dept of fertilsers 2009-10 report
TRANSCRIPT
GOVERNMENT OF INDIAMINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
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ANNUAL REPORT2009-2010
GOVERNMENT OF INDIAMINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS
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CONTENTS
S.No. Subjects Page No.
1. Introduction 5-11
2. Organizational Set up and Functions 12-13
3. Development & Growth of Fertilizer Industry 14-21
4. Availability of Major Fertilizers during 2009-10 22-23
5. Plan Performance 24-25
6. Measures of Support for Fertilizers 26-41
7. Public Sector Undertakings and Cooperative Societies 42-72
8. Fertilizer Education Projects 73-74
9. Information Technology (IT) 75-79
10. Vigilance Activities 80
11. Right to Information Act, 2005 81
12. Progressive Use of Official Language (Hindi) 82-83
13. Welfare of SCs, STs, OBCs and Physically Handicapped Persons 84-85
14. Women Empowerment 86-88
15. ANNEXURES I to XII 89-104
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Shri M.K. Alagiri, Hon’ble Minister (C&F) along with Shri Srikant Kumar Jena, Hon’ble Minister of State (C&F)receiving dividend cheque from Dr. Chandrapal Singh, Chairman, KRIBHCO
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1.1 Introduction
1.1.1 Agriculture which accounts for one fifth ofGDP, provides sustenance to two-thirds ofour population. Besides, it provides crucialbackward and forward linkages to the rest ofthe economy. Successive five-year plan havelaid stress on self-sufficiency and self-reliancein food grains production and concertedefforts in this direction have resulted insubstantial increase in agriculture productionand productivity. This is clear from the factthat from a very modest level of 52 millionMT in 1951-52, food grain production roseto about 233.88 million MT in 2008-09. InIndia’s success in agriculture sector, not onlyin terms of meeting total requirement of foodgrains but also generating exportablesurpluses the significant role played bychemical fertilizers is well recognized andestablished.
1.1.2 Keeping in view the vital role played bychemical fertilizers in the success of India’sgreen revolution and consequent self-reliancein food-grain production, the Government ofIndia has been consistently pursuing policiesconducive to increased availability andconsumption of fertilizers in the country. Asa result, the annual consumption of fertilizersin nutrient terms (N, P & K), has increasedfrom 0.7 lakh MT in 1951-52 to 249.09 lakhMT 2008-09, while per hectare consumptionof fertilizers, which was less than 1 Kg in1951-52 has risen to the level of 128.60 Kg(estimated) in 2008-09.
1.1.3 As of now, the country has achieved nearself-sufficiency in production capacity of ureawith the result that India could substantiallymanage its requirement of nitrogenousfertilizers through the indigenous industry. Incase of phospatic fertilizers, nearly 50% ofdomestic requirement is met through
indigenous production. Even for that, the rawmaterials and intermediates for are largelyimported. As for potash (K) since there areno viable sources/reserves in the country, itsentire requirement is met through imports.
1.2 Growth of Fertilizer Industry
1.2.1. The industry made a very humble beginningin 1906, when the first manufacturing unit ofSingle Super Phosphate (SSP) was set upin Ranipet near Chennai with an annualcapacity of 6000 MT. The Fertilizer &Chemicals Travancore of India Ltd. (FACT)at Cochin in Kerala and the FertilizersCorporation of India (FCI) in Sindri in Bihar(now Jharkhand) were the first large sized -fertilizer plants set up in the forties and fiftieswith a view to establish an industrial base toachieve self-sufficiency in food-grains.Subsequently, green revolution in the latesixties gave an impetus to the growth offertilizer industry in India and the seventiesand eighties then witnessed a significantaddition to the fertilizer production capacity.
1.2.2 The installed capacity as on 31.03.2009 hasreached a level of 120.61 lakh MT of nitrogenof capacity of which the non functionalcapacity is estimated as 10.52 lakh MT and56.59 lakh MT of phosphatic nutrient, makingIndia the 3rd largest fertilizer producer in theworld. The rapid build-up of fertilizerproduction capacity in the country has beenachieved as a result of a favourable policyenvironment facilitating large investments inthe public, co-operative and private sectors.Presently, there are 56 large size fertilizerplants in the country manufacturing a widerange of nitrogenous, phosphatic andcomplex fertilizers. Out of these, 30 (as ondate 28 are functioning) units produce urea,21 units produce DAP and complex fertilizers,
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5 units produce low analysis straightnitrogenous fertilizers and the remaining 9manufacture ammonium sulphate as by-product. Besides, there are about 72 mediumand small-scale units in operation producingSSP. The sector-wise installed capacity isgiven in the table below: -
SECTOR-WISE, NUTRIENT-WISE INSTALLEDCAPACITY OF FERTILIZER MANUFACTURINGUNITS AS ON 31.03.2009.
Sr. Sector Capacity PercentageNo. (lakh MT) Share
N P N P
1 Public Sector 34.98 4.33 29.0 7.65
2 Cooperative Sector 31.69 17.13 26.27 30.27
3 Private Sector 53.94 35.13 44.73 62.08
Total: 120.61 56.59 100.00 100.00
1.3 Self-sufficiency in Fertilizer Sector
1.3.1 Out of three main nutrients namely nitrogen,phosphate and potash, (N,P&K) required forvarious crops, indigenous raw materials areavailable mainly for nitrogenous fertilizers.The Government’s policy has hence aimedat achieving the maximum possible degreeof self-sufficiency in the production ofnitrogenous fertilizers based on utilisation ofindigenous feedstock. Prior to 1980,nitrogenous fertilizer plants were mainlybased on naphtha as feedstock. A numberof fuel oil/LSHS based ammonia-urea plantswere also set up during 1978 to 1982. In1980, two coal-based plants were set up forthe first time in the country at Talcher,(Orissa) and Ramagundam, (AndhraPradesh). These coal based plants have,however, been closed by Government w.e.f.1.4.2002 due to technical and financial non-viability. However, with natural gas becomingavailable from offshore Bombay High andSouth Basin, a number of gas basedammonia-urea plants have been set up since
1985. As the usage of gas increased and itsavailable supply dwindled, a number ofexpansion projects came up in the last fewyears with dual feed facility using bothnaphtha and gas. Feasibility of makingavailable Liquefied Natural Gas (LNG) tomeet the demand of existing fertilizer plantand/or for their expansion projects along withthe possibility for utilising newly discoveredgas reserves, is also being explored byvarious fertilizer companies in India.
1.3.2. In case of phosphates, the paucity ofdomestic raw material has been a constraintin the attainment of self-sufficiency in thecountry. Indigenous rock phosphate suppliesmeet only 5-10% of the total requirement ofP2O5. A policy has therefore been adoptedwhich involves mix of three options, viz,domestic production based on indigenous/imported rock phosphate, imported sulphurand ammonia; domestic production basedon indigenous / imported intermediates, viz.ammonia and phosphoric acid; and third,import of finished fertilizers. During 2008-09roughly 65% of the requirement of phosphaticfertilizers was met through the first twooptions.
1.3.3. In the absence of commercially exploitablepotash sources in the country, the entiredemand of potassic fertilizers for directapplication as well as for production ofcomplex fertilizers is met through imports.
1.3.4. Given the volatility in international market forfertilizers in general and urea market inparticular, marginal provision through importscould be used to the country’s strategicadvantage. This is also desirable as theinternational market, especially in case ofurea, is very sensitive to demand supplyscenario. Under the new pricing regime forurea units applicable since 01.04.2003, forsecuring additional indigenous supply of urea,economically efficient units are beingpermitted to produce beyond their re-assessed capacity to substitute/ minimizeimports.
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1.4 Fertilizer Subsidy
1.4.1 The subsidy on fertilizers is passed on tothe farmers in the form of subsidized MRPs.The selling prices as notified by Governmentfor the subsidized fertilizers are much lowerthan the normative delivered cost of thesefertilizers at farm gate level. The differencebetween the normative delivered cost at farmgate level and the notified selling prices ispaid as subsidy to manufacturers/importerson sale of fertilizers to the farmers at thesubsidized prices.
1.4.2 The increase in rate of subsidy on fertilizerscombined with increase in consumption offertilizers has led to a substantial increase inrequirement of subsidy. In spite of increasein cost of fertilizers, the Government hascompletely kept the farmers insulated fromthis increase in cost and have increased thesubsidy allocations to meet the consumptionneeds of the farmer at subsidized level ofprices. The subsidy on fertilizers has beenincreased sharply over the last few years.The details of fertilizer subsidy over the lastfew years are as below:-
1.4.3 The steady increase in fertilizer subsidiesover the years has largely been the result ofincreasing production / consumption andincreases in the costs of inputs of indigenousfertilizers and prices of imported fertilizersfrom time to time. The cost of various inputs/ utilities, such as coal, gas, naphtha, rockphosphate, sulphur, ammonia, phosphoricacid, electricity, etc., as also the cost oftransportation, went up significantly duringthe eighties. The gas-based fertilizer unitscommissioned during this period alsoinvolved higher capital investment per tonneof installed capacity, necessitating constantupward revision in the retention prices. Theselling prices of fertilizers to the farmers,however, remained almost at the same levelbetween July, 1981 and July 1991. TheGovernment effected an increase of 30% inthe issue prices of fertilizers in August, 1991after a gap of a decade. The selling price ofurea, which was reduced by 10% in August1992, was revised upwards by 20% in June1994 followed by another increase by 10%with effect from 21.2.97. The prices of ureawere again revised in February 2002 by 5%
FERTILIZER SUBSIDY(Rs. in Crores)
Years Subsidy Released Total Liabilities Netsubsidy Carryover incidence
disbursed to next of subsidyyear
Urea Indigenous Imported Total(P&K) (P&K) (P&K)
2002-03 7788 2488 737 3225 11013
2003-04 8509 2606 720 3326 11835 2002
2004-05 10986 3977 1165 5142 16128 3372 17498
2005-06 11749 4500 2050 6550 18299 5914 20841
2006-07 15354 6648 3950 10598 25952 8788 28826
2007-08 23204 10334 6800 17134 40338 5000 36550
2008-09 33901 32957 32598 65555 99456 17158 111614
2009-10* 25258 15447 16351 31798 57056 74214
*Estimated
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and by Rs. 240 PMT of urea w.e.f. 28.2.2003.The price increase made effective from28.2.2003 was, however, later withdrawnw.e.f 12.3.2003. The current price is Rs. 4830per tonne exclusive of local levies. However,the hikes in prices of urea have not materiallyaltered the position in terms of the absoluteoutgo in the form of subsidy, because of thesteady growth in production to meet thegrowing demand and rise in the costs ofinputs.
1.5 Fertilizer Pricing Policy
1.5.1 Given the importance of fertilizer pricing andsubsidization in the overall policyenvironment, which has direct implicationswith reference to the growth and developmentof agriculture and sustainability of the fertilizerindustry, the need for streamlining thesubsidy scheme in respect of urea producingunits had been felt for a long time. A HighPowered Fertilizer Pricing Policy ReviewCommittee (HPC) was constituted, under thechairmanship of Prof. C.H. Hanumantha Rao,to review the existing system of subsidizationof urea, suggest an alternative broad-based,scientific and transparent methodology, andrecommend measures for greatercohesiveness in the policies applicable todifferent segments of the industry. The HPC,in its report submitted to the Government on3rd April 1998, inter-alia, recommended thatunit-wise RPS for urea may be discontinuedand, instead, a uniform Normative ReferralPrice be fixed for existing gas based ureaunits and also for DAP and a FeedstockDifferential Cost Reimbursement (FDCR) begiven for a period of five years for non-gasbased urea units.
1.5.2. The Expenditure Reforms Commission(ERC), headed by Shri K.P. Geethakrishnan,had also examined the issue of rationalizingfertilizer subsidies. In its report submitted on20th September 2000, the ERCrecommended, inter-alia, dismantling ofexisting RPS and in its place the introductionof a Concession Scheme for urea units basedon feedstock used and the vintage of plants.
1.5.3. The recommendations of ERC wereexamined in consultation with the concernedMinistries/Departments. The views of thefertilizer industry and the State Governments/Union territories, and economists/researchinstitutes were also obtained. After dueexamination of all these views, a New PricingScheme (NPS) for urea units for replacingthe RPS was formulated and notified on30.1.2003. The new scheme took effect from1.4.2003. It aims at inducing the urea unitsto achieve internationally competitive levelsof efficiency, besides bringing in greatertransparency and simplification in subsidyadministration.
1.5.4. New Pricing Scheme (NPS) for urea wasintroduced 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 to31st March, 2006. With the Stage-III of NPSbeing implemented w.e.f. 1st October, 2006,the Stage-II of NPS stands extended upto31st September, 2006.
1.5.5. Under NPS, the existing urea units have beendivided into six groups based on vintage andfeedstock for determining the group basedconcession. These groups are : Pre-1992gas based units, post-1992 gas based units,pre-1992 naphtha based units, post-1992naphtha based units, fuel oil/low sulphurheavy stock (FO/LSHS) based units andmixed energy based units. The mixed energybased group shall include such gas basedunits that use alternative feedstock/fuel tothe extent of more than 25% as admissibleon 1.4.2002.
1.5.6. Under NPS, escalation/de-escalation is givenin respect of variable cost related to changesin the price of feedstock, fuel, purchasedpower and water. Under the scheme, noreimbursement is allowed in respect ofinvestment made by a unit for improvementin its operations nor are the gains as a resultof operational efficiencies to be mopped up.
1.5.7. It has also been provided under the schemethat the concession rates during Stage-II shall
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be adjusted for reduction in capital relatedcharges and enforcement of efficient energynorms. Pre-set energy norms for urea unitsduring Stage-II of NPS have already beennotified and intimated to urea units. Reductionin rates of concession during Stage-II of NPSfor urea units on account of reduction incapital related charges have also beennotified and intimated to urea units.
1.6 Amendments to New Pricing SchemeStage - III for Urea Units.
Following amendments in NPS III have been made
1.6.1 It has been decided that the reduction in thefixed cost of each Urea units strictly due toGroup Averaging principle under the NewPricing Scheme III will be restricted to 10%of the Normated Fixed Cost computed underthe base concession rates. The limitation on
reduction of fixed cost will be applicable w.e.f1st April, 2009.
1.6.2 Capacity utilization of Post – 1992 Napthabased Group Average will be considered as95% instead of 98% for calculating the baseconcession rates of urea units provided nocost towards conversion is recognized underNPS III. The approved amendments will helpthe indigenous urea units reduce their lossesdue to the group averaging under NewPricing Scheme Stage - III and help them togenerate resources for reinvestment in theirplants towards modernization and increasedefficiency.
1.6.3 To maintain stocks of urea in case there iseither a shortfall in production due todisruption in supplies of feedstocks or delay/disruption in imports and to tide over thesudden spurt in demand/shortages, a buffer
Shri M.K. Alagiri, Hon’ble Minister (C&F) giving awards at Fertilizer Association of India Seminar held at Hyderabad.
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stocking scheme for urea is underimplementation in major States. Thecompanies are reimbursed buffer stockingexpenses on following parameters.
(i) The company operating the buffer stockwill be entitled to Inventory Carrying Cost(ICC) at a rate 1 percentage point less thanthe PLR of SBI as notified from time to time.This rate would be applicable at Rs 4650per MT (MRP less than the dealer’s margini.e. Rs 4830- Rs 180) for the quantity andthe duration for which the stock is carried asbuffer. In case of cooperatives, it will be atRs 4630 per MT as dealers margin in thiscase is Rs 200 per MT.
(ii) The company will be paid warehousingand insurance charges at the rate of Rs 23per tonne per month on the quantity carriedas buffer.
(iii) Since the material will be moved in twostages i.e. from the plant to the bufferstocking point and then on to consumptionpoints, additional handling charges at the rateof Rs 30 per MT will be paid to the FertilizerCompany on the quantity sold from the bufferstock.
(iv) In addition, freight from the buffer stockingwarehouse to the block in case of movementoutside the district in which buffer stockinggodown is located, will also be paid to thecompany, in accordance with the provisionsunder the Uniform policy for freight subsidyannounced by the Government with effectfrom 1st April, 2008.
1.7 MRP of Decontrolled P & K Fertilizers
1.7.1 The MRP of the DAP/NPK/MOP has beenconstant from February 2003 to 17.6.2008.Then Department of Fertilizers introducednutrient based subsidy in June 2008 andaccordingly, revised the MRP of NPKComplex Fertilizers downwards w.e.f.18.6.2008. However, the MRP of the otherfertilizers remained the same. The MRP offertilizers is shown in the table below:-
MAXIMUM RETAIL PRICE OF FERTILIZERS
(Rupees per MT)
Product From From12.3.2003 18.06.08
to17.6.2008
Urea 4830 4830
Di Ammonium 9350 9350Phosphate (DAP)
Muriate of Potash (MOP) 4455 4455
Mono-Ammonium 9350 9350Phosphate (MAP)(w.e.f. 1.4.2007)
Triple Super Phosphate 7460 7460(TSP) (w.e.f. 1.4.2008)
Single Super Phosphate 3400 3400(SSP) (w.e.f. 1.5.2008 to30.6.2009) all India MRP
Ammonium Sulphate (AS) 10350(w.e.f. 1.7.2008)
Grades of ComplexFertilizers - N:P:K:S
16:20:00:13 7100 5875(earlier 16:20:00)
20:20:00:00 7280 5343
20:20:00:13 7280 6295
23:23:00:00 8000 6145
28:28:00:00 9080 7481
10:26:26:00 8360 7197
12:32:16:00 8480 7637
14:28:14:00 8300 7050
14:35:14:00 8660 8185
15:15:15:00 6980 5121
17:17:17:00 8100 5804
19:19:19:00 8300 6487
1.8 Global Scenario
Prices of Major fertilizers, such as Urea, DAPand MOP and fertilizer inputs such asAmmonia, Sulphur, Rock Phosphate andPhosphoric acid increased manifold during
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2008-09. This resulted in steep increase inprices of both finished fertilizers as well asintermediates and consequently led tosubstantial increase in subsidy outgo of theGovernment. Urea Price, which was US$280.75 fob per MT in January 2007 increasedto US$ 403.75 fob per MT in January 2008and US $ 815 fob per MT in August 2008.Price of DAP, which was US $ 320.5 cfr perMT in January 2007 increased to US$ 802cfr per MT in January 2008 and US $ 1331cfr pt in May 2008. MOP price, whichprevailed at US $ 170 fob per MT in January2007 went up to US $ 328 fob per MT inJanuary 2008 and US$ 945 fob per MT inOctober 2008.
Raw material prices also showed exponentialjumps during the last one year. Ammoniaprice, which, on an average, was $ 301.5 cfr(India) per in January 2007, went upto US $389 cfr (India) per MT in January 2008 andUS $ 834 cfr (India) in September 2008. Priceof Phosphoric Acid witnessed a sharpincrease during the year. Price of Phosphoric
(US $ pmt)
Raw material/Intermediate/Fertilizers July 2008 March 2009 January 2010
DAP 1291.90 414.00 499.13
MOP 725.00 767.50 381.25
Urea FOB 783.00 305.63 306.88
Phos Acid, India (C&F) 2200-2310 650.760 610-627.50
Ammonia (C&F) 571.10 261.00 327.88
Sulphur (C&F) 846.00 57.00 139.50
Rock (C&F) 384.00 301.00 (in Jan,09) 142.50
Sulphuric Acid (C&F) Brazil 360.00 0.00-50.0 35.38
acid which was US $ 566.25 cft pt (annualcontract price) for 2007-2008, went up to1985 cfr pt in April-June 2008 and to US $2310 cft pt in July-September 2008. Sulphurprice increased from US $ 78.75 cfr per MTin January 2007 to US $ 561 cfr per MT inJanuary 2008 and to US $ 846 cfr pt in July2008. Price of Rock Phosphate which wasUS $ 79.5 cfr pt in January 2007 went up toUS $ 245 cfr pt in January 2008 and to US$ 460 cfr pt in June 2008.
The spurt in international prices haveimpacted prices of imported finished fertilizersas well as raw material in India. As a result,subsidy outgo for 2008-09 was about onelakh crore.
From July 2008 to January 2010, the pricesof the raw materials/intermediates/finishedfertilizers have shown a declining trend. Theprices in January 2010 in comparison to thatof and July 2008 and March 2009 are asfollows :
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2.1 Organizational set up and functions
2.1.1 The main activities of Department ofFerti l izers (DOF) include planning,promotion and development of the FertilizerIndustry, planning and monitoring ofproduction, import and distribution offertilizers and management of financialassistance by way of subsidy/concessionfor indigenous and imported fertilizers. Listof subjects allocated to the Department ofFertilizers as per Government of India(Allocation of Business) Rules, 1961amended from time to time has been givenat Annexure-I.
2.1.2 The work of these divisions is handled bythree Joint Secretaries, one EconomicAdviser & one Additional Secretary cumFinancial Adviser. The Department isbroadly divided into 4 Divisions dealingwith (i) Fertilizers Projects and Planning(ii) Fertilizer Imports, Movement andDistribution (i i i) Administration andVigilance and (iv) Finance and Accounts.
2.1.3 The Joint Secretary in-charge of (P&P) looksafter the work relating to Policy Coordination,Phosphatic Fertilizer Policy, P & K Subsidypayments and import on government accountpayments, Joint Venture Projects of P & KFertilizers (domestic and overseas), andWTO related issues.
2.1.4 Joint Secretary (F&P) & ED FICC (Exofficio) is entrusted with the work pertainingto Urea Policy, PSUs matters exceptvigilance Special Purpose Vehicle forexploring Joint Ventures abroad, revival ofclosed Urea units including FCIL andHFCL, Urea Fertilizers Joint VenturesProjects (domestic and overseas), over allproject coordination including JVs andlong-term off-take policy.
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2.1.5 Joint Secretary (A&M) looks after the workrelating to the movement of fertilizers andrelated policies and coordination withStates, shipping and import of Urea 0nGovernment account, Parliamentary workand coordination, branch administrationand vigilance, FMS, OMIFCO relatedmatters including off-take of Urea,implementation of finalized long termofftake arrangements.
2.1.6 The Economic Adviser, an officer of JointSecretary level advises the Department onvarious economic issues which haveeconomic implications, S&T projects,matters relating to agriculture Ministry suchas Bio fertilizers, balanced fertilizers, soilhealth cards, nutrient absorption issues,micro-nutrients, organic fertilizers based onurban solid waste, subjects related torenewable and non-renewable energy,clean technology and generalenvironmental issues, supply, demand,availability and price movement forecastingof various fertilizers, intermediates and rawmaterials and economic analysis of specificimportance assisting in firming up policyissues.
2.1.7 The list containing the names of Minister-in-charge and the officers of the level ofDeputy Secretary and who have worked inthe Department during 2009-2010 is givenin Annexure-II.
2.2 Fertilizer Industry CoordinationCommittee (FICC)
2.2.1 The off ice of Ferti l izer IndustryCoordination Committee is an attachedoffice under the Department of Fertilizersheaded by Executive Director. The FICCcomprises of the Secretaries to the GOI inthe Department of Fertilizers, Industrial
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Policy and Promotion, Agriculture andCooperation, Expenditure, Ministry ofPetroleum & Natural Gas, Chairman, TariffCommission and two representatives of theurea industry, FICC, which was initiallyconstituted w.e.f. 1.12.1977 to administerand operate the erstwhile Retention Pricecum subsidy Scheme (RPS), has beenreplaced vide Resolution dated 13.3.2003
to administer and operate the New PricingScheme (NPS), which has come intoexistence w.e.f. 1.4.2003.
2.2.2 The Department has under itsadministrative control nine (9) Public SectorUndertakings (PSUs), one multi-state co-operative society. The list is given atAnnexure-III.
Shri Srikant Kumar Jena, Hon’ble Minister of State (C&F) inaugurating Health Mela organized by IFFCO atBetnoti (Orissa).
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3.1 Development & Growth of FertilizerIndustry
3.1.1 Capacity Build-up
At present, there are 56 large size fertilizerunits in the country manufacturing a widerange of nitrogenous, phosphatic andcomplex fertilizers. Of these, 30 units (as ondate 28 units are fucntioning) produce urea,21 units produce DAP and complex fertilizers,5 units produce low analysis straightnitrogenous fertilizers and 9 manufactureammonium sulphate as by-product. Besides,there are about 72 small and medium scaleunits in operation producing single superphosphate (SSP). The total installed capacityof fertilizer production which was 119.60 lakhMT of nitrogen and 53.60 lakh MT ofphosphate as on 31.03.2004, has margnallyincresed to120.61 lakh MT of nitrogen and56.59 lakh MT of phosphate as on01.04.2009.
3.2 Production Capacity And CapacityUtilisation
3.2.1. The production of fertilizers during 2008-09was 108.70 lakh MT of nitrogen and 34.65lakh MT of phosphate. The production targetfor 2009-10 was 120.85 Lakh MT of nitrogenand 41.31 Lakh MT of Phosphate,representing a growth rate of 11.1% innitrogen and 19.2% in Phosphate ascompared to production in 2008-09.Production target for nitrogenous fertilizer ismore than the installed capacity. Theproduction target for phospahtic fertilizer isless than installed capacity due to constraintsin availability of raw materials/ intermediateswhich are substantially imported. However,taken together, the production of ‘N’ and ‘P’during the year is higher than that in thecorresponding period of last year.
3.2.2. The production performance of bothnitrogenous and phosphatic fertilizers during
the year 2008-09 was less than the targetmainly due to constraints in suppply andquality of natural gas, equipment breakdownsand RCF Trombay-V & DIL Kanpur remainedunder unscheduled shutdown. In case ofphosphate, production in DAP plants was lowon account of shortage of importedphosphoric acid and ammonia. Productionof complexes was higher than thecoresponding period of last year.
3.2.3. The installed capacity of urea units in thecountry as follows:-
UREA UNITS SET UP BETWEEN: 1967-2009 WITH INSTALLEDCAPACITY
Year of Unit Feedstock InstalledComm. and Sector Capacity
(lakh/MT)1967 GSFC-Baroda Gas-Private 3.7061969 SFC-Kota Naphtha-Private 3.7901970 DIL-Kanpur Naphtha-Private 7.2201971 MFL-Madras Naphtha-Public 4.868 @1973 ZIL -Goa Naphtha-Private 3.9931975 SPIC-Tuticorin Naphtha-Private 6.2001976 MCFL-Mangalore Naphtha-Private 3.8001978 NFL-Nangal FO/LSHS-Public 4.7851978 IFFCO-Kalol Gas-Coop. 5.445 @1979 NFL-Bhatinda FO/LSHS-Public 5.1151979 NFL-Panipat FO/LSHS-Public 5.1151981 IFFCO-Phulpur Gas—Coop. 5.5111982 RCF-Trombay-V Gas-Public 3.301982 GNFC-Bharuch FO/LSHS-Private 6.3601985 RCF-Thal Gas-Public 17.0681986 KRIBHCO-Hazira Gas-Coop. 17.2921987 BVFCL-Namrup-III Gas-Public 3.150
(Formerly HFC)1988 NFL-Vijaipur Gas-Public 8.6461988 IFFCO-Aonla Gas-Coop. 8.6461988 Indogulf-Jagdishpur Gas-Private 8.6461992 NFCL-Kakinada Gas-Private 5.9701993 CFCL-Gadepan Gas-Private 8.6461994 TCL-Babrala Gas-Private 8.6461995 KRIBHCO SHYAM-Shahja- Gas-Private 8.646
hanpur (Formerly OCFL)1996 IFFCO-Aonla expansion Gas-Cooperative 8.6461997 NFL-Vijaipur expansion Gas-Public 8.6461997 IFFCO-Phulpur expansion Gas—Cooperative 8.6461998 NFCL-Kakinada expansion Naphtha-Private 5.9701999 CFCL-Gadepan expansion Naphtha/Gas-Private 8.6462005 BVFCL:Namrup-II Gas-Public 2.400 @
Note: @ After revamp
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3.2.4 The following 9 urea plants of the companiesare presently closed/under shutdown due tovarious reasons, inter-alia, on account oftechnological obsolescence, feedstocklimitation, non-viability of unit/company andheavy financial losses.
Sl. Name of the Date of Annual InstalledNo. Company/Unit closures 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. HFC: Durgapur 1.7.1997 3.30
6. HFC: Barauni 1.1.1999 3.30
7. RCF: Trombay-I 1.5.1995 0.98
8. NLC: Neyveli 31.3.2002 1.53
9. FACT: Cochin-I 15.5.2001 3.30
Total 28.46
Note: Production by DIL-Kanpur (7.22 LMT) was suspended dueto financial constraints.
3.2.5. The domestic fertilizer industry has by andlarge attained the levels of capacity utilisationcomparable with others in the world. Thecapacity utilisation during 2008-09 was 90.1%for nitrogen and 61.2% for phosphate. Theestimated capacity utilisation during 2009-10 is 99.2% of nitrogen and 76.9% ofphosphate. Within this gross capacityutilization, the capacity utilisation in terms ofthe urea plants was 101.1% in 2008-09 and106.3% in 2009.10. As for phosphatefertilizers, apart from the constraintsmentioned earlier, the actual productioncapacity utilisation has also been influencedby the demand trends.
3.2.6. The capacity utilisation of the fertilizerindustry, particularly in respect of urea, isexpected to improve further throughrevamping/ modernisation of the existingplants.
3.2.7. The unit-wise details of installed capacity,production and capacity utilisation during2008-09 and 2009-10 are given inAnnexure-IV.
3.3 Strategy for Growth
3.3.1 The following strategy has been adoptedto increase fertilizer production:
• Expansion and capacity addition/eff iciency enhancement throughretrofitting / revamping of existingfertilizer plants.
• Setting up joint venture projects incountries having abundant andcheaper raw material resources.
• Working out the possibility of usingalternative sources like liquefiednatural gas, coal gasification, etc., toovercome the constraints in thedomestic availability of cheap andclean feedstock, particularly for theproduction of urea.
• Looking at possibilities of revival ofsome of the closed units by settingup brownfield units subject to availableof gas.
3.4 Feedstock Policy
3.4.1 At present, natural gas based plantsaccount for more than 66% of ureacapacity, naphtha is used for less than 30%urea production and the balance capacityis based on fuel oil and LSHS as feedstock.The two coal based plants at Ramagundamand Talcher were closed down due totechnological obsolescence and non-viability.
3.4.2. Natural gas has been the preferredfeedstock for the manufacture of urea overother feedstocks viz. naphtha and FO/LSHS, firstly, because it is clean andefficient source of energy and secondly, itis considerably cheaper and more costeffective in terms of manufacturing cost ofurea which also has a direct impact on thequantum of subsidy on urea.
3.4.3. Accordingly, the pricing policy, announcedin January 2004, provides that new urea
16
projects, expansion of existing urea unitsand capacity increase through de-bottlenecking/revamp/modernization will bealso allowed/recognized if the productioncomes from using natural gas/LNG asfeedstock. For the same reasons, a policyfor conversion of the existing naphtha/FO/LSHS based urea units to natural gas/LNGas feedstock has also been formulated inJanuary 2004, which encourages earlyconversion to natural gas/LNG. Pursuantto formulation of policy for conversion ofnon-gas urea units to gas, three naphthabased plants namely, Chambal Fertilizers& Chemicals Limited (CFCL), Gadepan-IIand IFFCO-Phulpur-I & II have alreadyconverted to NG/LNG. Shriram Fertilizers& Chemicals Limited (SFC-Kota) has alsostarted using gas w.e.f. 22nd September2007.
3.5 Requirement and Availability of Gas toFertilizer Sector
3.5.1 The projected requirement of gas duringthe 11th Plan period for fertilizer sector isas below:
2007-08 2008-09 2009-10 2010-11 2011-12
Gas Demand 41.02 42.45 55.20 72.76 95.52At NCV 8200Kcal/SM)
3.5.2. Six companies viz IFFCO, KRIBHCO,Rashtriya Chemicals and Ferti l izersLimited, INDO-Gulf Fertilizers Limited,TATA Chemicals Limited and ChambalFertilizers and Chemicals Limited haverequested for firm availability of gas fortaking final investment decision to under-take expansion of their existing units. Theissue has been taken up with the Ministryof Petroleum and Natural Gas. TheEmpowered Group of Ministers (EGOM)in its 65th meeting held on 27-10-2009considered the demand of natural gas forexpansion and revamp of fertilizer plantsand decided that they would be suppliednatural gas as and when they are ready toutilize the gas. It is expected that with the
above availability of gas, the productioncapacities in existing units will increase,closed fertilizer units will be revived newGreenfield/Brown field projects will be setup and non gas based fertilizer plants willbe converted to gas, taking the overallproduction capacity of urea in the countryto more than 31 million tonnes. Likewise,the projected requirement of urea by theend of 11th Plan is expected to be around31 million tones including the requiredquantities for maintaining the supply chainand buffer stocks. It is expected that withabove availability of gas at reasonableprices, the country will become self-sufficient in urea requirement by the endof 11th Plan. The above availability of gaswill also help our country to become anexport surplus nation in urea sector.
3.5.3. The above requirement of gas is based onthe desired need to make the country self-sufficient in urea production. This isnecessary in light of the fact that ouragricultural sector needs to be insulatedfrom the volatile international prices offertilizers and at the same time the fertilizersubsidy bill need to be reduced. Urea isthe only fertilizer, in which the country canbecome self-sufficient with the projectedavailability of gas in future. In phosphaticand potassic sector, we are largely importdependent and are subject to large-scalevolatility in world prices of these fertilizers.
3.5.4 The indigenous production capacities cancome up in future with the above gasavailability provided the gas is available atreasonable price. World over the price ofgas is showing an upward trend but thecountries rich in gas resources are havingspecial assured price for fertilizer sector.The fertilizer sector in Middle East andNorth East Africa is based on gas pricesof approximately 50 cents per MMBTU to$ 1.5 – 2 per MMBTU. This has led to alower cost of production in these countries,which are also the major exporters of ureain the world.
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3.5.5 Though enhancement of indigenousproduction capacity, the country not onlybecomes self-sufficient in urea productionand immune from demand drivenescalation in international prices, but it alsoleads to increase in economic activitywithin the country, increase in employment,industrial development, etc. At the samelevel of gas prices, the country will saveapproximately USD 60 per MT of urea byproducing within the country as comparedto importing from Middle East countries onprice equivalent to cost of production. Thesavings will be on account of lower capitalcost (USD 20 per MT approx), shippingfreight (USD 20 per MT) and port handlingcharges (USD 20 per MT). In addition,there will be savings on account of internaltransportation of urea depending upon the
location of the plant.
3.5.6. In addition to the issue of availability inpricing of gas, the other major importantissue in this sector is provision of gaspipeline connectivity to the existing ureaunits in the country and proposed ureaunits in future. At present 8 operationalunits are not on the gas grid and theirconnectivity with the gas grid is critical fortheir conversion to gas. Further 8 closedunits of FCIL and HFCL are presently awayfrom the gas grid and their connectivitywith gas pipeline is prerequisite for revivalof these closed units. Ministry of Petroleumand Natural Gas has projected that thefollowing pipeline connectivity of gas toexisting and closed units in the countrywill be provided by 2012-13
PIPELINE CONNECTIVITY PLAN (As provided by GAIL and MOP&NG
S.No. Proposed pipeline Agency for Fertilizer unit Expectedconnecting proposed to be year ofplants connected connectivity
Naphtha based plants
1. Dhabol, Bangalore GAIL ZIL, Goa 2011-12
2. Kochi-Mangalore-Bangalore GAIL MFCL, Mangalore 2012-13
3. Kochi-Mangalore-Bangalore GAIL FACT, Cochin 2011-12(also from Kochi LNG Terminal)
Fuel Oil/LSHS based plants
4. Dadri-Bawana-Nangal GAIL NFL-Nangal, 2011-12Panipat, Bhatinda
Closed Units
5. Spur from the following pipeline: GAIL FCI, Sindri 2012-13Jagdishpur-Haldia FCI, Gorakhpur
HFC, BarauniHFC, DurgapurHFC, Haldia
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3.6 Joint Ventures abroad
3.6.1 Due to constraints in the availability of gasin the country, which is the preferred feedstock for production of nitrogenous fertilizers,and a near total dependence of the countryon imported raw materials for production ofPhosphatic fertilizers and full importdependence for MOP, the Government hasbeen encouraging Indian companies toestablish Joint ventures production facilitieswith buy back arrangement in other countries,which are rich in fertilizer resources.
3.6.2 Existing joint ventures, namely Oman IndiaFertilizer Company (OMIFCO), Oman inUrea ad Industries Chimiques du Senegal(ICS), Senegal and Indo- Maroc Phosphore(MACID), Morocco in phosphate havegiven the country assured sources ofsupply of urea and phosphoric acid, acritical input for production of Phosphaticfertilizers. Further, two more projects,namely, Jordan India Fertilizer Company(JIFCO) in Jordan and Tunisia IndiaFertilizer Company (TIFERT) in Tunisia areabout to be commissioned in the year2010. The details of the existing jointventure in the fertilizer sector are:
3.6.2.1 OMIFCO Oman:
Krishak Bharati Cooperative Ltd. (KRIBHCO),Indian Farmers Fertilizer Cooperatives Ltd.(IFFCO) and Oman Oil Company withrespective share holding of 25%, 25% and50% have collaborated and set up a worldclass urea-ammonia fertilizer plant ‘OmanIndia Fertilizer Company ‘ (OMIFCO) inOman at a cost of US $ 892 million. Itconsists of 5060 MTPD granular urea and3500 MTPD Ammonia plants along withutilities in the coastal town of Sur in Oman.The annual capacity of the fertilizer complexis 16.52 lakh MT of granular Urea. The entirequantity of urea is off taken by theGovernment of India as per Urea Off-TakeAgreement (UOTA) at pre determined prices.Government of India also off takes surplus
quantity of Urea, if any, as per price agreedfor the additional quantity. In addition, 2.5lakh MT of surplus Ammonia per year is alsoproduced by the plant for which IFFCO hasAmmonia Off-Take Agreement (AOTA).OMIFCO is examining possibility ofexpansion and increase in production of Ureaand Ammonia.
3.6.2.2 ICS Senegal
The Government of India (GoI), IndianFarmers Fertilizer Cooperative Ltd. (IFFCO)and Southern Petrochemicals IndustriesCorporation Ltd. (SPIC) formed a jointventure company in Senegal namedIndustries Chimiques du Senegal (ICS). Lateron SPIC withdrew from the project. In recentpast, the company suffered financial losses.However, ICS Senegal has been restructuredin 2008 with Government of India, IFFCOand other Indian consortium partners having85% and Government of Senegal having15% share. The restructuring plan afterhaving been approved by the Regional HighCourt of Dakar (Senegal) on 27th March 2008has come into effect and ICS Senegal, asrestructured, is in operation.
ICS Senegal has a capacity to produce 6.60lakh tones of phosphoric acid per annumand also finished phosphate fertilizer suchas DAP and Complex fertilizers. A majorportion of the phosphoric acid, about 5.5 LMTproduced in the ICS plant is off-taken byIFFCO as per a long term buy backarrangement and utilized for production ofphosphate fertilizers in India. The finishedfertilizers, DAP and complex fertilizers,produced by ICS Senegal is for domesticconsumption in Senegal.
3.6.2.3 IJC Jordan
SPIC, Jordan Phosphates Mines CompanyLtd. (JPMC) and Arab Investment Company(AIC) set up a joint venture project, Indo-Jordan Chemicals Company Limited (IJC) inJordan in May 1997 with a capacity of 2.24
19
lakh tonnes of phosphoric acid productionper annum. 52.17% of the equity of the jointventure is held by SPIC, 34.86% by JPMCand 12.97% by AIC. Phosphoric Acidproduced by IJC is off-taken by SPIC andother fertilizer units in India.
3.6.2.4 IMACID Morocco
IMACID, a joint venture between OfficeCherifien des Phosphates (OCP), Morocco,and Chambal Fertilizers & Chemicals Ltd.(CFCL), India to produce 3.60 lakh MT ofphosphoric acid per annum wascommissioned in Morocco in October 1999.After subsequent joining of Tata ChemicalsLimited (TCL), capacity of the plant has beenincreased to 4.30 LMT per annum. Initially,equity of US$ 65 million in the venture washeld by OCP & CFCL equally. Subsequently
in May 2005, both OCP & CFCL have soldone-third of their equity stake in IMACID toTATA Chemicals Limited.
3.7 Overseas Joint Ventures UnderImplementation / Consideration:
3.7.1 JIFCO Jordan
Indian farmers Fertilizers Cooperative Ltd(IFFCO) and Jordan Phosphate MiningCompany (JPMC) have agreed for settingup of a joint-venture Phosphoric Acidproduction plant, Jordan India FertilizerCompany (JIFCO) in Jordan with an installedcapacity of 1500 MT of phosphoric acid perday (MTPD). Equity hodling in the project is52:48 between IFFCO and JPMC,respectively. The plant is expected to becommissioned in 2010.
Shri S. Krishnan, Secretary (Fertilizers) inaugurating PDIL Bhawan at Vadodara.
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3.7.2. JV in Tunisia
Gujarat State Fertilizers & Chemicals Ltd(GSFC) and Coromandel International Ltd(CIL), formerly Coromandel FertilizersLtd.(CFL) both Indian entities alongwithGroupe Chimique Tunisien (GCT) &Compagnie Des Phosphates De Gafsa(CPG), both Tunisian entities are settingup a joint venture project, Tunisian IndianFertilisers S.A. (TIFERT) at Skhira inTunisian for production of 3.6 lakh MT ofPhosphoric Acid per annum. The entireproduction of phosphoric acid would be foroff take by GSFC and CIL. An MOU to thiseffect was signed in October, 2005between parties. Estimated cost of theproject is approx. US $ 165 million + 5%with equity of US$66 mil l ion andborrowings of US $99 million. The projectis expected to be commissioned in2010.
3.7.3. Cooperation in Syria
The India-Syrian Joint Commission in itsmeeting held in January 2008 took note ofthe mutual interest of both countries in thefield of Phosphatic raw-materials andproducts. It was agreed that both countrieswould work for cooperation in the fertilizersector in Syria. Accordingly, a consortiumof Indian entities including MECON, RITESand PDIL (All central Government PSUs),having expertise in the fields of mining,beneficiation, processing, setting-up andrunning the phosphatic plants and logisticaspects are undertaking capacityenhancement consultancy study withGECOPHAM in Syria. Government of Indiais funding the study. In May 2009, MOUhas been signed between the IndianConsortium and GECOPHAM and theformer has started the studies, which isexpected to be finalized soon. Governmentof India and Government of Syria are indialogue to formalize a Government levelMOU spelling out broad framework ofcooperation in phosphate sector.
3.7.4. JV in Australia:
Indian Farmers Fertilizer Cooperative Ltd(IFFCO) has entered into a ‘Principles of Off-take Agreement’ with Legend InternationalHoldings of Australia to undertake joint miningof rock phosphate in Lady Annie mines(Georgina Basins in Queens land) along withan assured three million MT annual off-take.A total of US $800 million investment hasbeen envisaged for undertaking rockphosphate mining in Australia. IFFCO willreceive 30 million options in LegendInternational Holdings. IFFCO would provideboth technical and financial facilitation toLegend International Holdings in thedevelopment of its phosphate mining andshipment of its product to India.
In Ammonia-Urea sector, KRIBHCO andNWCF, a private company in Australia are inthe process of setting up of a coal basesammonia-urea plant in Australia. The projectcost is approx. US $ 2.6 billion andKRIBHCO’s equity will be approx. US $ 165million. The Australian company proposed toenter into a 20 year agreement for supply ofurea. Agreement on mutual Terms &Conditions including the price on which theurea will be made, are yet to be finalized.
3.7.5 Cooperation in Ghana
Given its gas reserves, Ghana is considereda rich source of nitrogenous feedstock.Chairman of Ghana National PetroleumCorporation (GNPC), Ghana during his visitto India met the Prime Minister of India andpossibility of cooperation in fertilizer sectorwas discussed. Subsequently, a fertilizerdelegation including representative of theDepartment and RCF and GAIL has visitedGhana. Possibility of setting up of a jointventure Urea-Ammonia plant in Ghana isbeing explored. Memorandum of Intent (MOI)at the Government level for the purpose isbeing finalized. Which would also includeframework of gas allocation by the GNPCfor the project. After finalization and signing
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of the MOI, both would sides would designatetheir respective entities for preparing DetailedPre-Feasibility Report (DPFR).
3.7.6 Discussions for cooperation in fertilizersector.
Discussion are on with the fertilizer andmining entities in following resource richcountries for long term cooperation for settingup of projects for production and off take offertilizers:
(i) Discussion at Government level isunderway with the Government ofSenegal for development of Matamphosphate mines.
ii) Two separate consortia of Indian entitiescomprising IPL & IFFCO and MMTC &RCF are in discussion with M/sPotashOne and M/s Athabasca Increspectively of Saskatchewan provincefor setting up Joint Venture projects inmining of Potash and off take to India.Consortium of RCF and MMTC whichis pursuing with Athabasca, have signedan MOU for JV project with Athabascafor evaluation and assessment intechnical, marketing and financialaspect. They have also signed aconfidentiality Agreement for sharingrelated information. Consortium of
IFFCO and IPL have requestedPotashOne for providing detailed costingand other economic parametersinvolved in the project.
iii) RCF and IDC/FOSKOR of South Africaare exploring the possibilities to set upa Phosphoric Acid and Ammonia-Ureafertilizer project near Maputo Port, thecapital city of Mozambique. The projectproposes to source Rock from the newmines of Foskor in Phalaborwa, SouthAfrica. An MOU has been signedbetween RCF and IDC/FOSKOR.Department of Fertilizers has beenpursuing with M/s SASOL, for allocationof gas in Mozambique for setting up aJV ammonia-urea project.
iv) M/s SPIC and Chambal Fertilizers arein the process of setting-up a gas basednitrogenous fertilizer plant at Dubai inUAE to produce 4.00 LMT of urea perannum.
v) Discussion are also going on forexploring possibilities for a Ammonia-Urea project Qatar with buy back byIndia. IFFCO and QUAFCO (Publicsector entity of Qatar) have signed‘Agreement of Intention’ on 24.2.2009for the same.
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4.1 Availability of Major Fertilizers During2009-10
Controlled Fertilizer – Urea
4.1.1 The availability of urea, which is the onlyfertilizer under price and partial movementcontrol of Government, remained satisfactorythroughout the Kharif 2009 season as wellas during the current Rabi 2009-10(Up toDecember, 2009).
Kharif 2009
4.1.2 The field opening stock of 4.35 LMT as on1.4.2009 coupled with indigenous productionof 101.09 LMT and imports of 25.34 LMThelped in progressively ensuring adequateavailability to the States throughout theseason. The cumulative availability of ureaat the end of the season was nearly 123.11LMT against the assessed requirement of136.36 LMT. The sales have been 120.03LMT during Kharif 2009.
Rabi 2009-10
4.1.3 The requirement of urea for Rabi 2009-10has been assessed at 145.53 LMTenvisaging a growth of about 5.03% overthe sales of 134.18 LMT in Rabi 2008-09.The requirement is being met from theopening stocks taken together with estimatedproduction of 111.61 LMT and imports ofabout 25.04 LMT during the season. Thusthe cumulative availability of urea for Rabi2009-10 has been estimated to be about142.93 LMT by the end of 31st March, 2010.
4.1.4. Allocation of urea under ECA was restrictedto 50% of production of installed capacity ofeach manufacturer during Kharif 2009 andRabi 2009-10. The manufacturers are freeto sell the remaining quantity of urea to the
farmers anywhere in the country at notifiedmaximum retail price.
4.2 Decontrolled Fertilizers – DAP & MOP
Kharif 2009
4.2.1 In case of fertilizers other than the urea,which are decontrolled, no allocation is madeunder Essential Commodities Act (ECA) bythe Central Government. Assessment ofrequirement of Urea, DAP and MOP is beingmade by the Department of Agriculture &Cooperation to enable better monitoring ofavailability at the national level.
4.2.2 DAP and MOP are the two major decontrolledand decanalised fertilizers, which may beimported freely.
DAP
4.2.3 The imports of 37.55 LMT of DAP coupledwith indigenous production of 26.04 LMT andthe opening stock of 1.60 LMT of DAP as on1st April, 2009 resulted in satisfactoryavailability of about 65.19 LMT DAP duringKharif 2009 season. Sales of DAP in Kharif2009 were about 61.34 LMT.
MOP
4.2.4 The imports of 17.12 LMT of MOP takentogether with opening stock as on 1st April,2009 resulted in availability of about 22.51LMT. The sales of MOP were reported asabout 18.51 LMT.
Rabi 2009-10
DAP
4.2.5. The production of DAP during Rabi 2009-10is estimated to be about 17.79 LMT. Stocksas on 1.10.2009 coupled with estimatedimports will be adequate in meeting the
Chapter-4
23
country’s requirement of DAP assessed at57.77 LMT during Rabi 2009-10, consideringthat about 14.54 MT of MOP was extrasupplied during Kharif 2009 towards therequirement of Rabi 2009-10.
MOP
4.2.6 Stocks of MOP as on 1.10.2009 coupled withadequate imports till March 2010 will ensurethat the country’s requirement of MOP duringRabi 2009-10 is fully met.
4.2.7 Following table summarizes the season-wiseposition in respect of the availability and salesof the major fertilizer i.e. Urea, DAP & MOPduring the last three seasons:
4.3 Movement of Fertilizers
4.3.1 Under the Allocation of Business Rules,the Department of Fertilizers has beenentrusted with the responsibility of ensuringmovement, distribution and allocation ofcontrolled fertilizer, i.e. urea, from variousfertilizer plants and ports in accordancewith the State-wise requirement assessedby the Department of Agriculture & Co-operation (DAC). The distribution ofimported urea is made keeping in view therequirements of each of the States.
4.3.2 The major share in transportation offertilizers is of the Railways. During 2008-09, Railways had moved about 41.35milion tonnes of the fertilizers producedindigenously imported in the country.During the current year, about 37.73 milliontonnes of fertilizer produced and importedin the country has been moved during theperiod April-January, 2010.
4.3.3 Judicious management of the demand-supply balance has helped in maintainingthe average lead of fertilizer movement byrail. During 2008-09 the average lead was801 KMs. During the current year theaverage lead for the period Apri l-November, 2009 would also be almostsame.
Crop season Demand Cumulative Cumulative %age ofAssessment Availability Sales availability
to assesseddemand
Kharif 2008Urea 137.11 134.66 127.92 -1.7DAP 42.75 53.19 52.85 24.42MOP 17.19 22.79 21.55 32.57NPK 48.98 37.00 36.13 -24.46
Rabi 2008-09Urea 144.22 142.95 138.58 -0.88DAP 52.07 46.90 46.18 -9.92MOP 20.66 21.72 19.33 5.13NPK 43.34 35.95 34.90 -17.05
Kharif 2009Urea 136.36 130.78 120.02 -4.09DAP 49.20 65.19 61.34 32.5MOP 21.61 22.51 18.52 4.16NPK 47.52 36.39 34.81 -23.42
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5.1 Plan Performance
5.1.1 The installed capacity and production offertilizers in the country at the end of eighthfive year plan, in the terminal year of theninth plan and at the beginning of 5th year oftenth plan (2006-07) are indicated below:
120.61 lakh MT and 29.05 LMT to 56.59LMT respectively during the same period.
5.1.3 Year-wise consumption, production andimports of fertilizers in nutrients terms aregiven in Annexure-V.
Chapter-5
INSTALLED CAPACITY AND PRODUCTON OF NITROGENOUS AND PHOSPHATIC FERTILIZERSIN EIGHTH, NINTH AND TENTH FIVE YEAR PLANS.
(In lakh MT)
Sr. Particulars At the end of At the end of At the beginningNo. Eighth Five Year Ninth Plan of 5th year of Tenth
Plan (1996-97) (2001-02) Plan (2006-07)
1 Capacityi) Nitrogen 97.77 120.58 120.61ii) Phosphates 29.05 52.31 56.59
2 Productioni) Nitrogen 85.99 107.68 115.78ii) Phosphates 25.56 38.60 45.17
5.1.2 The installed capacity of nitrogen andphosphate in the terminal year (1996-97) ofthe eighth plan was 97.77 lakh MT and 29.05lakh MT, respectively. Three major phosphaticfertilizer plants were commissioned duringthe ninth five year plan period, namely, OswalChemicals & Fertilizers Ltd.-Paradeep, (sincetaken over by IFFCO), Indo-Gulf Corporation-Dahej and Gujarat State Fertilizers CompanyLtd.-Sikka-II. Consequent upon reassessmentof urea capacity on the basis of Dr. Y.K. AlaghCommittee and DAP capacity by TariffCommission, despite phasing out of 10 ureaunits due to closure, the installed capacity ofnitrogen and phosphate has increased from97.77 lakh MT at the end of eighth plan to
5.1.4 The production of fertilizers in nutrient termsduring 2008-09 was 108.70 lakh MT ofnitrogen and 34.64 lakh MT of phosphate.The estimated production for 2009-10 is119.68 lakh MT of nitrogen and 43.52 lakhMT of phosphate. Sector-wise targets andachievements in respect of production andcapacity utilization from 2001-02 onwards aregiven in Annexures-VI & VII.
5.2 Plan Outlays
5.2.1 For the Eleventh Five Year (2007-12),Planning Commission has approved anoutlay of Rs. 20627.87 crore consisting ofRs. 1492.00 crore as Domestic BudgetarySupport and Rs. 19135.87 as Internal & Extra
25
Budgetary Resources (IEBR).
5.2.2 For the year 2009-10, a plan outlay of Rs.1024.16 crore was approved by the PlanningCommission, with Rs. 824.16 crore to bemet out of IEBR and balance amount of Rs.200.00 crore as budgetary support. Thedetails of Plan outlays are given inAnnexure-VIII.
5.2.3 The outlays for 2010-11 is Rs. 2914.00 crore,of which an amount of Rs. 2699.96 crorewill be met from the internal and extrabudgetary resources and the blance amountof Rs. 215.00 crore will be provided by wayof budgetary support. The gross outlay ofRs. 2914.00 crore is for FCI-FAGMIL (Rs.11.29 crore), Fertilizers and ChemicalsTranvancore Ltd. (Rs.89.99 crore),Brahamaputra Valley Fertilizer CorporationLtd. (Rs. 45.00 crore), Madras Fertilizers Ltd.(Rs. 74.5 crore), National Fertilizers Ltd., (Rs.900.5 crore), Project and Development ofIndia Ltd. (Rs. 5.38 crore), RastriyaChemicals & Fertilizers Ltd. (Rs. 622.82crore), Krishak Bharti Cooperative Ltd. (Rs.1160.00 crore), and other Mis. DepartmentalSchemes such as (MIS/IT and R&D) 5.50.Department of Fertilizers is exploring
possibilities of Joint Ventures abroad. Sincethere is no firm proposal in hand right nowonly a token provision of Rs.0.10 crore hasbeen provided.
5.2.4 Of the total outlay, the budgetary support ofRs.215.00 crore is for Fertilizers & ChemicalsTravancore Limited (Rs.89.99 crore), MadrasFertilizers Limited, (Rs. 74.50 crore),Brahmaputra Valley Fertilizers CorporationLimited (Rs.45.00 crore) and otherDepartmental Schemes (Rs.5.5 crore). Underthe other Departmental Schemes, there is aprovision of Rs. 2.00 crore for S&TProgramme: Rs. 3.5 crore for informationTechnology. Rs.0.001 crore has been forinvestment for Joint Ventures abroad.
5.2.5 For the year 2009-10, there was netbudgetary provision of Rs. 50,200.00 crore,Rs. 200.00 crore under Plan and Rs.50000.00 crore under Non-Plan. In theRevised Estimate (RE) for 2009-10, the netprovision is Rs. 53200.00 crore, Rs.200.00crore under Plan and Rs. 53000.00 croreunder Non-Plan. The details of Non-Plan andPlan Provision in 2009-10 (BE), 2008-10 (RE)and 2010-11 (BE) are given in Annexure-IX.
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6.1 Measures of support for fertilizers
6.1.1 For sustained agricultural growth and topromote balanced nutrient application, it isimperative that fertilizers are made availableto farmers at affordable prices. With thisobjective, urea being the only controlledfertilizer, is sold at statutorily notified uniformsale price, and decontrolled phosphatic andpotassic fertilizers are sold at indicativemaximum retail prices (MRPs). The problemsfaced by the manufacturers in earning areasonable return on their investment withreference to controlled prices, are mitigatedby providing support under the New PricingScheme for urea units and the ConcessionScheme for decontrolled phosphatic andpotassic fertilizers. The statutorily notified saleprice and indicative MRP is generally lessthan the cost of production of the respectivemanufacturing unit. The difference betweenthe cost of production and the selling price/MRP is paid as subsidy/concession tomanufacturers. As the consumer prices ofboth indigenous and imported fertilizers arefixed uniformly, financial support is also givenon imported urea and decontrolledphosphatic and potassic fertilizers.
6.2 Measures of Support for Urea
6.2.1 Until 31.3.2003, the subsidy to ureamanufacturers was being regulated in termsof the provisions of the erstwhile RetentionPrice Scheme (RPS). Under RPS, thedifference between retention price (cost ofproduction as assessed by the Governmentplus 12% post tax return on networth) andthe statutorily notified sale price was paid assubsidy to each urea unit. Retention priceused to be determined unit wise, whichdiffered from unit to unit, depending uponthe technology, feedstock used, the level of
Chapter-6
capacity utilization, energy consumption,distance from the source of feedstock/rawmaterials, etc. Though the RPS did achieveits objective of increasing investment in thefertilizer industry, and thereby creating newcapacities and enhanced fertilizer productionalong with increasing use of chemicalfertilizers, the scheme had been criticizedfor being cost plus in nature and not providingincentives for encouraging efficiency.
6.2.2. Given the importance of fertilizer pricing andsubsidization in the overall policyenvironment, which has direct implicationswith reference to the growth and developmentof agriculture and sustainability of the fertilizerindustry, the need for streamlining thesubsidy scheme in respect of urea producingunits had been felt for a long time. A HighPowered Fertilizer Pricing Policy ReviewCommittee (HPC) was constituted, under thechairmanship of Prof. C.H. Hanumantha Rao,to review the existing system of subsidizationof urea, suggest an alternative broad-based,scientific and transparent methodology, andrecommend measures for greatercohesiveness in the policies applicable todifferent segments of the industry. The HPC,in its report submitted to the Government on3rd April 1998, inter-alia, recommended thatunit-wise RPS for urea may be discontinuedand, instead, a uniform Normative ReferralPrice be fixed for existing gas based ureaunits and also for DAP and a FeedstockDifferential Cost Reimbursement (FDCR) begiven for a period of five years for non-gasbased urea units.
6.2.3. The Expenditure Reforms Commission(ERC), headed by Shri K.P. Geethakrishnan,had also examined the issue of rationalizingfertilizer subsidies. In its report submitted on20th September 2000, the ERC
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recommended, inter-alia, dismantling ofexisting RPS and in its place the introductionof a Concession Scheme for urea units basedon feedstock used and the vintage of plants.
6.2.4. The recommendations of ERC wereexamined in consultation with the concernedMinistries/Departments. The views of thefertilizer industry and the State Governments/Union territories, and economists/researchinstitutes were also obtained. After dueexamination of all these views, a New PricingScheme (NPS) for urea units for replacingthe RPS was formulated and notified on30.1.2003. The new scheme took effect from1.4.2003. It aims at inducing the urea unitsto achieve internationally competitive levelsof efficiency, besides bringing in greatertransparency and simplification in subsidyadministration.
6.2.5. New Pricing Scheme (NPS) for urea wasintroduced 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 to31st March, 2006. With the Stage-III of NPSbeing implemented w.e.f. 1st October, 2006,the Stage-II of NPS stands extended upto31st September, 2006.
6.2.6 Under NPS, the existing urea units have beendivided into six groups based on vintage andfeedstock for determining the group basedconcession. These groups are : Pre-1992gas based units, post-1992 gas based units,pre-1992 naphtha based units, post-1992naphtha based units, fuel oil/low sulphurheavy stock (FO/LSHS) based units andmixed energy based units. The mixed energybased group shall include such gas basedunits that use alternative feedstock/fuel tothe extent of more than 25% as admissibleon 1.4.2002.
6.2.7. Under NPS, escalation/de-escalation is givenin respect of variable cost related to changesin the price of feedstock, fuel, purchasedpower and water. Under the scheme, noreimbursement is allowed in respect of
investment made by a unit for improvementin its operations nor are the gains as a resultof operational efficiencies to be mopped up.
6.2.8. It has also been provided under the schemethat the concession rates during Stage-II shallbe adjusted for reduction in capital relatedcharges and enforcement of efficient energynorms. Pre-set energy norms for urea unitsduring Stage-II of NPS have already beennotified and intimated to urea units. Reductionin rates of concession during Stage-II of NPSfor urea units on account of reduction incapital related charges have also beennotified and intimated to urea units.
6.3 Amendments to New Pricing SchemeStage - III for Urea Units.
Following amendments in NPS III have beenmade
6.3.1 It has been decided that the reduction in thefixed cost of each Urea units strictly due toGroup Averaging principle under the NewPricing Scheme III will be restricted to 10%of the Normated Fixed Cost computed underthe base concession rates. The limitation onreduction of fixed cost will be applicable w.e.f1st April, 2009.
6.3.2 Capacity utilization of Post – 1992 Napthabased Group Average will be considered as95% instead of 98% for calculating the baseconcession rates of urea units provided nocost towards conversion is recognized underNPS III. The approved amendments will helpthe indigenous urea units reduce their lossesdue to the group averaging under NewPricing Scheme Stage - III and help them togenerate resources for reinvestment in theirplants towards modernization and increasedefficiency.
6.3.3 To maintain stocks of urea in case there iseither a shortfall in production due todisruption in supplies of feedstocks or delay/disruption in imports and to tide over thesudden spurt in demand/shortages, a bufferstocking scheme for urea is underimplementation in major States. The
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companies are reimbursed buffer stockingexpenses on following parameters.
The company operating the buffer stock willbe entitled to Inventory Carrying Cost (ICC)at a rate 1 percentage point less than thePLR of SBI as notified from time to time.This rate would be applicable at Rs 4650per MT (MRP less than the dealer’s margini.e. Rs 4830- Rs 180) for the quantity andthe duration for which the stock is carried asbuffer. In case of cooperatives, it will be atRs 4630 per MT as dealers margin in thiscase is Rs 200 per MT.
I. The company will be paid warehousingand insurance charges at the rate ofRs 23 per tonne per month on thequantity carried as buffer.
II. Since the material will be moved in twostages i.e. from the plant to the bufferstocking point and then on toconsumption points, additional handlingcharges at the rate of Rs 30 per MT willbe paid to the Fertilizer Company onthe quantity sold from the buffer stock.
III. In addition, freight from the bufferstocking warehouse to the block in caseof movement outside the district in whichbuffer stocking godown is located, willalso be paid to the company, inaccordance with the provisions underthe Uniform policy for freight subsidyannounced by the Government witheffect from 1st April, 2008.
6.4. Phased Decontrol of Urea Distribution
6.4.1 As per the New Pricing Scheme for ureaunits, it was also envisaged that decontrol ofurea distribution/movement will be carried outin a phased manner. During Stage-I, i.e. from1.4.2003 to 31.3.2004, the allocation of ureaunder the Essential Commodities Act 1955(ECA) was restricted up to 75% and 50% ofinstalled capacity (as reassessed) of eachunit in Kharif 2003 and Rabi 2003-04,respectively. It was further envisaged thatduring Stage-II commencing from 1.4.2004,
urea distribution will be totally decontrolledafter evaluation of Stage-I and with theconcurrence of the Ministry of Agriculture.
6.4.2 The total decontrol of urea distribution wasdeferred initially for a period of six monthsw.e.f. 1.4.2004 i.e., up to Kharif 2004, whichhas been subsequently deferred up to Rabi2005-06 i.e., up to 31.3.2006. The existingsystem of 50% ECA allocation and 50%outside ECA allocation has been extendedupto 31-3-2010.
6.4.3 The pricing policy for urea units for Stage-IIIof New Pricing Schemes (NPS) which iseffective from 1.10.2006 to 31.3.2010 hasbeen formulated keeping in view therecommendations of the Working Group setup under the Chairmanship of Dr. Y.K. Alagh.The salient features of the proposed Stage-III Policy which is aimed at promoting furtherinvestment in the urea sector, are tomaximize urea production from the Urea unitsincluding through conversion of non-gasbased Units to gas, incentivising additionalurea production and encourage investmentin Joint Venture (JV) projects abroad. It isalso aimed at establishing a more efficienturea distribution and movement system inorder to ensure availability of urea in theremotest corners of the country.
6.4.4 The Stage-III policy seeks to promote usageof most efficient and comparatively cheaperfeed stock natural gas/LNG for production ofurea in the country. The policy lays down adefinite plan for conversion of all non-gasbased urea units to gas. At present, thereare 8 urea units (MFL,SPIC, ZIL, MCFL,GNFC, NFL-Nangal, NFL-Bhatinda, NFL-Panipat) in the country which are based onnaphtha or FO/LSHS as feed stock. All these8 units are required to switch over to naturalgas/LNG within a period of next three years.Beyond this time limit, the high cost ureaproduced by these non-gas based units willnot be entitled to subsidy at the existing levelsand it will be restricted to import parity priceof urea. The units, which are unable to tieup gas will have to explore alternative
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feedstocks like Coal Bed Methane (CBM)and coal gas. SFC has started using gasw.e.f. 22.9.2007.
6.4.5. The availability of gas is critical to the growthof urea industry in the country. Presently,the indigenous availability is not sufficient tomeet the demand of existing gas based ureaunits in the country. To this end, theDepartment of Fertilizers constituted aCommittee under the chairmanship ofSecretary(P&NG) with Secretary(Fertilizers),Secretary(Expenditure), Secretary(PlanningCommission) as its members to deliberateupon various issues relating to connectivityand assured supply of gas to the fertilizersector. The Committee will also develop anappropriate mechanism for fixing the priceof the gas in a transparent manner.
6.4.6 In order to incentivise conversion of non gasbased units to gas, the policy provides for aregime where there will be no mopping up ofenergy efficiency for a fixed period of fiveyears for naphtha based as well as FO/LSHSbased units. The policy also recognizes thecomparative higher cost of conversion of FO/LSHS based units to gas and provides forone time capital investment assistance tothese units for conversion to gas during thenext three years. A specific policy to thiseffect has been announced by theGovernment on 6th March 2009.
6.4.7 The policy also lays down a formulation todis-incentivise high cost production from thenon-gas based units and to facilitate theirearly conversion to gas. It is proposed thatthese units may be allowed to produce 100%of capacity should they adhere to an agreedtimetable for conversion to Gas and tie uprequisite Gas/CBM/Coal gas. If they do not,they will be given only 75% of the fixed costsbeyond 93% of capacity utilization in the 1st
year (1.4.2007) and 50% of the fixed costbeyond 93% capacity utilization from 2nd year(1.4.2008) onwards.
6.4.8 Considering the likely growth in consumptionof urea in the years to come, the policy seeks
to encourage the existing urea units toproduce beyond 100% of their installedcapacities by introducing a system ofincentives for additional urea productionsubject to merit order procurement. Thepolicy of requiring prior Governmentpermission for additional urea production hasbeen dispensed with. All production between100% and 110% of the existing reassessedcapacity will be incentivised on the existingnet gain sharing formula between theGovernment and the unit in the ratio of 65:35respectively with the proviso that the totalamount paid to the units after including thecomponent of variable cost will be cappedat the units own concession rate. The unitsincreasing production beyond 110% will becompensated at their concession rate subjectto the over all cap of Import Parity Price(IPP). To the extent Government does notrequire any quantities of additionalproduction, the urea companies would befree to dispose of the remaining quantitiesby way of export or sale to complexmanufacturers without any permission. Thepolicy also encourages setting up of JointVenture projects abroad where gas is readilyavailable at reasonable prices. It recognizesour heavy dependence on imported rawmaterials/intermediates and feedstock in thefertilizer sector and to properly leverage thisposition, the policy seeks to createspecialized agency to coordinate investmentsabroad in fertilizer sector.
6.4.9 The policy seeks to rationalize distributionand movement of urea and the system offreight reimbursement with the objective ofensuring availability of urea in all parts ofthe country. The Government will continueto regulate movement of urea up to 50% ofproduction depending upon the exigency ofthe situation. The State Governments will berequired to allocate the entire quantity ofplanned urea arrivals including both regulatedand de-regulated urea in districtwise,monthwise and supplierwise format. The unitswill be required to maintain a district levelstock point and the subsidy will be paid only
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when the urea reaches the district. Themonitoring of movement and distribution ofurea throughout the country up to the districtlevel will be done by an On line Web basedmonitoring system. To facilitate movementof fertilizers to far flung area, thereimbursement of freight will be based onactual leads for rail and road movement. Therail freight will be reimbursed as per theactual expenditure and the road freight willbe escalated as per composite road transportindex every year. One time enhancement of33% will be granted on the road componentof primary freight to offset the impact ofSupreme Court directive regarding maximumtruck load limit of 9 MT on road vehicles.The existing special freight subsidy schemewill continue for supply of urea to the NorthEastern States except Assam and Jammu &Kashmir. In addition, the Department willoperate a buffer stock through the stateinstitutional agencies/fertilizer companies inmajor urea consuming States up to a limit of5% of the seasonal requirement.
6.4.10 The Stage-III of NPS seeks to carry on theexisting 6 group classification of ureamanufacturing units in the country withupdation of all costs upto 31st March, 2003.The respective pre-set energy consumptionnorm of each urea units during Stage-II ofNPS or the actual energy consumptionachieved during the year 2003, whichever islower, will be recognized as the norm forStage-III of NPS. The policy also providesfor updation of costs on account of cost ofbags through 3 year moving weightedaverage cost of bags to compensate for therise in prices for the last three years. It alsoprovides for payment of sales tax on inputand other taxes recognized under erstwhileRetention Price Scheme, on actual basis.
6.4.11 NPS Stage-III seeks to take forward theprinciples of uniformity and efficiency in ureaproduction as enunciated during Stage I andII of NPS and also aims at bringing in moretransparency in distribution of fertilizersacross the country. It is expected that the
policy will encourage increase in indigenousproduction from the existing urea units in thecountry and facilitate early conversion of non-gas based units to gas leading to substantialsavings in subsidy. It is also expected thatwith the launch of Fertilizer MonitoringSystem (FMS) to monitor movement offertilizers upto district level and the freightrationalization proposed in the new policy,the distribution of fertilizers in remote cornersof the country will improve considerablywithout any complaints of shortages in future.The Department of Fertilizers will continueits endeavour to promote the growth offertilizer industry in the country and ensureadequate availability of fertilizers to thefarmers.
6.5 Pricing policy for investment in Fertilizersector.
Urea
6.5.1 A pricing policy was announced on 29.1.2004for setting up new urea projects andexpansion of existing urea projects foraugmenting the domestic production capacityof urea to meet the growing demand forenhancing the agricultural production in thecountry. The new policy aimed at enablingthe entrepreneurs to decide about theirinvestment plans in the fertilizer sector. Thenew policy was expected to encouragesetting up of plants with internationalefficiency standards for fresh investment innew projects and expansion of existing units.The policy was based on the principle ofLong Run Average Cost (LRAC).
6.5.2 The above policy was not successful inattracting investment in this sector. The non-availability of natural gas, which is the criticalfeedstock for production of urea, has alsobeen one of the major constraints in furtheraddition of indigenous capacity for productionof urea. However with the projected improvedavailability of gas from 2009 onwards, it isexpected that investment in fertilizer sectorwill also take place. The Government hasrecently announced on 4th September 2008,
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a new investment policy for urea sector toattract the much required investment in thissector. The policy is based on IPP benchmarkand has been finalized in consultation withthe industry.
6.5.3 The policy is expected to lead to savings tothe Government in the form of availability ofUrea at a price below IPP and will also leadto indirect savings by bringing down theimport price due to reduction in imports. TheNew Investment Policy aims at revamp,expansion, revival of existing urea units andsetting up of Greenfield/ Brownfield projects.The policy is likely to substantially bridge thegap in next five years between theconsumption and domestic productionsubject to confirmed and adequate availabilityof gas at reasonable prices. The salientfeatures of the new investment policy are asunder :-
1. The policy is based on Import ParityPrice (IPP) benchmarked with suitablefloor and ceiling prices of USD 250/MTand USD 425/MT respectively.
2. Revamp project: Any improvement incapacity of existing plants throughinvestment upto Rs. 1000 crore, in theexisting train of ammonia-ureaproduction will be treated as revamp ofexisting units. The additional urea fromthe revamp of existing units will berecognized at 85% of IPP with the floorand ceiling price as indicated above.
3. Expansion projects: Setting up of a newammonia-urea plant (a separate newammonia-urea train) in the premises ofthe existing fertilizer plants, utilizingsome of the common utilities will qualifyfor being treated as expansion project.The investment should exceed aminimum limit of Rs.3000 crore. Theurea from the expansion of existing unitswill be recognized at 90% of IPP, withthe floor and ceiling price as indicatedabove.
4. Revival/Brownfield projects: T h eurea from the revived units of HindustanFertilizer Corporation Limited(HFCL)and Fertilizer Corporation of IndiaLimited (FCIL) will be recognized at 95%of IPP with prescribed floor & ceilingprice, if the revival of closed units takesplaced in public sector.
5. Greenfield projects: The pricing ofGreenfield projects will be decidedbased on a bidding process which willbe for a discount over IPP, after firmingup of the location (States) of theproposed new plants.
6. Gas transportation charges: Anadditional gas transportation cost will bepaid to units undertaking expansion andrevival on the basis of actuals (upto 5.2Gcal per MT of urea) as decided by theRegulator(Gas) subject to a maximumceiling of USD 25 per MT of urea.
7. Allocation of Gas: Only non-APM gaswill be considered for the newinvestment in urea sector.
8. Coal gasification based Urea Projects:The Coal gasification based ureaprojects will also be treated on par witha revival or a Greenfield project as thecase may be. In addition, any otherincentives or tax benefits as providedby Government for encouraging coalgasification technology will also beextended to these projects.
9. Joint Ventures abroad: The JointVenture projects abroad in gas richcountries are also proposed to beencouraged through firm offtakecontracts with pricing decided on thebasis of prevailing market conditionsand in mutual consultation with the jointventure company. However, the principlefor deciding upon the maximum pricewill be the price achieved underGreenfield projects or 95% of IPP asproposed for revival projects (in absence
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of any Greenfield projects) with a capof USD 405 CIF India per MT and afloor of USD 225 CIF India per MT(inclusive of handling and bagging costs)
10. Time period for proposed investmentpolicy: Only those revamp projectswhich start production of additionalcapacities within four years ofnotification of the new policy wouldqualify for the dispensationrecommended above. Similarlyproduction from expansion and revival(brownfield) units that come about withinfive years of notification of the newpolicy would qualify for dispensationprovided in the policy. If the productiondoes not come through within thestipulated time period, such brownfieldprojects will be treated similar to aGreenfield projects wherein price will bedecided through limited bidding options.The time period for setting up of newJoint Ventures would also be five yearsunder the new investment policy.
6.6. Nutrient based pricing regime for allsubsidized fertilizers.
6.6.1 The Government intends to move towards anutrient based subsidy regime in order toensure balanced application of fertilizers andincrease in agriculture productivity. TheNutrient Based Subsidy regime is underconsideration of Group of Ministersconstituted to examine the nutrient basedsubsidy policy and measures forrationalization of fertilizer subsidydisbursement.
Keeping in view the interests of the farmersand to promote balanced use of fertilizers,the Department of Fertilizers has notified on17th June 2008 a nutrient based pricingregime for all subsidized fertilizers. It hasbeen further decided to fix the farmgate priceof nutrients at the level of their existing pricein straight fertilizers viz. Urea, DAP, MOPand SSP. This will lead to significant reductionin existing Maximum Retail Prices (MRPs)
of complex fertilizers. Under this regime, thefarm gate price of each nutrient will beuniform across all subsidized fertilizers. Theselling price of subsidized fertilizers will bedetermined on the basis of the nutrientscontained therein
6.6.2 Under existing pricing regime, the price ofnutrients in complex fertilizers were higherthan the price of same nutrients in otherstraight fertilizers like Urea, DAP, MOP andSSP. This led to comparatively higher usageof straight fertilizers vis-à-vis complexfertilizers, which are agronomically betterfertilizer products. The nutrient based pricingwill lead to parity in price of complex fertilizerswith other straight fertilizers and, thus, isexpected to promote balanced fertilization byencouraging usage of complex fertilizers.
Policy for encouraging production andavailability of fortified and coatedfertilizers in the country.
Department of Fertilizers has notified on 2nd
June 2008 a policy for encouragingproduction and availability of fortified andcoated fertilizers in the country. In terms ofthis policy, the indigenous manufacturers/producers of the subsidized fertilizers areallowed to produce fortified/coated subsidizedfertilizers up to a maximum of 20% of theirtotal production of respective subsidizedfertilizers. The manufacturers/producers areallowed to sell all the FCO approved fortified/coated subsidized fertilizers, except forZincated Urea and Boronated SSP at a priceup to 5% above the MRP of the subsidizedfertilizer as indicated in the table above. ForZincated Urea and Boronated SSP, themanufacturers are allowed to charge up to10% above MRP of Urea and SSPrespectively.
6.7 Policy for uniform freight subsidy on allfertilizers under the fertilizer subsidyregime.
6.7.1 To ensure easy availability of fertilizers in allparts of the country, the Department of
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Fertilizers has notified on 17th July 2008 auniform freight subsidy regime for allsubsidized fertilizers, wherein freight subsidywill be paid separately on receipt of allsubsidized fertilizers in the districts/blocks.The freight subsidy will constitute of twocomponents, namely, rail freight and roadfreight. The rail freight will be paid on actual,and the road freight will be paid on anormative average district lead (average ofthe actual leads of block headquarters fromthe nearest rail rake point) and a normativeper KM rate.
6.7.2 The uniform freight subsidy regime willfacilitate availability of fertilizers in all partsof the country, especially in areas which arefar from the production facilities and ports byreimbursing freight on actual.
6.8 Policy for Conversion of existing non-gasbased Urea units to Natural gas/LNG forfeedstock/fuel
6.8.1 At present there are 8 units in this countrywhich is based on Naphtha (4) and FOLHS(4) as feedstock/fuel. Under New PricingPolicy Stage-III, specific time schedule ofthree years has been laid down forconversion of the non gas based units togas.
6.8.2 The policy for New Pricing Scheme (Stage –III) notified on 8th March 2007 committedCapital Subsidy for FO/LSHS based unitsthrough a separate Scheme to be notified inconsultation with Department of Expenditure(DOE) and completion of conversion withinthree years. The issue of notification of ascheme for Capital Assistance towards FO/LSHS conversion was considered by theDepartment in consultation with DOE and itwas decided to finalise a scheme based onthe deferred payment of project cost linkedto production of urea post conversion.Accordingly, a separate scheme forconversion of FO/LSHS units to gas wasfinalized and notified on 6th March 2009. Thepolicy for conversion subsidy towardsconversion of FO/LSHS projects provides for
reimbursement of project cost as approvedby Public Investment Board (PIB) through aspecial fixed cost component and retentionof energy savings for five years afterconversion to Natural Gas.
6.8.3 The 4 FO/LHS based units have alreadystarted work on conversion of units to gas.The proposals for conversion of FO/LSHSplants of NFL and GNVFC were submittedto PIB for their consideration. PIB agreed tothe above proposals for conversion in themeetings held on 5th and 13th November,2009. Proposal of NFL has been submittedto CCEA for clearing the investment for theprojects while GNVFC is initiating actions fortheir conversion project.
6.8.4 Assured availability of gas is main constraintfor expediting conversion process. The unitsare in regular touch with gas suppliers forconfirm commitment towards supply of gas,after which conversion process will beexpedited.
6.9 Concession Scheme for decontrolled P&KFertilizers
Background
6.9.1. Government of India decontrolled Phosphaticand Potassic (P&K) fertilizers with effect from25th August 1992 on the recommendationsof Joint Parliamentary Committee.Afterwards, the prices of these fertilizersregistered a sharp increase compared toUrea. This exercised an adverse impact onthe demand and consumption of the P&Kfertilizers. It, in turn, led to fear of imbalancein the usage of Nitrogen (N), Phosphate (P)and Potash (K) nutrients in the soil andadverse effect on agricultural productivity. Inorder to cushion the impact of increase inprices of the decontrolled P & K fertilizersand promote balanced usage of NPKnutrients, Department of Agriculture & Co-operation (DAC) introduced a scheme ofconcession on decontrolled P & K fertilizersin 1992-93 on adhoc basis. The ConcessionScheme initially covered Di-ammonium
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Phosphate (DAP), Muriate of Potash (MOP)and 11 grades of NPK complex fertilizers.Then, it was extended to SSP in 1993-94.Scheme of concession for P&K fertilizers hasbeen allowed to continue till date with furtheramendments therein from time to time.Department of Agriculture & Cooperationadministered the Concession Scheme from1992 to September 2000. Subsequently, thescheme was transferred to Department ofFertilizers w.e.f. 1.10.2000. The basicpurpose of this Scheme has been to providefertilizers to the farmers at the subsidizedrates and also to ensure reasonable rate ofreturn on the investments made by theentrepreneurs in the Fertilizer Sector. During1992-93 and 1993-94, the StateGovernments released payment ofconcession to the manufacturers/importersof P&K fertilizers based on the grantsprovided by Department of Agriculture &Cooperation. Department of Agriculture &Cooperation started releasing payment ofconcession to the manufacturers/importersfrom 1994-95 based on the certification ofsales carried out by the State Governments.The manufacturers/importers were givenpayment of concession on 100% basis basedon certification of sales up to 1996-97.
6.9.2. Major Changes in Concession Schemeduring 1997-98
During 1997-98, some major changes tookplace in the Concession Scheme.Accordingly, the Department of Agriculture &Cooperation, started indicating an all Indiauniform Maximum Retail Price (MRP) forDAP/NPK/MOP. The responsibility ofindicating MRP in respect of SSP rested withthe State Governments. During 1997-98 itself,the Department of Agriculture & Cooperationalso introduced the system of releasing 80%‘On Account’ payment of concession to themanufacturers/importers on the sale ofdecontrolled P & K fertilizers w.e.f. 1.4.1997.The balance 20% payment of concessionwas released to the manufacturers/importersafter the certification of sales by the State
Governments. The Special Freight SubsidyReimbursement Scheme was also introducedin 1997 for supply of fertilizers in the difficultareas of J&K and North-eastern States. TheScheme was further extended to certainareas of Himachal Pradesh subsequently.Freight for movement of Fertilizers in otherareas was included in the concessionamount.
6.9.3. Cost Price Study of DAP and MOP
Based on the cost price study of DAP andMOP conducted by Bureau of Industrial Costs& Prices (BICP - now called TariffCommission), Department of Agriculture &Cooperation started announcing rates ofconcession based on the cost plus approachon quarterly basis w.e.f. 1.4.1999. The totaldelivered cost of fertilizers being higher thanthe MRP indicated by the Government, thedifference in the delivered price of fertilizersat the farm gate and the MRP iscompensated by the Government as subsidyto the manufacturers/importers for selling thefertilizers at the MRP indicated by theGovernment. The Government introduced anew methodology for working out subsidy tocomplex fertilizers w.e.f. 1.4.2002 based onthe recommendations of the TariffCommission. Accordingly, the complexmanufacturers were divided into two groupsbased on feedstock for sourcing Nitrogen. Inthe meantime, the administration of theConcession Scheme was transferred fromDepartment of Agriculture & Cooperation toDepartment of Fertilizers w.e.f. October 2000.With the passage of time, the structure ofDAP industry changed as some of the newDAP manufacturing plants like M/s. OswalChemicals & Fertilizers Ltd. and M/s IndoGulf Fertilizers Corporation Ltd. wereestablished using the Rock Phosphate formanufacturing indigenous Phosphoric acid/DAP. Accordingly, the Tariff Commissionmade a fresh Cost Price Study and submittedits report in February 2003. Payment ofconcession to the DAP manufacturing unitsfrom 2003-04 to 2007-08 was made as per
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two groups depending upon the source ofthe raw materials (Rock Phosphate/Phosphoric acid).
6.9.4. Expert Group
CCEA while approving price of Phosphoricacid for the year 2004-05, directed
Department of Fertilizers to evolve amethodology for working out concession ofP&K fertilizers based on the internationalprice of DAP to be adopted as a bench mark.The Department of Fertilizers accordinglyframed a proposal suggesting methodologyto link phosphoric acid price with internationalDAP price. Subsequently, the matter was
referred to the Expert Group. The ExpertGroup submitted its report in October 2005.The recommendations of the Expert Groupwere considered by the IMG.
6.9.5. MRP of decontrolled P&K Fertilizers
The MRP of the DAP/NPK/MOP has beenconstant from February 2003 to 17.6.2008.Then Department of Fertilizers introducednutrient based subsidy in June 2008 andaccordingly, revised the MRP of NPKComplex Fertilizers downwards w.e.f.18.6.2008. However, the MRP of the otherfertilizers remained the same. The MRP offertilizers is as below as on date
MAXIMUM RETAIL PRICE OF FERTILIZERS
(Rupees per MT)
Product From 12.3.2003 to From 18.06.0817.6.2008
Urea 4830 4830
Di Ammonium Phosphate (DAP) 9350 9350
Muriate of Potash (MOP) 4455 4455
Mono-Ammonium Phosphate (MAP) (w.e.f. 1.4.2007) 9350 9350
Triple Super Phosphate (TSP) (w.e.f. 1.4.2008) 7460 7460
Single Super Phosphate (SSP) 3400 3400(w.e.f. 1.5.2008 to 30.6.2009) all India MRP
Ammonium Sulphate (AS) (w.e.f. 1.7.2008) 10350
Grades of Complex Fertilizers - N:P:K:S
16:20:00:13 (earlier 16:20:00) 7100 5875
20:20:00:00 7280 5343
20:20:00:13 7280 6295
23:23:00:00 8000 6145
28:28:00:00 9080 7481
10:26:26:00 8360 7197
12:32:16:00 8480 7637
14:28:14:00 8300 7050
14:35:14:00 8660 8185
15:15:15:00 6980 5121
17:17:17:00 8100 5804
19:19:19:00 8300 6487
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6.9.6 Recent Changes in the ConcessionScheme
Policy For Uniform Freight Subsidy :
Department of Fertilizers also announced apolicy for uniform freight subsidy on17.7.2008 on all fertilizers under the fertilizersubsidy regime w.e.f. 1.4.2008 (except SSP).Accordingly, the payment of freight subsidyis made to the manufacturers/importersbased on the actual lead based on the actualexpenditure on the basis of actual lead forsupplying the fertilizers in the states/districts.As per this policy, the special freightreimbursement scheme for J & K and NorthEastern States has been withdrawnretrospectively w.e.f. 1.4.2008. Departmentof Fertilizers has assigned Tariff Commissionto undertake study for finalizing the freightper kilometer per tonne for roadtransportation of fertilizers.
6.9.7 Concession Scheme for Decontrolled P& K Fertilizers
Tariff Commission conducted fresh cost pricestudy of DAP/MOP and NPK complexes andsubmitted its report in December 2007.Based on the examination of the TariffCommission Report and the long-termapproach suggested by the Expert Groupunder the Chairmanship of Prof. Abhijit Sen,the Concession Scheme was examined. TheGovernment approved the ConcessionScheme with effect from 1.4.2008 for DAP/MOP/NPK Complexes/MAP. MRP of thedecontrolled P & K fertilizers is as mentionedabove. The final rates of concession isworked out on monthly basis. Concessionfor indigenous DAP is the same as that ofimported DAP (on the basis of import parityprice). Concession on complex fertilizers isbased on the methodology recommended byTariff Commission with certain modifications.The NPK complex industry has been dividedinto 4 groups depending upon the source ofNitrogen. A separate cost of ‘S’ for Sulphurcontaining complex fertilizers has also beenrecognized w.e.f. 1.4.2008. Triple Super
Phosphate (TSP) has been included in theConcession Scheme from 1.4.2008 andAmmonium Sulphate has been included inthe Concession Scheme w.e.f. 1.7.2008 forGSFC, Baroda and FACT, Udyogmandal.Accordingly, as on date, the P & K fertilizerscovered under the Concession Scheme areDAP/MOP/NPK Complexes/MAP (introducedw.e.f. 1.4.2007)/Ammonium Sulphate, TSP(with effect from 1.4.2008) and SSP. Theinput/fertilizer prices for Concession Schemeare derived on the basis of an outliermethodology. The Buffer Stocking Schemehas also been allowed to continue with 3.5Lakh MTs for DAP and 1 Lakh MTs for MOPas buffer. Modifications in certain elementsof the Concession Scheme were also carriedout with effect from 1.4.2009 to adjustparameters of concession scheme toInternational pricing dynamics and rationalize‘N’ grouping as well as payment system.Accordingly, the following changes have beeneffected in the existing policy for P &KFertilizers.
(i) Final rates of concession is worked outon monthly basis taking into accountthe average international price of themonth preceding the last month or theactual weighted average C&F landedprice at the Indian ports for the currentmonth, whichever is lower w.e.f. 1st April,2009 with respect to DAP and MOPw.e.f. 1st April, 2009. In case of rawmaterials/inputs for complex fertilizers,there is a lag of one month.
(ii) From 1.12.2008, payment of concessionis made to the manufacturers/importersof the Decontrolled fertilizers (exceptSSP) on the basis of arrival/receipt offertilizers and certificate of receipt bythe State Government/statutory auditorof the company subject to finalsettlement on the basis of sale of thequantity.
(iii) Instead of product-wise, group-wise ‘N’has been adopted w.e.f. 1st April, 2009for computation of concession forcomplex fertilizers w.e.f. 1st April, 2009.
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6.9.8 Cost Price study of Ammonium Sulphate
Department of Fertilizers have assigned theTariff Commission to conduct cost price studyof Ammonium Sulphate (AS) by GSFC/FACTincluded under the Concession Scheme.
6.9.9 Concession Scheme for single superphosphate (SSP)
At present 77 SSP manufacturing units allover India are covered under the ConcessionScheme. Department of Fertilizers revisedthe Concession Scheme on SSP on25.8.2008 w.e.f. 1.5.2008, which remainedin operation from 1.5.2008 to 30.9.2009.Accordingly, the manufacturers were requiredto sell SSP at all India uniform MRP of Rs.3400/- per MT. Separate rate of concessionfor SSP were announced month-wise basedon the indigenous and imported RockPhosphate depending upon the rise/fall ofthe cost of raw materials (Rock Phosphateand Sulphur) as well as exchange rate. Themonth-wise rates of concession announcedduring May 2008 to July 2009 for SSP havebeen as follows:
Month/year Rates of Rates ofConcession Concession
based on based onImported Rock Indigenous
Phosphate Rock Phosphate(Rs. PMT) (Rs. PMT)
May, 2008 6406 4587
June, 2008 8942 5383
July, 2008 9160 5674
August, 2008 10391 6776
September, 2008 11661 6990
October, 2008 13003 5823
November,2008 7914 3070
December, 2008 8965 2012
January, 2009 8075 1967
February, 2009 7503 1961
March, 2009 5870 1944
April, 2009 2927 1873
May, 2009 2709 2006
June, 2009 2453 1982
July, 2009 2510 1986
The manufacturers of SSP are allowed toclaim 85% (90% with Bank Guarantee) ‘OnAccount’ payment of concession. Thebalance payment of concession is settledbased on the certificates of sales issuedby the State Governments in prescribedProforma ‘B’.
6.9.10 Revised policy for ad-hoc concessionfor single super phosphate(SSP) witheffect from 1.10.2009.
Government have decided to implement arevised policy for ad-hoc subsidy for SSPw.e.f. 1st October, 2009, which includesopen selling price of SSP w.e.f. 1.10.2009in place of all India MRP of Rs. 3400/-PMT prevailed earl ier. Governmentprovides an ad-hoc concession of Rs.2000/- PMT for Powdered, Granulated andBoronated SSP. The manufactures/marketers of SSP are eligible to claim 85%‘On Account’ payment of concessionmonth-wise w.e.f. 1.10.2009 in theprescribed Proforma ‘A’ & ‘C’ duly certifiedby the Statutory Auditor of the Company.While claiming ‘On Account’ payment ofconcession, the manufacturers are requiredto produce a certificate issued by the StateGovernment of the State in which the unitis located about the certification of thequality. The manufacturers are required toput stamp/print “Quality Certified” on eachbag of SSP released in the market. Themanufacturers must have the wellequipped laboratory to test the samples ofthe SSP. The balance payment ofconcession shall be released by theDepartment of Fertilizers based on the salecerti f icates issued by the StateGovernments in prescribed Proforma ‘B’.Ad-hoc concession for SSP w.e.f. 1st
October, 2009 will be provided to thoseeligible SSP units only, which have eitherannual capacity utilization of at least 50%or annual production of 40,000 MT of SSP.For the purpose of recognizing capacityutilization/production, capacity as on 31st
March, 2009 will be taken into account.
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6.9.11 Rationalizing and Streamlining ofConcession Scheme
To ensure standard and quality of SSP, aTechnical Audit & Inspection Cell (TAC), byProjects & Development India Ltd., (PDIL),was constituted. Accordingly, the TAC isassigned the task of examining variousgrades of Rock Phosphate (both indigenousand imported) and recommending the gradesof Rock Phosphate with source of origin,along with technical parameters, such asconsumption norms of each grade formanufacture of SSP as per FCOspecifications. The TAC is also mandated toconduct six monthly techno-commercial
audits of SSP plants and to confirm towhether the SSP units are using thespecified/notified grades of Rock Phosphate.The objective behind the constitution of TACis to put a curb on the sale of non-standardSSP to the farmers and to cross check theconcession claimed by the industry.
6.9.12 In order to be eligible for concession underthe Concession Scheme, the manufacturersof SSP are required to use only those gradesof Rock Phosphate as raw material for SSP,which are notified by Department ofFertilizers from time to time. The grades/sources of Rock Phosphate notified by theDepartment are as below:
Notification No.M-19011/33/2001-MPR dated 19th September, 2001
S.No. Primary Grade of rock phosphate Specification of blending rock Source of origin
A Mined rock chips with 31.5% and – Rajasthan Stateabove P2O5 content by wt. Mines & MineralsOn an average Limited (RSMML)
B Jordan Rock with 30.0% and above – Rock importedP2O5 content by wt. On an average from Jordan.
C Beneficiated rock phosphate – RSMML(BRP with 33.55% and above P2O5content by wt. On an average.
D Syrian rock with 29.36% and above – Rock importedP2O5 content by wt. On an average. from Syria
E Beneficiated rock phosphate Jhabua A or B grade rock with BRP from(BRP with 33.55% and above P2O5 23% P2O5 content by wt. To get RSMML andcontent by wt. On an average. a mixture having 31.6% and blending rock
above P2O5 content by wt. from MadhyaOn an average. Pradesh State
Mining Corpn.Ltd.(MPSMC)
F Jordan rock with 31.6% and Jhabua rock with 25% P2O5 Rock importedabove P2O5 content by wt. content by wt to get a mixture from Jordan andOn an average. having 30% and above P2O5 blending rock
content by wt. On an average. from MPSMC.
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Notification No.M-19011/33/2001-MPR dated 8th October, 2001
G Egyptian rock with 32% and above – Rock importedP2O5 content by wt. On an average. from Egypt.
H Beneficiated rock phosphate (BRP) Lower grade rocks with 25% BRP fromwith 33.55% and above P2O5 P2O5 content by wt. From mines RSMML.content by wt. On an average. of Madhya Pradesh State Mining Blending rock
Coproration Ltd., RSMML, from MPSMC,Rajasthan State Mineral RSMDC, RSMMLDevelopment Corpn. (RSMDC) or and Hindustan27-31% P2O5 content by wt. Zinc. Ltd. (HZL).of Matton mines to get a mixturehaving 31.4% and above P2O5content by wt. On an average.
Notification No. M-19011/33/2001-MPR dated 31st January, 2002
I Beneficiated rock phosphate (BRP) (i) Lower grade rocks with +22% BRP fromwith 33.55% and above P2O5 content but less than 25% P2O5 content RSMML.by wt. on an average. by wt. Of RSMDC to get a Blending rock
mixture having 31.7% and above from RSMDCP2O5 content by wt. On an and RSMML.average.(ii) Rocks with 25% and above to27% P2O5 content by wt. frommines of RSMDC to get a mixturehaving 31.4% and above P2O5content by wt on an average.(iii) Rocks with +30% P2O5content by wt. From mines ofRSMDC to get a mixture having31.5% P2O5 content by wt. onan average.(iv) Rock with 23% P2O5 contentby wt. From mines of RSMML toget a mixture having 31.4% P2O5content by wt. On an average.
J Jordan rock with 32% and above Lower grade rock with 25% P2O5 Rock importedP2O5 content by wt. On an average. content by wt. From mines of from Egypt and
RSMML to get a mixture having blending rock30.66% P2O5 content by wt. from RSMML.On an average.
Notification No. 19011/33/2001-MPR dated 13th May, 2002
K Israeli Rock phosphate with 32% Not applicable Rock phosphateP2O5 content and above by wt. imported fromOn an average. Israel.
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Notification No. M-19011/33/2001-MPR (Vol.II) dated 23rd April 2003
L Beneficiated rock phosphate with Lower grade rock with P2O5 BRP from33.5% P2O5 content by wt content 29% by wt and above RSMML.on an average. with 2.78% average iron oxide Blending rock
content of MPSMC to get a from Hirapurmixture of 31.4% on an average. Mines of
MPSMC.
M Notification NO.19011/33/2001-MPR dated 14.12.2005Beneficiated Rock Phosphate with 30.2% P2O5 produced by M/s. Krishana Phoschem Ltd.,115-118, AKVN Industrial Area, P.O. Meghnagar, Jhabua, Madhya Pradesh
19011/33/2001-MPR dated 19.9.2006 (Notified on 19.9.2006)
N Beneficiated rock phosphate (BRP – RSMMLwith 33.55% and above P2O5content by wt. On an average.
O 19011/33/2001-MPR (Vol-II) dt. 8.5.2007Primary grade of Rock Phosphate of Vietnam with 34% P205 contentby weight on an average.
P 19011/33/2001-MPR (Vol-II) dt. 30.10.2007Primary grade of Rock Phosphate of Algeria with 31.2% P205 contentby weight on an average.
Q 19011/33/2001-MPR (Vol-II) dt. 19.11.2007Primary grade of Rock Phosphate of Egypt with 31.02% P205 contentby weight on an average.
R Notification No. 19011/33/2001-MPR (Vol.II) dt. 15.6.2009Beneficiated Rock Phosphate with 31% P2O5 produced byM/s. BEC fertilizers Ltd., Bilaspur Chhattisgarh
6.9.13 In the wake of shortage of Rock Phosphateof the specified/notified grades, Departmentof Fertilizers modified the existing guidelinespertaining to the use of Rock Phosphate andissued fresh guidelines on 10 August 2005,whereby the scope of grades/sources ofRock Phosphate were expanded. As per themodified guidelines, the manufacturers ofSSP can procure the Rock Phosphate fromthe sources other than the notified ones.Keeping in view the worldwide scarcity ofRock Phosphate and its rising prices in theinternational market, Department of Fertilizersis taking steps to explore the Rock Phosphateindigenously. For this purpose, the GeologicalSurvey of India, Indian Bureau of Mines,
M/s. Rajasthan State Mines & Minerals Ltd.,M/s. Madhya Pradesh State Mining Corpn.Ltd. have been involved in the process.Department has also allowed to produceBeneficiated Rock Phosphate in the privatesector by M/s. Krishna Phoschem Ltd.,Meghnagar, Madhya Pradesh. A few moresuch units propose to install BeneficiatedRock Plant (BRP) units in the country. TheState Governments endowed with the naturalresources of Rock Phosphate e.g. MadhyaPradesh and Rajasthan have been requestedto consider the possibility of de-reservingmines (so far reserved only for State miningentities) for collaboration with mining entitiesof other States and also private for financial
41
and technical support. Department ofFertilizers also proposes to explore thepossibility of mining Potash from theindigenous sources. Steps are being takenin this regard.
6.10 Subsidy Amount
The following amounts of subsidy have beenreleased on P&K Fertilizers including SSP.
Years Subsidy release onP & K Fertilizers
(Rs. In Crore)
2002-03 3225
2003-04 3326
2004-05 5142
2005-06 6550
2006-07 10598
2007-08 17134
2008-09 65555
6.11 Fulfillment of Social Responsibility byvirtue of Concession Scheme.
The Concession Scheme for decontrolled P& K fertilizers being administered by
Department of Fertilizers aims at providingthe Phosphatic & Potassic fertilizers to thefarmers at the subsidized rates. Presently,Di Ammonium Phosphate (DAP), Muriate ofPotash (MOP), 12 grades of NPK complexfertilizers, Mono Ammonium Phosphate(MAP), Triple Super Phosphate (TSP),Ammonium Sulphate (AS) and SSP arecovered under the Concession Scheme. Theobjective of the Concession Scheme is tomake the above mentioned decontrolledPhosphatic & Potassic fertilizers available tothe farmers at the affordable prices and alsoto ensure reasonable rate of return on theinvestments made by the entrepreneurs inthe Phosphatic & Potassic fertilizers sector.The total delivered cost of fertilizers underthe Concession Scheme at the farm gate ishigher than the MRP payable by the farmers.The difference between the total deliveredcost of the fertilizers at the farm gate andthe MRP payable by the farmer is given bythe Government of India, Department ofFertilizers as concession/subsidy to thefarmers and reimbursed to the fertilizermanufacturers/importers.
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7.1 Public Sector Undertaking and Co-operative Societies
There are nine public enterprises and onemulti-state co-operative society namelyKrishak Bharati Cooperative Limited(KRIBHCO) under the administrative controlof the Department. A statement indicatingprofitability of these organizations has beengiven at Annexure–X.
7.2. The Fertilizer Corporation of India Limited(FCIL)
7.2.1 Introduction
Incorporated on 1st January, 1961, FCI wasre-organized along with National FertilizersLtd. (NFL) with effect from 1.4.1978 into fivecompanies namely, FCI, NFL, HindustanFertilizer Corporation Ltd.(HFC), RashtriyaChemicals & Fertilizers Ltd. (RCF) andProjects & Development India Ltd. (PDIL).Following re-organisation, FCI comprised fourunits located at Sindri (Jharkhand),Gorakhpur (Uttar Pradesh), Ramagundam(Andhra Pradesh) and Talcher (Orissa), witha total annual capacity of 5.87 lakh MT ofnitrogen besides an abandoned project atKorba (Chhattisgarh). As on 31.3.2009, FCIhad an authorized share capital of Rs.800crore and paid up share capital of Rs.750.92crore. The accumulated losses as on31.3.2009 were Rs.9878.36 crore.
7.2.2 Reference to BIFR
The Corporation was declared sick inNovember, 1992 by the Board for Industrialand Financial Reconstruction (BIFR), and on2.11.2001, the BIFR ordered winding up theFCI in terms of Section 20(1) of the SickIndustrial Companies (Special Provisions)Act, 1985. The Appellate Authority forIndustrial and Financial Reconstruction
Chapter-7
(AAIFR) on 9.4.2002 upheld BIFR’s orderdated 2.11.2001.
However, on appeals filed by the Governmentand the Company against the orders ofAAIFR and BIFR for winding up of FCI, theHigh Court of Delhi on 26.11.2002 directedthe BIFR to reconsider their order dated2.11.2001 to the extent of hiving off theJodhpur Mining Organisation for forming anew company and revival of other units ifany proposals are received within areasonable time. BIFR in their meeting heldon 2.4.2004 sanctioned the scheme ofarrangement of de-merger between FCI andFAGMIL with effect from 1.4.2003 andconfirmed their prima facie opinion regardingwinding up of the company. BIFR vide theirorders dated 17.5.2004 conveyed theiropinion to High Court of Delhi. This referencewas registered as Company Petition (C.P.)No.183/2004 in the High Court. Pursuant tothe prayer of the Department of Fertilizers,the High Court has, inter-alia, granted furthertime to the company and the Department forsubmission of a viable proposal for revivalof the FCIL. The matter is pending beforethe High Court. The matter last came up forhearing in the Delhi High court on 21.12.2009and on the request of FCIL for referring thematter back to BIFR, the Hon’ble Courtdesired the opinion of the official liquidatorof Delhi High Court. The matter is fixed forhearing on 15.2.2010.
7.2.3 Closure of the Company
In view of the continuing losses of theCompany, stemming from technical andfinancial non-viability of operations, theGovernment decided to close down FCI inSeptember 2002. Consequently, a VoluntarySeparation Scheme (VSS) was offered to all
43
its 5712 employees. All the employees, whoopted for VSS have since been released,except 46 employees who are engaged indischarging statutory obligations includingsafety and security of properties/assets ofthe various units of the Company.
7.2.4 Production / Sales Performance
In view of the closure of the Company, theoperations have remained suspended as perdetails given below:
Name of Unit Year of stoppage
Gorakhpur 1990
Ramagundam 1999
Talcher 1999
Sindri 2002
Korba (*) : The project wasnever commissioned.
7.2.5 Financial Results
During the year 2008-09, the Companyearned a net profit of Rs. 5800.22 crore, asagainst a loss of Rs. 1504.83 crore during2007-08. The profit has been arrived at afterwithdrawal of normal and penal interest onGOI loan amounting to Rs. 6541.56 crore,as confirmed by Pay and Accounts Officeafter reconciliation. During the year 2009-10(Up to December 2009), the Company hasincurred a loss of Rs.524.21 crore (Prov.)
7.3. Hindustan Fertilizer Corporation Limited(HFCL)
7.3.1 Introduction
The Hindustan Fertilizer Corporation Limited(HFC) was incorporated on 14th March, 1978as a result of the reorganization of theerstwhile Fertilizer Corporation of IndiaLimited (FCIL), and NFL Group ofCompanies. The HFCL comprised Barauniunit (Bihar), Durgapur unit and Haldia Project(West Bengal) and Namrup Unit (Assam). The Namrup Unit was hived off with effect
from 1.4.2002 to form a separate entity withthe name of Brahmaputra Valley FertilizerCorporation Ltd.(BVFCL). As on 31st March2009, HFC had an authorized capital of Rs.1200 crore and a paid up capital of Rs.686.54 crores.
7.3.2 Closure of the Company/ Reference toBIFR
The Company was declared sick by B.I.F.R.in November 1992. During the course ofproceedings before BIFR, the AAIFR throughits order dated 26.4.2002 permitted hivingoff the Namrup units of HFC into a newcompany under the name of “BrahmaputraValley Fertilizer Corporation Limited” w.e.f.1.4.2002 and remitted back the matter toBIFR for reconsideration of its decisionregarding revival of Durgapur, Barauni unitsand the Research Division. Thereafter,Namrup units of the Company were de-merged with effect from 1.4.2002 and theresidual Company comprising three units atBarauni, Durgapur and Haldia and theFertilizer Promotion & Agricultural ResearchDivision (FP&ARD) was ordered to be closedon account of techno-economic non-viability.Almost all employees had opted for VoluntarySeparation Scheme (VSS) and as on31.12.2009, only 31 employees are on therolls of the company to carry out post-closureactivities.
The case registered as Case No.516/1992is pending before the BIFR. In the hearingheld on 19/10/2009, the BIFR had directedthe company/ Ministry of Chemicals andFertilizers, Government of India to file awritten submission giving details ofmilestones to be achieved in revival of thecompany specifying the time lines. TheDepartment of Fertilizers has conveyed theintention of the Government for exploringpossibilities of revival of the HFCL to theBIFR.
7.3.3 Operating Performance
The operational activities of the Companywere suspended due to the decision taken
44
by the Government for closure. Due tosuspension of operations of Barauni unitsince January 1999 and of Durgapur unitsince July, 1997, the production performancehas been nil. The Haldia Project was nevercommissioned.
During the year 2008-09, HFCL earned anet profit of Rs. 4841.16 crore afterconsidering prior period adjustments and tax,as compared to the previous year’s net lossof Rs. 1101.98 crore. The profit is due towrite-back of Rs. 5357.15 crore towardsinterest on Govt. of India loan as confirmedby the Pay and Accounts Office DoF. Theprovisional loss during current year uptoDecember 2009 is Rs. 288.35 crore.
7.4. Revival of Closed Units of FCIL and HFCL
The Government had taken a decision on12th April, 2007 to examine the feasibility ofreviving the closed units of FCIL and HFCLsubject to the confirmed availability of gas.The revival of the closed fertilizer unitsthrough brown field projects subject toconfirmed availability of gas having beenfound feasible, the Government on 30thOctober 2008, considered the proposal ofthe Department of Fertilizers for revival ofBarauni Unit of Hindustan FertilizerCorporation through a Special PurposeVehicle (SPV) viz. Urvarak Videsh Limited(UVL) which is promoted by NationalFertilizers Limited (NFL), RashtriyaChemicals & Fertilizers Limited (RCF) andKrishak Bharti Cooperative Limited(KRIBHCO). The SPV would submit a fullytied-up revival scheme for the closed fertilizerunit at Barauni.
2. The Government also accordedapproval for constitution of an EmpoweredCommittee of Secretaries (ECOS) under theChairmanship of Secretary (Fert.) andSecretaries of Department of Expenditure,Department of Disinvestment, PlanningCommission, Department of PublicEnterprises and Ministry of Petroleum &Natural Gas as members, to look into all the
financial models for revival of each of theclosed units. The Committee would also lookinto various linkages including gas forfacilitating revival of the closed units. TheCommittee will submit its recommendationsincluding the model for revival of each of theclosed units, to the Government.
3. Pursuant to the decision dated30.10.2008, an Empowered CommitteeSecretaries (ECOS) was constituted on7.11.2008 under the Chairmanship ofSecretary (Fertilizers) and Secretaries ofDepartment of Expenditure, Department ofDisinvestment, Planning Commission, Deptt.of Public Enterprises and Ministry ofPetroleum & Natural Gas as Members tolook into all the financial models for revivalof each of the closed units.
4. The Committee in its first meeting on05.12.2008 had approved the terms ofreference (TOR) for consultants and thatFCIL and HFCL should finalize appointmentof consultants as per the TOR alreadyapproved. The second meeting of the ECOSwas held on 24.08.2009 in which variousfinancial models for revival were consideredand it was decided to recommend theRevenue Sharing Model, for approval of theCCEA. M/s Deloitte India Pvt. Ltd. have beenselected as Project Advisers forimplementation of the selected options forrevival of the closed units of Sindri,Ramagundam, Talcher and Gorakhpur inrespect of FCIL and Durgapur Unit of HFCL.M/s PDIL has been appointed by HFCL asConsultant for evaluation of existing assetsof the closed units and certification throughRegistered Valuer. ECOS has advised toobtain the approval of Government for therecommended Revenue Sharing Model forrevival before implementation of the same.
5. Further, the SPV viz. UVL has initiatednecessary action for revival of the BarauniUnit by establishing a brown field project atBarauni. The foundation stone for the projectwas laid on 12.11.2008. The EmpoweredCommittee of Secretaries (ECOS) has been
45
constituted on 7.11.2008 with the mandateto evaluate all investment options for revivalof the closed units of HFCL and FCIL and tomake suitable recommendations forconsiderations of the government. ECOS hassubmitted their recommendation in thisregard, which is under consideration of theGovernment.
7.5 Rashtriya Chemicals and FertilizersLimited (RCF)
7.5.1 Introduction
Rashtriya Chemicals and Fertilizers Limited(RCF) was incorporated as a separatecompany on 6th March 1978 as a result ofreorganization of the erstwhile FertilizerCorporation of India Limited. At the time ofits formation, the company had only oneoperating unit at Trombay (near Mumbai) andtwo major projects under implementation viz.;Trombay IV and Trombay-V expansion. Thegas based Thal-Vaishet fertilizer complexabout 100 Kms from Trombay, was laterimplemented by RCF and it commencedcommercial production on June 1, 1985. As
on 31st March 2009, the company had anauthorized share capital of Rs. 800 Croreand a subscribed and paid up capital of Rs.551.69 Crore.
7.5.2 Production Performance
The annual installed capacity of all the unitsof RCF is about 10.54 lakh MT of nitrogenand 1.17 lakh MT of phosphate. Theproduction during 2008-09 was 9.46 lakhtonnes of nitrogen and 0.706 lakh tonnes ofphosphate. Production during the year wasaffected due to feedstock natural gas shortsupply and due to suspension of ANPproduction which is under revamp.
Besides fertilizers, the company alsoproduces a number of industrial productssuch as Methanol, Concentrated Nitric Acid,Methylamines, Ammonium Bicarbonate,Sodium Nitrate, Sodium Nitrite, DimethylFormamide, Dimethyl Acetamide, AmmoniumNitrate, Argon, etc.
During April-December 2009, cumulativeproduction of urea at Thal and Trombay
Dr. Manmohan Singh, Hon’ble Prime Minister giving MoU Excellence Award toShri U S Jha, CMD, Rashtriya Chemicals and Fertilizers (RCF).
46
together was 15.33 LMT as against 14.65LMT last year. The production of complexfertilizers during April-December, 2009 is 3.65LMT as against 3.55 LMT last year.
7.5.3 Sales Performance
The sales turnover (including tradedproducts) during the year 2008-09 wasRs.8455.32 Cr. During the period April-December 2009 is Rs.4281.01 Cr.
The sales turnover of industrial productsdivision of the Company was Rs. 781.40Crore for the year 2008-09. During the periodApril-December, 2009 sales of industrialproduction division was Rs. 428.10 Crore.
7.5.4 Financial Results
During the year 2008-09, the Companyreported a net profit (after tax) of Rs. 211.58Crore. During the period April-December,2009 , the Company has made a net profit(before tax) of Rs. 240.65 Crore & net profitafter tax of Rs. 165.45 Crore.
7.5.5 Modernization/Expansion Schemes
For Thal Ammonia Revamp, a scheme hasbeen finalized with process designer M/sHaldor Topsoe for reducing energyconsumption and capacity enhancement.Project execution has been taken up at anestimated cost of Rs 488.75 crore.
Scheme for Nitrous Oxide abatement in HPand MP Nitric Acid plants under CleanDevelopment Mechanism (CDM) was takenup and has been registered with UNFCCCin November 2009. Generation of CERs hasstarted.
Methanol plant at Trombay, commissionedin 1965, is being technologically upgradedwith an estimated cost of Rs. 135 Crore, toreduce energy consumption.
Rapidwall plant for manufacturing of uniquebuilding material has been set up at Trombayusing phospho-gypsum as a raw materialwhich is a by-product of Phosphoric Acid
plant. The project is estimated to cost Rs.75 Crore. Trial runs have started andCommercial production is expected inJanuary 2010.
Complex fertilizer ANP (20:20:0) has beenrevamped from Prilling route to Granulationroute. The capacity of ANP Granulation plantis 900 MTPD. The commissioning of the plantis under progress.
RCF envisages expansion project at Thal(Thal-III Expansion) by setting up 2200 MTPDammonia plant and 3500 MTPD Urea plantat an estimated cost of Rs.4200 Crore.Planning Commission’s in principle approvalhas been obtained. Technology selection andDFR preparation is being undertaken.
To manufacture indigenous DAP and reducedependence on import RCF is putting up aplant in Joint Venture with RSMML to produce850 MTPD “DAP” Plant at Rajasthan, JointVenture company has been formed andinvestment decision will be taken by the JV.
7.5.6 Grievance Redressal
The Company has a good grievance addressand redressal system. Any citizen havingcomplaints in respect of the product orservices rendered may approach theCompany through complaints/suggestionboxes placed at convenient locations in theArea Offices/ Administrative Building atTrombay and Thal. Any aggrieved customer/dealer or other citizen can approach theCompany for any failure of the quality/pricecharged/conduct of any officer/employee tothe addresses mentioned and will be dealtas under:
The grievances can be addressed to aspecial designated officer of the Companynot below the rank of General Manager whoacts as the Nodal Officer for redressal. Thename, address and telephone No. of theofficers is available on Intranet on Company’swebsite www.rcfltd.com. It is assured thatthe Nodal Officer will immediately take upthe issue with the concerned department and
47
appropriate action will be taken within sevendays from the date of receipt of the complaintor an appropriate reply is sent within sevendays as the case may warrant.
A similar grievance address and redressalsystem procedure is followed by theCompany in issues related to staff also.
7.5.7 Employment of SC/ST, Ex-Servicemen,Physically Handicapped & other BackwardClasses as on 1.11.2009
The guidelines regarding reservation inRecruitment and Promotion for SC, ST, OBC,Ex-Servicemen and Physically HandicappedPersons are followed details are givenbelow:-
7.5.9 Corporate Social Responsibility
The company continued with its FertilizerPromotion Programmes to educate thefarmers in the scientific and balanced use offertilizers. RCF has two Farmer TrainingInstitutes, one at Nagpur and other at Thalto impart training to farmers and farmlabourers in integrated development and newfarming techniques etc.
The Integrated Rural DevelopmentProgramme is implemented in variousvillages of the country. Overall developmentof these villages is the focal point. Some ofthe programmes carried out under IntegratedRural Development Programme (IRDP) areas under:
Group Total Number of Employees belonging toNo. of
Employees SC ST Ex- Minority Physically OBCservicemen Handicapped
A 1452 2202 44 3 81 7 90
B 1408 185 76 4 72 6 08
C 1215 147 127 0 86 10 140
D 145 31 12 2 15 4 48
Total 4220 583 259 9 254 27 286
7.5.8 Welfare of Minorities & Reservation inFertilizer Dealership
RCF as a policy includes representative ofthe minorities in the recruitment selectionboards to ensure that the minorities get anadequate share in the services and benefitof developments. The total number of SC/ST dealers as on date is 1601 (24.8% ofactive dealers). Some of the concessionsgiven to these dealers are 50% concessionin dealership deposit (Rajya Sabha .5,000/-as against Rs.10, 000/- for other categories).Preference in supply of material for first threeyears of operation. Efforts to provide trainingto them so that they can acquire necessaryknowledge of business.
Meeting Basic Needs of Rural Community:The scheme covers providing essentialamenities like drinking water supply, schoolbuildings, community centers, developmentof irrigation systems etc.
Agricultural Development Programme:This focuses on economic upliftment of small/marginal farmers and landless labourersthrough training and education.
Subsidiary Occupational ArtisanDevelopment Programme: This provides aplatform for training and making availablefinancial facilities to rural artisan andentrepreneurs which enable them to reviveand develop their skill for commercial use.
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Social Forestry and Waste LandDevelopment Programme: This focuses ondevelopment of sericulture, social forestry,waste land use, dry land farming and biogasdevelopment.
Public Health & Village SanitationProgramme: This covers health c a r e ,village sanitation, health camps, andveterinary camps.
Youth and Women Skill DevelopmentProgramme: Rural sports and culturalactivities are organized in different villagesto encourage participation by youths.
Soil Testing: The Company placestremendous importance on empoweringfarmer to increase his yield. Soil diagnosticsfind a major part of determining whichfertilizer needs to be used for each soil andcrop. The Company has 5 static and 3 mobilesoil testing laboratories across its majormarketing territories which undertakes soilsample analysis. About 90000 soil samplesare analyzed every year.
Micronutrient Analysis: To increase cropyield the presence of micronutrients inadequate proportion is necessary.Micronutrients analysis identifies thedeficiency in the soil and prescribes dosesof micronutrients that need to be applied toensure optimum yield. About 1000 samplesare analysed every year.
Earn While You Learn Scheme: This uniquescheme that has been developed by theCompany. It seeks to educate and trainchildren studying in class IX and above toparticipate in the process of agriculturedevelopment. These students are trained tounderstand latest developments in agricultureand transfer this knowledge to the farmingcommunity. The scheme provides allopportunities to students to earn while theylearn. The students participating are offeredtoken money which supports them whilestudying and at the same time impartspractical knowledge of agriculture to them.
The students are required to do fieldextension work for promoting specialtyfertilizers, micronutrients & bio fertilizersduring vacation and holidays.
7.6 National Fertilizers Limited (NFL)
7.6.1 Introduction
National Fertilizers Limited (NFL) wasincorporated on 23rd August 1974 for settingup two nitrogenous plants, at Bathinda(Punjab) and Panipat (Haryana) with LSHSas feedstock, each having Urea productioncapacity of 5.11 lakh MT per annum.Consequent upon the reorganization of theFCI, the Nangal Unit (including NangalExpansion Project) of FCI was alsotransferred to NFL w.e.f. 1.4.1978.
A gas based ammonia and urea fertilizerproject on the HBJ pipeline at Vijaipur inGuna District of Madhya Pradesh, with anannual installed capacity of 7.26 lakh tonnesUrea commenced commercial production on1.7.1988. The urea capacity was doubledfrom 7.26 lakh MT to 14.52 lakh MT perannum on commissioning of its expansionunit on 31.3.1997. The production capacityof gas based plants in the country has beenre-assessed w.e.f. 1st April, 2000 resulting incapacity revision from 7.26 lakh tones to 8.64lakh tones for both Vijaipur-I and Vijaipur-II.
A revamp of urea plant at Nangal wassuccessfully completed three months aheadof schedule and commercial productioncommenced w.e.f. 1st Feb.2001. With this,the installed capacity of urea at Nangal Unitincreased from 3.30 lakh tonnes to 4.78 lakhtones per annum raising the company’s totalinstalled capacity to 32.31 lakh MT of ureacorresponding to 14.86 lakh MT of ‘N’(Nitrogen) in terms of fertilizer nutrient.
The company also produces variousindustrial products like nitric acid, ammoniumnitrate, sodium nitrite/nitrate, sulphur,methanol, liquid nitrogen, liquid oxygen etc.besides bio-fertilizers. The companycommissioned an Argon gas plant designed
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to produce 120 NM3/hr. of Argon gas at thePanipat Unit in October 1997. A MethanolAugmentation Scheme at Nangal Unit wascommissioned in October 1998 therebyenhancing the daily production capacity ofMethanol from 50 tonnes to 67 tonnes. Thecompany’s bio fertilizers plant at Indoreproduces three strains of bio fertilizers withan installed capacity of 100 MT per annum.
The authorized capital of the company as on31.3.2009 stood at Rs.500 crore and the paidup capital at Rs.490.58 crore, comprisingGovernment of India’s share of Rs.479 crore(97.64%) and the remaining Rs.11.58 crore(2.36%) held by financial institutions andothers.
7.6.2 Production Performance
During the year 2009-10 (up to December,2009), the company produced 25.56 lakhTonnes of urea in addition to 167 Tonnes of
Bio-fertilizers and 8800 tonnes of IndustrialNitrogen (‘N’). The percentage share of NFLin Urea production in the country has beenestimated at 16.8% for the year 2008-09.During 2008-09 the company produced 33.44LMT of urea.
7.6.3 Sales performance
The Company, during 2009-10 (up toDecember 2009) sold 25.80 lakh tonnes ofUrea & 167 tonnes of Bio-fertilizers. NFLrecorded its ever-best sales turnover of Rs.3768 crores which includes a record sale ofindustrial products worth Rs.117 crore. During2008-09 the company sold 33.77 LMT ofurea.
7.6.4 Financial Performance
NFL registered a Profit before tax (PBT) ofRs.187 crore and Profit after tax (PAT) ofRs.124 crores during 2009-10 (up toDecember 2009).
Shri M.K. Alagiri, Hon’ble Minister (C&F) receiving dividend cheque from Chairman and ManagingDirector National Fertilizers Limited (NFL).
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The company earned PBT of Rs.150.61 Cr.and PAT of Rs. 97.46 Cr. during 2008-09.The company maintained its trend of payingdividend of last 24 years and paid a totaldividend of Rs.29.43 crores for the year2008-09. The dividend works out to 30.2%of the Profit after tax of the company.
7.6.5 Employment of SC/ST, Ex-Servicemen,Physically Handicapped & OtherBackward classes (OBCs) Persons inPublic Sector Undertakings (As on30.09.09).
Shri Atul Chaturvedi, the then Secretary (Fertilizers) exchanging MoU document withShri V K Sharma, CMD, NFL.
Group Total number Number of SC/ST/OBC/EXSM/PHof employees
SC ST OBC *EXSM **PH
A 1710 362 79 88 7 10
B 1936 507 158 114 37 22
C 1006 251 44 124 45 20
D 147 115 3 8 2 3
Total 4799 1235 284 334 91 55
*EXSM – Ex- Service men**PH – Physically Handicapped
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7.6.6 Public/Staff Grievance RedressalMachinery
Based on the model grievance procedurenotified by DPE, the company has frameda ‘Grievance Redressal Procedure’ for staffand officers of NFL. The objective of the‘Grievance Redressal Procedure’ is toprovide easily accessible machinery forexpeditious settlement of grievances ofstaff and officers with the aim of providingsatisfaction and in improved productivityand job efficiency of the organization.
For systematic monitoring and supervisionof Public Grievances, Head of Corporate HRDepartment has been nominated as Director(Grievance) as per the directives of theGovernment. In addition to this in-builtsystem, the company has also set up “PublicGrievances Centres” at the Units, whoseworking is supervised by grievance officer,who generally belongs to senior managementcadre.
7.6.7 Information relating to welfare ofMinorities and reservation indealership.
Company fol lows all Governmentregulations on empowerment of minoritiessuch as representation of the minoritycommunities on interview boards in GroupC & D. The organization believes inequality of all communities and celebratesfestivals with great fervor for all thecommunities. Presently as per policy of theGovernment of India, 25% of totaldealership are for SC/ST category. In orderto achieve the desired target of 25%, adrive was initiated in 2004-05 to fill up thegap for allotment of dealership to SC/STcategory and as a result their shareincreased from 1.92% to 13.7%. Seconddrive has been initiated during 2007-08 and% share in NFL dealership under SC/STcategory has increased to 27.77% as on30.9.2009.
7.6.8 Brief description of major expansionprojects / revamp etc.
Revamps: After notification of new investmentpolicy in Urea sector by GoI in September2008, the company has undertaken thefollowing revamp projects:
Capacity Enhancement by 23% of Urea plantat Vijaipur- II. Energy Saving project (ESP)& Capacity enhancement of Urea by 16% atVijaipur-I. Installation of Carbon dioxideRecovery plant (CDR) at Vijaipur Complex.Revamp of FO Based plants at Panipat,Bathinda & Nangal for change over ofFeedstock from LSHS/FO to NG/RLNG.Clean Development Mechanism (CDM)Projects to reduce GHG gas emissions toearn carbon credits. Clean DevelopmentMechanism (CDM) project for revamp ofVijaipur plants and FO Based plants. CleanDevelopment Mechanism (CDM) project forNitric Acid plant at Nangal.
7.6.9 Corporate Social Responsibility
NFL is committed to give utmost importanceto several community welfare anddevelopment programme and the company’sendeavor will be to intensify these activitiesin future so that the benefit reaches to theneedy people of the society. The followingsocial welfare projects were undertaken bythe Company :
Help to poor and needy people: Sewingmachines, material for T.V. mechanics,Barbering and Rehri for vegetable selling etc.were distributed for self-occupation ofhandicapped persons of nearby villages.
Development of Schools & help tochildren: 65 ceiling fans and 20 woodendesks were distributed to schools, educationmaterial, sports material and 424 jerseyswere distributed among the children.
Village Development: Construction of stepsand floors, bricks road, public convenience,tube wells and other infrastructure facilitieswere provided by NFL to villagers.
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Other activities undertaken by theCompany: Health camps for women andchildren were organised, construction of busstand, toilets, platform on creation ground,installation of water tanks, Hand pumps,Distribution of ceiling fans, tricylcles, schoolbooks, dresses and bags, water coolers andrural sports etc.
7.7 Projects & Development India Limited(PDIL)
7.7.1 Introduction
Projects & Development India Limited (PDIL)an erstwhile Division of the FertilizersCorporation of India (FCIL) was registeredas a separate company in March 1978. Thecompany has its registered office at Noida,Uttar Pradesh. The authorized share capitalof the company was Rs. 60 crores and paidup capital was Rs. 17.30 crores as on31.3.2009.
7.7.2 Operating Results
The company had earned net profit of Rs.18.75 Crores during 2008-09 on total incomeof Rs.73 Cr. During the period April toDecember 2009, a profit of Rs. 14.04 Croreshas been earned on income of Rs.57.89 Cr.
7.7.3 Excellent Ranking In MoU
PDIL has obtained Excellent rating in theyear 2006-07, 2007-08 and 2008-09.Company is expecting ‘Excellent” rating forthe year 2009-10 also. PDIL has also wonprestigious MOU Excellence Award for theyear 2007-08 under the category of“Turnaround CPSE”. This award wasconferred by Hon’ble Prime Minister of IndiaDr. Manmohan Singh on 15.10.09.
PDIL has performed exceedingly well in lastfive years continuously and has becomeeligible for Mini Ratna – Category-II Statusunder the DPE Scheme of Mini Ratna.
7.7.4 Engineering & Consultancy Division
The company is mainly engaged in Design,Engineering, Procurement, Inspection, Store
Management and Supervision duringconstruction and commissioning of fertilizerand chemical plants. It has played a pivotalrole in establishing fertilizer plants in Indiafrom concept to commissioning, besidesproviding revamping for Energy saving andcapacity augmentation, trouble shooting andNDT services for health maintenance ofplants. It has also diversified its activities intothe field of Oil and Gas, Pipeline, Refineryand Infrastructure Development such asHousing project and City Gas Distributionetc.
During 2009-10, the following major projects/ assignments in the fertilizer sector are underexecution for various clients:-
Detailed Engineering Consultancy for 525MTPD Methanol Plant for M/s GSFC Baroda
Detailed Engineering, procurementassistance and other consultancy servicesfor the Methanol Revamp Project of RashtriyaChemicals & Fertilizers Ltd. Trombay.
Detailed Engineering Consultancy for ThalAmmonia De-bottlenecking for RCF.
PMC Services for Algeria Oman FertilizerProject at Arzew, Algeria.
Weak Area analysis & Health assessmentfor 4 streams of Urea Plant, off site & powerplant at Surat for KRIBHCO.
Detailed Engineering Consultancy forRevamp of Ammonia and Urea plants atSurat for KRIBHCO.
Detailed Engineering consultancy for capacityenhancement for Vijaipur II Ammonia- Ureafor NFL.
Detailed Engineering Consultancy forcapacity enhancement of Vijaipur I Urea forNFL.
7.7.5 Techno-Economic Feasibility Report
PDIL established itself as a major player inthe Industry as a Consultant for preparationof Techno – Economic Feasibility Studies and
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Detailed Project Reports. During the year themajor jobs secured in fertilizer sector were:Preparation of TEFR for Phosphatic Fertilizercomplex of GECOPHAM-SYRIA Projectadvisory services for Revival of four units ofFCIL Units & HFCL-Durgapur, study ofuniform Urea price mechanism forDepartment of Fertilizers, Setting ofGreenfield Ammonia –Urea plant inKarnataka for ZIL and preparation of DFRfor the proposed Ammonia-Urea Plant forMATIX. In the OIL & Gas and refinery sector,PDIL is executing job for preparation ofFeasibility Study Report for feedstock changeof existing Hydrogen plant at Visakha refineryof HPCL and consultancy services forprocessing proposals for laying , building,operating or expanding City Gas Distribution(CGD) Network for PNGRB,
7.7.6 Assignments Abroad
PDIL continued its extensive efforts to securejobs in Projects being set up outside thecountry. Opportunities for providing servicesto various Joint Venture Companies withIndian Fertilizer Companies as stake holderssetting up projects abroad and avenues forback-up engineering support to internationalEPC Contractors in Fertilizer Projects arebeing pursued.
PDIL is providing PMC Services for AlgeriaOman Fertiilizer Project at Arzew, Algeria forAOA, Algeria.
PDIL signed a General CooperationAgreement with M/s. Mitsubishi HeavyIndustries Ltd., Japan, who are one of theleading international EPC Contractors in theFertilizer field and as a part of this contractPDIL provides services for TatarstanAmmonia Urea Project.
7.7.7 Technical Audit
Department of Fertilizer (DOF) entrusted thejob of technical audit of Fertilizers plant inIndia for the purpose of their benchmarkingwith respect to the performance of andEnergy efficient Ammonia and Urea plant
abroad. Further DOF continued to engagePDIL for Techno- commercial Audits of SSPPlants located throughout India. The Auditswere undertaken and the reports with TACobservation and comments have alreadybeen submitted to DOF.
7.7.8 Jobs in Diversified Sector
Refinery, Oil & Gas and other Sectors
Apart from the fertilizer sector PDIL hasestablished its credential in Oil and gasand Refinery sector also. Presently PDILis executing the job of Detailed Engineeringand procurement services for 3 nos. ofHydrogen manufacturing units, each witha capacity of 1,30,000 NM3/hr at theVadinar Refinery from Essar EngineeringCentre and detailed engineering for De-bottlenecking of FCCU-I (Fractionators) &GCU for HPCL Visakhpatnam. PDIL is alsoproviding Project Management ConsultancyServices for installation of a 20,000 MTPAHydrogen Plant for M/s IOCL Barauni, PMCservices for Installation of Hydrogengeneration unit of 21000 MTPA at Manalirefinery for CPCL, PMC Services forsulphur Recovery unit for IOCL Mathuraand PMC services for C2, C3 & C4 productpipeline for ONGC, Dahej.
7.7.9 Inspection & NDT
PDIL established its credentials for ThirdParty Inspection (TPI) and Non DestructiveTesting (NDT) Services – Statutoryinspection, testing and certification of HortonSpheres, Mounded LPG Bullets; Inspectionand recommissioning of Ammonia StorageTanks etc. continued to be a specializedactivity of PDIL.
On the basis of credential and satisfactorypast performance, Bharat Heavy ElectricalsLimited (BHEL), again awarded the TPI ratecontract for the period 2008-2010 for thirdparty inspection of various equipments andbought out items ordered by allManufacturing Units of BHEL through outIndia. Job is being carried out to the full
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satisfaction of BHEL and their clients NTPCand PGCIL.
PDIL also carry out Third Party Inspectionjob for various State Governmentorganizations like PHED – Rajasthan & WestBengal, Uttar Pradesh Jal Nigam, HaryanaPWD, Madhya Pradesh Laghu Udyog Nigam,Hyderabad Metropolitan Water Supply &Sewerage Board etc.
7.7.10 Catalyst
PDIL continued to produce catalyst forFertilizer Industry such as HT CO Conversionshift catalyst (conventional), LT COConversion Shift Catalyst (conventional),Vanadium Pentoxide Catalyst, PRG Catalyst,Iron oxide and Alumina Balls. The productionof the Catalyst was 182 MT in the year 2008-09 as compared to 105 MT in the previousyear.
During the year, PDIL executed order ofGSFC for HT, LT and Methanation Catalyst,RCF for SR catalyst and HPCLVisakhaptnam for HT catalyst. PDIL alsosupplied HT Catalyst to Chennai Petroleumand V2O5 Catalyst to SAIL Rourkela.
7.7.11 Facilities to SC/ST/OBC/Employees
In line with Government Guidelines issuedfrom time to time, PDIL continued to extendrequired number of facilities to SC/ST/OBCemployees. The details of employees as on30.11.09 is as follows:-
EMPLOYEE STRENGTH AS ON 30.11.09
Category Total MIP SC ST OBC
A 438 44 20 58
B 38 5 0 1
C 30 10 0 6
D - 0 0 0
On contract 49 8 0 16
Total 555 67 20 81
7.7.12 Corporate Social Responsibility
In pursuance of fulfilling its Corporate SocialResponsibility (CSR) objectives, keeping inmind the interest of its employees,shareholders, government, customers andcommunity in which it operates, PDIL hasdecided to make funds available for CSRactivities upto 1% of Net profit after tax,towards this objective.
7.8. The Fertilizers and Chemicals TravancoreLimited (FACT)
7.8.1 Introduction
Fertilizers And Chemicals Travancore Limited(FACT) was incorporated in 1943. In 1947FACT started production of AmmoniumSulphate with an installed capacity of 50,000MT per annum at Udyogamandal, nearCochin. In the year 1960, FACT became aPSU and towards the end of 1962,Government of India became the majorshareholder.
From a modest beginning, FACT has grownand diversified into a multi-division/multifunction Organization with basic interestin manufacture and marketing of Fertilizersand Petrochemicals, EngineeringConsultancy and Design and in Fabrication& Erection of Industrial Equipments.
7.8.2 Production Performance
During the Financial Year 2008-09 FACT hasmade an upsurge in sales turnover and profit.Production of NP was 6.05 LMT, AmmoniumSulphate was 1.28 LMT and Caprolactamwas 0.13 LMT. During the current year uptoDecember 2009, the company produced 4.81LMT of NP, 1.15 LMT of Ammonium Sulphateand 0.29 LMT of Caprolactam.
7.8.3 Sales Performance
During 2008-09, total income was 2209.72Cr. on 8.33 LMT of Fertilizers and 0.12 LMTof Caprolactam.
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During the current financial year uptoDecember 2009, the total sale of NPFertilizers is 5.28 LMT, 1.10 LMT of AS and0.27 LMT of Caprolactam.
The Company has handled a total quantityof 83375 MT of urea at Cochin Port which isan all time record.
During the period FACT has launched newproducts like organic manure and cropspecified mixture for coconut, banana, rubber,etc.
7.8.4 Financial Performance
In 2008-09, the company earned net profitof Rs.42.95 Cr. (including extraordinary itemsof Rs.221.16 Cr.). The company has earnednet loss of Rs.63.39 Cr. till December, 2009.
FEDO & FEW: The turnover of FEDO uptoNovember 2009 is Rs.292 lakh. FEDOexpects a turnover of Rs.792 lakh and a profitof Rs.48 lakh for the year 2009-10. Totalvalue of external orders on hand as onNovember 2009 is Rs.2168 lakh.
During the year FEW has entered into a MOUwith Cochin Shipyard Limited for jointoperations.
7.8.5 Modernization/Revamp Projects
1. Mechanization of bagging operation atCochin Division, expansion of existingcomplex fertilizer plant at Cochin Divisionfrom 2000 MT to 3000 MT per day, settingup of a urea plant at Udyogamandal with acapacity of 1500 TPD, establishment ofcontainer freight stations in association with
Shri Mathew C Kunnumkal, Special Secretary and Financial Advisor addressing at function for commissioning of SAPimplementation in FACT Cochin.
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Central Warehousing Corporation andContainer Corporation of India, etc. are someof the major expansion and diversificationprojects on the anvil.
2. The Company has drawn up plans forswitch over of feedstock for the AmmoniaPlant and fuel for the boilers and complexfertilizer plants to LNG as and when the LNGterminal comes online at Kochi. The requiredmodifications on the plants to switch over ofthe feed stock has been planned forcompletion by end 2011.
3. During the year, FACT implemented anew ERP system SAP.
4. FACT formed a joint venture companyin association with RCF for the manufactureof value added load bearing building panelsusing the huge stock of Gypsum available atFACT. The project is expected to becommissioned during the year 2009-10.
7.8.6 Redressal of Public Grievances andWelfare Measures
A Public Grievance Cell is functioning in theCompany, as per norms laid down byGovernment of India. At present, nogrievance received from public is pendingfor redressal.
7.8.7 Employee Grievance Redressal Machinery
A machinery for redressal of employeegrievances exists in the Company.Generally the grievances are related towork, work place, shift arrangement, grantof increment, promotion, salary fixation,transfer, etc. An aggrieved employee maysubmit a complaint / request for settlingthe grievance in the Division and if stillaggrieved with the decision of the DivisionHead, it may be submitted before theappropriate Grievance Committee.Separate grievance committees exist forexamining and redressal of grievances ofmanagerial and non-managerialemployees. The individual concerned isgiven an opportunity to present hisgrievance in person before the committee,if required. The respective Committee willdeliberate on the grievance and give theirrecommendations to the management forappropriate action. In addition, there is anSC/ST Grievance Cell that looks intocomplaints received from SC/STEmployees.
7.8.8 Employment of SC/ST, Ex-servicemen,Physically Handicapped and OtherBackward Classes (OBCs) as on30.12.2009
Group Total SC ST OBC GEN WOMEN EX- PHEmployees SERVICE
A 515 89 10 76 340 47 0 4
B 1418 209 51 348 810 123 14 21
C 817 82 23 334 378 59 25 14
D 782 124 21 307 330 9 11 33
D-S 37 10 0 18 9 21 0 1
TOTAL 3569 514 105 1083 1867 259 50 73
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7.8.9 Welfare of Minorities.
The Company had provided the followingfacilities for the Welfare of MinorityCommunities.
a) Land for Mosque near FACT Junction,Udyogamandal
b) Land for Christian Cemetery inUdyogamandal
c) Pathway to St:Joseph’s Church nearJNM Hospital, Udyogamandal.
d) Land for CSI Church, Ambalamedu25.51 cents
e) Land for Catholic Church, Ambalamedu44.73 cents
f) Land for Marthoma Church,Ambalamedu 45.01 cents
g) Land for Jacobite Syrian Church,Ambalamedu 40 Cents
h) Land for Mosque, Ambalamedu 40 cents
i) 4 separate cemeteries to above 4Christian Churches in Ambalamedu
j) Cremation ground for Muslims(Khabaristan) in Ambalamedu
k) Cremation ground for Muslims inUdyogamandal
The premises and facilities such as Electricity,water etc. are extended free of cost.
7.8.10 Welfare of SCs & STs Employment.
The Company has taken all measures forreservation of SCs/STs in accordance withthe Presidential directives. Out of the totalemployees of 3569 as on 30.12.2009, 619are SC/ST employees. An SC/ST GrievanceCell is functioning in the Company to redressthe grievances of SC/ST employees. Thegrievances received are examined in detailby the Cell and appropriately redressed. Theemployee concerned is informed of thedecision / action taken on the grievances by
the Grievance Cell. Further there areAssociations representing SC/ST employeesand these Associations also take upindividual grievances of SC/ST employeeswith the management for direct redressal.
7.8.11 Reservation in Dealership
FACT has always followed a policy ofencouraging SC/ST Candidates to take updealership. Details of dealership allotted toSC/ST are given below:
Category of Dealership As on 31.03.2009
Total Dealership 8066
SC / ST 657
No security deposit is collected from SC/STDealers and they are encouraged to dobusiness by constant advice/follow up. Allefforts will be made to ensure that maximumrepresentation is given for SCs/STs in Dealerappointments wherever additionaldealerships are provided.
7.8.12 Corporate Social Responsibility
As part of Corporate Social Responsibility,FACT has undertaken the following activities.
1. Drinking Water Supply to Residents ofEloor Panchayath
FACT processes water from the River Periyarat their advanced drinking water facility fortheir industrial/township needs. To meet thescarcity of water in Eloor Panchayath, FACTis providing about 1500 M3 water per day tomore than 500 residential users of the EloorGrama Panchayath.
2. Community Health Centre
The Community in which factories atUdyogamandal and Cochin Divisions arelocated are given free medical consultationservices on two days in a month. This hasbenefited the people at large as experiencedDoctors attached to our factory OccupationalHealth Centres provide the medical expert
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diagnosis and services. This helps the peopleto avoid traveling long distances to get routinemedical care.
3. Farmer Education programme
Regular agricultural seminars, dealer trainingprogrammes, crop campaigns, fielddemonstrations etc. were conducted. Thishelped the farmers to gain experience ofscientific practices to be adopted forsuccessful farming. Our field staff regularlymake follow up to clarify doubts if any, andinculcate the adoption of modern technologyfor integrated farming.
4. Soil Testing and Agronomy Services
During the year 2008-09, 3160 number ofsoil samples were collected by our field stafffrom various villages in the states of AndhraPradesh, Karnataka, Tamilnadu and Kerala.The focus was on collecting samples fromremote tribal areas with limited access toGovernment laboratories. Based on the soiltests the farmers were educated on theagronomic practices to be adopted, namelycrop variety selection, type of soil tillage tobe adopted, use of available organics infields, dosage of fertilizers to be used etc.These activities have benefited the farmingcommunity to maximise their crop yields.
5. Fire and Emergency Services
The well equipped fire services establishedin FACT provide emergency services not onlyto the surrounding areas but also toErnakulam district as well.
6. Training facilities
In addition to Employees and ApprenticesTraining, FACT Training Centre has of lateemerged as a Skill Development Academyoffering the following courses, utilizing itsresources for the benefit of the public at large:
(a) One year Diploma in Fire & SafetyEngineering for ITI / Plus 2 passedstudents – 1st batch started in February2008.
(b) 3 months Certificate course in HeavyEquipment Operation – 1st batchcommenced in October 2008
(c) 3 months Certificate course inInstrumentation & Maintenance – 1st
batch commenced in September 2008.
7. The Company has entered into a JointVenture agreement with Department ofFactories and Boilers, Government of Keralafor establishment of Kerala Institute ofWelding and Research to conduct coursesfor qualification as IBR approved welders tocater the growing needs for skilled weldersboth for the industries in India and abroad.A separate Society under the TravancoreLiterary, Scientific and Charitable SocietiesAct, 1955 was registered for conducting thecourses relating to welding technology witha grant of Rs.1 crore from Government ofKerala.
Kerala Institute of Welding & Researchfunctioning at FACT Training Centre hasstarted a 3 months Certificate course inWelding leading to award of IBR certificatein Welding. First batch commenced inSeptember 2009.
7.9 Madras Fertilizers Limited (MFL)
7.9.1 Introduction
Madras Fertilizers Limited (MFL) wasincorporated in December 1966 as a JointVenture between GOI and AMOCO IndiaIncorporation of USA (AMOCO) with GOIholding 51% of the equity share capital.
In 1985, AMOCO disinvested their shares,which were purchased by GOI and NIOC intheir respective proportions on 22.07.1985.The revised share holding pattern was GOI67.55% and NIOC 32.45%. The shareholding pattern upto May 11, 1997 was GOI69.78% and NIOC 30.22%.
On May 12, 1997, MFL made its maidenPublic Issue of 2,86,30,000 shares of facevalue of Rs 10 at a premium of Rs 5 per
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share. Of these, 2, 58, 09,700 shares weresubscribed. After the Public Issue, theshareholding pattern is as follows:
Shareholder Rs. Cr %
GOI 95.85 59.50
NIOC 41.52 25.77
Public 23.73 14.73
Total 161.10 100.00
The company has an authorized share capitalof Rs 365 Cr comprising of Rs 175 Cr asequity and Rs 190 Cr as preference sharecapital. The preference share capital is yetto be issued and subscribed. As on31.3.2009, the paid-up equity was Rs 161.10Cr.
MFL commenced commercial production in1971, with an annual installed capacity of1.7 lakh tonnes of Nitrogen (N) and 1.12
lakh tonnes of Phosphate (P). A majorrevamp / expansion was carried out in1998 at a cost of Rs 601 crore, enhancingthe annual installed capacity to 2.54 lakhtonnes of N and 1.42 lakh tonnes of P,corresponding to 4,86,750 MT of urea and8,40,000 MT of complex fert i l izers. However, certain problems were alsoexperienced in the revamp process whichled to frequent shut downs, low capacityutilization and resultant financial difficultiesand liquidity problems. In the wake of this,there were also problems of adjusting tothe Urea Pricing Policy with effect from1.4.2003 and the norms of determinationof concession on decontrolled complexfertilizers, which came into effect from1.4.2002 and 1.4.2008. Over a period oftime, despite two rounds of financialrestructuring, financial difficulties andproblems of capacity utilization etc., have,continued and financial position starteddeteriorating.
Tableau of Madras Fertilizers Limited (MFL) at Republic Day celebration 2010 at Chennai.
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7.9.2 Reference to BIFR
The Company has informed the Board forIndustrial and Financial Reconstruction(BIFR) of the total erosion of net worth andits current negative value. The BIFR hasregistered the Company as Case No. 501/2007. In the first hearing held on 2nd April2009, MFL was declared as a sick Companyand State Bank of India (Commercial Branch,Chennai) was appointed as the OperatingAgency (OA) to prepare a Draft RevivalScheme (DRS).
7.9.3 Revised Proposal for Restructuring
Based on the outcome of inter-ministerialmeetings, the Company had engaged M/sDeloitte Touche Tohmatsu India (P) Ltd (DTT)as consultants for study of MFL andassistance in preparing a revival plan. MFLhave also engaged M/s Project andDevelopment India Ltd (PDIL) as consultantsfor study of technical viability of the Plant.
The final report of M/s PDIL has beenreceived and based on their recommendationthe Company is preparing a fresh FinancialRestructuring proposal along with the supportfrom OA for submission to DOF/BRPSE fortheir consideration.
The Company’s operations are viable afterimplementation of NPS III amendmentrestricting the reduction in fixed costs by 10%from 01.04.2009 and therefore the Companyhas been making profit on a monthly basisfrom August 2009.
The Company may end up with a small cashprofit for year 2009-10.
7.9.4 Production Performance
During the year 2008-09, the Companyproduced 4.06 LMT of Urea and “Nil” NPK-Complex fertilizers with capacity utilisationof 83% and “Nil” respectively. During the year
2009-10, the Company is expected toproduce 4.25 LMT of Urea. The Company isplanning to produce 60 thousand tonnes ofNPK-Complex fertilizers during the year2009-10 on tolling basis through M/s IndianPotash Limited. Actual production uptoDecember, 2009 has been 3.06 LMT of Urea.
Further during the year 2008-09, theCompany produced 458 tonnes of Bio-fertilizers. The Company is expected toproduce 450 tonnes of Biofertilizers duringthe year 2009-10.
7.9.5 Sales Performance
The sales performance of the company isgiven below:
Product (In MT)
Actual April-2008-09 December
2009
Urea 4,15,266 3,06000
NPK - -
Imported MOP - -
Bio Fertilizers 463 460
7.9.6 Financial performance:
During 2008-09, the Company ended up witha net loss of Rs 145.38 Cr and the totalaccumulated losses as on 31.3.2009 wasRs 793.93 Cr. During the year 2009-10 theCompany is likely to end up with a loss ofRs 32.28 Cr and the total accumulated lossesas on 31.3.2010 would be Rs 826.21 Cr.During the current financial year, MFL hasearned net loss of Rs.51.54 Cr. till December,2009.
7.9.7 Welfare of SC/ST and reservation indealership.
State-wise SC/ST dealer strength is asbelow:
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State SC/ST Dealers
Tamil Nadu 533
Pondicherry 9
Andhra Pradesh 400
Karnataka 481
Kerala 189
Total 1612
SC/ST dealers constitute 26.69% of the totaldealer strength.
The following special terms are allowed forthe above category :
� Waiver of security deposit of Rs 5000/-.
� Exemption from seasonal minimumsales norms.
7.9.8 Statement showing employment of SC/ST,Ex-Servicemen and Physicallyhandicapped persons.
MFL organized 7 Nos. of agro basedexhibitions during the year against the AnnualPlan of 10 Nos.
To educate farmers about balancedfertilization, MFL collected and analysed 7860soild samples from farmers against theannual target of 7200 number of samples.Analysis report has been distributed to thefarmers for follow up.
For eco-friendly environment and to improvesoil health, method demo on biofertilizerusage was planned for 20 nos. for the year2009-10. So far MFL has conducted 17demonstrations in the marketing territory.
With regard to micro-nutrient analysis, thereis a plan of 500 samples for the year 2009-10 and so far 400 samples have beencollected, analysed and the reports havebeen sent to farmers.
To ensure fertilizer distribution upto rural area,MFL has appointed 5986 retail dealers, whichincludes 27% from SC/ST.
Group Employees Number of Employees belonging to
SC ST Ex- Physically BC / OBCServicemen Handicapped
A 241 24 3 - 1 53
B 208 46 5 - 1 80
C 329 84 1 13 3 126
D 40 28 - - - 9
Total 818 182 9 13 5 268
7.9.9 Corporate Social Responsibility
MFL marketing personnel contacted 2,39,919farmers during th current year against theyearly target of more han 3,00,000 farmersfor the year 2009-10 and educated thefarmers about soil health techniques, usageof biofertilizers & Neem products forenvironment friendly atmosphere and fertilizerrecommendation (Macro & Micro) for differentcrops.
7.10 Brahmaputra Valley Fertilizer CorporationLimited (BVFCL)
7.10.1 Introduction
Brahmaputra Valley Fertilizers CorporationLimited (BVFCL) has two operating units atNamrup Assam. Its Corporate Office is alsosituated at Namrup. The other establishmentsof the company are Liaison Offices at NOIDA& Kolkata and Marketing Offices at Guwahati,
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Siliguri & Patna . The authorised share capitaland paid up capital of the company as on31.3.2009 were Rs. 510 Crores and Rs.365.83 Crores respectively.
7.10.2 Physical Performance
The actual production from Namrup units forApril 2009 to December 2009 was 218733MT. The targeted production for the year2009-10 is 3,70,100 MT of Urea as per MOUTarget for 2009-10.
Performance of the Company has beenadversely affected due to frequent powerfailures. In Namrup-III performance wasaffected due to poor conversion in SynthesisConverter and tube leakages in Coolers.Performance of Namrup-II was also belowpar due to repeated problems in CO2Compressor in Urea Plant, Problems in BFWPumps and Synthesis Gas Compressor, Tube
leakages in Flue Gas Heat Recovery Sectionand RG Boiler 1st compartment tube leakage.
Namrup-II Plant could be run at 50% loadonly due to availability of only 1.72 MMSCMDgas against requirement of 1.95 MMSCMDof gas. This has increased cost of productionof Namrup-II plants.
The company manufactured 15.63 MT of Bio-fertilizer during the period April 2009 toDecember 2009 and plan to produce 20 MTBio-fertilizer in 2009-10. The company hassold 177 MT Quality Seeds in Kharif seasonof 2009-10 and 268 MT of Wheat seeds arebeing sold during Rabi season 2009-10.Further vegetable seeds procured from M/sNumhens Pvt. Ltd,. Worth Rs. 12.65 lakhhave been sold to farmers to farmers throughits dealer network. The company has startedproduction of Vermicompost and has sold26.76 MT of vermin-compost.
View of Brahmputra Valley Fertilizers Corporation Ltd (BVFCL) Plant at Namrup (Assam).
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7.10.3 Financial Performance
The company earned net loss of Rs.104.40Cr. on Sales turnover of Rs.170.48 Cr. duringcurrent year upto December, 2009. In 2008-09, the company earned net loss ofRs.197.07 Cr. on turnover of Rs.150.72 Cr.
7.10.4 Public / Staff grievance redress machineryand Status of Grievances:
An Employees Grievance RedressalCommittee headed by GM (HR) with therepresentatives of both the recognizedUnions & Joint Council of Officers is inoperation to look into the individualgrievances of the employees. Aggrievedemployees submit the grievances to the Co-ordinator of the Committee. Thereafter, allthe grievances are examined and put up tothe Chairman of the Committee for redressal.
No specific complaint has been receivedabout its unsatisfactory functioning. Furtherto this, information is provided to the citizensunder Right to Information Act 2005 and 10applications have already been receivedduring 2009-10 and 19 applications werereceived during 2008-09. Requestedinformation has been provided as per theAct.
7.10.5 Employment of SC/ ST, Ex- servicemen,Physically Handicapped & otherbackward classes persons :
The matter of employment of personsbelonging to SC/ST, Ex-servicemen,Physically handicapped & other backwardclasses are taken care of at the time ofrecruitment/ promotions. Reservation policyhas been followed as per Governmentguidelines. Information on employment underdifferent categories are stated as under :
Men in Position as on 31.12.2009 1205
Executive 407
Non-executive 798
SC ST OBC Ex- Physicallyservicemen handicapped
91 181 365 4 4
7.10.6 Welfare of minorities and reservation indealership :
Welfare of minorities are looked after as perdirective of Prime Minister ’s 15 PointProgramme relating to welfare of minorities,during recruitment and promotion. At the timeof promotion and recruitment, arepresentative of the minority is included inthe Selection Committee. There is noreservation for minorities.
As per the scheme for appointment of SC/ST candidates for dealers formulated by theGovernment of India, 25% of the appointmentof dealers is to be reserved for SC/ STcategory. Category – wise details of whichare as follows.
ST 55
SC 13
Total Dealers 601
In spite of advertisement, BVFCL is gettingvery limited applications from SC/STcandidates.
7.10.7 Corporate Social Responsibility :
Since its inception, BVFCL had regularlycontributed to various corporate socialresponsibility initiatives in the areas of health,education, infrastructure and culture. AsNamrup Fertilizer Complex is located atremote area in the Dibrugarh District ofAssam, there has been added socialresponsibility for development of areasadjoining its factory and township.
BVFCL is extending following welfare facilitiesto its employees and their families and tothe neighbouring villages.
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a) Education: BVFCL is running one KendriyaVidyalaya, one Higher Secondary School andone Primary School for students ofneighbouring areas and wards/children of itsemployees as well. The corporation hasextended its patronage for establishment ofNamrup College and B.Ed. for HigherEducation at Namrup.
b) Civic Amenities: The company provideddrinking water and lighting facilities to publicof Namrup, accommodation for telephoneexchange, post office etc.
c) Medical: A 60 bed hospital with modernequipments is operated with qualified doctorsand para-medical staff. Patients fromadjoining are treated.
d) Recreation facility: There are 2 clubs, 1stadium with play ground where regularcultural functions/sporting even areorganised.
7.11 FCI Aravali Gypsum & Minerals IndiaLimited (FAGMIL)
7.11.1 Introduction
The FCI Aravali Gypsum & Minerals IndiaLimited was incorporated under theCompanies Act 1956 as a Public SectorUndertaking on 14.2.2003 after being hivedoff the Jodhpur Mining Organization (JMO)of Fertilizers Corporation of India limited.(FCIL). The authorized share capital of theCompany was Rs. 10 crore and the paid upcapital was Rs. 7, 32,98,000/- as on31.3.2009.
7.11.2 Production Performance
The Production/Sale of gypsum in 2008-09was 9.16 lakh MT as against the target of9.15 lakh MT. The revised production/salerevised target for the year 2009-10 is 7.65lakh MT. During the current year 2009-10,the Company has produced 4.89 LMT andsold 5.08 LMT of Gypsum up to December2009.
7.11.3 Financial Performance
The Company has earned a net profit of Rs.903.55 lakh (after deferred tax charge) duringthe year 2008-09 on sales of Rs.42.47 Cr.Upto December 2009, FAGMIL has earnednet profit of Rs.4.93 Cr. on sales of Rs.35.40Cr.
7.11.4 Grievance Cell
Grievance Cell is functioning to redress thepublic an staff grievances and no grievancesis pending as on date.
(i) For Public Grievance
Head Office at Jodhpur receives the publicgrievances, which are redressed by theGrievance Cell. At present, no grievance ispending.
(ii) For Staff Grievance
a. The employees who are working invarious Mines are advised to submit theirgrievances through the respective AreaManagers to Chief Manager (Mining).
b. The employees working at Head Office,Jodhpur, route their grievances throughSectional Heads to Chief Manager (Mining).At present, no grievance is pending.
7.11.5 Employment of SC/ST, Ex- servicemen,Physically Handicapped & OtherBackward Classes (OBCs) persons.
Information in respect of employment of SCs/STs, Ex- Servicemen, Physicallyhandicapped & OBCs as on 31st March. 2009is as furnished below.
Total SC ST Ex- PHC OBCemployees Serviceman
109 17 5 1 NIL 8
7.11.6 Corporate Social Responsibility
Construction of separate Water Tanks atVillage Mohangarh, District Jaisalmer at the
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cost of Rs.1 Lakh to provide drinking waterfacilities for the villagers as well as for cattle.
7.11.7 Information relating to welfare ofMinorities and reservation in dealership.
The company does not have any system ofengaging dealers, thus, reservation forminorities is not applicable.
7.12 Krishak Bharati Cooperative Limited(KRIBHCO)
7.12.1 Introduction
KRIBHCO was incorporated as a Multi StateCooperative Society on 17.04.1980 toimplement the Ammonia/Urea fertilizer projectat Hazira, based on natural gas from BombayHigh/South Bassein. The Societycommissioned its Ammonia/Urea Plant in1985.
The Hazira complex has two streams ofAmmonia plants and four streams of Ureaplants. The annual capacity of Urea Plantsis 17.29 lakh MT.
KRIBHCO has also installed a Bio-fertilizerunit at Hazira in 1995. The capacity of thisUnit was enhanced from 100 MTPA to 250MTPA in 1998. Two more Bio-fertilizer unitsof 150 MTPA capacity each have also beeninstalled one at Varanasi, U.P in September2003 and another one in Lanja, Maharashtrain March 2004.
As on 31.03.2009 the authorised sharecapital of the Society is Rs.500 crore andthe paid up share capital is Rs.390.68 crore.The total membership as on 31.03.2009 was6523.
KRIBHCO’s Hazira Plant.
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7.12.2 Production Performance
UREA & AMMONIA :
During the year 2008-09 KRIBHCO produced17.43 lakh MT of Urea (8.02 lakh MT in termsof nitrogen “N”) achieving capacity utilizationof 100.8 % and 10.85 lakh MT of Ammoniaachieving capacity utilization of 108.1%.
During the year 2009-10 up to November2009, the Society has produced 13.36 LMTof Urea (6.14 lakh MT in terms of nitrogen“N”) achieving capacity utilisation of 103 %.The expected production for the year 2009-10 would be 17.82 lakh MT of Urea(8.20lakh Mt in terms of nutrient “N”) of capacityutilization of 103%.
ARGON GAS :
During the year 2008-09 KRIBHCO produced4245 thousand NM3 of Argon gas.
During the year 2009-10 upto November2009, Society has produced 1726 thousandNM3 of Argon.
BIO-FERTILIZERS :
During the year 2008-09 KRIBHCO produced865 MT of Bio-fertilizers.
During the year 2009-10 upto November2009, Society has produced 679 MT of Bio-fertilizer.
7.12.3 Sales Performance:
TOTAL UREA :
In the year 2008-09, the Society sold 37.76lakh MT of total Urea. This is the highesttotal annual sales of Urea achieved byKRIBHCO since inception. During the year2009-10 upto November 2009, Society sold23.59 lakh MT of total Urea.
OWN UREA :
In the year 2008-09 the Society has sold18.11 lakh MT of own Urea. During the year
2009-10 upto November 2009, Society hassold 11.23 lakh MT of own Urea.
OMIFCO GRANULAR UREA:
During the year 2008-09 Society sold 10.77lakh MT OMIFCO Granular Urea. During theyear 2009-10 upto November 2009, Societyhas sold 6.27 lakh MT of OMIFCO GranularUrea.
KSFL UREA:
During the year 2008-09 Society has sold8.88 lakh MT of KSFL Urea. During the year2009-10 upto November 2009, Society hassold 6.09 lakh MT of KSFL Urea.
AMMONIA SALE :
During the year 2008-09 the Society hassold 0.79 lakh MT of surplus Ammonia.During the year 2009-10 upto November2009, Society has sold 0.57 lakh MT ofAmmonia.
ARGON SALE :
During the year 2008-09 the Society has sold4215 thousand NM3 of Argon. During theyear 2009-10 upto November 2009, Societyhas sold 1692 thousand NM3 of Argon.
BIO-FERTILIZERS SALE :
During the year 2008-09 the sale of Bio-fert i l izer was 867MT. KRIBHCO hasconducted several promotionalprogrammes on use and benefits of Bio-fertilizers. During the year 2009-10 uptoNovember 2009, Society has sold 655 MTof Bio-fertilizer.
7.12.4 Financial Results :
During the year 2008-09, the Societyearned a net profit of Rs.250.13 crore(post-tax). Since inception KRIBHCO haspaid dividend of Rs. 871.45 crore to GOIupto 31.03.2009. KRIBHCO has achievedhighest turnover of Rs. 2559.12 croreduring the year 2008-09.
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During the financial year 2009-10 uptoNovember’09, Society has made aprovisional profit (pre-tax) of Rs.138.42 crore.
7.12.5 Joint Ventures
1. Joint Venture Oman India FertilizerCompany, Oman (OMIFCO):
KRIBHCO, IFFCO and Oman Oil Companywith a share holding of 25%, 25% and 50%respectively have collaborated and set up aworld-class fertilizer plant at Sur in Oman.The annual capacity of the fertilizer complexis 16.52 lakh MT of granular Urea and 11.9lakh MT of Ammonia.
The Urea produced in OMIFCO is beingpurchased by Govt. of India and half of theproduce is being marketed by KRIBHCO. Inaddition, plant produces 2.5 lakh MT ofsurplus Ammonia per year, which is to bebrought to India.
During the financial year April ‘08 to March’09 OMIFCO has produced 20.08 Lakh MTof Granular Urea.
During the financial year 2009-10 uptoNovember 2009, OMIFCO has produced13.60 Lakh MT of Granular Urea.
2. KRIBHCO Shyam Fertilizers Limited(KSFL):
KRIBHCO Shyam Fertilizers Limited (KSFL)has acquired Ammonia –Urea FertilizerComplex of M/s. Oswal Chemicals andFertilizers Ltd. at Shahjahanpur, U.P,consisting of a single stream Ammonia plantof annual capacity 5.02 Lakh MT and twostreams of Urea plant with a combinedannual capacity of 8.64 Lakh MT.
KRIBHCO holds 85% of the equity,management control and the entire marketingrights of Urea and other products of thecompany.
During the financial year 2008-09 KSFLproduced 8.65 lakh MT of Urea (100.1 %capacity utilization) and 5.13 Lakh MT ofAmmonia (102.3 % capacity utilization).
During the financial year 2009-10 uptoNovember’09, KSFL has produced 6.23 lakhMT of Urea (108.1 % capacity utilization)and 3.68 Lakh MT of Ammonia (110.2 %capacity utilization).
7.12.6 Equity Participation
1. Gujarat State Energy Generation Limited(GSEG):
KRIBHCO has diversified into power sectorand has invested Rs. 72.75 crore equity (ason 31.03.2009) in Gujarat State EnergyGeneration Limited. GSEG is a Joint Venturewith Gujarat State Petroleum CorporationLimited (GSPCL), other Gujarat Governmentcompanies and GAIL (India). GSEG isoperating a 156 MW combined cycle powerplant based on natural gas at Mora, districtSurat.
During the Financial Year 2008-09 plantachieved an overall Plant Load Factor (PLF)of 71.22%. Further, GSEG has posted aprovisional post-tax profit of Rs.9.5 crore anddeclared dividend of 5% on the share capital.
GSEG is implementing a Combined Cyclegas based Power Project of capacity 350MWexpansion project at its existing site at anestimated cost of Rs. 1160 crore. EPCContract has been awarded. The project isexpected to be completed in 27 months fromthe Zero Date of January 28, 2008.
2. Nagarjuna Fertilizers & Chemicals Limited(NFCL):
Society has an equity participation of Rs.10.00 crore in NFCL, which is 2.15% ofNFCL’s paid-up share capital of Rs. 465.16crore.
7.12.7 Projects under implementation/consideration
1. Revamp of Ammonia and Urea Plant:
Society has initiated action to Revamp itsexisting plant and enhance its annualcapacity of Urea Plant from 17.29 lakh MT
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to 21.95 lakh MT and of Ammonia plantscapacity from 10.03 lakh MT to 13.0 lakhMT. Basic Engineering work for Ammoniaand Urea is completed. The detailedEngineering work and procurementservices by M/s. PDIL are under progress.Orders have been placed for long termitems. Bids for major items have beenreceived and are in advanced stage ofevaluation. Civil work at site has started.Zero date has been achieved on 27th
January 2009. The completion period ofthe project is 32 from months zero date.The estimated project cost is Rs 1301Crore.
2. Urvarak Videsh Limited (UVL):
“Urvarak Videsh Limited”, a Joint Venturecompany constituting KRIBHCO, NFL &RCF has been incorporated for setting upthe Joint Ventures in India and abroad formanufacturing, mining, long term tie upsfor nitrogenous, phosphatic and potassicfertilizers and fertilizer raw materialsincluding exploring the possibility of makinginvestments and rendering consultancyservices in this regard in India andabroad.
GOI has accorded approval to UVL to set upFertilizer Project at the existing Barauni Unitof Hindustan Fertilizer Corporation Limited(HFCL).
3. Logistics:
KRIBHCO has diversified into LogisticBusiness and has acquired License tooperate Private Container Trains in Category-I (entire rail network in relation to both Exim& Domestic Traffic). KRIBHCO has signedconcession Agreement with Ministry ofRailways.
KRIBHCO Infrastructure Limited (KRIL) a100% subsidiary of KRIBHCO has beenincorporated with authorized share capital ofRs.500 crore and initial paid up capital ofRs.5 crore for undertaking infrastructureprojects.
KRIBHCO is in the advanced stage of settingup rail-linked terminal at Hazira. It is settingup ICD/CFS at various places in the countryon its own and through strategic alliances.KRIL has placed order for procurement offour rakes and is in advanced stage forprocurement of containers. One containertrain has been dispatched on trial basis fromHazira to national capital region on 10th
December 2009.
7.12.8 Corporate Social Responsibility
KRIBHCO with its large dedicated team ofagriculture professionals continued itssignificant contribution along with otherserious players in latest farm technologytransfer and other rural welfare schemes forimproving the profitability of farmingcommunity.
During 2008-09, KRIBHCO organized morethan 2500 programmes for farmingcommunity such as farmers meetings, kisanmelas, field demonstrations, field days,cooperative conferences, group discussion,special campaign etc. benefiting 11.69 lakhfarmers and cooperatives across the country.To back up the Agriculture Technologytransfer, the Society also made available 8.35lakh technical folders on various crops tothe farmers and cooperatives.
KRIBHCO Krishi Pramarsh Kendra, a high-tech centre at KRIBHCO Bhawan, NOIDAcontinued free consultancy to farm-relatedproblems. The centre also propagatedefficient and balanced use of fertilizer bytesting 4994 soil samples collectedscientifically for micro-nutrients and 1014samples for macro-nutrients & irrigation waterfrom 10 states free of cost. Results alongwithrecommendations were forwarded throughelectronic medium to farmers at theirdoorsteps, apart from using KRIBHCOwebsite for display of results. ParamarshKendra also provided latest information onweather, like rainfall, temperature, relativehumidity, monsoon movement etc. for use inplanning farm operations and mid-term
69
corrections in the event of crop failuregenerally through kisan help lines. KisanHelpline has been strengthened with the helpof KRIBHCO Reliance Kisan Ltd.
All State Directors of Agriculture wereinformed about educational programmesconducted and soil samples tested from theirstates along with district wise deficiencynoticed in various soil samples. KRIBHCOalso joined hands with ICAR, StateAgriculture Universities, State CooperativeFederations for free soil testing andtechnology transfer which was thankfullyacknowledged and appreciated at allplatforms.
As a step towards modernization, KRIBHCOcontinued to promote informationCommunication Technology (ICT) throughKRIBHCO Kisan help line using e-mail,phone, SMS, computer and KRIBHCOwebsite for informing farmers about latestfarm technology alongside with traditionaltools. Information on monthly farm operationsare also made available on website. An Highlevel delegation from Ministry of AgricultureMedagasker visited KRIBHCO KrishiParamarsh Kendra and described it as oneof the best in the world.
Strengthening cooperatives and ruraldevelopment always remained a priority forKRIBHCO. In this direction 60 cooperativesocieties were adopted, 19603 cooperativemanagers were trained through 210cooperative conferences and workshopsand 17 study visits, wherein they wereeducated about the use of Society’sproduct for improving farm productivity andalso enhanced our corporate image. Thesociety also organized 46 healthcampaigns for livestock and humans,promoted 7 water facilities including micro-irrigation systems for crops in rainfed areasand rural sports for integrated ruraldevelopment. Krishak Parivar Sangam, aprogramme dedicated to nationalintegration of farmers was organized atPusa, Delhi & KRIBHCO Krishi Pramarsh
Kendra, NOIDA werein 41 farmers from 13states participated for about one week anddeliberated about the agriculture practicesof their respective states and this providedan opportunity for better understanding ofthe use of KRIBHCO’s products andservices. A group of RepresentativeGeneral Body Members from Bihar, W.Bengal, M.P. Chhattisgarh & Maharashtravisited Hazira plant to apprise themselvesof the steps taken to maintain the qualityof the product. Storage-cum-communitycentre scheme started on Golden Jubileecelebration of India still continuing with 141centers sanctioned and 130 are completedand being used fully.
KRIBHCO continues to provide Insurancecoverage for farmers as a method ofsustaining the sales of the product, knownas “Kisan Aapda Nivaran Bima Yojna” forany accidental death / injury. It is aPersonal Accident Insurance Scheme forthe welfare of the farmers who purchaseKRIBCHO Urea bag from any cooperativeoutlets and Krishak Bharati Sewa Kendras(KBSK). During the year, an amount ofRs.40.63 lakh has been disbursed asinsurance claims to 61 families of thedeceased farmers.
During the f inancial year 2009-10,KRIBHCO continued its services to farmers& cooperatives. A total of 1279programmes so far have been organizedupto November 2009 which mainly includeFarmers Meetings, CooperativeConferences, Group Discussions, KisanMelas, Block Demonstrations, Dealers’Conferences, Health Campaigns for humanand animals, Technical Wall Paintings,Technical Literature Printing & Distributionand Soil Testing Campaign, directlybenefiting 8.34 lakh farmers. Besides this3.5 lakh Technical Crop Folders weredistributed and 3719 Soil Samples weretested for pH, EC, macro and micro-nutrients from 83 districts of 11 states.KRIBHCO Kisan Helpline was used by 584
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farmers for solving their farm relatedproblems.
7.12.9 Seed Multiplication Programme
KRIBHCO also initiated Seed ProductionProgramme in 1990-91 to provide quality/certified seeds of main crops to the farmerswhich has had a very encouraging responsefrom farmers and cooperative societies. Theseeds are made available to the farmersthrough KBSKs, Cooperative Societies andState Cooperative Federations in differentstates. The Society stepped up productionof seeds from 2928 quintals in 1991-92 to1.98 Lakh quintals of Seeds in 2008-09. Thisis the highest ever production of seeds sofar.
During the financial year 2008-09, the Societyhas produced 1.98 thousand quintals andsold 1.96 lakh quintals of seeds which ishighest since inception. During the financialyear 2009-10 upto November’09, Society hasproduced 2.18 lakh quintals and sold 2.20lakh quintals.
7.12.10 Public/Staff Grievance Redress Machinery
Based on the directives of Department ofFertilizers, Government of India, the set upof Public Grievance Redressal Machinery isin operation in KRIBHCO.
Grievance/Complaint Box is kept at thereception of office for convenient registrationof complaints by member of the public. TheComplaint Box is opened regularly.DGM(HR), Corporate Office is designated asGrievance Officer to attend any publicgrievance/complaint. A quarterly progressreport of redressal of Public Grievance isbeing sent to Deptt. of Fertilizers,Government of India.
7.12.11 National Policy for persons withdisabilities
KRIBHCO does not have any separatefinancial allocation for persons withdisabilities. However, Society promotesfarmers belonging to SC/ST/OBC throughvarious programmes and rural activities.
7.12.12 Statement showing employment ofS C / S T / E x - S e r v i c e m e n / P h y s i c a l l yhandicapped persons
(As on 31.03.2009)
Name of Group Total Number of employees belonging toSociety number of
employees SC ST Ex-service- Physically OBCmen Handicapped
(1) (2) (3) (4) (5) (6) (7) (8)
KRIBHCO A 1359 32 13 8 2 134
Hazira- B 309 19 16 4 NIL 55
Surat. C 390 44 23 3 5 66
D 26 3 0 4 NIL 14
Total 2084 98 52 19 7 269
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GRAMIN VIKAS TRUST
7.12.13 Gramin Vikas Trust (GVT) was establishedby Krishak Bharati Cooperative Ltd.(KRIBHCO) with the support fromGovernment of India and Department forInternational Development (DFID) U.K. GVTis an independent legal entity implementingvarious Rural Development Projects inRainfed areas of Western and Eastern India.GVT has been incessantly working on issuessuch as crop research, Natural ResourceManagement, Water Resource Development,Agro-forestry, Livestock etc.
The Trust is operating in Madhya Pradesh,Rajasthan, Gujarat in the Western India andOrissa, Jharkhand, Chattishgarh and WestBengal in Eastern India. In the post DFIDphase GVT has collaborated andimplementing project of various ministries atthe state level as well as at the national level,like Ministry of Rural Development, Ministryof Panchayati Raj, Ministry of Agriculture,Ministry of Environment and Forest, NIRD,etc. GVT has also tied up with otherdevelopment organizations like MottMacDonald, The Energy and ResourceInstitute (TERI), Larsen & Turbo, AsianDevelopment Bank etc for various projectslike Migrant Labour Support Programme(MLSP), Skill Up-gradation, VocationalTraining & Capacity Building, Crop Research,Impact Assessment Studies etc.
GVT has established a state-of-the artNational Livelihoods Resource Institute(NLRI) on the picturesque locale outside thecity of Ratlam in Bhadwasa Village of MadhyaPradesh. The Institute has becomeoperational since September 2007 and wasformally inaugurated on 14th May 2008. Sofar 38 on campus Training Programmes(including 2 Management Programmes forKRIBHCO) and 183 off campus Programmeshave been organised.
In East India, GVT has established the KrishiVigyan Kendra (KVK), at Godda at the Sub-divisional Agriculture farm near Rautara
Chowk funded by ICAR, New Delhi in theyear 2006. KVK is managed by GVTRegional Head Quarter East located atRanchi.
GVT has undertaken various landdevelopment programs including Soil WaterConservation, tree plantations and Agro-forestry works etc. GVT has carried out theSWC work on fifty thousand acres of landand near about thirteen thousand householdswere benefited.
Tree Programme is an important componentof the GVT’s environmental programs. Underfarming system for development of naturalresources, the project not only emphasizedon plantation and creating awareness amongthe participants but also on development ofskills of participants to grow nurseries in theirvillages.
The Ministry of Panchayati Raj, Govt. of Indiahas identified Gramin Vikas Trust as GatewayAgency for facilitation of the Rural BusinessHub(RBH) in Ranchi and Deoghar districtsof Jharkhand and Birbhum District of WestBengal in order to identify the local products/skills that hold good business potential andmobilizing convergence of different schemesand institutions that hold the key inputs forsetting up RBHs through Private –Public-Panchayat-Partnership.
Since the survey work has been done byGVT in Jhabua for energy plantations onrevenue waste land and contract farmingmodel has been completed and accepted.Subsequently IOC has principally agreed toinvolve GVT in the implementation of theproject.
GVT has been awarded with FCRA projecton Improving Livelihoods in Tribal areas ofIndia through sustained access totechnologies in Rainfed areas for a period ofthree years to be implemented in JhabuaMP and Dhamtari, Chattisgarh, Ranchi andGodda in Jharkhand and Baripada in Orissacovering four states. The Project is funded
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by DFID through CAZS, Bangor, UK andbeing implemented in their partnership.
Skill Development Training Project on fourtrades e.g. Mason, Shuttering Carpentry &Bar Binding, Plumbing and GeneralSupervisor is implemented with specific targetto train 5000 construction sector workers.
After the successful implementation of MLSPunder DFID till June, 2007, GVT hascompleted a MLSP Project in Ratlam district
from June, 2007-July 2008 with the supportof Asian Development Bank.
National Bank For Agriculture and RuralDevelopment (NABARD) has awardedIntegrated 7 Tribal Development Programmeto GVT under the title “WADI (Orchards)”.
NABARD has awarded a Capacity BuildingPhase (CBP) Project on Watershed inPairachali, West Bengal in February, 2008.
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8.1 Fertilizer Education Projects
8.1.1 The basic purpose of the application offertilizer is to enhance the crop productivityin the country. The Fertilizer companieslaunch their fertilizer projects for educatingthe farmers about the quality/contents ofthe soil for crops. Resultantly, the farmersare encouraged by the companies to usethe balanced fertilizers based on the qualityof the soil nutrient wise and apply fertilizersaccordingly. Department of Fertilizers doesnot implement Fertilizer Education Projects.Such projects are administered byDepartment of Agriculture & Cooperation,ICAR, State Governments and theagriculture universities. However, somefertilizer companies including PSUs doundertake such projects as part of theirextension and marketing activities. ThePSUs under the Administrative control ofDepartment of Fertilizers are encouragedto launch fertilizer education projects forthe benefit of farming community as perthe MOUs signed with the Department ofFertilizers in this regard. The main activitiesundertaken by various fertilizer companiesunder the Fertilizers Education Projects areagricultural seminars, dealers meetingsand trainings, soil sample analysis,demonstration, soil test recommendations,exhibitions, orientation programmes, R&Dtrials, field trials of fortified fertilizers, biofertilizers, distribution of crop literature,organizing Krishi Melas etc and mediapublicity. Department of Agriculture &Cooperation has launched National Projecton Management of Soil Health and Fertilityto promote integrated nutrient management
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through judicious use of chemicalfertilizers, secondary and micro nutrientscoupled with organic and bio fertilizer forimproving the soil health and cropproductivity. It also aims at strengtheningsoil testing facilities, upgrading the skill ofstaff working in soil testing laboratory andstrengthening the fertilizer quality controlfacilities. At present there are 651 soiltesting laboratories in the Country including517 static and 134 mobile laboratorieshaving annual analyzing capacity of about7 million soil samples. The above saidnational projects proposes to set up 500new soil testing laboratories and 250mobile soil testing laboratories for micronutrient analysis. It also proposes tostrengthening of 315 existing state staticlaboratory during the 11th Five Year Plan.It further proposes to upgrade 63 existingstate fertilizer quality control laboratoriesand setting up of 20 new such laboratoryplus 50 laboratories for advisory purposes.The total outlay of the project is 429.85crore during the five year plan. A projectsanctioning cum monitoring committeeunder the Chairmanship of AdditionalSecretary, Department of Agriculture &Cooperation has been constituted, whichshall be advised by National MonitoringTeam of Experts. The implementingagencies shall be agro-clinics, NGOs,Cooperative Societies, PrivateEntrepreneurs, State Governments. As perthe above said scheme, the followingamounts of subsidy is to be provided byDepartment of Agriculture & Cooperationfor STL.
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8.1.2 The following nine fertilizer companies havesubmitted their proposals to Department ofAgriculture & Cooperation for setting up soiltesting laboratory:
• FCI Arawali Gypsum and Minerals India Ltd.• Krishak Bharati Cooperative Ltd.• Mangalore Chemicals & Fertilizers Ltd. (MCF)• Zuari Industries Ltd. (ZIL)• Southern Petrochemical Industries
Corporation Ltd. (SPIC)
Sl.No. Particulars Policy
1. For Setting up of additional Soil Testing Laboratories by @50% of project cost limitedAgri clinics/NGOs /Cooperative, entrepreneurs, etc. under to maximum of Rs. 30 lakhPrivate partnership mode. as one time subsidy.
2. For Adoption of village by Soil Testing Laboratories @Rs.20000 per Frontlinethrough Frontline Field Demonstration. Field Demonstration.
3. For Setting up of Mobile Soil Testing Laboratories by @75%of project cost limitedAgri Laboratories by Agri clinics/NGOs/Cooperative, to maximum of Rs. 30 lakhPrivate entrepreneurs, etc. under Pvt. partnership mode. as one time subsidy.
• Gujarat Narmada Valley Fertilizers CompanyLtd.
• Indian Potash Ltd.• Rashtriya Chemicals & Fertilizers Ltd.• GSFC.
8.1.3 Department of Agriculture & Cooperation hasbeen requested by the Department to releasesubsidy to the above said fertilizer companiesas per the policy.
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9.1 Information Technology (IT)
9.1.1 e-Delivery for Fertilizer Management
Fertilizer Management On-line has beendeveloped in Department of Fertilizers inclose collaboration with National InformaticsCentre to meet the national objective ofmaking fertilizers available timely, adequatelyin good quality and at affordable price to thefarmers by maintaining growth of fertilizerindustry through subsidies/concessions.Proper planning and monitoring of variousaspects like fertilizer production, imports,quality control, distribution, movement, sales,stocks, subsidies and concessions has beenfelt essential. In order to manage theseissues effectively, the following applicationssystems have been developed/ upgraded inorder to pace with the IT enhancements andchange in fertilizer policy:-
9.1.2 Web Based Fertilizer ProductionMonitoring System
The application system facilitates on-line dataentry and provides information support forplanning and monitoring the fertilizerproduction in the form of material as well asnutrients. The system provides analysis inidentifying the macro and micro level factorsresponsible for deviations in production onplant to plant basis in order to take correctivemeasures to enhance fertilizer production inthe country. The system covers variousaspects viz., installed capacity, productiontargets, actual production, capacity utilization,requirement and consumption of rawmaterials/ intermediates for fertilizer plants.
9.1.3 Fertilizer Subsidy Payment InformationSystem
The system is used to compute the subsidyamount based on the subsidy rates, equated
freight rates and sales tax rates notified bythe Government for the quantity moved bythe urea manufacturers to the consumptioncentres across the country. The processingof monthly claims through application systemhelps in timely release of subsidy to the ureamanufacturers. The system helps inmonitoring various activities pertaining to thepayment of subsidy by generating variousperiodic reports as well as query retrieval.
9.1.4 Application System for Monitoring EnergyConsumption Norms
The system is used to calculate the overallenergy consumption in urea production byplants based on various inputs and theircalorific values purchased from varioussources and consumed in ammoniaproduction. The system provides informationsupport to monitor operational performanceof the plants viz., daily reassessed capacity,average productive hours, and dailyproduction rate and capacity utilization ofammonia/ urea. The system also maintainsconsumption and balance of ammonia foreach quarter.
9.1.5 Application System for Revision in UreaConcession Rates
The system facilitates in quarterly revision ofconcession rates for urea manufacturing unitsin each group under group concessionscheme on account of escalation/de-escalation in the variable cost of variousinputs and utilities consumed in ureaproduction. The software derives energyconsumption proportions of various inputsw.r.t the total normative energy and computesinput wise proportional costs. The total inputenergy cost, normative costs of variousutilities and fixed cost are then summed toarrive at the rate of concession. The total
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financial impact is exercised w.r.t the previousrate of concession and despatchedquantities.
9.1.6 Web Based Fertilizer Distribution andMovement Information System
The system maintains the data related toECA supply plan, fertilizer requirements instates/UTs, opening stocks with stateinstitutional agencies & fertilizer companies,monthly movement orders, imports,despatches (regulated/ de-regulated/importedby rail/road), availability and sales of differentfertilizers.
9.1.7 Web Based Fertilizer Concession SchemeMonitoring System
The computer based application system isthe major integral process of FertilizerConcession Scheme for timely release ofconcession payments to the fertilizermanufacturers and importers for the sales ofindigenous/ imported phosphatic and potassicfertilizers in States/ UTs. The monthly claimsat various stages i.e. ‘On Account’,‘Differential’ and ‘Balance’ are processedusing the software based on base/final rates,registration for sales, bank guarantee,eligibility and sales certification. Thecomputerised notings for approval andsanctions for payments to PAO, Expenditure& Control Register(ECR) and various queries/reports are generated to make and monitorthe concession payments.
9.1.8 Web Based Fertilizer Import ManagementSystem
The system assists in monitoring the fertilizerImport Plan based on actual imports againsttargets, status of FOB and C&F importcontracts for prilled urea on Govt. accountunder ECA demand and import of granularurea from OMIFCO under UOTA. The systemalso maintains details of Department ofFertilizer’s authorization to State TradingEnterprises (STEs)/ Handling & MarketingAgents for import of urea during a scheduledperiod.
9.1.9 Web Based Handling & Payments Systemfor Fertilizer Imports
The application system provides decisionsupport to the Department of Fertilizers inselecting handling agents, fixation of handlingrates and monitoring of expenditure. Thesystem processes the claims from handling/marketing agents towards making paymentsof inland freight and handling charges afteradjusting the recovery of cost of cargo atPool Issue Price (PIP) from handling/marketing agencies, settlement of the portdues/ICC/other charges and demurrage/despatch with handling/ marketing agencies.
9.1.10 Fertilizer Project Monitoring System
The system facilitates in monitoring monthlyexpenditure incurred through Internal andExtra-budgetary Resources(IEBR) andBudgetary Support on various schemes/projects approved by DoF during Five YearPlans w.r.t. plan outlays and yearly outlays.
9.2 Executive Video Conferencing System(EVCS)
NICNET Based Executive VideoConferencing System (EVCS) has beenmade operational on the desk of Secretary,Department of Fertilizers and is being usedas an effective mode of communication forinter-Ministerial consultations and quickdecision making. Point-to-Point VideoConferencing can be initiated by anyoneconnected to EVCS and multi-point VideoConferencing can be organized through NIC,Delhi.
9.3 Information & Communication Technology(ICT) Infrastructure
DOF’s intranet consisting of 270 nodes isoperational in Department’s offices locatedin Shastri Bhawan, Udyog Bhawan, JanpathBhawan and Sewa Bhawan. NIC’s iNOC(Integrated Network Operation Centres) atShastri Bhavan, Udyog Bhavan and SewaBhavan protect computer systems of DOF’sintranet from network security attacks.
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The clients systems in the Department havebeen provided upto LDC level with internetconnectivity to make wider use of IT services.For accessing the internet through RF link ofNICNET, all the computers are connectedthrough NIC’s proxy server where built-infirewall capabilities are enabled.
9.4 Site Web / Web Applications Hosting
The websites of DOF and fertilizer PSUs arehosted at Internet Data Center(IDC), NICHqrs. in a secured ICT environment to bringcitizen interface and transparency inGovernment functioning. The web basedapplications for fertilizer production,movement, concessions payment, imports &handling are operational from IDC. Theremote facility through secured Virtual PrivateNetwork (VPN) connection of NIC is beingused in DOF and Fertilizer PSUs for instantupdations in the websites.
Cabinet Secretary to the Government of Indiadirected all Government Ministries/Departments to have their websites as perthe guidelines adopted by DAR&PG.Accordingly, the website of Department ofFertilizers has been redesigned and enrichedin order to make it compliant to theguidelines. The website has been made morequalitative, informative and user friendly tobring transparency in Government functioningand citizen interface.
9.5 E-Governance
Department of Fertilizers has taken variousmeasures to bring e-Governance:
Office Automation Packages : CompDDO(Comprehensive Function Management ofDrawing & Disbursing Officer) Payroll Systemfor Central Government Offices, Web basedFile Tracking System, Application Monitoring
Dealers Meet at Mysore, Karnataka.
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System under RTI Act, Leave ManagementSystem, PGRAMS (Public GrievancesSoftware Package) and CPENGRAMS(Centralized Pension Grievance Redress AndMonitoring System) developed by NIC areoperational in the Department of Fertilizers.
To strengthen further the Office Automationin Department of Fertilizers, an IT basedsystem “Office Notifications ManagementSystem” has been developed andimplemented to generate, store and managedifferent kinds of official letters viz. OfficeMemorandum, Letters, Office Orders, Orders,D.O. Letters, Resolutions, Inter-DepartmentalNotes, Press Communiqués etc incompliance with Manual of Office Procedures(MOP).
The facility of word processing in Hindi isavailable in all the computers in theDepartment.
E-mail service is being extensively used bythe officials of Department of Fertilizers forinformation exchange with fertilizercompanies and other agencies.
9.6 Fertilizer Monitoring System
9.6.1. Fertilizer Monitoring System (FMS) wasformally launched on 22nd January, 2007.
9.6.2. FMS is a path breaking initiative undertakenby Department of Fertilizers (DOF). FMSmonitors movement of different fertilizers atvarious stages in their value chain. It monitorsthe production, dispatches. Receipts andsales of DAP, MOP, TSP, MAP, NPK & Urea(Indigenous and imported) Fertilizers.
9.6.3. Prior to the FMS, availability of fertilizers wasbeing tracked till the State level(manually)with the frequency of data updation once aweek. However, with FMS data is nowupdated on daily basis and upto dateinformation on availability in the country isavailable readily.
9.6.4 FMS has been developed with the facility tomonitor the distribution till warehouses. Atpresent this information is available at District
level. This is a major achievement for theDepartment as majority of the losses occurat the Block and Warehouse levels. Datafrom FMS provides a complete andcomprehensive picture in this regard.
9.6.5 In order to make sure that the availability ofupto date data, same is captured as soon asthe transaction is completed on the ground.In order to ensure this, appropriate locks areavailable on the entry of date into FMS.These locks have following time frames:
Production: Within 3 daysDispatches: Within 24hrs after the same hastaken placeReceipts: Within 5 daysSales: Within 5 days
Failure to do so in the stipulated time locksthe system and the same then can then beunlocked only after approval from Director(Mov) and Director (FA).
9.6.6 Supply Plans are being captured at bothDistrict as well as Block levels and systemhas appropriate checks to ensure thatCompanies do not exceed the supply planas given by the Movement Division.
9.6.7 FMS facilitates to process the subsidypayment (on basis of Receipts) of DAP, MOP,TSP, MAP, NPK Fertilizers. This has reducedthe processing time considerably. Reports areavailable in the system in order to view thecleared as well as pending claims. Alsovarious stages (within the Department) atwhich the claim is lying can be tracked usingthe system.
9.6.8 The system is ready to capture themovement of SSP. With this 60 morecompanies will start entering the dailytransaction on the system. With this, theentire movement of fertilizers will be viewedusing a single window.
9.6.9. Freight subsidy under the uniform FreightPolicy for both controlled and decontrolledfertilizers is being generated and processedusing the system.
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9.6.10 As per the policy, claims are now beingprocessed on the basis of receipts. Thussystem has been modified to pay the OnAccount claims on the basis of receipts andBalance Claims on the basis of Sales.
9.6.11 System enables the Department to make thesubsidy payment in Cash, Bonds or SpecialBanking Arrangement according to theavailability of Budget.
9.6.12 Official are able to split the Sanction Advicein order to make part payment as required.
9.6.13 The recoveries can now be adjusted againstany claim. System gives the officials anoption to choose the claim against which he/she wishes to make the adjustment.
9.6.14 Expenditure Control Register (ECR) is online.
9.6.15 Submission of Proforma ‘B’ by the States isnow linked to the Supply Plan. In case theState fails to submit the proforma, there isan option in the system using which theSupply plan can be with held for the State.
9.6.16 In addition to the features mentioned above,System Requirement Specifications for thefollowing modules have already beensubmitted and it is expected that in thecoming year these modules will go live.
Indigenous Urea Claim generation &
processing – Using this module, FICC willstart processing all the claims electronically.
Tracking of Imports of Fertilizers (Despatch/Demurrage settlement)- This module willfacilitate the shipping wing to calculate LayTime Calculation online. It will also help themto settle the disputes online.
Imported Urea Claim generation &processing- With the introduction of Portmodules, the generation & processing ofImported Urea Claim would enableDepartment of Fertilizers to settle claimbefore time. These claims are time boundand require to be processed within stipulatedtime.
P&K Fertilizer cost Evaluation- This modulewill enable MPR Section to calculate subsidyrate online which will save time and effort.With this module the notification of Finalconcession rate would be possible on time.
Indigenous Urea Fertilizer cost evaluation –In FICC, Cost & Evaluation department doesa lot of complex calculation in order to deriveconcession rate of Indigenous Urea fertilizersfor a quarter. This module will assist them tocompile the data in such fashion that withoutmuch effort the concession rate will becalculated in time. This will also help themto make repository of their old records.
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10.1 Vigilance Activities
10.1.1 The vigilance activities of the Department,extends not only to the Department but alsoto that of 8 Public Sector Undertakings andone Multi State Cooperative Society. Thedepartmental vigilance set up is headed bya Joint Secretary who is designated as theChief Vigilance Officer of the Department. The CVO of the Department is assisted bya Deputy Secretary (Vigilance), UnderSecretary (Vigilance) and other vigilancestaff. The Department supervises thevigilance activities within the frameworkprovided by the Central vigilanceCommissioner. The Department plays a pro-active role in ensuring the prompt disposalof vigilance cases and in framing preventiveguidelines. This helps in minimizing the occurrence of vigilance cases.
10.1.2 Efforts are made by the Department tosimplify the procedures in the PSUs to makethem work in transparent manner. Thisreduces the chance of corruption.
10.1.3 As per the framework provided by the CVC,a meeting of the Chief Vigilance Officers ofthe Fertilizer PSUs was convened under thechairmanship of the Secretary (F) on18.11.2009. The meeting was also attendedby the CVO of the Department. In the meeting, an appraisal of the working/functioning and achievements of the CVOswas done. The initiatives taken by CVOstowards pro-active vigilance environment ofthe PSUs were also discussed.
10.2 Vigilance Activities during 2009
The number of pending vigilance cases, viz,CVC advice/Departmental proceeding/
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complaints in PSUs as on 31.03.2009 were18. During the year 2009, 15 more complaintswere added. Most of the cases are at theadvance stages of completion. TheDepartment has been regularly monitoringthe pending complaints/investigations byhaving close inter action with the concernedCVOs and constant efforts are being madeto ensure the disposal of disciplinaryproceedings.
10.3 Vigilance Week Celebrations
The ‘Vigilance Week’ was celebrated duringthe 3rd to 7th of November 2009. Bannersand posters were displayed in theDepartment to create vigilance awarenessamong the staff. A pledge was administeredto the staff by Secretary (Fertilizers) and anessay competition was held thereafter. Therewas active and enthusiastic participation fromthe officers and employees of the Departmentin this Essay Competition. The ‘Vigilanceweek’ was also celebrated with great gustoin the fertilizers PSUs, including KRIBHCOand various competitions like slogan writing,Essay, Debate, Quiz, Workshops etc. wereheld.
10.4 Surveillance and detection
Agreed list of public servants as well as Listof Public Servants of Doubtful Integrity forthe year 2009 are complete. Further, with aview to check corruption in the Department,the ‘Rotational Transfer of Staff’ as per thenorms/guidelines issued by CVC wasimplemented. Accordingly, a number ofofficials/officers of the Department who werelooking after sensitive nature of work on aparticular seat for more than three years weretransferred.
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11.1 Right to Information Act, 2005
11.1.1 The Right to Information Act, 2005 (RTI) wasassented by the President of India on15.6.2005 and notified on 21.6.2005. Someof the Sections of the Act, namely, Sections4(1), 5(1) &(2),12,13,15,16,24,27 & 28relating to obligations of Public Authoritiesfor maintenance and computerization ofrecord/information, designation of PublicInformation Officers(CPIO), Constitution ofCentral Information Commission and Stateinformation Commission, exclusion of certainorganization etc. came into force immediately.The remaining provision of the RTI Act cameinto force on the 120th day of its enactmenti.e. 12th October 2005.
11.1.2 In compliance of the RTI Act the Departmenthas designated CPIOs and CAPIO. Therespective PSUs under the administrativecontrol of the Department have been directedto ensure compliance of the RTI Act. Someof the important steps taken by theDepartment in compliance of the Act are:-
Created a separate link for RTI Act on itswebsite http://fert.nic.in placing a Handbook
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on RTI giving general information about theDepartment required under the Act.
Orders designating PIOs, with requireddetails, placed on website, which are updated from time to time.
Counter opened at Public Information Centreof DoF at Shastri Bhavan for applications aswell as prescribed fee under RTI.
Appointment of Nodal Officer intimated toDepartment of Post enabling providing ofservices by that Department as CAPIOsacross the country.
11.1.3 The Department has started registration ofRequests and Appeals under the RTI Act onthe Management Information System (RTI –RAMIS) software available on the Web-Siteof CIC.
11.1.4 During the year 2009-2010, 115 applicationsand 1 appeal were received of which 112applications and the only appeal weredisposed of during the said year and theremaining 3 applications are under processfor sending reply to the applicants.
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12.1 Progressive use of official languageHindi
12.1.1 Department of Fertilizers continued itsefforts towards greater use of Hindi in officialwork during 2009-2010 keeping in view theAnnual Programme issued by theDepartment of Official Language, Ministryof Home Affairs for implementation of theOfficial language policy of the Union. Thework pertaining to the progressive use ofHindi in the Department is under theadministrative control of Joint Secretary(Administration), assisted by a DeputyDirector (OL). The Hindi Section consistsof one Assistant Director (OL), a SeniorTranslator, three Junior Translators and anAssistant.
12.1.2 All the 250 Computers (PCs) in theDepartment are equipped with bilingualfacility. Adequate reading material in Hindihas been made available in the library ofthe Ministry of Chemicals & Fertilizers.Efforts are being made to promote the useof Hindi in the correspondence. All officers/employees of the Department are havingworking knowledge of Hindi. Two typists andfour stenographers of the Deptt., which wereyet to be trained in Hindi typing & shorthandhave been nominated for training. With theCompletion of this training all typists/stenographers working in the Deptt., will becompetent in doing their work in Hindi.Besides, a number of measures have beentaken for the promotion of progressive useof Hindi in the Department, its attachedoffice of FICC, PSU’s and the multi-state-cooperative society namely KRIBHCO,under its administrative control. Details ofthese measures are summarized below:-
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12.2 Implementation of Section 3(3) of theOfficial Language Act.
12.2.1 In pursuance of the official language policyof the Govt. of India, all documents coveredunder section 3(3) of the Official LanguageAct, 1963 are being issued both in Englishand Hindi. In order to ensure issuance ofcorrespondence in Hindi to CentralGovernment offices located in Region ‘A’,‘B’ and ‘C’, action plan based on thecheckpoints identified in the Department hasbeen prepared to ensure compliance of theofficial language policy.
12.3 Official Language ImplementationCommittee (OLIC)
12.3.1 There is an Official LanguageImplementation Committee (OLIC) underthe Chairmanship of Joint Secretary(Adm.) in the Department. This committeeperiodically reviews the progress madein the use of Hindi in the Department, itsattached offices, FICC, PSUs and aCooperative Society namely KRIBHCO onquarterly basis. It gives appropriatesuggestions and recommends measuresto be taken for the effectiveimplementation of the official languagepolicy.
12.4 Rajbhasha Shield/Trophy
12.4.1 The Department is operating a Schemewhich was drawn up in the year 2001-2002 for the grant of awards to variousPSU’s/cooperative society/office under theadministrative control of the Department.Under this scheme, Rajbhasha Shieldsare awarded by the Hon’ble Minister forChemicals and Fertilizers in the HindiAdvisory Committee Meetings. Besides
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this, a multi-states co-operative societyunder this Department. Kribhco has beenawarded First Indira Gandhi Rajbhashaaward for the year 2007-.08 by thehon’ble President of India at a functionorganised by Department of OfficialLangauage on 14th September, 2009 atVigan Bhawan, New Delhi.
12.5 Hindi Salahkar Samiti
12.5.1 With a view to render advice for effectiveimplementation of the official languagepolicy of the Government, meeting of theHindi Salahkar Samiti (Advisory Committee)of the Ministry of Chemicals and Fertilizers(The joint committee of the Department ofChemical & Petro-Chemical and theDepartment of Fertilizer) under thechairmanship of the Minister for Chemicalsand Fertilizers was held on 10.2.2009.
12.6 Incentive Scheme for original noting/drafting work in Hindi
12.6.1 The incentive scheme for noting/drafting inHindi introduced by the Department ofOfficial Language is continued. This schemecarries two prizes of Rs.1000/- each, threesecond prizes of Rs.600/- each and fivethird prizes of Rs.300/- each.
12.7 Cash prize scheme for dictation in Hindi
12.7.1 An incentive scheme for officers for givingdictation in Hindi is in operation in theDepartment. Under this scheme, there is aprovision of two cash prizes of Rs. 1000/-each (one for Hindi speaking and other forNon-Hindi speaking).
12.8 Hindi Day/Hindi Fortnight
12.8.1 In order to encourage the use of Hindi inofficial work amongst officers/employees ofthe Department, an appeal was made by
the Honourable Minister on 14th September,2009. During the Hindi fortnight, which wasorganised in the Department from 14th
September, 2009 to 29th September, 2009,various competitions such as Hindi Essaywriting, Hindi shorthand, Hindi typing, Hindi-English translation, Hindi noting anddrafting, Hindi general knowledge andpoetry recital competitions were organisedand 26 officers/employees took part in thesecompetitions and won prizes.
12.9 Prati Din Ek Shabd
12.9.1 The Scheme named ‘Prati Din Ek Shabd’,which has been launched in the Departmentis continued for the last six years. Underthis scheme, one word/phrase in Hindi andits English equivalent was being displayedon the White Board installed on the secondfloor ‘A’ wing Shastri Bhavan. These words/phrases are generally of administrative andtechnical in nature which are used in day-to-day official work.
12.10 Hindi Workshops
12.10.1 During the year, 3 Hindi workshops wereorganised in the Department to encouragethe officials to undertake more work in Hindiand altogether 25 officers/employeesparticipated in these workshops.
12.11 Inspections regarding progressive useof Hindi
12.11.1 In order to oversee the implementation ofthe official language policy 8 offices/unitsof different PSUs were inspected by theDeputy Director (O.L.) of the Departmentduring the year. In addition, the first Sub-Committee of the Parliamentary Committeeon Official Language inspected 1 officeunder the administrative control of theDepartment.
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13.1 Welfare of SCs, STs, OBCs andPhysically Handicapped Persons
13.1.1 Due care has been exercised during theyear under review to implementGovernment’s instructions regardingrecruitment and promotion of candidatesbelonging to the Scheduled Castes (SCs),Scheduled Tribe (STs), Other BackwardClasses (OBCs) and PhysicallyHandicapped (PHPs) categories in variousgroups of services in the Department. Therepresentation of these categories in theDepartment as on 31.03.2010 was asunder:-
Group Total SC ST OBC PHNo. of
Officers/Staff
A 38 02 01 03 -
B 99 15 06 06 01
C 65 13 03 06 -
D 59 20 02 06 01
Total 261 50 12 21 02
13.2 Representation of SCs, STs, OBCs andPhysically Handicapped Persons inPSUs
13.2.1 Presidential Directives on reservation forthe candidates belonging to the SCs andSTs issued from time to time by theDepartment of Public Enterprises (DPE),have been implemented in all the PSUs/Cooperative under the administrativecontrol of the Department. ThePresidential Directives regardingreservation for OBCs have also beenmade applicable w.e.f. 8.9.93 in the
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Department. The Cooperative Society viz.KRIBHCO has also adopted theguidelines relating to OBCs w.e.f. 1.10.95.The implementation of these directives isbeing monitored in the Department andconcerted efforts are being made to fillup the vacancies for the reservedcategories. The representation of SCs,STs, ex-servicemen, physicallyhandicapped persons and OBCs in thePSUs is given in the Annexure-XI.
Besides providing employment, PSUs/Cooperative have been advised to prepareand implement special programmes/schemes for education of tribals in scientificuse of fertilizers, building up of dealer/retailer network in the tribal areas, andmaking fertilizers available in small packsin the tribal predominated areas.
13.3. Welfare of Minorities
13.3.1 The PSUs/Co-operative under theDepartment have further been advised toprovide facility of pre-examination coachingto the candidates of minority community,wherever feasible, and to take steps toincrease awareness of candidatesbelonging to the communities aboutemployment opportunities. They have alsobeen advised to include a representative ofthe minorities in the recruitment selectionboards to ensure that the minorities get anadequate share in the services and benefitfrom development schemes.
13.4 Reservation in Dealership
13.4.1 The Department had instructed all the PSUsunder its administrative control to reserveat least 25% of dealerships of fertilizers forthe members belonging to SCs/STs. Toensure availability of sufficient numbers of
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suitable SC/ST candidates, the followingconcession are generally given by theundertakings:-
• exemption/relaxation from securitydeposits.
• preference in supply of fast movingmaterials.
• higher rate of dealership margin ascompared to that allowed to generaldealers; and
• free training for handling of fertilizers.
13.4.2 The PSUs have also been advised toreserve 10% of fertilizer dealerships for ex-servicemen.
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14.1 Women Empowerment
14.1.1 The principle of gender equality is enshrinedin the Indian Constitution in the Preamble,Fundamental Rights, Fundamental Dutiesand Directive Principles. The Constitutionnot only grants equality to women but alsoempowers the State to adopt measures ofpositive discrimination in favour of women.The Department of Fertilizers is committedtowards giving importance to women indifferent spheres. Though there is nospecific scheme, as such, for women, thePSUs and Co-operative under itsadministrative control are involved in yearlong activities to create large scaleawareness among women with their activeparticipation. These programmes are aimedtowards enabling women to realize their fullpotential and involvement in decisionmaking. Department of Fertilizers has a“Complaints Committee” to attend togrievances of its women employees.Department has also allocated a separateroom for women to serve as common room.The Department takes pride in providingcongenial environment to womenemployees.
14.2 RCF
14.2.1 RCF as an organization has always beenfair in treating employees without anygender bias. Opportunities for growth,training, challenging jobs, learning areequally available to both men and womenemployees of RCF. Women represent in fairnumbers in the batch of apprentice traineesin technical areas.
14.2.2 Women are working in technical / non-technical / managerial positions and someof them have risen to the level of topmanagement positions in the organization.
Chapter-14
14.2.3 All the welfare and employee benefitschemes are equally applicable to male andfemale employees of RCF.
14.2.4 Under the special schemes and policies forwomen employees RCF has set up –
• Special Cell for Women Employees (asper Communication from NationalCommission on Women)
• Committee for Sexual HarassmentCases (as per Supreme CourtGuidelines)
• Special Medical check-ups/camps.
All the benefits under legal requirementssuch as Maternity Benefits, Nursing Breaks,etc. are given to women employees.
RCF is one of the pioneer members in theForum of Women in Public Sector (WIPS)since its inception (1990). It is a corporatemember of this forum and has beenrepresenting in all activities of the forumwith total support and participation in allactivities. Some RCF women officers havebeen working with the forum as heads oftaskforces, members of committees andhave contributed in policy making anddevelopment of women to a great extent.
As a part of regular training, RCFincorporates awareness building for allofficers (Men and Women) on the SexualHarassment Guidelines and also coversgender sensitization issues.
14.3 NFL
14.3.1 Female employees comprise 5.23% of thetotal workforce of the NFL. (The Companyhas a female Full-time Functional Directoron its Board).The Company has adopted
87
adequate measures to facilitate a congenialwork atmosphere for its women employees.Besides this, ladies club at units, from timeto time, distribute useful items like Utensils,Sewing Machines, Blankets etc. to the poorwomen in the neighboring villages.
14.3.2 There is no instance of any Genderinequality and both men and womenemployees are enjoying equal rights. Theworking atmosphere is very cordial andharmonious. A Committee is functioning atall the Units / Offices of the Company todeal with the cases of sexual harassmentat work place.
14.3.3 NFL Employees (Conduct, Discipline &Appeal) Rules and Standing Orders havealso been amended to include sexualharassment of women at workplace as‘Misconduct’.
14.4 FACT
14.4.1 Equal opportunity has been provided towomen in recruitment to posts both intechnical and administrative disciplines.Exception has been made only for jobsinvolving shift-work round the clock. Equalremuneration is paid to employees of bothgenders doing the same type of work. Thereis no discrimination on grounds of gender.This has enabled some of our womenofficers to excel in their respective field ofactivities leading to their being chosen forthe coveted Merit Award given foroutstanding performance and achievements.
14.4.2 Out of 3569 employees, 259 are womenemployees which constitutes 7.25% of thetotal strength. In the managerial cadre, 96out of 873 are women which constitutes11% of the managerial strength. Womenexecutives occupy key positions in theManagement cadre as Chief Managers/Chief Engineers & Dy.Chief Managers/Dy.Chief Engineers in various Engineeringdisciplines like Chemical, Electrical, Civil,Computer, Industrial Engineering etc. andadministrative disciplines like Finance,
Human Resources, Materials, Marketingetc.
14.4.3 Under the Maternity Benefit Act, womenemployees are entitled for maternity leaveof 90 days and medical benefitsassociated with pregnancy, delivery,miscarriage etc. Under the provisions ofthe Factories Act, the working hours ofwomen employees covered under the Actis restricted between 6 am and 7 pm.Nursing mothers are given two intervalsof 15 minutes each as feeding time, oralternatively as a working arrangementof 30 minutes at a stretch, for feedingtheir infants, up to a maximum of fifteenmonths after confinement.
14.4.4 As per GOI Orders, women employeesundergoing family planning operation aregiven special leave up to 2 weeks.
14.5 MFL
14.5.1 MFL do not have any problems relatedwith gender issues. However a wing ofWomen in Public Sector (WIPS) isfunctioning at MFL and women employeesare nominated for the programs organizedby WIPS.
14.6 BVFCL
14.6.1 BVFCL lays emphasis in development ofemployees without any genderdiscrimination. Recruitment of womencandidates are made in the company. Asper the guidelines circulated by theNational Commission for Women, acomplaint committee has already beenconstituted under the Chairmanship of alady officer to look into the matter ofsexual harassment of women employeesat the workplace. There is nodiscrimination against any woman at anypoint of time.
14.7 FAGMIL
As such, the company is a new Companyand is engaged in the business of mining
88
in the desert areas of Rajasthan. Suitablemeasures will be taken for the welfare andthe empowerment of women and formainstreaming gender issues.
14.8 KRIBHCO
14.8.1 KRIBHCO the role of women employee hasbeen seen in more holistic term. Women’sissues are well integrated in the totaldevelopment endeavor. Women areprovided equal opportunities with theircounterpart keeping in mind the principlesof equality in gender with respect to theirworking, development and growth.
14.8.2 The physical & mental growth anddevelopment of women employees inKRIBHCO are given special attention by
���
imparting them specialized training andnominating in specialized womenempowerment seminars and programmes.Female officers are equally associated informulation of policies be it promotion andrecruitment policies or other matters ofimportance.
14.8.3 Complaint Committee headed by a womanofficer as its chairperson has beenfunctioning to resolve their grievance, if any.In order to avoid any incidence ofmisconducts relating to harassment towardswomen employees, special provisions havebeen incorporated in the Conduct, Discipline& Appeal (CDA) Rules of the Society toprevent the same and protect the femaleemployees.
89
ANNEXURE- I
LIST OF SUBJECTS ALLOCATED TO THE DEPARTMENT OF FERTILIZERS AS PERGOVERNMENT OF INDIA
(ALLOCATION OF BUSINESS) RULES, 1961
(See Chapter- 2)
1. Planning for fertilizer production including import of fertilizer through a designated canalising agency.
2. Allocation and supply linkages for movement and distribution of urea in terms of assessment madeby the Department of Agriculture & Cooperation.
3. Administration of concession schemes and management of subsidy for controlled as well asdecontrolled fertilizers including determination of retention price for urea, quantum of concession ofdecontrolled fertilizers costing of such fertilizers and pricing of Phosphatic and Potassic fertilizes.
4. Administration of the Fertilizers (Movement Control) Order, 1960.
5. Administrative responsibility for fertilizer production units in the cooperative sector, namely, KrishakBharti Cooperative Limited.
6. Administrative responsibility for the Indian Potash Limited (IPL).
90
ANNEUXRE-II
(See Chapter-2)
Minister for Chemicals & Fertilizers : Shri M.K. Alagiri
Minister of State for C&F : Shri Srikant Kumar Jena
Secretary : Shri Atul Chaturvedi (upto 22.10.2009)Shri S. Krishnan (w.e.f. 22.10.2009)
Special Secretary & Financial Adviser : Shri Mathew C. Kunnumkal(upto 05.02.2010)
Joint Secretary : Shri Sudhir BhargavaShri Satish ChandraShri Deepak Singhal
Joint Secretary Level Officers : Shri A.K. Parashar, Eeconomic AdviserShri B.N. Tiwari, DDG
Directors : Shri Deepak KumarShri B.B. MehtaniShri Manoj Kumar GuptaShri Rajesh Agrawal (upto 14.01.2010)
Director Level Officer : Dr. Sri Chandra, Joint Adviser(upto 30.11.2009)Shri M. Dandayudhapani (FICC)Shri Pradeep Yadav, PS to Minister(C&F)Smt. T.C.A Kalayani (Director of Accounts)Shri T.A. Basil (FICC)Shri Umesh Dongre (FICC)Shri A.S. Sandhu (FICC)
Deputy Secretary : Shri Sanjay Kumar SinhaShri H. AbbasShri K.K. Padmanabhan
Controller of Accounts : Shri Hemant Jain (Upto 22.01.2010)Shri Akhilesh Jha (w.e.f. 22.01.2010)
Deputy Secretary Level Officer : Shri Nand Lal, Sr. PPS (upto 28.10.2009)Shri A.K. Chandwani, Sr. PPS (w.e.f. 30.12.2009)
91
ANNEXURE-III
LIST OF PUBLIC AND COOPERATIVE SECTOR UNDERTAKINGS UNDER THE ADMINISTRATIVECONTROL OF DEAPRTMENT OF FERTILIZERS
(See Chapter-2)
PUBLIC SECTOR :
Sl. Name of the Company Headquarters Incorporation inNo.
1. Fertilizers And Chemicals Travancore Ltd. (FACT) Udyogamandal September, 1943
2. Fertilizer Corporation of India Ltd. (FCI) New Delhi January, 1961
3. National Fertilizers Limited (NFL) Noida August, 1974
4. Rashtriya Chemicals & Fertilizers Ltd. (RCF) Mumbai March, 1978
5. Madras Fertilizers Limited (MFL) Chennai December, 1966
6. Projects & Development India Limited (PDIL) Noida March, 1978
7. Hindustan Fertilizer Corporation Limited (HFC) New Delhi March, 1978
8. Brhamaputra Valley Fertilizer Corporation Limited (BVFCL) Guwahati April, 2002
9. FCI Aravali Gypsum And Minerals India Limited (FAGMIL) Jodhpur February, 2003
COOPERATIVE SECTOR :
10 Krishak Bharati Cooperative Limited (KRIBHCO) Noida April, 1980
92
ANNEXURE-IV
UNIT-WISE INSTALLED CAPACITY, PRODUCTIONAND CAPACITY UTILIZATION FOR THE
YEAR 2008-09 & 2009-10 (Estimated)
(Chapter-3)
NITROGEN
Name of Name of Annual Installed Production Percentage capacityCompany/Plant Products Capacity (‘000 MT) utilization
(As on 1-04-06)(in ‘000’ MTs) 2008-09 2009-2010 2008-09 2009-2010
(Estimated) (Estimated)
Public Sector:
NFL:Nangal-II Urea 220.1 236.6 209.3 107.5 95.1
NFL:Bhatinda Urea 235.3 247.2 244.4 105.1 103.9
NFL:Panipat Urea 235.3 224.7 233.0 95.5 99.0
NFL:Vijaipur Urea 397.7 398.2 417.8 100.1 105.1
NFL:Vijaipur Expn. Urea 397.7 431.5 426.8 108.5 107.3
TOTAL (NFL): 1486.1 1538.2 1531.3 103.5 103.0
BVFCL:Namrup-II Urea 110.4 27.9 38.0 25.3 34.4
BVFCL:Namrup-III Urea 144.9 59.1 107.9 40.8 74.5
TOTAL (BVFCL): 255.3 87.0 145.9 34.1 57.1
FACT:Udyogamandal A/S , 20:20 77.0 50.2 57.8 65.2 75.1
FACT:Cochin-II 20:20 97.0 97.9 107.3 100.9 110.6
TOTAL (FACT): 174.0 148.1 165.1 85.1 94.9
RCF:Trombay 15:15:15 45.0 70.7 70.6 157.1 156.9
RCF:Trombay-IV 20.8:20.8, 20:20 75.1 0.0 14.0 0.0 18.6
RCF:Trombay-V Urea 151.8 0.0 133.4 0.0 87.9
RCF:Thal Urea 785.1 875.6 819.1 111.5 104.3
TOTAL (RCF): 1057.0 946.3 1037.1 89.5 98.1
MFL:Chennai Urea / 17:17:17 366.7 186.7 190.8 50.9 52.0
SAIL:Roulkela CAN 120.0 0.0 0.0 0.0 0.0
By Product A/S 38.4 18.9 18.9 49.2 49.2
Total (Public): 3497.5 2925.2 3089.1 83.6 88.3
Cooperative Sector
IFFCO:Kandla 10:26:26 / 12:32:16 /DAP 351.5 207.3 302.8 59.0 86.1
IFFCO:Kalol Urea 250.5 257.5 268.5 102.8 107.2
IFFCO:Phulpur-I Urea 253.5 304.8 328.3 120.2 129.5
IFFCO:Phulpur-II Urea 397.7 386.7 463.0 97.2 116.4
IFFCO:Aonla-I Urea 397.7 454.0 462.0 114.2 116.2
IFFCO:Aonla-II Urea 397.7 468.4 464.6 117.8 116.8
IFFCO:Paradeep DAP / 10:26:26 / 20:20 / 325.2 252.5 279.8 77.6 86.012:32:16
TOTAL(IFFCO): 2373.8 2331.2 2569.0 98.2 108.2
KRIBHCO:Hazira Urea 795.4 801.8 817.1 100.8 102.7
Total(Co-operative): 3169.2 3133.0 3386.1 98.9 106.8
Total(Pub.+Coop.): 6666.7 6058.2 6475.2 90.9 97.1
93
Joint Venture
GSFC:Vadodara Urea / DAP / 20:20 / A/S 248.1 194.0 253.9 78.2 102.3
GSFC:Sikka-I DAP / 12:32:16 105.8 48.0 78.4 45.4 74.1
GSFC:Sikka-II DAP / 12:32:16 71.3 71.5 89.3 100.3 125.2
TOTAL(GSFC-Sikka): 177.1 119.5 167.7 67.5 94.7
GNFC:Bharuch Urea / CAN / 20:20 356.7 333.9 375.1 93.6 105.2
KSFL:Shahjahanpur Urea 397.7 397.5 440.6 99.9 110.8
Private Sector
CFL:Vizag 28:28 / 14:35:14 / 20:20 / 124.0 157.3 216.2 126.9 174.416:20 / 10:26:26
CFL:Ennore 16:20 / 20:20 41.2 25.3 32.5 61.4 78.9
CFL:Kakinada DAP / 10:26:26 / 20:20 / 120.6 160.1 203.1 132.8 168.414:35:14 / 12:32:16
SFC:Kota Urea 174.3 181.9 168.8 104.4 96.8
DIL:Kanpur Urea 332.1 0.0 0.0 0.0 0.0
ZIL:Goa Urea / DAP / 19:19:19 / 288.7 268.5 275.4 93.0 95.410:26:26 / 12:32:16
SPIC:Tuticorin Urea / DAP / 20:20 / 370.7 0.0 89.0 0.0 24.017:17:17
MCF:Mangalore Urea / DAP / 20:20 / 207.2 217.8 234.7 105.1 113.316:20
TAC:Tuticorin A/C 16.0 0.0 6.2 0.0 38.8
TCL:Haldia DAP / 10:26:26 / 12:32: 121.5 70.0 89.6 57.6 73.716/ 14:35:14 / 15:15:15
PNF:Nangal A/C 16.0 0.0 0.0 0.0 0.0
IGCL:Jagdishpur Urea 397.7 491.6 503.3 123.6 126.6
Hin.Ind.Ltd.:Dahej DAP / 10:26:26 /12:32:16 72.0 30.4 33.8 42.2 46.9
DFPCL:Taloja 23:23 52.9 13.3 28.6 25.1 54.1
NFCL:Kakinada-I Urea 274.8 353.7 345.9 128.7 125.9
NFCL:Kakinada-II Urea 274.8 280.2 327.6 102.0 119.2
TOTAL(NFCL): 549.6 633.9 673.5 115.3 122.5
CFCL:Gadepan-I Urea 397.7 418.5 477.8 105.2 120.1
CFCL:Gadepan-II Urea 397.7 463.8 462.9 116.6 116.4
TOTAL(CFCL): 795.4 882.3 940.7 110.9 118.3
TCL:Babrala Urea 397.7 470.9 557.6 118.4 140.2
PPL:Paradeep DAP / 14:35:14 / 20:20 / 129.6 159.4 197.6 123.0 152.512:32:16 / 10:26:26 /28:28
By Product A/S 7.5 3.8 5.4 50.7 72.0
Total (Private Sector): 5394.3 4811.4 5493.3 89.2 101.8
Total(Pub+Coop+Pvt): 12061.0 10869.6 11968.5 90.1 99.2
Name of Name of Annual Installed Production Percentage capacityCompany/Plant Products Capacity (‘000 MT) utilization
(As on 1-04-06)(in ‘000’ MTs) 2008-09 2009-2010 2008-09 2009-2010
(Estimated) (Estimated)
94
PHOSPHATE
Name of Name of Annual Installed Production Percentage capacityCompany/Plant Products Capacity (‘000 MT) utilization
(As on 1-04-06)(in ‘000’ MTs) 2008-09 2009-2010 2008-09 2009-2010
(Estimated) (Estimated)
Public Sector:
FACT:Udyogamandal 20:20 29.7 23.2 31.8 78.1 107.1
FACT:Cochin-II 20:20 97.0 97.9 107.3 100.9 110.6
Total(FACT): 126.7 121.1 139.1 95.6 109.8
RCF:Trombay 15:15:15 45.0 70.7 70.6 157.1 156.9
RCF:Trombay-IV 20.8:20.8 75.1 0.0 14.0 0.0 18.6
Total(RCF): 120.1 70.7 84.6 58.9 70.4
MFL:Chennai 20:20 / 19:19:19 / 17:17:17 142.8 0.0 0.0 0.0 0.0
HCL:Khetri SSP 30.1 0.0 0.0 0.0 0.0
SSP Units SSP 12.8 0.0 0.0 0.0 0.0
Total(Public): 432.5 191.8 223.7 44.3 51.7
Cooperative Sector
IFFCO:Kandla DAP / 10:26:26 / 12:32:16 910.0 541.5 786.1 59.5 86.4
IFFCO:Paradeep DAP / 10:26:26 / 20:20 / 802.8 374.7 386.8 46.7 48.212:32:16
Total(Co-op.) 1712.8 916.2 1172.9 53.5 68.5
Total(Pub.+Coop.): 2145.3 1108.0 1396.6 51.6 65.1
Joint Venture
GSFC:Vadodara DAP / 20:20 75.9 59.5 58.1 78.4 76.5
GSFC:Sikka-I DAP , 12:32:16 270.5 123.4 200.8 45.6 74.2
GSFC:Sikka-II DAP 182.2 182.7 228.2 100.3 125.2
TOTAL(GSFC-Sikka): 452.7 306.1 429.0 67.6 94.8
GNFC:Bharuch 20:20 28.5 26.8 38.4 94.0 134.7
Private Sector
CFL:Vizag 14:35:14 / 28:28/10:26:26/ 166.0 176.5 257.2 106.3 154.920:20
CFL:Ennore 16:20 / 20:20 48.0 31.7 40.6 66.0 84.6
CFL:Kakinada DAP / 12:32:16 / 20:20 / 308.2 395.1 516.3 128.2 167.514:34:14 / 10:26:26
ZIL:Goa DAP / 19:19:19 / 10:26:26/ 197.4 193.0 247.5 97.8 125.412:32:16
SPIC:Tuticorin DAP / 17:17:17 / 20:20 218.5 0.0 34.8 0.0 15.9
MCF:Mangalore DAP / 20:20 / 16:20 82.8 87.7 109.8 105.9 132.6
TCL:Haldia DAP / 10:26:26 / 12:32:16/ 336.9 202.2 243.0 60.0 72.114:35:14
Hin.ind.Ltd.:Dahej DAP / 10:26:26 / 12:32:16 184.0 77.6 86.5 42.2 47.0
DFPCL:Taloja 23:23 52.9 13.3 28.6 25.1 54.1
PPL:Paradeep DAP / 14:35:14 / 20:20 / 331.2 355.1 433.8 107.2 131.012:32:16 / 10:26:26 / 28:28
SSP Units SSP 1030.6 432.0 432.0 41.9 41.9
Total (Private Sector): 3513.6 2356.6 2955.6 67.1 84.1
Total(Pub+Coop+Pvt): 5658.9 3464.6 4352.2 61.2 76.9
* Actual figures have been considered from April 2009- December 2009 and estimated for January 2010 to March 2010* Estimated Production figures have been reported for the year 2010-11.
95
ANNEXURE-V
YEAR-WISE, NUTRIENTS-WISE CONSUMPTION,PRODUCTION AND IMPORTS OF FERTILIZERS
(Chaper-5)(lakh M.T.)
YEAR CONSUMPTION PRODUCTION IMPORTS
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
2008-09 150.9 65.06 33.13 249.09 108.7 34.64 0.00 143.34 38.44 29.27 33.80 101.51
2009-10 N.A. N.A. N.A. N.A. 119.68 43.52 0.00 163.20 30.85 24.99 25.39 81.23
* Estimated Production figures have been reported for the year 2009-10** Provisional Import figures are reported upto 31.12.2009 for the year 2009-10.
96
ANNEXURE-VI
SECTOR-WISE PRODUCTION OF NITROGENOUSAND PHOSPHATIC FERTILIZERS
(See Chapter - 5)
(‘000’ MT)
Nutrient 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Target Actual Target Actual Target Actual Target Actual Target Actual Target Actual Target Actual Target Actual Target Estimated
Nitrogen (N)
Public Sector 3429.9 2879.5 3366.7 2854.1 3106.2 3007.9 3091.5 3051.0 3141.8 2958.6 3117.0 3046.7 3119.7 2887.0 3053.5 2925.2 3054.8 3089.1
Co-operative 2706.1 2691.8 2699.5 2800.9 2672.7 2797.3 2812.3 2901.7 2832.5 2958.3 3106.4 3004.3 3303.4 3031.0 3260.7 3133.0 3280.8 3386.1Sector
Private Sector 5523.0 5196.7 5549.1 4906.5 5401.9 5130.5 5502.0 5382.5 5837.0 5437.6 5224.9 5526.9 5485.0 4982.0 5583.6 4811.5 5749.0 5493.3
Total(Nitrogen): 11659.0 10768.0 11615.3 10561.5 11180.8 10935.7 11405.8 11335.2 11811.3 11354.5 11448.3 11577.9 11908.1 10900.0 11897.8 10869.7 12084.6 11968.5
Phosphate (P)
Public Sector 749.3 479.4 678.9 307.4 399.8 353.3 402.7 266.3 383.0 294.9 387.3 232.7 234.0 161.4 241.8 191.7 207.3 223.6
Co-operative 776.0 793.3 776.0 949.5 776.0 778.7 875.1 938.3 880.0 1035.8 1461.5 1129.7 1496.2 969.2 1104.8 916.2 937.0 1172.9Sector
Private Sector 3404.7 2587.3 3364.2 2647.3 3464.8 2668.4 3648.1 2862.7 3400.0 2890.6 2972.0 3154.8 3184.2 2676.7 3087.7 2356.4 2986.8 2955.7
Total (Phosphate): 4930.0 3860.0 4819.1 3904.2 4640.6 3800.4 4925.9 4067.3 4663.0 4221.3 4820.8 4517.2 4914.4 3807.3 4434.3 3464.3 4131.1 4352.2
Grand Total: 16589.0 14628.0 16434.4 14465.7 15821.4 14736.1 16331.7 15402.5 16474.3 15575.8 16269.1 16095.1 16822.5 14707.3 16332.1 14334.0 16215.7 16320.7
* Estimated Production figures have been reported for the year 2009-10.
97
ANNEXURE-VII
SECTOR-WISE CAPACITY UTILIZATIONOF NITROGENOUS AND PHOSPHATIC FERTILIZERS
(See Chapter - 5)
(% age)
Nutrient 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10(Estimated)
Nitrogen (N)
Public Sector: 74.1 78.9 86.7 87.2 84.6 87.1 82.5 83.6 88.3
Co-operative Sector: 101.0 101.0 99.5 102.0 93.3 94.8 95.6 98.9 106.8
Private Sector: 95.0 85.8 89.7 94.1 100.8 102.5 92.4 89.2 101.8
Total(Nitrogen): 89.6 87.2 91.1 94.0 94.1 96.0 90.4 90.1 99.2
Phosphate(P)
Public Sector: 58.3 64.8 81.7 61.6 68.2 53.8 37.3 44.3 51.7
Co-operative Sector: 141.4 131.0 94.4 103.1 60.5 60.5 60.5 53.5 65.1
Private Sector: 69.6 63.6 64.1 66.3 82.3 89.8 76.2 67.1 84.1
Total(Phosphate): 75.7 72.8 70.1 71.9 74.6 79.8 67.3 61.2 76.9
* Estimated (Actual Production have been considered from April, 2008-October, 2008)
98
ANNEXURE-VIII
ANNUAL PLAN 2010-11DEPARTMENT OF FERTILIZER
(Chapter-5)
(Rs. crores)
S. Name of the Annual Plan 2009-10 (BE) Annual Pan 2009-10 (RE) Annual Plan 2010-11 (BE)No. Scheme
GBS Total Outlay GBS Total Outlay GBS Total OutlayEarmarked Earmarked Earmarked
for NER for NER for NER
Centally SponsoredSchemes-CSS
Total CSS
Central SectorScheme (CS)
1 RCF 988.05 250.68 622.82
2 FAGMIL 29.01 4.35 11.29
3 PDIL 5.35 8.38 5.38
4 NFL 550.15 139.25 900.5
5 KRIBHCO 497 421.50 1160.00
6 Revival of Sick CPSEs
6(i) BVFCL 65.00 65.00 * 65.00 65.00 * 45.00 45.00 *
6(ii) FACT 34.00 34.00 34.00 34.00 89.99 89.99
6(iii) MFL 96.99 96.99 96.99 96.99 74.50 74.50
6(iv) FCI
6(v) HFC
6(vi) PPCL
7 Misc. Schemes 4.00 4.00 4.00 4.00 5.50 5.50(MIS/IT and R&D)
8 Capital Subsidy forconversion
9 Investments for JVs 0.01 0.01 0.01 0.01 0.01 0.01abroad#
10 Revival of Closed Units
Total CS 200.00 2269.56 200.00 1024.16 215.00 2914.99
* The amount earmaked for BVFCL will be utilised for the benefits of North-East Region# DOF is exploring posiibilities of JV Abroad. Since no firm proposal is at hand right now only a token amount of Rs.1 Lakh has been provided.
99
ANNEXURE-IX
DETAILS OF HEAD-WISE ALLOCATION OF FUNDS UNDER NON-PLAN AND PLAN FOR BE2009-2010 and RE 2009-2010
(Chapter-5)
(Rs In Crore)
I NON-PLAN PROVISIONS: BE 2009-2010 RE 2009-2010
A REVENUE SECTION
1. Sectt. Proper (MH 3451) 17.22 17.22
2. Office of FICC & other Programmes (FICC+MIT) (MH 2852) 2.47 2.47
3. Subsidy on Nitrogenous Fertilizers (MH 2852)
Indigenous Urea including Frieght Subidy (Gross) 9780.25 14080.25
4. Subsidy on Imported Fertilizers (MH 2401)
Gross 9548.44 7548.44
Recovery(-) 3600.50 3600.50
Net 5947.94 3947.94
5. Payment to Manufacturers/ Agencies for concessional sale ofDecontrolled Fertilizers (MH 2401)
(i) Indigenous Decontrolled Fertilizers (Gross) 16800.00 16000.00
(ii) Imported Decontrolled Fertilizers (Gross) 17452.06 18952.06
Total (Decontrolled Fertilizers)-(Gross) 34252.06 34952.06
6. Write off of loans, interest and penal interest on GOI loan outstanding 0.01 0.01against HFCL, FCI, MFL, PDIL and FACT (MH 3475)
7. Post closure adjustment liabilities of PPL (MH 3475) 0.01 0.01
TOTAL : (REVENUE SECTION) -Gross 53600.46 56600.46Net 49999.96 52999.96
B. CAPITAL SECTION
Non-Plan loans to PSUs (MH 6855)
HFC 0.01 0.01
FCI 0.01 0.01
PPCL 0.01 0.01
BVFCL 0.01 0.01
FACT —- —-
TOTAL (CAPITAL SECTION) 0.04 0.04
TOTAL : NON-PLANGross 53600.50 56600.50Net 50000.00 53000.00
100
II PLAN PROVISIONS:
A. REVENUE SECTION
1. Grant to PDIL for R&D —- —-
2. S&T Programme of Department (MH 2852) 2.00 2.00
3. Grant in the field of Management Information Technology (MH 2852) 2.00 2.00
4. Capital subsidy for conversion of 4 existing FO/LSHS Plants to NG/LNG 0.00 0.00(MH 2852)
TOTAL (REVENUE SECTION) 4.00 4.00
B. CAPITAL SECTION :
Investment in and loans to PSUs (MH 6855)
1. FACT 34.00 34.00
2. BVFCL 65.00 65.00
3. HFC —— ——
4. PDIL —— ——
5. MFL 96.99 96.99
6. FCI —— ——
7. PPCL —— ——
Investments for JVs abroad (MH 4855) 0.01 0.01
TOTAL (CAPITAL SECTION) 196.00 196.00
TOTAL PLAN 200.00 200.00
TOTAL-DEPARTMENT OF FERTILIZERS (Gross) 53800.50 56800.50
TOTAL-DEPARTMENT OF FERTILIZERS (Net) 50200.00 53200.00
101
ANNEXURE-X
PROFITABILITY OF THE PUBLIC SECTOR UNDERTAKINGS AND COOPERATIVESUNDER THE DEPARTMENT OF FERTILIZERS
(See Chapter-7)
(Rupees in Crores)
Name of Undertaking/ Net profit(+)/Net loss(-)Cooperative
2005-06 2006-07 2007-08 2008-09 2009-10(Up to
Dec. 09)
Fertilizer Corporation of India (-)1299.01 (-)1422.63 (-)1504.83 (-)752.60 (-)417.20Limited (FCI)
Hindustan Fertilizer (-) 964.61 (-)1065.14 (-)1101.98 **4841.16 (-)288.35Corporation Limited (HFC)
Rashtriya Chemicals & 147.96 148.74 158.15 211.58 165.45Fertilizers Limited (RCF)
National Fertilizers 116.40 176.10 109.00 97 118Limited (NFL)
Project & Development India 10.64 11.20 12.26 14.82 9.26Limited (PDIL)
Fertilizers And Chemicals (-) 235.66 (-) 124.72 8.97 42.95 (-) 63.39Travancore Limited (FACT)
Madras Fertilizers Limited (-)131.74 (-)114.78 (-)134.85 (-)145.38 (-) 51.54(MFL)
Brahamputra Valley Fertilizer (-)99.77 (-)62.37 (-)105.83 (-)215.04 (-) 104.40Corporation Ltd., (BVFCL)
FCI Aravali Gypsum & 9.85 11.51 7.54 9.04 4.93Minerals India Limited(FAGMIL)
Cooperative Sector
Krishak Bharti Cooperative 140.95 193.24 209.20 250.13 203.61*Limited (KRIBHCO)
* pre tax profit.** Profit is due to write back of interest on Govt. of India loan.
102
ANNEXURE-XI
EMPLOYMENT OF SC/ST, EX-SERVICEMEN,PHYSICALLY HANDICAPPED & OTHER BACKWARDCLASSES(OBCs) PERSONS IN PUBLIC SECTOR UNDERTAKING
(See Sub Para 13.2.1 of Chapter 13)
Name of PSU Group Total No. of No. of Employees belonging toEmployees
SC ST Ex.Ser P.Hs OBC
1. KRIBHCO A 1359 32 13 8 2 134B 309 19 16 4 Nil 55C 390 44 23 3 5 66D 26 3 - 4 Nil 14
TOTAL 2084 98 52 19 7 269
2. NFL A 1710 362 79 7 10 88B 1936 507 158 37 22 114C 1006 251 44 45 20 124D 147 115 3 2 3 8
TOTAL 4799 1235 284 91 55 334
3. MFL A 241 24 3 — 1 53B 208 46 5 — 1 80C 329 84 1 13 3 126D 40 28 - - - 9
TOTAL 818 182 9 13 5 268
4. FAGMIL TOTAL 109 17 5 1 Nil 8
5. PDIL A 438 44 20 — — 58B 38 5 — — — 1C 30 10 — — — 6D - - — — — -E 49 8 — —- —- 16
TOTAL 555 67 20 — — 81
6. RCF TOTAL 4220 583 259 9 27 286
7. FACT A 515 89 10 - 4 76B 1418 209 51 14 21 348C 817 82 23 25 14 334D 782 124 21 11 33 307E 37 10 - - 1 18
TOTAL 3569 514 105 50 73 1083
8. BVFCL TOTAL 1205 91 181 4 4 365
103
ANNEUXRE-XII
STATUS OF ACTION TAKEN NOTES
S. Report No Number of paras of CAG Report No. of No.of ATNs No.of ATNs No. of ATNsNo. & Year & PAC Report on which ATNs Paras/PA not sent by sent but which have
submitted to PAC and monitoring Reports on the Ministry returned been finallycell of Ministry of Finance after which ATNs even for with vetted byvetting by Audit / Brief Subject have been the first obser- audit but
submitted time vations have notto PAC and Audit been
after vetting is awaiting submittedby Audit their by the
resubmission Ministryby the to PAC
Ministry
1. 1 of 1999 14.3(3): — — — —Grants under U.K. FertilizerDevelopment Programme
1 of 1999 14.3(24): — — — —(i) Investment in PPL(ii) Loan to FA &CT
2. 1 of 2000 12.3(24): — — — —(i) Investment in /Loan to HFCRs.40.00 crore(ii) Loan to FA &CT Rs.19.90 crore
3. 1 of 2001 11.12(27): — — — —(i) Investment of HFC Rs.12.00 crore(ii) Loan to FCI Rs.47.95 crore
4. 1 of 2001 12.1: — — — —Overall position of the Grant for the last fiveyears viz..Budget provision actual expenditureand unspent provision
5. 1 of 2001 12.2: — — — —Unspent Provision in 1999-2000 underRevenue Section and Excess in Capital Head
6. 1 of 2001 12.3: — — — —Unspent Amount and Excess leading to netunspent provision
7. 1 of 2001 12.4: — — — —Rush of Disbursement
8. 1 of 2001 12.5: — — — —Unrealistic Budgeting – Surrender of fundsfor the year 1997-98
9. 1 of 2001 12.6: — — — —Irregular Re-appropriation from Capital toRevenue Section
10. 1 of 2001 12.7: — — — —Delay in surrender of unspent provision
11. 1 of 2002 8.12: — — — —Lumpsum provision for projects / scheme forthe benefit of the North Easter Region andSikkim Loans to HFC Rs.20000 crore andMFL Rs.7.90 crore
12. 1 of 2005 7.8: — — — —Test Check of Re-appropriation of orders for2003-04 amounting to Rs.1088 crore.
104
13. 1 of 2005 6.10(12.13):+13 Disbursement — — — —
=26 3 of 2005 3.1 to 3.13: — — — —Concession Scheme Information system
27. 1 of 2005 7.15: — — — —Unnecessary Supplementary Grants
28. 1 of 2006 6.10: — — — —Disbursement (Appendix –VI-D16)
29. 1 of 2006 7.8: — — — —Re-appropriation of funds
Fifty – Fourth Report (14th Lok Sabha) of PAC on Excess over Voted Grants and Charged Appropriations 2005-06
30. ATN on 54th 52: — — — —Report of PAC Strictly complying with the instruction of
Min./Fin. On Monitoring of expenditure
31. ATN on 54th 53: — — — —Report of PAC Measures for check on excess expenditure
32. ATN on 54th 54: — — — —Report of PAC Explanatory note on excess expenditure
33. ATN on 54th 58: — — — —Report of PAC Repayment of Debt
34. ATN on 54th 59: — — — —Report of PAC Corrective measure alongwith specific results
achieved to curb excess expenditure
35. ATN on 54th 60: — — — —Report of PAC Regularizing Expenditure under
Acrticle 115(1)(b)
Audit Report No. CA 24 of 2009-10 (Compliance Audit)
National Fertilizers Limited
The Company suffered a loss of Rs. 1.45 crore due to deployment of a driver without valid driving licence to transport its crane in violationof the terms of the insurance policy.
Para 7.1.1
The Company irregularly paid additional house rent allowance and short recovered rent from the employees provided with leasedaccommodation in violation of the DPE guidelines, resulting in extra expenditure of Rs. 1.44 crore.
Para 7.1.2.
The Fertilisers And Chemicals Travancore Limited
The Company’s decision to defer procurement of sulphur resulted in additional expenditure of Rs. 3.98 crore.Para 7.2.1.
S. Report No Number of paras of CAG Report No. of No.of ATNs No.of ATNs No. of ATNsNo. & Year & PAC Report on which ATNs Paras/PA not sent by sent but which have
submitted to PAC and monitoring Reports on the Ministry returned been finallycell of Ministry of Finance after which ATNs even for with vetted byvetting by Audit / Brief Subject have been the first obser- audit but
submitted time vations have notto PAC and Audit been
after vetting is awaiting submittedby Audit their by the
resubmission Ministryby the to PAC
Ministry
GOVERNMENT OF INDIAMINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS