje

cte

dV

alu

e fo

rA

ctio

nS

ucc

ess

In

dic

ato

r

FY

11

/12

Un

it

FY

13/1

4F

Y 1

2/1

3F

Y 1

4/1

5

Act

ua

l Valu

efo

rA

ctu

al V

alu

efo

rF

Y 1

5/1

6

31.3

.20

12.

--

90

%P

erc

enta

ge o

f outs

tandin

gAT

RS

dis

pose

d o

ff d

uri

ng the

year.

Earl

y dis

po

sal o

f pe

ndin

gAT

Rs

on P

AC

Report

spre

sen

ted to P

arl

iam

en

t befo

re31.3

.2012

--

--

--

* M

andato

ry O

bje

ctiv

e(s

)

Se

ctio

n 4

:A

cro

nym

Acr

onym

SI.N

oD

esc

rip

tion

Board

for

Indust

rial a

nd F

ina

nci

al R

eco

nst

ruct

ion

1B

IFR

Bra

hm

aputr

a V

alle

y F

ert

ilize

rs C

orp

ora

tion L

td.

2B

VF

CL

Cab

ine

t C

om

mitt

ee o

n E

conom

ic A

ffairs

3C

CE

A

Dep

art

ment

of

Agri

cultu

re a

nd C

oop

era

tion

4D

AC

De

part

men

t of A

gri

cultu

ral R

ese

arc

h a

nd E

du

catio

n5

DA

RE

Fert

ilize

rs a

nd

Chem

icals

Tra

vanco

re L

td.

6FA

CT


182

Sec

tion

4:A

cron

ym

Acr

onym

SI.N

oD

escr

iptio

n

FC

I- A

rava

li G

ypsu

m a

nd M

iner

als

Indi

a Lt

d.7

FAG

MIL

Join

t Ven

ture

8JV

Min

istr

y of

Ext

erna

l Affa

irs9

ME

A

Mad

ras

Fert

ilize

rs L

td.

10M

FL

mob

ile F

ertil

izer

Mon

itorin

g S

yste

m11

mF

MS

Min

istr

y of

Fin

ance

12M

OF


183

Sec

tion

4:A

cron

ym

Acr

onym

SI.N

oD

escr

iptio

n

Mem

oran

dum

of U

nder

stan

ding

13M

OU

Min

istr

y of

Pet

role

um a

nd N

atur

al G

as14

MP

NG

Nut

rient

Bas

ed S

ubsi

dy15

NB

S

Nat

iona

l Fer

tiliz

ers

Lim

ited

16N

FL

Nitr

ogen

, Pho

spha

te, P

otas

h, S

ulph

ur17

N,P

,K,S

On

Acc

ount

pay

men

t mea

ns p

aym

ent o

n th

e ba

sis

of c

laim

s of

the

com

pany

for

rece

ipt o

f fer

tiliz

ers

in th

e di

stric

t cer

tifie

d by

thei

r st

atut

ory

and

it or

for

whi

ch a

re s

ubje

ct to

fina

l set

tlem

ent b

y th

eD

epar

tmen

t on

the

basi

s of

fina

l rat

es a

nd c

ertif

icat

ion

of th

e S

tate

con

cern

ed, a

s ap

plic

able

18O

n A

ccou

nt


184

Sec

tion

4:A

cron

ym

Acr

onym

SI.N

oD

escr

iptio

n

Pla

nnin

g C

omm

issi

on19

PC

Pro

ject

s an

d D

evel

opm

ent I

ndia

Lim

ited

20P

DIL

Pub

lic S

ecto

r U

nder

taki

ngs

21P

SU

Qua

rter

ly R

evie

w M

eetin

g22

QR

M

Ras

htriy

a C

hem

ical

s an

d Fe

rtili

zers

Ltd

23R

CF


185

Se

ctio

n 4

:D

esc

riptio

n a

nd D

efin

itio

n o

f S

ucc

ess

In

dic

ato

rs a

nd P

rop

ose

d M

easu

rem

ent M

eth

odolo

gy

Su

cce

ss in

dic

ato

rD

esc

riptio

nD

efin

itio

nM

ea

sure

ment

SI.N

oG

enera

l Co

mm

ents

Sec

tion

5 :

Spe

cific

Per

form

ance

Req

uire

men

ts fr

om o

ther

Dep

artm

ents

Org

anis

atio

n Ty

peR

elev

ant S

ucce

ssIn

dica

tor

Wha

t is

your

requ

irem

ent f

rom

this

org

anis

atio

n

Just

ifica

tion

for

this

requ

irem

ent

Loca

tion

Type

Ple

ase

quan

tify

your

requ

irem

ent f

rom

this

Org

anis

atio

n

Wha

t hap

pens

ifyo

ur r

equi

rem

ent i

sno

t met

.S

tate

Org

anis

atio

n N

ame

Pro

posa

ls w

ill n

ot b

eap

prov

ed.

Com

men

ts/ v

iew

s on

prop

osal

/ Cab

inet

note

s

[1.1

.1] A

ppro

val o

fC

CE

A.

With

out I

nter

-Min

iste

rial

com

men

ts, p

ropo

sal o

f DO

F w

illno

t be

cons

ider

ed b

y th

eC

abin

et.

Cen

tral

Gov

ernm

ent

Dep

artm

ent o

f Agr

icul

ture

and

Coo

pera

tion

Dep

artm

ents

Pro

posa

ls w

ill n

ot b

eap

prov

ed.

Com

men

ts/ v

iew

s on

prop

osal

/ Cab

inet

note

s

[1.3

.1] A

ppro

val o

fC

CE

AW

ithou

t Int

er-M

inis

teria

lco

mm

ents

, pro

posa

l of D

OF

will

not b

e co

nsid

ered

by

the

Cab

inet

.

Pro

posa

ls w

ill n

ot b

eap

prov

ed.

Com

men

ts/ v

iew

s on

prop

osal

/ Cab

inet

note

s

CC

EA

not

eW

ithou

t Int

er-M

inis

teria

lco

mm

ents

, pro

posa

l of D

OF

will

not b

e co

nsid

ered

by

the

Cab

inet

.

No

rate

s fo

r N

PK

and

SP

ositi

ve R

espo

nse

toD

OF

pro

posa

lC

CE

A n

ote

With

out p

ositi

ve r

espo

nse,

Inte

r-M

inis

teria

l Com

mitt

ee w

illno

t abl

e to

fina

lise

NB

S p

olic

yfo

r 20

13-1

4

No

rate

s fo

r N

PK

and

SP

ositi

ve R

espo

nse

toD

OF

pro

posa

lC

CE

A n

ote

With

out p

ositi

ve r

espo

nse,

Inte

r-M

inis

teria

l Com

mitt

ee w

illno

t abl

e to

fina

lise

NB

S p

olic

yfo

r 20

13-1

4

Dep

artm

ent O

f Agr

icul

tura

lR

esea

rch

and

Edu

catio

n

No

prop

osal

s w

ill b

eap

prov

edP

ositi

ve R

espo

nse

toD

OF

pro

posa

l[1

.1.1

] App

rova

l of

CC

EA

.W

ithou

t pos

itive

res

pons

e,pr

opos

als

will

not

be

put u

p to

Cab

inet

Dep

artm

ent o

f Exp

endi

ture

No

prop

osal

s w

ill b

eap

prov

edP

ositi

ve R

espo

nse

toD

OF

pro

posa

l[1

.3.1

] App

rova

l of

CC

EA

With

out p

ositi

ve r

espo

nse,

prop

osal

s w

ill n

ot b

e pu

t up

toC

abin

et

No

prop

osal

s w

ill b

eap

prov

edP

ositi

ve R

espo

nse

toD

OF

pro

posa

l[1

.4.1

] App

rova

l of

CC

EA

With

out p

ositi

ve r

espo

nse,

prop

osal

s w

ill n

ot b

e pu

t up

toC

abin

et


186

Sec

tion

5 :

Spe

cific

Per

form

ance

Req

uire

men

ts fr

om o

ther

Dep

artm

ents

Org

anis

atio

n Ty

peR

elev

ant S

ucce

ssIn

dica

tor

Wha

t is

your

requ

irem

ent f

rom

this

org

anis

atio

n

Just

ifica

tion

for

this

requ

irem

ent

Loca

tion

Type

Ple

ase

quan

tify

your

requ

irem

ent f

rom

this

Org

anis

atio

n

Wha

t hap

pens

ifyo

ur r

equi

rem

ent i

sno

t met

.S

tate

Org

anis

atio

n N

ame

Sho

rtag

es o

f sup

plie

s m

ayoc

cur

Ass

essm

ent o

fFe

rtili

zer d

eman

d[2

.1.1

] dis

cuss

ions

and

mee

ting

for

Rab

i and

final

isat

ion

With

out f

inal

izin

g de

man

dpl

anni

ng fo

r su

pply

will

ham

per.

Dep

artm

ent o

f Agr

icul

ture

and

Coo

pera

tion

Sho

rtag

es o

f sup

plie

s m

ayoc

cur

Ass

essm

ent o

fFe

rtili

zer d

eman

d[2

.1.2

] Dis

cuss

ions

and

mee

tings

for

Kha

rif a

ndfin

aliz

atio

n

With

out f

inal

izin

g de

man

dpl

anni

ng fo

r su

pply

will

ham

per.

Pay

men

ts w

ill b

e de

laye

dA

dequ

ate

budg

etpr

ovis

ions

[4.3

.1] P

aym

ent o

fsu

bsid

y cl

aim

on

indi

geno

us u

rea

onco

ntin

uing

con

cess

ion

rate

with

in 6

0 da

ys

With

out a

lloca

tion

paym

ents

will

be d

elay

edA

s pe

r as

sess

men

t of t

heD

OF

Min

istr

y of

Fin

ance

Min

istr

y

Pay

men

ts w

ill b

e de

laye

dA

dequ

ate

budg

etpr

ovis

ions

[4.3

.2] S

ettle

men

t of

esca

latio

n/de

-esc

alat

ion

clai

ms

rega

rdin

gin

dige

nous

Ure

a ba

sed

on n

otifi

catio

n of

prov

isio

nal

quar

terly

/ann

ual

conc

essi

on ra

tes

with

in30

day

s of

not

ifica

tion

With

out a

lloca

tion

paym

ents

will

be d

elay

edA

s pe

r as

sess

men

t of t

heD

OF

Pay

men

ts w

ill b

e de

laye

dA

dequ

ate

budg

etpr

ovis

ions

[4.3

.3] 9

8% o

f the

clai

med

am

ount

for

impo

rted

ure

a w

ithin

10

wor

king

day

s of

rec

eipt

of fu

lly d

ocum

ente

dcl

aim

s

With

out a

lloca

tion

paym

ents

will

be d

elay

edA

s pe

r as

sess

men

t of t

heD

OF

Pay

men

ts w

ill b

e de

laye

dA

dequ

ate

budg

etpr

ovis

ions

[4.3

.4] S

ettle

men

t of

bala

nce

clai

m fo

rW

ithou

t allo

catio

n pa

ymen

ts w

illbe

del

ayed

As

per

asse

ssm

ent o

f the

DO

F


187

Sec

tion

5 :

Spe

cific

Per

form

ance

Req

uire

men

ts fr

om o

ther

Dep

artm

ents

Org

anis

atio

n Ty

peR

elev

ant S

ucce

ssIn

dica

tor

Wha

t is

your

requ

irem

ent f

rom

this

org

anis

atio

n

Just

ifica

tion

for

this

requ

irem

ent

Loca

tion

Type

Ple

ase

quan

tify

your

requ

irem

ent f

rom

this

Org

anis

atio

n

Wha

t hap

pens

ifyo

ur r

equi

rem

ent i

sno

t met

.S

tate

Org

anis

atio

n N

ame

Pay

men

ts w

ill b

e de

laye

dA

dequ

ate

budg

etpr

ovis

ions

impo

rted

ure

a w

ithin

30

wor

king

day

s of

settl

emen

t of 9

8%pa

ymen

t and

rec

eipt

of

clai

m

With

out a

lloca

tion

paym

ents

will

be d

elay

edA

s pe

r as

sess

men

t of t

heD

OF

Pay

men

ts w

ill b

e de

laye

dA

dequ

ate

budg

etpr

ovis

ions

[4.3

.5] P

aym

ent o

f On

Acc

ount

cla

im e

qual

to85

%/9

0% a

mou

nt w

ithin

10 d

ays

of r

ecei

pt o

ffu

lly d

ocum

ente

d cl

aim

sfo

r P

hosp

hatic

and

Pot

assi

c fe

rtili

zers

With

out a

lloca

tion

paym

ents

will

be d

elay

edA

s pe

r as

sess

men

t of t

heD

OF

Pay

men

ts w

ill b

e de

laye

dA

dequ

ate

budg

etpr

ovis

ions

[4.3

.6] P

aym

ent o

fba

lanc

e am

ount

for

P&

Kw

ithin

30

days

of i

nitia

lpa

ymen

t sub

ject

to s

ale

of fe

rtili

zer

and

rece

ipt

of c

laim

With

out a

lloca

tion

paym

ents

will

be d

elay

edA

s pe

r as

sess

men

t of t

heD

OF

Sho

rtag

es o

f sup

plie

s m

ayoc

cur

Ass

essm

ent o

fFe

rtili

zer

dem

and

[2.1

.1] d

iscu

ssio

ns a

ndm

eetin

g fo

r R

abi a

ndfin

alis

atio

n

With

out f

inal

izin

g de

man

dpl

anni

ng fo

r su

pply

will

ham

per.

Ass

amS

tate

Gov

ernm

ent

Sta

te D

epar

tmen

tsD

epar

tmen

ts

Sho

rtag

es o

f sup

plie

s m

ayoc

cur

Ass

essm

ent o

fFe

rtili

zer

dem

and

[2.1

.2] D

iscu

ssio

ns a

ndm

eetin

gs fo

r K

harif

and

final

izat

ion

With

out f

inal

izin

g de

man

dpl

anni

ng fo

r su

pply

will

ham

per.

Sho

rtag

es o

f sup

plie

s m

ayoc

cur

Ass

essm

ent o

fFe

rtili

zer

dem

and

[2.1

.1] d

iscu

ssio

ns a

ndm

eetin

g fo

r R

abi a

ndfin

alis

atio

n

With

out f

inal

izin

g de

man

dpl

anni

ng fo

r su

pply

will

ham

per.

D/o

Agr

icul

ture


188

Sec

tion

5 :

Spe

cific

Per

form

ance

Req

uire

men

ts fr

om o

ther

Dep

artm

ents

Org

anis

atio

n Ty

peR

elev

ant S

ucce

ssIn

dica

tor

Wha

t is

your

requ

irem

ent f

rom

this

org

anis

atio

n

Just

ifica

tion

for

this

requ

irem

ent

Loca

tion

Type

Ple

ase

quan

tify

your

requ

irem

ent f

rom

this

Org

anis

atio

n

Wha

t hap

pens

ifyo

ur r

equi

rem

ent i

sno

t met

.S

tate

Org

anis

atio

n N

ame

Sho

rtag

es o

f sup

plie

s m

ayoc

cur

Ass

essm

ent o

fF

ertil

izer

dem

and

[2.1

.2] D

iscu

ssio

ns a

ndm

eetin

gs fo

r K

harif

and

final

izat

ion

With

out f

inal

izin

g de

man

dpl

anni

ng fo

r su

pply

will

ham

per.

Sho

rtag

es o

r ex

cess

of

supp

lies

Val

idat

ion

of s

uppl

ypl

an[3

.1.1

] Pre

parin

gm

onth

ly s

uppl

y pl

an b

y25

th d

ay o

f the

prec

edin

g m

onth

With

out t

his,

sup

ply

will

mis

mat

ch w

ith S

tate

sre

quire

men

t

Sta

te D

epar

tmen

ts

Pay

men

t to

com

pani

es w

illbe

del

ayed

Rec

eipt

cer

tific

atio

n[4

.3.5

] Pay

men

t of O

nA

ccou

nt c

laim

equ

al to

85%

/90%

am

ount

with

in10

day

s of

rec

eipt

of

fully

doc

umen

ted

clai

ms

for

Pho

spha

tic a

ndP

otas

sic

fert

ilize

rs

Bal

ance

cla

ims

will

onl

y be

pai

don

ce r

ecei

pts

are

conf

irm

ed b

yS

tate

Gov

t.

D/o

Agr

icul

ture

Pay

men

t to

com

pani

es w

illbe

del

ayed

Rec

eipt

cer

tific

atio

n[4

.3.6

] Pay

men

t of

bala

nce

amou

nt fo

r P

&K

with

in 3

0 da

ys o

f ini

tial

paym

ent s

ubje

ct to

sal

eof

fert

ilize

r an

d re

ceip

tof

cla

im

Bal

ance

cla

ims

will

onl

y be

pai

don

ce r

ecei

pts

are

conf

irm

ed b

yS

tate

Gov

t.

Pay

men

t to

com

pani

es w

illbe

del

ayed

Rec

eipt

cer

tific

atio

n[4

.3.5

] Pay

men

t of O

nA

ccou

nt c

laim

equ

al to

85%

/90%

am

ount

with

in10

day

s of

rec

eipt

of

fully

doc

umen

ted

clai

ms

for

Pho

spha

tic a

ndP

otas

sic

fert

ilize

rs

Bal

ance

cla

ims

will

onl

y be

pai

don

ce r

ecei

pts

are

conf

irm

ed b

yS

tate

Gov

t.


189

Sec

tion

5 :

Spe

cific

Per

form

ance

Req

uire

men

ts fr

om o

ther

Dep

artm

ents

Org

anis

atio

n Ty

peR

elev

ant S

ucce

ssIn

dica

tor

Wha

t is

your

requ

irem

ent f

rom

this

org

anis

atio

n

Just

ifica

tion

for

this

requ

irem

ent

Loca

tion

Type

Ple

ase

quan

tify

your

requ

irem

ent f

rom

this

Org

anis

atio

n

Wha

t hap

pens

ifyo

ur r

equi

rem

ent i

sno

t met

.S

tate

Org

anis

atio

n N

ame

Pay

men

t to

com

pani

es w

illbe

del

ayed

Rec

eipt

cer

tific

atio

n[4

.3.5

] Pay

men

t of O

nA

ccou

nt c

laim

equ

al to

85%

/90%

am

ount

with

in10

day

s of

rec

eipt

of

fully

doc

umen

ted

clai

ms

for

Pho

spha

tic a

ndP

otas

sic

fert

ilize

rs

Bal

ance

cla

ims

will

onl

y be

pai

don

ce r

ecei

pts

are

conf

irmed

by

Sta

te G

ovt.

Pay

men

t to

com

pani

es w

illbe

del

ayed

Rec

eipt

cer

tific

atio

n[4

.3.6

] Pay

men

t of

bala

nce

amou

nt fo

r P

&K

with

in 3

0 da

ys o

f ini

tial

paym

ent s

ubje

ct to

sal

eof

fert

ilize

r an

d re

ceip

tof

cla

im

Bal

ance

cla

ims

will

onl

y be

pai

don

ce r

ecei

pts

are

conf

irmed

by

Sta

te G

ovt.

Sec

tion

6:O

utco

me/

Impa

ct o

f Dep

artm

ent/M

inis

try

Out

com

e/Im

pact

of

Dep

artm

ent/M

inis

try

Join

tly r

espo

nsib

le fo

rin

fluen

cing

this

out

com

e /

impa

ct w

ith th

e fo

llow

ing

depa

rtm

ent (

s) /

min

istr

y(ie

s)

Suc

cess

Indi

cato

rF

Y 1

1/12

FY

13/

14F

Y 1

2/13

FY

14/

15F

Y 1

5/16

Uni

t

219.

8424

8.72

Dom

estic

pro

duct

ion

of U

rea

Impr

oved

cap

acity

for

dom

estic

pro

duct

ion

thro

ugh

revi

val o

f clo

sed

units

.

DP

E, M

OF

and

BIF

R25

526

522

3.87

(E

)1

LMT

206.

2723

3.47

inst

alle

d ca

paci

tyIn

crea

se in

inst

alle

d ca

paci

tyfo

r ur

ea p

rodu

ctio

nM

PN

G fo

r ga

s av

aila

bilit

y, M

/o C

oal f

orpo

ssib

le a

ltern

ativ

e fe

ed s

tock

, MO

F a

ndP

C fo

r ad

equa

te fu

nds

for

publ

ic s

ecto

rin

vest

men

t.

243

253

215.

97(E

)2

LMT

78.3

475

Impo

rt o

f Ure

a70

6580

(E)

LMT

all s

tate

sal

l sta

tes

No

shor

tfall

in v

aila

bilit

y of

fert

ilise

rsA

dequ

ate

and

timel

yav

aila

bilit

y of

sup

plie

sR

ailw

ays,

D/o

Shi

ppin

g, R

oad

Tran

spor

t,S

tate

Gov

ernm

ents

,sup

plie

rs a

ndim

port

ers.

all s

tate

sal

l sta

tes

all s

tate

s3

Ava

ilabi

lity

repo

rts

from

2N

umbe

r of

JV

ent

ered

JV A

broa

dM

EA

, DoF

, MP

NG

, PC

22

4N

umbe

r

annual_report2013-14 eng.pdf

Documents