policy environment

Policy Environment

No license is required for setting up a new fertilizer project or for expansion of capacity of existing fertilizer plants. Investments/projects in the fertilizer sector can be undertaken after filing the industrial Entrepreneur's Memorandum with the secretariat for Industrial Assistance(SIA) as per Industrial policy resolution of the Government dated 24th July, 1991.

A prior clearance of the project site from environmental angle is, however, a statuary requirement.

Any major public/cooperative Sector project for setting up new plants or for revamp/retrofit/expansion of existing plants are subject to investment approval of the Government through the Public investment Board etc., depending on the investment involved and the delegated financial powers available to each company.

Concessions/incentives on import of capital goods for fertilizer industry:

To encourage investment in the fertilizer sector, the following concessions are available to the domestic industry:

Concessional customs duty on import of capital goods for setting up of new plants/substantial expansion /renovation/modernization of existing plants.

Deemed export benefit to indigenous suppliers of capital goods for new/revamp/retrofit/modernization projects of fertilizers projects of fertilizers provided such supplies are made under the procedure of International Competitive Bidding.

Strategy for growth:

The fertilizer industry has adopted the following strategy to increase fertilizer production:

Expansion/retrofitting/revamping of existing fertilizer plants:

Setting up joint venture projects in countries having abundant and cheaper raw material resources.

Working out the possibility of adopting alter.

Concession Scheme for Decontrolled Phosphatic & Potassic Fertilizers

Background

Introduction of the scheme

Evolution of the scheme

Implementation by the Central Govt.

Transfer of scheme to DOF

i) Introduction of the Scheme:

The price, distribution and movement of phosphatic and potassic fertilizers which were under the Retention Price cum Subsidy Scheme since November 1977, were decontrolled in August'92 on the recommendations of the Joint Parliamentary Committee on Fertilizer Pricing. After decontrol there was a steep hike in prices of P&K fertilizers. The Government, apprehending a drop in consumption and to enable availability of decontrolled phosphatic and potassic (P&K) fertilizers at reasonable prices, introduced a Scheme of Concession on sale of decontrolled P&K fertilizers in 1992-93, and announced concession on DAP and MOP.

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ii) Evolution of the Scheme:

The scale and coverage of the special concession has been substantially increased to give impetus to the stagnating demand for these fertilizers and to ameliorate the nutrient imbalance in the soil which is essential for sustaining the desired growth in agricultural productivity. Immediately after the decontrol of phosphatic and potassic fertilizers in August, 1992, the Government announced an adhoc concession (subsidy) of Rs.1000 on DAP and MOP and commensurately on complex fertilizers w.e.f Rabi'92-93. Respective State/UT Governments indicated the Maximum Retail Prices (MRP). The State/UT Governments disbursed the payment of concession up to 1993-94 from grants-in-aid received from from the Central Government for this purpose. The impact of these rates of concession on increased prices of fertilizers was, however, nullified gradually by the increase in prices of inputs as well as the dollar-rupee parity. In order to improve consumption of phosphatic and potassic fertilizers for improving nutrient balance, Government enhanced the rate of concession on indigenous DAP from Rs.1000 per MT to Rs.3000 per MT and fixed a concession of Rs.1500 per MT for imported DAP in July 1996. Besides, the concession on MOP was also enhanced to Rs.1500

per MT and commensurately on complexes. The scope and method of implementation of the Scheme has been undergoing experience based evolution, which is reflected in revised guidelines being issued by Government of India from time to time.

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iii) Implementation by the Central Government:

There is no unit-wise or importer wise recognition of costs under the Concession Scheme; only industry level average cost of sales is taken into account. Accordingly, concession rate is determined separately for DAP, MOP and each grade of potassic and phosphatic fertilizer . For each decontrolled fertilizer, the Maximum Retail Price (MRP) is indicated by Central Government except for Single Super Phosphate, the MRP of which is indicated by each State/UT Government Generally, the difference between cost of sales and MRP forms the element of concession.. Payment of 80% 'on account' concession claim (enhanced w.e.f.1.4.2001 to 85% or 90%, if supported by Bank Guarantee applicable to manufacturers of P&K fertilizers only) is made on the basis of sales certified by Statutory Auditors. Imports of DAP/MOP are eligible to claim 80% 'on account payment The balance 20% (15% or 10%) is to be paid after the sales have been certified by the States. In order to avail of concession under the Scheme, the manufacturers/importers are required to sell the decontrolled fertilizers at the applicable MRP. Single window system for preliminary examination of claims has been introduced to expedite payments.

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iv) Transfer of scheme to Department of Fertilizers:

From 1.10.2000, the responsibility of the administration of the Scheme has been transferred from Department of Agriculture & Cooperation to the Department of Fertilizers. Subsequent to transfer of Concession Scheme to Department of Fertilisers sustained efforts are being made to streamline the procedures for implementation of the Scheme. Towards this end national level consultations were held in February 2001 and a one day Workshop was held on Concession Scheme in October 2001 with a view to receive views/suggestions of fertilizer sector in the matter of implementation of the Scheme. A half day conference was also held with Fertilizer Association of India (FAI) and SSP manufacturers on 12.11.02. The above interaction has lad to modification reflected in guidelines for the Concession Scheme issued on 9.10.2000, 17.5.2001 & 5.8.2002. The constitution of Technical Audit & Inspection Cell and specified grades of rock alongwith origin/source of procurement notified for use by SSP industry, are some of the features introduced by the DOF.

Salient Features

Fixation of MRPs

Computation of Concession

Fertilizers covered

'On-account' and `final' payment of concession

Eligibility for `on-account' & facility of Bank Guarantee

Freight support for transportation of fertilizers to hilly and inaccessible areas

i) Fixation of MRPs:

Under the scheme, maximum retail prices (MRPs) for the fertilizers covered under the scheme are indicated by the Government of India since 1.4.97. However, MRPs for SSP are continued to be fixed by the States. In order to avail of concession under the Scheme, the manufacturers/importers are required to sell the decontrolled fertilizers at the applicable MRP.

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ii) Computation of Concession

The concession rates for decontrolled phosphatic and potassic (P&K) fertilizers are based on the cost price study of DAP (indigenous and imported) and MOP conducted by the then Bureau of Industrial Costs & Prices (BICP) (now Tariff Commission) in 1998 alongwith the modifications proposed by an Inter Ministerial Group (IMG) consisting of representatives of Department of Agriculture and Cooperation, Department of Expenditure, Department of Fertilizers and Planning Commission. The concession rates for DAP (indigenous and imported) and MOP are arrived at by subtracting the cost of sales from the Maximum Retail Prices (MRPs) indicated under the Concession Scheme. For indigenous DAP, the cost of sales is the sum of the normative industry price (including cost of raw materials, conversion cost and return) and the selling and distribution cost; for imported DAP and MOP, the industry cost of sales includes average C&F cost of imported material, customs duties, selling and distribution cost and reasonable return. The concession rates for complex grade fertilizers have been so far derived from the concession rates of indigenous DAP and MOP proportionate to their nutrient content. The policy of the Government is to maintain a reasonable differential in the rates of concession in favour of indigenous DAP vis-a-vis imported DAP and as the domestic industry faces certain disadvantages in the availability of raw materials used in the manufacture of DAP in the country.

The manufacturers and importers are paid concession (subsidy) to enable them to sell the fertilizers at or below the indicated MRPs. The concession is roughly the difference between the MRP and the industry average cost of production/sales for indigenous DAP; and the MRP and the cost of import/sales for imported DAP. The final rates of concession on indigenous DAP, imported DAP and MOP (correspondingly on complexes) are adjusted on quarterly basis according to fluctuations in the prices of raw materials/intermediates (ammonia and phosphoric

acid) and the exchange rate as well as the prices of DAP in the international market.

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iii) Fertilizers Covered:

Phosphatic & Potassic Fertilizers covered under the Concession Scheme are:

Di-Ammonium Phosphate (DAP) (indigenous & imported) Muriate of Potash (MOP) Single Super Phosphate (SSP) NPK Complex Grade Fertilizers:

o 10:26:26o 12:32:16o 14:28:14o 14:35:14o 15:15:15o 16:20:0o 17:17:17o 19:19:19o 20:20:0o 23:23:0o 28:28:0

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iv) `On-account' and `final' payment of concession:

The payments made under the Scheme include 'On account' payment of concession claim and balance payment (final settlement of claim). The 'On account' payment is made with reference to applicable base rate and is in the nature of advance payment awaiting settlement of claim which is done after receipt of certification of sales by the concerned State/UT. The manufacturers/importers are also allowed differential payment with reference to base rate and final rate announced for the quarter. The balance payment is made only after the receipt of certification of sales in Proforma 'B' from the concerned State Government based on final concession rate for the applicable quarter of year.

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v) Eligibility for `on account' & facility of Bank Guarantee:

Manufacturers of P&K fertilizers are eligible for 85% 'On account' (upto 90% if supported by a Bank Guarantee) payment of concession, on the quantities of these fertilizers sold for agricultural use or to registered (under FCO) manufacturers of NPK mixture fertilizers. For details on Bank Guarantee facility, the requisite format etc. kindly see Guidelines dated 5.8.02.

Importers notified under the Concession Scheme for P&K fertilizers who have been importing these fertilizers at least for the immediate preceding two years are eligible for 80% `On account' payment. The two year condition for receiving `on account' payment can be relaxed on case to case basis if the importer is willing to offer Bank Guarantee (BG) against an amount equivalent to 100% payment of the claim under the Scheme. Any occasional importer of P&K fertilizers, after induction, is eligible to receive 100% payment after receipt of certification of sales only.

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vi) Freight support for transportation of fertilizers to hilly and inaccessible areas:

Under the Concession Scheme freight support for transportation of indigenous P & K fertilizers and imported DAP/MOP to hilly and difficult/remote areas was introduced from 1.4.97, intially for Jammu & Kashmir and North East States. From Rabi 1998-99, it has been extended to State of Himachal Pradesh, hilly areas of West Bengal and Uttaranchal. The payment under the Scheme is on actual movement of P & K fertilizers from the declared rake point to the consumption centres. The actual movement of fertilizers by road requires to be certified by the concerned State Government. In case the cost incurred on transportation is lower than the rates notified, the payment is restricted to the actual cost of transportation.

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Special Provisions for SSP

TAC & Use of notified Rock

Grades of Rock Phosphate notified by DOF

i) Technical Audit & Inspection Cell (TAC) & Use of notified grades of Rock Phosphate:

To prevent the production and sale of sub-standard SSP and other malpractice, for being eligible to claim concession, the manufacturers are required to use only the specified grades of rock phosphate notified by Department of Fertilizers (DOF) alongwith origin/source of procurement. Accordingly, a Technical Audit & Inspection Cell (TAC) has been constituted to conduct inspections of SSP manufacturers regarding usage of specified grades of rock phosphate for manufacture of SSP.

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ii) Grades of Rock Phosphate notified by DOF:

1. Primary Rock

RSMML Chips (31.5% P2O5) Imported Jordan Rock (30%) Imported Jordan Rock (32% and above) Imported Jordan Rock (31.6% and above) RSMML Beneficiated Rock (BRP) (33.55% and above) Imported Syrian Rock (29.36% and above) Imported Egyptian Rock (32% and above)

2. Blending Rocks

MPSMC Jhabua A or B Grade (23%) with BRP from RSMML MPSMC Jhabua (25%) with Imported Jordan Rock (31.6%) Lower Grades (with 25%) of MPSMC, RSMML, RSMDC, HZL with BRP from

RSMML Lower grades (22-25%) from RSMDC with BRP from RSMML RSMDC (25-27%) with BRP from RSML RSMDC (30%) with BRP from RSMML RSMML (23%) with BRP from RSMML RSMML (25%) with imported Jordan Rock (32%).

Guidelines for administering Concession Scheme

Specified Grades of Rock Phosphate Guidelines dated 5.8.2002 (latest) PDF File

Guidelines dated 5.8.02



1. See PDF file

2.


No. M.11011/4/2000-MPRGovernment of India

Ministry of Chemicals & FertilizersDepartment of Fertilizers

Shastri Bhawan, New Delhi.

Dated, the 5th August, 2002.

ToAll Chief Secretaries of States/UTs.All Agriculture Production Commissioners/Secretaries, Deptt of Agriculture. All manufacturers/Importers of DAP, MOP, SSP and Complex Fertilizers.

Subject: Revised procedure for submission of bills for payment/recoveries in respect of sales of de-controlled phosphatic & potassic (P&K) fertilizers under the Concession Scheme of the Department of Fertilizers (DOF).

The guidelines on procedure for submission and processing of claims for payment of concession on sales of decontrolled fertilizers, in the matter of implementation of Concession Scheme for decontrolled phosphatic and potassic (P&K) fertilizers, prescribed hereunder, shall be applicable to sales made on or after 1.8.2002. These guidelines shall supersede those issued vide letter No. M11011/4/2000-MPR dated 17.5.2001 and amendments thereto issued from time to time by Department of Fertilizers (DOF). In the course of implementation of Concession Scheme the DOF in the Government of India indicates Maximum Retail Price (MRP) in respect of DAP, MOP and each of the complex grade fertilizers covered under the Scheme. In the case of SSP, the respective State Government (the term State Government in these guidelines also includes reference to Union Territory Government) announces the indicative MRP. In order to avail of concession under the Scheme, the

manufacturers/importers are required to sell the decontrolled fertilizers at the applicable MRP. In respect of each fertilizer covered under the Scheme, except for SSP, the DOF notifies base rate for the year as well as rate of concession on quarterly basis. In respect of SSP, only annual rate of concession is notified by DOF. The payments made under the Scheme include 'On account' payment of concession claim and balance payment (final settlement of claim). The 'On account' payment is made with reference to applicable base rate. The manufacturers/importers are also allowed differential payment with reference to base rate and final rate announced for the quarter, while balance payment is based on quarterly final rate and is made only after the receipt of certification of sales in Proforma 'B' from the concerned State Government.

PROFORMA‘B’

(To be submitted in duplicate by State/UT within 90 (ninety) days of receipt of Proforma ‘A’)

To

(For Indigenous Fertilizers) (For Imported Fertilizers)

1.The Executive Director,Fertilizer Industry Co-ordination Committee,8th Floor, Sewa Bhawan, R K Puram,NEW DELHI-110066.

2. The Director of Accounts, Deptt. Of Fertilizers,Room No. 473, Udyog Bhavan,New Delhi.

Subject: First point sales of decontrolled phosphatic & potassic fertilizers (of FCO specifications) to registered dealers for agricultural purpose/use only.

………

Name of State/ U.T. _______________

Report on Sales for the Month of ___________________

ProductName of Importer/ Manufacturer

Quantities sold during the month under report

(MT)

Cumulative Quantity

Sold During The Financial Year

(MT)

(1) (2) (3) (4)

IMPORTED

DAP

MOP

iNDIGENOUS

DAP

COMPLEXES

SSP

It is certified that the above statement is correct with regard to ‘first point’ sales (State Marketing/Co-operative Federations like NAFED, HAFED, MARKFED, U.P. Agro Industries Corporationprivate trader registered under FCO) which resulted in physical transfer of stock and ownership during the month [refer para 4(vii) of guidelines].Also certified that ______MTs of DAP/MOP (indicate imported or indigenous) or Complex/SSP have been sold to manufacturing units of mixtures of NPK fertilizers registered/licensed by State under FCO for manufacture of the mixtures of NPK fertilizers covered under guidelines laid down for the purpose in letter No. 5-4/96-Fert.Law dated 22.7.02 of Deptt. of Agriculture and Co-operation, Govt. of India

Director of agriculture

(With Name & Seal)

Place:

Date:

Nota Bene: Report on detection of violations mentioned in para 4(ix) & (x) to be given hereunder.Detection of violations mentioned in para 4(viii) of the Guidelines to be reported separately along with Proforma ‘B’.

Copy to:

1. Manufacturer / Importer

PROFORMA 'C'

Pre receipted claim for "On account" payment

(To be submitted in duplicate separately for imported & indigenous fertilizers together with Proforma ‘A’)

Authority No. Ministry of Chemicals & Fertilizers Bill No._______________

(Department of Fertilizers) letter Date _______________

No._______________ dated______

State / UT ____________

Month to which relates__________

Name of the Claimant with full address_______________

Details of the Claim

Sl. No.

ProductNet quantity sold as per

col. 6 of the Proforma ‘A’Rate of

Concession

Amount of

Concession

80% of the amount now

claimed

(MT) (Rs./PMT) (Rs.)

(1) (2) (3) (4) (5) (6)

1.

2.

3.

4.

5.

IMPORTED

DAP

MOP

iNDIGenous

DAP

COMPLEXES

SSP

Total

Total amount claimed being rounded off to Rs._________ (Rupees_______________________________________)

1. Certified that the quantity shown in the column 6 of the Proforma 'A' on which concession is being claimed is on net weight basis and does not include the weight of bags. It is further certified that this quantity of Fertilizers has been sold on net weight basis and exclusively for agriculture use or to manufacturers of NPK mixtures registered under FCO and not for industrial or any other use. Also that the quality of fertilizer met FCO specifications.

2. Certified that the, sales claimed are the actual sales made by the company during the month and does not include stock transfer or sales on consignment basis [refer para 4(vii) of guidelines].

3. Certified that all the conditions prescribed in the Ministry of Chemicals & Fertilizers (Department of Fertilizers) letter No._______________________________ dated ______________ have been fulfilled.

Signature of the claimant

(With name, date, designation & Stamp)

Received Rs._____________(Rupees______________________________________________________________)

Revenue Stamp


(With name, date, designation & stamp)

Please pay by crediting our current/CC Account No.______ with State Bank of Patiala, Shastri Bhawan, New Delhi.


(With name, date, designation & stamp)

To

ED, FICC, 8th Floor, Sewa Bhawan, R.K. Puram, New Delhi. (Indigenous fertilizers)

Director of Accounts, DOF, Room No. 473, Udyog Bhavan, New Delhi – (Imported fertilizers).

PROFORMA 'D'

Proforma for claiming balance payment

(To be submitted in duplicate separately for imported & indigenous fertilizers with Proforma ‘B’)

Authority No. Ministry of Chemicals & Fertilizers Bill No._______________

(Department of Fertilizers) Letter Date _______________

No._______________ dated______

State / UT ____________




S. No. Product Net quantity sold as per col. 3 of the Proforma ‘B’

Rate of Concession

Amount of

Concession

Remarks


(1) (2) (3) (4) (5) (6)

1.

2.

3.

4.

5.

IMPORTED

DAP

MOP

iNDIGENOUS

DAP

COMPLEXES

SSP

Total

Less: "On Account" payment already received vide Bill No._________________ dated______

Amount now receivable

Total amount claimed being rounded off to Rs._________ (Rupees__________________________________)



Received Rs._____________(Rupees_____________________________________)

Revenue Stamp



Please pay by crediting our current/CC Account No.____ with State Bank of Patiala, Shastri Bhawan, New Delhi.



To

ED, FICC, 8th Floor, Sewa Bhawan, R.K. Puram, New Delhi. /

Director of Accounts, Department of Fertilizers, Room No. 473, Udyog Bhavan, New Delhi – (Imported fertilizers).

PROFORMA ‘E’

(To be submitted in duplicate on monthly basis by SSP units claiming concession under the Concession Scheme for Phosphatic & Potassic Fertilizers)

Statement showing details of raw material purchased, consumed and production by SSP Units

1. Name of the Claimant Manufacturer with full address of unit/factory pertaining to which the data is being furnished _________________________________________________________________________________

2. Month to which it relates ______________________

(figures in MTs)

Items Opening Balance (SSP/Raw Materials)

Raw Materials purchased during the month

Raw Material consumed

Production (SSP/Raw Material)

Closing balance (SSP/Raw Materials)

Sources of purchase of raw material *

Remarks

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

SSP

Raw Material

(a) Rock Phosphate

(b) Sulphur

(c) Sulphuric acid

(i) 98%

(ii) Spent

* (i) Copies of documents in support of imports of raw materials, such as, Bill of Lading, Bill of Entry,

Port out turn, Custom duty paid, etc. to be attached.

(ii) Copies of documents in support of purchase details, such as, Sales Invoice, Amount paid, etc. to be furnished within one month subsequent to submission of Proforma ‘E’.

(Authorised signatory)

ANNEXURE-II

BANK GUARANTEE

In consideration of the President of India, acting through Shri _________ ___ Joint Secretary, Ministry of Chemicals and Fertilizers, Department of Fertilizers, Shastri Bhawan, New Delhi, (hereinafter called "the , Government" which expression shall unless repugnant to the context or meaning thereof include its successors-in-office and assigns) having agree to pay to M/s ___________________, a company registered under the Companies Act, 1956, having its office at_________________ (hereinafter called "The Manufacturer and Importer" which expression shall unless repugnant to the context or meaning thereof include its legal representatives, heirs, administrators, successors, executors and permitted assigns) without insisting and obtaining certificates from the State Governments as named hereinafter; an amount of Rs.______________(Rupees_____________________________) described as concession for sale of indigenous DAP/Complexes and SSP and imported phosphates _______________________in the states of (1) _______________ (2) ________________ (3) ______________ from to _____________ vide letter no. ____________ dated ________ of the Manufacturer & Importer on production of bank guarantee for Rs._________ (Rupees_______________________). We the _______ (hereinafter referred to as the Bank) at the request of the manufacturer/importer, do agree unconditionally, absolutely and irrevocably to hold, on account of and to the credit of the Government as Primary Obligator and not merely as Surety, the sum of Rs. ___________ (Rupees __________________________) and the Bank hereby irrevocably undertakes to pay without any demur the Government upon demand in writing whenever required by it from time to time to do so, without referring to the manufacturer/importer and without questioning the right of the Government to make such demand or the propriety or legality of such demand and irrespective of pendency of any suit or proceedings by or between the Government and the manufacturer/ importer over the subject matter of the receipt of concession to pay such sum or sums not exceeding "in the whole, the said sum of Rs.____________ (Rupees _______________________ ) on behalf of the manufacturer/ importer by virtue of or arising out of the above mentioned receipt of concession or by reason of any allegation of the Government regarding breach or non-performance or non-observance of the same or by the neglect, omission or breach of terms and conditions of concession scheme by the manufacturer/importer or his agents in relation to the said concession scheme in respect of which the decision of the Government to demand such sum shall be final and legally binding.

II The Bank agreed and declares that this guarantee shall be a continuing guarantee and shall not be affected or discharged by any change in the constitution of the Bank or the Manufacturer/importer.

III It is further agreed that the Bank shall have no right in the benefits of any other securities that may be held by the Government for the purpose of protecting its interest.

IV That no change or addition to or modification of the terms and condition of the concession scheme or of work to be performed under the concession scheme or any of the requisite documents, shall in any way release us from the liability under this guarantee and we hereby consciously waive notice of such change, addition or modification.

V AND THIS INDENTURE FURTHER WITNESSETH that the liability of the Bank shall not in any manner be released or diminished by reason of any time or other latitude being given by the Government to the manufacturer/importer or his sub-contractors or agents in regard to the performance of their handling work, but this Indenture shall remain in full force and effect until all the dues of the Government, under or by virtue of the said concession scheme have been fully paid and the manufacturer/importer has duly fulfilled all his obligations under the concession scheme and the Government certificates that the terms and conditions of the said concession scheme have been fully and properly carried out by the manufacturer/importer PROVIDED always that the Bank will not be liable in respect of any claim arising against the said manufacturer/importer after 31st March, 200__. PROVIDED FURTHER that the Bank shall at the request of the Government but at the cost of the manufacturer/importer, renew or extend this said guarantee for such further period or period as the Government may require.

VI We, ___________________ hereby agree and undertake that any claim which the Bank may have against the Manufacturer and Importer shall be subject and subordinate to the prior payment and performance in full of all the obligations of the Bank arising out of invocation hereunder and the Bank will not without prior written consent of the Government exercise any legal rights or remedies of any kind in respect of any such payment or performance so long as the obligations of the Bank hereunder remain owing and outstanding, regardless of the insolvency, liquidation or bankruptcy of the Manufacturer and Importer or otherwise howsoever. We will not counter claim or set off against its liabilities to the Government hereunder any sum outstanding to the credit of the Government with it.

VII We, ________________lastly undertake not to revoke this guarantee during its currency without the prior written consent of the Government.

VIII Notwithstanding anything contained herein:

a) our liability under this Bank Guarantee shall not exceed Rs. ____________ (Rupees ________________________ only);

b) the Bank Guarantee shall be valid upto 31.3.200__ ;and

c) we are liable to pay the guaranteed amount or in part thereof made under this guarantee only and only if you serve upon us a written claim or demand on or before 31.3.2002.”

Dated the ________ day of____________ 200__.

Authorised Signature

Witness:

1.

2.

STATEMENT-I

STATEMENT ON PLANT WISE DETAILS OF OPENING STOCKS, PRODUCTION, DESPATCHES AND CLOSING STOCKS

(To be submitted by manufacturers on quarterly basis)

For the Quarter________________

PRODUCT______________

For Month - I

Opening Balance at plant

Production

Cumulative production For the Quarter

Quantity Sold to complex manufacturers/ captive consumption

Despatches to States for direct sales*

Cumulative Despatches to the states for the Quarter

Closing Balance(At plant)

For Month – 2nd


Production






For Month – 3rd


Production






*Statewise details of despatches are as under

States Despatches for the Cumulative Despatches

Month for the quarter

--------- ------------------------- --------------------------------



STATEMENT-II

STATEMENT ON PORTWISE DETAILS OF OPENING STOCKS, IMPORTS, DESPATCHES AND CLOSING STOCKS

(To be submitted by importers on quarterly basis)

PORT__________________

For the Quarter ________________

PRODUCT______________

For Month – 1st

Opening Balance (At port)

Imports Cumulative Imports For the Quarter

Quantity Sold in bulk to complex manufacturers/ captive consumption

Quantity bagged

Despatches to States for direct sale*


Closing Balance (At port)

For Month – 2nd




Quantity bagged




For Month – 3rd




Quantity bagged





States Despatches for the Cumulative Despatches

Month for the quarter

--------- ------------------------- --------------------------------

Please attach vessel wise details for the vessels arrived during the month along with copies of Bill of Lading,

Suppliers Invoice, Bill of Entry and Joint DSR etc.


(With name, date, designation & Stamp)more >>

STATEMENT-III

STATEMENT ON STATEWISE DETAILS OF OPENING STOCK, RECEIPTS, SALES AND CLOSING STOCK(To be submitted by manufacturers/ importers on a quarterly basis)

For the Quarter____________Product____________

For Month- 1st

StateOpening Balance

Receipts Cumulative Receipts

For the Quarter

Inter Area Movement

Total Availability

Sales Cumulative SalesFor the Quarter

Closing Balance

For Month- 2nd



For the Quarter

Inter Area Movement

Total Availability


Closing Balance

For Month- 3rd



For the Quarter

Inter Area Movement

Total Availability


Closing Balance



3.

Revised procedure for submission of bills for payment/recoveries in respect of sales of de-controlled phosphatic & potassic fertilizers under the Concession Scheme of the Department of Fertilizers

( May 17, 2001 )

In supersession of letter No. M11011/4/2000-MPR dated 9.10.2000 of the Government of India, Department of Fertilizers, laying down procedures for administration of Concession Scheme for decontrolled phosphatic & potassic Fertilizers, (consequent upon transfer of work relating to administration of this Scheme to Department of Fertilizers w.e.f. 1.10.2000), it has now been decided that, for submission of claims for concession on sales of decontrolled fertilizers on or after 1.4.2001, the following revised procedure shall be followed:

2. Eligibility for claiming concession

a) Manufacturers of potassic and phosphatic fertilizers other than SSP

All manufacturers of potassic and phosphatic fertilizers (other than SSP) are eligible for 80% `On account’ payment on their production as well as for quantities of these fertilizers imported by them for sale to farmers. The balance 20% shall become payable on certification of sales by State Governments/UTs in Proforma `B’ enclosed with this letter.

b) Importers of phosphatic and potassic fertilizers

All importers of phosphatic and potassic fertilizers who have been importing these fertilizers at least for the preceding two years are eligible for 80% `On account’ payment under the Concession Scheme. The balance 20% shall be released on certification of sales by State Governments/UTs in Proforma `B’ enclosed with this letter. All occasional importers of phosphatic and potassic fertiliers would continue to receive their entire payment after certification of sales by the State Governments in Proforma ‘B’ enclosed with this letter.

c) Single Super Phosphate (SSP) Manufacturers

i. Instances have been brought to the notice of the Department of Fertilizers (DOF) regarding sale of non-standard SSP to farmers by some manufacturers. In order to put a curb on such practices, the DOF is of the view that there is a need to promote use of specified grades of rock phosphate purchased from notified sources for manufacture of SSP. Accordingly, the DOF is constituting a Technical Audit and Inspection Cell (TAC) to conduct first time and six-monthly inspections of SSP manufacturers regarding usage of specified grades of rock phosphate from sources notified by the DOF from time to time. The State Governments/UTs are also being advised to avail of the services of TAC to assist them in meeting their obligations towards ensuring

production/sales of SSP as per specifications laid down under the FCO. Further, it has also been decided that the facility of 80% `On-account’ payment would be given only to those manufacturers of SSP who use specified grades of rock phosphate as raw material and submit monthly information on raw materials used in Proforma ‘E’ enclosed with this letter. Such units would continue to be eligible for 80% ‘On account’ payment until recommended otherwise by the TAC after inspections.

ii. The provisions of c(i) above will become applicable to claims for concession for sales of SSP from 1.6.2001.

iii. The balance 20% concession would be released only after certification of sales by State Governments in Proforma ‘B’.

iv. All manufacturers of SSP, who do not use specified grades of rock phosphate from notified sources, would receive their entire concession payment only after certification of sales by the State Governments in Proforma ‘F’ and monthly submission of information regarding raw materials used in Proforma ‘E’ enclosed with this letter.

Revised procedure for submission of bills for payment/recoveries in respect of sales of de-controlled phosphatic & potassic fertilizers under the Concession

Scheme of the Department of Fertilizers

3. Procedure for payments

The following procedure shall govern the payments (to be made to the manufacturers/importers) or credits to be afforded to the Government under

this Scheme:-

a. All new claimants for concession shall address their request to Joint Secretary(A&M), Department of Fertilizers, Shastri Bhawan, New Delhi, along with the following documents for recognition/enlistment as manufacturers/importers eligible for availing payments under the Concession Scheme.

i. Copy of Registration Certificate under FCO.ii. Copy of the Memorandum of Association of the company along

with the copy of the latest Audited Annual Report.iii. Copy of the Certificate of Incorporation issued by the Registrar of

Companies.iv. Any other additional information/document as may be prescribed

by DOF from time to time.

b. The manufacturers/importers eligible for 80% ‘On account’ payment shall submit claims in Proforma ‘C’ furnishing information on fertilizer-wise sales, rate of concession, amount claimed and certification by the claimant that the sales have been effected only to registered dealers for

http://fert.nic.in/fertilizersubsidy/proforma5802_c.asp

sales exclusively for agricultural purposes and that the sales so reflected can in no manner, in legal or commercial terms, be construed as stock transfers or sales on consignment basis. The claimant shall also certify compliance of FCO specifications. The claim shall be supported by ink signed copies of Proforma ‘A’ enclosed with this letter which is to be duly certified by the Statutory Auditor of the Company.

The manufacturers shall submit their claims to Executive Director, Fertilizer Industry Coordination Committee(FICC), Department of Fertilizers, 8th Floor, Sewa Bhawan, R.K.Puram, New Delhi-110066, latest by 10th of every month. The importers will, similarly, submit their claims to the Director of Accounts,

4th Floor, Super Bazar, Connaught Circus, New Delhi, by 10th of every month.

It may be clearly understood that the details of sales invoices, etc. accompanying Proforma ‘A’ are to be sent to State Governments/Union

Territory Administrations only and no such details/enclosures are required to be sent along with the copies of Proforma ‘A’ to be submitted to FICC/FA wing.

c. After satisfying that the claim documents are in order, the office of FICC/FA wing will release admissible 80% ‘On account’ payment directly to the manufacturers/importers.

The excess quantities of imported fertilizers (including rock phosphate used for manufacture of SSP) over 0.5% of the quantities specified in the bill(s) of lading shall not be admissible for concession payments under the Scheme.

This excess quantity shall be determined after taking into account quantities appearing in bill(s) of lading vis-à-vis actual realisation of all the vessels arrived in a given financial year in respect of each importer. Necessary

adjustments on the total concession allowed during the year on quantities over and above 0.5% of the quantity thus arrived at, in a financial year, shall be

carried out from the claims of the company for the sales in June or in subsequent months of the following years. Accordingly, the importer shall be required to furnish by 30th June every year ship-wise, product-wise details of the quantities realised against Bill of Lading in respect of the vessels arrived

upto 31st of March of relevant financial year duly certified by the Statutory Auditors. The recovery of excess payment, if any, shall be effected, based on

the annual average of the final concession rates for the respective fertilizer for the relevant year.

In case of SSP manufacturers, for the claims from the period specified in para 2(c)(ii), 80% ‘On account’ payment shall be made based on submission of

Proforma ‘A’ to ‘D’ above besides submission of monthly information relating to input/raw materials use in Proforma ‘E’ to ED,FICC.

Revised procedure for submission of bills for payment/recoveries in respect of sales of de-controlled

http://fert.nic.in/fertilizersubsidy/proforma5802_a.asp

phosphatic & potassic fertilizers under the Concession Scheme of the Department of Fertilizers

d. Balance 20% payment will be released on submission of claims in Proforma ‘D’ which shall be finalised after receipt of certification of sales from the State Governments and Union Territory Administrations in Proforma ‘B’ enclosed with this letter.

For SSP manufacturers availing 80% ‘On account’ concession from the period specified in para 2(c)(ii), balance 20% payment will be made only after receipt of certification of sales from the State Governments/Union Territories in Proforma ‘B’.

e. All claims in Proforma ‘C’ & ‘D’ besides Proforma ‘A’ must be signed by the Chief Executive or his authorised signatory. The authorised signatory should be at least of the rank of General Manager or Head of Finance Department or holding equivalent post of the company. The attested signatures of the authorised signatory must be sent to the office of FICC/ FA wing initially immediately before any payment is released and also at the beginning of each financial year. There should be only one authorised signatory for each company. Two copies of three specimen signatures of authorised signatory, duly attested by the Chief Executive of the company, should be sent in the card form used in banks affixing the official seal.

f. For occasional importers, concession will be released under this Scheme only on a receipt of certification of sales by the Director of Agriculture of concerned State Governments and UTs in Proforma ‘B’ enclosed with this letter. For SSP manufacturers not availing 80% ‘On account’ payment, concession will be released only on receipt of certification of sales in Proforma ‘F’ enclosed with this letter. In addition, they shall be required to submit inputs data in Proforma ‘E’ to ED, FICC on monthly basis for inspection and verification purposes. Utmost care should be exercised to ensure that the information provided in Proforma ‘E’ is complete and accurate in all respects.

g. Recoveries/credits, if any, subsequent to change in rate of concession from the manufacturers/importers shall have to be deposited by Account Payee Cheque or Demand Draft drawn in favour of Pay & Accounts Office, Department of Fertilizers through the office of FICC/FA wing within 15 days from the date of notification of revised concession rates. In case payment is not made by manufacturers/importers within 15 days, penal interest @ 2.5% over and above the ruling bank rate on working capital loans will be recovered on the amount so received in excess from the 16th day till the credit is afforded.

h. All payments shall be made by credit to State Bank of Patiala, Shastri Bhawan, New Delhi for which all manufacturing units/importers are required to open an account with the bank. The account number shall be indicated on the body of the claim in the manner – "Mode of Payment – By crediting in Current Account with State Bank of Patiala, Shastri Bhawan, New Delhi."

i. The payments under the Concession Scheme shall be further subject to:

1. provisions/ conditions/rules & regulations laid down under various laws

of the land such as Fertilizer Control Order (FCO) etc. apart from the conditions laid down under these guidelines regarding Maximum Retail Prices and end use of these fertilizers for agricultural purposes.

2. for importers, in addition to the above, the restrictions as stated in paragraph in 3(c).

j. In case of any violation of the guidelines or laws/acts/rules and regulations is confirmed by the relevant competent authority or is brought to the notice of this Department, the Department reserves the right to make recoveries even with retrospective effects, against such cases of violation, from subsequent concession claim bills for payment under this Scheme, or subsidy claims relating to urea (in case of urea manufacturing units), or by raising demand against the concerned manufacturer/ importer.

more >>

4. Documentation/submission of records

a) General

The manufacturers/importers shall be required to furnish the following documents while filing the first claim by a new claimant under Concession Scheme to FICC / FA Wing:

i. ‘Undertaking’ in prescribed proforma duly attested by notary public. ii. Copy of Registration Certificate under FCO.

iii. Copy of Audited Annual account of the previous year.

b) Specific:

I. Indigenous manufacturers

In addition to above, the indigenous manufacturing units are required to maintain the following records of permanent nature in continuity year after year and which may be made available to the FICC/TAC for verification at the time of inspection or whenever otherwise called for:-

i. Daily stock register in form RG-1 showing for each day opening balance, production, quantity despatched and closing balance.

ii. Daily report of production and stock of each product duly authenticated by Manager (Production).

iii. Despatch/stock transfer advices serially numbered and signed by Manager (Sales).

iv. Despatch instructions issued from Headquarters or other controlling agency.

v. Gate passes, bearing printed serial numbers together with a register of gate passes issued, showing number and date of the gate pass issued each day and the quantities moved out of the factory on the basis of gate passes (i.e. the daily recapitulation statement).

vi. Register of despatches giving the full particulars of gate pass numbers, date, despatch / stock transfer advice and the number and date of the letter containing the despatch instructions, against each entry in the register.

vii. Sales invoices should be serially numbered and supported by warehouse delivery note/orders.

viii. Sales day book.ix. Register showing the authorised dealers.x. Stock Register of raw materials purchased and consumed – separately for

indigenous and imported raw materials.xi. Registration/ license details obtained from the concerned authorities.

xii. All necessary documents and records in support of information required to be submitted by SSP manufacturers as per Proforma ‘E’ on input use as mentioned in the last sub-para of para 3(c).

The manufacturing units may ensure that the RG-1 register, stock register, gate pass register, raw material register and all other connected records are duly authenticated by the statutory auditors/chartered accountants with name, date, designation and stamp. These records shall also to be signed by the authorised officer of the company. The cuttings, over-writings and insertion of figures in the above records shall be attested by the authorised officer.

II. Importers

For imported fertilizers, the importers are required to maintain the following records of permanent nature in continuity year after year for inspection/checking by officials of FA Wing for verification whenever called for. These are:

i. Date-wise reconciliation registers showing imports, sales to complex/ mixture manufacturers, captive consumption, direct sale & closing stocks separately for imported DAP and MOP.

ii. Port wise vessel wise records of imports viz. Bill of Lading, Suppliers Invoice, Bill of Entry filed with customs, details of load port & disport inspections, joint DSR, etc.

iii. Invoice Registeriv. Despatch Register

5. State Government

i. The State Governments and Union Territory Administrations are requested to send the verification reports in Proforma ‘B’ to the office of FICC/FA Wing within 45 days from the date of receipts of claims from the suppliers so that the payments to the concerned companies are released on time. It

is clarified that the certification of sale in Proforma ‘B’ is only with reference to the first point of sale to registered dealers for agricultural purposes (i.e. Institutional agencies, wholesaler dealers and retailers as the case may be). It is further clarified that in the new Proforma ‘B’, the word "farmer" has been deleted with reference to certification of sales for agricultural purposes.

ii. The Company-wise reports on non–standard quantities of fertilizers detected, if any, may also be sent as nota-bene with Proforma ‘B’ every month so that the same is deducted from the amount due to the Company(s).

iii. The Company-wise reports on quantities of fertilizers detected to have been sold, if any, at MRPs higher than those indicated from time to time by the Central/State Governments as also for end-use other than agricultural purposes may also be separately indicated in Proforma ‘B’ every month as nota-bene so that the same is deducted from the amount due to the Company(s).

iv. Detection of any other violation of provisions/conditions/rules & regulations laid down under various laws of the land such as Fertilizer Control Order (FCO) etc. being administered by the State Government or authority thereunder, may also be reported separately along with submission of Proforma `B’ so that the same is considered for deduction, if any, from the amount due to the Company(s).

v. The State Governments and Union Territory Administrations are requested to send to FICC as well as FA Wing, the attested signatures of the authorised signatory who will be signing Proforma ‘B’ claims immediately. If there is any change in the authorised signatory, attested signatures of such signatories may be sent immediately to avoid delay in release of payment.

6. Others

i. All other references other than in respect of claims, regarding the Concession Scheme should be sent in a sealed cover to Joint Secretary(A&M), Department of Fertilizers, Shastri Bhawan, New Delhi by registered post/speed post.

ii. Each manufacturer/importer shall submit production/import plan for the year as a whole in the month of January to Director(Movement) of Department of Fertilizers (DOF) as well as monthwise and Statewise supply plans by the 15th of the months of March and August for Kharif and Rabi seasons, respectively. Besides, weekly despatch position shall be submitted to AC (Movement) of the DOF.

iii. The Department of Fertilizers may, from time to time, call for any additional information from manufacturers/importers as deemed fit for the smooth and efficient implementation of the Scheme.

iv. This issues with the concurrence of the Finance Division (Department of Fertilizers) vide their Dy. No. 457/JS&FA dated 16.5.2001.

v. This has been placed in the web site of the Department of Fertilizers http://fert.nic.in

(Balvinder Kumar)Joint Secretary to the Govt. of India

more >>

PROFORMA 'A'(To be submitted in triplicate)

To

The Director of Agriculture

1. Name of the claimant with full address:_____________________________________

2. Month for which the claim is submitted:___________________________________

S.No. PRODUCT

SALES CONCESSION

Name of Institutional Agency with name & address / private trader with name and address of the dealer

Qty. sold (MT)

Preceding months Sales

Returned* (MT)

Net Qty. sold(MT)

(4-5)

Rate of concession

(Rs./MT)

Amount Claimed

(Rs) (6x7)

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

1IMPORTED DAP

2 MOP

3INDIGENOUS DAP

4 COMPLEXES

5 SSP

Certified that the above details are true and fertilizer conforms to prescribed quality as per Fertiliser Control Order specifications.

For (NAME OF THE MANUFACTURER / IMPORTER)Company authorised signatory(Name, Designation with seal)

It is certified that the quantity as shown in the proforma has been verified from the sales invoice/sales day books maintained by the company.

For (Statutory Auditors)

Authorised signatory(Name, Membership No. with seal)

Place:_____________________

Date:______________________

CC: 1. ED, FICC, Department of Fertilizers, 8th Floor, Sewa Bhawan, R. K. Puram, New Delhi-110066. For indigenous fertilizers/ SSP

2. Director of Accounts, Ministry of Chemicals & Fertilizers, Department of Fertilizers 4th Floor, Super Bazar Building, Connaught Place, NEW DELHI. For imported fertilizers.

* Quantity sold and concession received during the preceding months of______ and returned back during current month.more >>

PROFORMA 'B'(To be submitted in duplicate)

To

Executive Director,Fertilizer Industry Coordination committee,8th Floor, Sewa Bhawan, R K Puram,NEW DELHI-110066.

Subject: First point sales of decontrolled phosphatic & potassic fertilizers to registered dealers for agricultural purpose/use only.

Name of State/ UT. _______________

Report for the Month of ___________________


Quantities sold during the month under report (MT)

Cumulative Quantity Sold During The Financial Year (MT)

(1) (2) (3) (4)

IMPORTED DAP

MOP

INDIGENOUS DAP

COMPLEXES

SSP

It is certified that the above statement is correct.

Director of agriculture(With name & Seal)Place:___________Date:____________

Nota Bene: Report on detection of violations mentioned in para 5(ii) & (iii) to be given hereunder while detection of violation mentioned in para 5(iv) of the Guidelines to be reported separately along with Proforma ‘B’.

CC: 1. The Director of Accounts, Ministry of Chemicals & Fertilizers, Department of Fertilizers, 4th Floor, Super Bazar Building, Connaught Place, NEW DELHI.

2. Manufacturer / Importermore >>

PROFORMA 'C'Pre receipted claim for "on account" payment

(To be submitted in duplicate separately for imported & indigenous fertilizers together with proforma 'A')

Authority No.Ministry of Chemicals & Fertilizers (Department of Fertilizers) letter No._______________ dated______

Bill No._______________ Date ________________

State / UT ____________




S. No.

Product

Net quantity sold as per col. 6 of the Proforma A (MT)

Rate of Concession

(Rs./MT)

Amount of Concession

(Rs.)

80% of the amount now claimed

(1) (2) (3) (4) (5) (6)

1 IMPORTED DAP

2 MOP

3 INDIGENOUS DAP

4 COMPLEXES

5 SSP

Total

Total amount claimed being rounded off Rs._________ (Rupees______________________________________________ )

1. Certified that the quantity shown in the column 6 of the proforma 'A' on which concession is being claimed is on net weight basis and does not include the weight of bags. It is further certified that this quantity of fertilizers has been sold on net weight basis and exclusively for agriculture use and not for industrial or any other use.

2. Certified that the, sales claimed are the actual sales made by the company during the month and does not include stock transfer or sales on consignment basis.

3. Certified that all the conditions prescribed in the Ministry of Chemicals & Fertilizers (Department of Fertilizers) letter No.____________________ dated ______________ have been fulfilled.

Signature of the claimant(With name, date, designation & Stamp)

Received Rs._____________(Rupees_____________________________________ )

Revenue Stamp


Please pay by crediting our current/CC Account No.________ with State Bank of Patiala, Shastri Bhawan, New Delhi.


To

ED, FICC, 8th Floor, Sewa Bhawan, R K Puram, New Delhi. /Director of Account, Department of Fertilizers, 4th Floor Super Bazar, Connaught Circus, New Delhi.

PROFORMA 'D'Proforma for claiming balance payment

(To be submitted in duplicate separately for imported & indigenous fertilizers with proforma 'B')

Authority No.

Ministry of Chemicals & Fertilizers (Department of Fertilizers) letter No._______________ dated______

Bill No._______________ Date ________________

State / UT ____________




S. No.

Product

Net quantity sold as per col.3 of the Proforma B (MT)

Rate of Concession

(Rs./MT)

Amount of Concession

(Rs.)

Remarks

(1) (2) (3) (4) (5) (6)

1 IMPORTED DAP

2 MOP

3 INDIGENOUS DAP

4 COMPLEXES

5 SSP

Total



Total amount claimed being rounded off Rs._________ (Rupees______________________________________)



Revenue Stamp


Please pay by crediting our current/CC Account No.________ with State Bank of Patiala, Shastri Bhawan, New Delhi.


To

ED, FICC, 8th Floor, Sewa Bhawan, R K Puram, New Delhi. /Director of Account, Department of Fertilizers, 4th Floor Super Bazar, Connaught Circus, New Delhi.more >>

PROFORMA ‘E’

(To be submitted in duplicate on monthly basis by SSP units claiming concession under the Concession Scheme for Phosphatic & Potassic Fertilizers)

Statement showing details of raw material purchased, consumed and production by SSP Units

1. Name of the Claimant with full address_________________________________________

2. Month to which it relates _______________________________

(Figures in MT)

Items

Opening Balance (SSP/ Raw

Materials)

Raw Materials

purchased during the

month

Raw Materials

consumed

Production ( SSP/ Raw

Materials)

Closing Balance (SSP/ Raw

Materials)

Sources of

purchase of raw

material *

Remarks

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

SSP

Raw Materials

(a) Rock Phosphate

(b) Sulphur

(c)Sulphuric Acid

(i) 98%

(ii) Spent

* (i) Copies of documents in support of imports of raw materials, such as, Bill of Lading, Bill of Entry, Port out turn, Custom duty paid, etc. to be attached.

(ii) Copies of documents in support of purchase details, such as, Sales Invoice, Amount paid, etc. to be furnished within one month subsequent to submission of Proforma ‘E’.

(Authorised signatory)more >>

PROFORMA ‘F’[To be submitted in duplicate - Refer to para 2(c)(iv)]

To

Executive Director,Fertilizer Industry Coordination committee,8th Floor, Sewa Bhawan, R K Puram,NEW DELHI-110066.

Subject: First point sales of decontrolled phosphatic & potassic fertilizers to registered dealers for agricultural purpose/use only.

Name of State/ UT. _______________

Report for the Month of ___________________

ProductName of Manufacturer

Quantities sold during the month under report (MT)

Cumulative Quantity Sold During The Financial Year (MT)

(1) (2) (3) (4)

SSP

It is certified that the above statement is correct, the qulaity is as per Fertilizer Control Order specifications.

Director of Agriculture(With name & Seal)Place:___________Date:____________

Nota Bene: Report on detection of violations mentioned in para 5 (iii) to be given hereunder while detection of violation mentioned in para 5(iv) of the Guidelines to be reported separately along with Proforma ‘F’.

CC: 1. The Director of Accounts, Ministry of Chemicals & Fertilizers, Department of Fertilizers, 4th Floor, Super Bazar Building, Connaught Place, New Delhi.

2. Manufacturer

4.


No. M.11011/4/2000-MPRGovernment of India

Ministry of Chemicals & FertilisersDepartment of Fertilisers

Shastri Bhawan, New Delhi

Dated, the October 9, 2000

ToAll Chief Secretaries of States/UTsAll Agriculture Production Commissioners/ Secretaries, Deptt. of Agriculture All manufacturers / Importers of DAP, MOP, SSP and complex fertilisers.

Subject: Revised procedure for submission of bills for payment/recoveries in respect of de-controlled fertilisers under the Concession Scheme of the Department of Fertilisers.

Consequent upon the decision of Government of India vide notification No. Doc. CD-566/2000 dated 27.9.2000 transferring the work relating to the administration of Concession Scheme and management of subsidy to the Department of Fertilisers, it has been decided that the Department of Fertilisers shall take over the administration of the Concession Scheme for decontrolled fertilisers with effect from 1.10.2000. All claims for sales of decontrolled fertilisers upto 30.9.2000 shall continue to be submitted to the Department of Agriculture & Cooperation for settlement under the old procedure.

For submission of claims for sales from 1.10.2000 onwards, following revised procedure shall be followed:

2. Eligibility

a) In supersession of the Government of India, Department of Agriculture & Cooperation letter No. 10-8/97-FD(CC) dated 18.6.1997, it has been decided that following shall be eligible for 80% ' on account' payment:

(i) All manufacturers and importers who have been importing regularly or have imported minimum for last two years after decontrol of phosphatic and potassic Fertilisers;

(ii) Public Limited Companies manufacturing SSP.


b) Manufacturers of SSP other than Public Limited Companies or occasional importers of phosphatic and potassic fertilisers shall be eligible to claim concession under this Scheme subject to fulfilling the following conditions:

(i) SSP manufacturers other than public limited companies shall be eligible for concession on 100% certification of sales by the Director of Agriculture of State Governments and UTs as provided in clause 3 (d); and

(ii) those importers who have not been importing regularly for the last two years shall be eligible for concession on 100% certification of sale also by the Director of Agriculture of State Governments and UTs as provided in clause 3 (d). However, benefit of "on account" payment of 80% shall be available from the third year of import.

c) Fertilisers conforming to the specifications laid down in the Fertiliser (Control) Order (FCO) from time to time shall only be eligible for concession under the Concession Scheme. Concession claims already settled on the sales of decontrolled fertilisers but which are subsequently declared non-standard shall be recovered from the concerned manufacturers/ importers from their subsequent concession claim bills for payment of decontrolled fertilisers or subsidy on urea (in case of urea manufacturing units) or by raising demand against the company.

3. Procedure for payments

The following procedure will govern the payments (to be made to the manufacturers/importers) or credits to be afforded to the Government with effect from 01.10. 2000 under the Concession Scheme :-

a) The manufacturers eligible for 80% 'on account' payment will submit claims in Proforma 'C' supported by Proforma 'A' enclosed with this letter. Proforma 'A' will be addressed to Director (Agriculture) of States/Union Territories concerned and three copies of Proforma 'A' signed in ink will be endorsed to Executive Director, Fertiliser Industry Coordination Committee (FICC), Department of Fertilisers, 8th Floor, Sewa Bhawan, R.K.Puram, New Delhi-110066 by 10th of every month. The importers will, similarly, submit their claims in Proforma 'C' for imported fertilisers duly supported by copy of Proforma 'A' to the Director of Accounts, 4th Floor Super Bazar, Connaught Place, New Delhi.

b) The Proforma 'A' should be certified by the Statutory Auditor of the Company.

c) It may be clearly understood that the details of sales invoices, etc. accompanying Proforma 'A' are to be sent to State Governments/Union Territory Administrations only and no such details/enclosures are required to be sent alongwith the three copies of Proforma 'A' to be submitted to FICC/FA wing.more >>d) On the basis of (a) above, the office of FICC/FA wing will release admissible 80% 'on

account' payment directly to the manufacturers/importers. Balance 20% payment will be released on submission of claims in proforma 'D' which shall be finalized after receipt of verification of claims in proforma 'B' enclosed with this letter from the State Governments and Union Territory Administrations. In case of SSP manufacturers, "on account" payment of 80% will be made to Public Limited companies only on the basis of Statutory Auditor's certification regarding sale of the fertilisers. For others, payment of concession will be made only after receipt of verification reports from the State Governments/ Union Territories.e) All claims in proforma 'C' & 'D' besides proforma 'A' must be signed by the Chief Executive or his authorised signatory. The authorised signatory should be of the rank of General Manager or Head of Finance Deptt. or holding equivalent post of thecompany. The attested signatures of the authorised signatory must be sent to the office of FICC/ FA wing initially immediately before any payment is released and also at the starting of each financial year. There should be only one authorised signatory for each company. Two copies of three specimen signatures of authorised signatory, duly attested by the Chief Executive of the company, should be sent in the card form used in banks affixing the official seal.f) Recoveries/credits, if any, subsequent to change in rate of concession from the manufacturers/importers shall have to be deposited by Account Payee Cheque or Demand Draft drawn in favour of Pay & Accounts Office, Department of Fertilisers through the office of FICC/FA wing within 15 days from the date of notification of revised concession rates. In case payment is not made by manufacturers/importers within 15 days, penal interest @ 2.5% over and above the ruling bank rate on working capital loans will be recovered on the amount so received in excess from the 16th day till the credit is afforded.g) All payments shall be made by credit to State Bank of Patiala, Shastri Bhawan, New Delhi for which all manufacturing units/importers are required to open an account with the bank. The account number shall be indicated on the body of the claim in the manner - "Mode of Payment - By crediting in Current Account with State Bank of Patiala, Shastri Bhawan, New Delhi." ( Details will be intimated shortly)4. Documentation/submission of recordsa) GeneralThe manufacturers/importers shall be required to furnish the following documents for the year while filing the first claim:(i) Undertaking in prescribed proforma (ii) Copy of Registration Certificate under F(C)O(iii) Copy of Audited Annual account of the previous year

b) Specific:

I. Indigenous manufacturers

In addition to above, the indigenous manufacturing units are required to maintain the following records of permanent nature in continuity year after year and which may be made available to the FICC for verification at the time of inspection or whenever otherwise called for:-i) Daily stock register in form RG-1 showing for each day opening balance, production, quantity despatched and closing balance.

http://fert.nic.in/fertilizersubsidy/proforma91000_a.asp


http://fert.nic.in/fertilizersubsidy/proforma91000_b.asp

http://fert.nic.in/fertilizersubsidy/proforma91000_d.asp

ii) Daily report of production and stock of each product duly authenticated by Manager (Production).iii) Despatch/stock transfer advices serially numbered and signed by Manager (Sales).iv) Despatch instructions issued from Headquarters or other controlling agency.v) Gate passes, bearing printed serial numbers together with a register of gate passes issued, showing number and date of the gate pass issued each day and

the quantities moved out of the factory on the basis of gate passes (i.e. the daily recapitulation statement).vi) Register of despatches giving the full particulars of gate pass numbers, date, despatch / stock transfer advice and the number and date of the letter containing the despatch instructions, against each entry in the register.vii) Sales invoices should be serially numbered and supported by warehouse delivery note/orders.viii) Sales day book.ix) Register showing the authorised dealers.x) Stock Register of raw materials purchased and consumed - separately for indigenous and imported raw materials.xi) Registration/ license details obtained from the concerned authorities.

II. Importers:

For imported fertilisers, the importers are required to maintain the following records of permanent nature in continuity year after year for inspection/checking by officials of FA Wing for verification whenever called for. These are:

(i) Date-wise reconciliation registers showing imports, sales to complex /mixture manufacturers, captive consumption, direct sale & closing stocks separately for imported DAP and MOP.(ii) Port wise vessel wise records of imports viz Bill of Lading, Suppliers Invoice, Bill of Entry filed with customs details of load port & disport inspections, joint DSR etc.(iii) Invoice Register(iv) Despatch Register

c) The manufacturing units may ensure that the RG-1 register, stock register, gate pass register, raw material register and all other connected records are duly authenticated by the statutory auditors/chartered accountants with name , date , designation and stamp. These records shall also to be signed by the authorised officer of the company. The cuttings, overwritings and insertion of figures in the above records shall be attested by the authorised officer. At the end of each month, the manufacturers are required to submit details of opening stocks production, despatches, sales & closing stocks etc in proforma E & G. The importers are required to submit the similar information in the proforma F & G. This statement shall be enclosed along with the monthly claim of subsidy in Proforma 'C'.


Others


http://fert.nic.in/fertilizersubsidy/proforma91000_g.asp

http://fert.nic.in/fertilizersubsidy/proforma91000_e.asp

5. The State Governments and Union Territory Administrations are requested to send the attested signatures of the authorised signatory who will be signing Proforma B claims immediately. If there is any change in the authorised signatory, attested signatures of such signatories may be sent immediately to avoid delay in release of payment.

6. All other references in respect of concession scheme should be sent in a sealed cover to Executive Director, FICC, Department of Fertilisers, 8th Floor, Sewa Bhawan, R.K.Puram, New Delhi-110066 / Joint Secretary(A&M), Department of Fertilisers, Krishi Bhawan, New Delhi by registered post/speed post.

7. The State Governments and Union Territory Administrations are requested to send the verification reports in Proforma 'B' to the office of FICC/FA Wing within 45 days from the date of receipts of claims from the suppliers so that the payments to the concerned companies are released on time.

8. The Company-wise reports on non - standard quantities of fertilisers detected may also be sent with Proforma 'B' every month so that the same is deducted from the amount due to the Company(s).

9. Each manufacturer/importer shall submit production/import plan for the year as a whole in the month of January to Director (Movement) of Department of Fertilisers (DOF) as well as monthwise and Statewise supply plans by the 15th of the months of March and August for Kharif and Rabi seasons, respectively. Besides, weekly despatch position shall be submitted to AC (Movement) of the DOF.

10. This issues with the concurrence of the Finance Division (Department of Fertilisers) vide their Dy. No.1061/2000-JS&FA dated 4.10.2000

11. This has been placed in the web site of the Department of Fertilisers http://fert.nic.in

(D.K. SIKRI)Joint Secretary to the Govt. of India

Copy to:-1. DG, FAI, Shaheed Jit Singh Marg, New Delhi.2. Director (Agriculture) of all State Governments/UTs Administration.

(D.K. SIKRI)Joint Secretary to the Govt. of India

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PROFORMA A(To be submitted in triplicate)

ToThe Director of Agriculture

1. Name of the claimant with full address:_____________________________________

2. Month for which the claim is submitted:___________________________________

S.

No.

PRODUCT SALES CONCESSION

Name of Institutional Agency with name & address / private trader with name and address of the dealer

Qty. sold

(MT)

Preceding months Sales

Returned*

(MT)

Net qty. sold

(MT) (4-5)

Rate of concession

(Rs./PMT)

Amount

Claimed

(Rs)

(6x7)

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

1.

2.

3.

4.

5.

IMPORTED

DAP

MOP

iNDIGENOUS

DAP

COMPLEXES

SSP

Certified that the above details are true and fertilizer conforms to prescribed quality as per Fertiliser Control Order specifications.

For (NAME OF THE MANUFACTURER / IMPORTER)

Company authorised signatory(Name, Designation with seal)

It is certified that the quantity as shown in the proforma has been verified from the sales invoice/sales day books maintained by the company.

For (STATUTORY AUDITORS)

AUTHORISED SIGNATORY(Name, Membership No. with seal)Place:Date:CC: 1. ED, FICC, Department of Fertilizers, 8th Floor, Sewa Bhawan, R. K. Puram, New Delhi-110066. For indigenous fertilizers/ SSP 2. Director of Accounts, Ministry of Chemicals & Fertilizers, Department of Fertilizers 4th Floor, Super Bazar Building, Connaught Place, NEW DELHI. For imported fertilizers.* Quantity sold and concession received during the preceding months of______ and returned back during current month.more >>

PROFORMA B(To be submitted in duplicate)

ToExecutive Director,Fertilizer Industry Coordination committee,8th Floor, Sewa Bhawan, R K Puram,NEW DELHI-110066.

Subject: Sales of decontrolled phosphatic & potassic fertilizers with concession to the farmers during ___________

Name of State/ UT. _______________Report for the Month of ___________________


Quantities sold during The month under Report

Cumulative Quantity Sold During The Financial Year

(MT) (MT)

(1) (2) (3) (4)

IMPORTED

DAP

MOP

iNDIGENOUS

DAP

COMPLEXES

SSP

It is certified that the above statement is correct, the quality is as per Fertiliser Control Order specifications and the quantity has been sold not exceeding the Maximum Retail Price notified for the period.

DIRECTOR OF AGRICULTURE(With name & Seal)PLACE:DATE:

CC: The Director of Accounts, Ministry of Chemicals & Fertilizers, Department of Fertilizers, 4th Floor, Super Bazar Building, Connaught Place, NEW DELHI.

2. Manufacturer / Importer

PROFORMA 'C'Pre receipted claim for "on account" payment

(To be submitted in duplicate separately for imported & indigenous fertilizers together with proforma A, E/F & G)

Authority No. Ministry of Chemicals & Fertilizers Bill No._______________(Department of Fertilizers) letter Date _______________No._______________ dated______State / UT ____________ Month to which relates__________ Name of the Claimant with full address_______________Details of the Claim

S. No.Product Net quantity sold

as per col. 6 of the Proforma A

Rate of Concession

Amount of

Concession

80% of the amount now claimed


(1) (2) (3) (4) (5) (6)

1.

2.

3.

4.

5.

IMP.

DAP

MOP

iNDIG.

DAP

COMPLEXES

SSP

Total

Total amount claimed being rounded off Rs._________ (Rupees___________________)1. Certified that the quantity shown in the column 6 of the proforma 'A' on which concession is being claimed is on net weight basis and does not include the weight of bags. It is further certified that this quantity of fertilizers has been sold on net weight basis and exclusively for agriculture use and not for industrial or any other use.2. Certified that all the conditions prescribed in the Ministry of Chemicals & Fertilizers (Department of Fertilizers) letter No.____________________ dated ______________ have been fulfilled.Signature of the claimant(With name, date, designation & Stamp)


Revenue Stamp Signature of the claimant(With name, date, designation & Stamp)

Please pay by crediting our current/CC Account No.____ with State Bank of Patiala, Shastri Bhawan, New Delhi.Signature of the claimant(With name, date, designation & Stamp)ToED, FICC, 8th Floor, Sewa Bhawan, R K Puram, New Delhi. /Director of Account, Department of Fertilizers, 4th Floor Super Bazar, Connaught Circus, New Delhi.more >>

PROFORMA 'D'Proforma for claiming balance payment

(To be submitted in duplicate separately for imported & indigenous fertilizers with proforma B)

Authority No. Ministry of Chemicals & Fertilizers Bill No._______________(Department of Fertilizers) letter Date _______________No._______________ dated______State / UT ____________ Month to which relates__________ Name of the Claimant with full address_______________


S. No.

Product Net quantity sold as per col. 3 of the Proforma B

Rate of Concession

Amount of

Concession

Remarks


(1) (2) (3) (4) (5) (6)

1.

2.

3.

4.

5.

IMP. DAP

MOP

iNDIG. DAP

COMPLEXES

SSP

Total



Total amount claimed being rounded off Rs._________ (Rupees___________________)



Revenue Stamp


Please pay by crediting our current/CC Account No.____ with State Bank of Patiala, Shastri Bhawan, New Delhi.Signature of the claimant(With name, date, designation & Stamp)ToED, FICC, 8th Floor, Sewa Bhawan, R K Puram, New Delhi. /Director of Account, Department of Fertilizers, 4th Floor Super Bazar, Connaught Circus, New Delhi.more >>

PROFORMA 'E'(To be submitted monthly by manufacturers)

MONTH________________

PRODUCT______________

PLANT WISE DETAILS OF OPENING STOCKS, PRODUCTION, DESPATCHES AND CLOSING STOCKS

Opening Balance At plant

Production Cumulative production

For the

Quarter



Cumulative Despatchesto the states

for the

Quarter

Closing Balance

(At plant)


States Despatches for the Cumulative Despatches Month for the quarter--------- ------------------------- --------------------------------


PROFORMA 'F'(To be submitted monthly by importers)

PORT__________________

MONTH________________

PRODUCT______________

PORTWISE DETAILS OF OPENING STOCKS, IMPORTS, DESPATCHES AND CLOSING STOCKS

Opening Balance

Imports Cumulative Imports

Quantity Sold in bulk to complex manufacturers/

Quantity bagged


Cumulative Despatchesto the states

Closing Balance

(At port)

(At port) For the

Quarter

captive consumption for the

Quarter


States Despatches for the Cumulative Despatches Month for the quarter--------- ------------------------- --------------------------------

Please attach vessel wise details for the vessels arrived during the month along with copies of Bill of Lading, Suppliers Invoice, Bill of Entry and Joint DSR etc.


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PROFORMA'G'(To be submitted monthly by manufacturers/ importers)

Month____________Product____________

STATEWISE DETAILS OF OPENING STOCK, RECEIPTS, SALES AND CLOSING STOCK



For the

Quarter

Inter Area Movement

Total Availability

Sales Cumulative Sales

For the

Quarter

Closing Balance


Please send your queries and feedback to [email protected]

Joint Secretary (A&M)

Department of Fertilizers

Room No. 221, A-Wing,

Shastri Bhavan,

New Delhi - 110 001

Tel.: 011-23386800

Fax: 011- 23073820

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