14. 13. STs. 9. 10. 2. 3. 15.No. 5-11 12-13 14-21 22-23 24-25 26-41 42-72 73-74 75-79 80 81 82-83 84-85 86-88 89-104 3 .CONTENTS S. 11. 5. Subjects 1. 6. Introduction Organizational Set up and Functions Development & Growth of Fertilizer Industry Availability of Major Fertilizers during 2009-10 Plan Performance Measures of Support for Fertilizers Public Sector Undertakings and Cooperative Societies Fertilizer Education Projects Information Technology (IT) Vigilance Activities Right to Information Act. 7. OBCs and Physically Handicapped Persons Women Empowerment ANNEXURES I to XII Page No. 2005 Progressive Use of Official Language (Hindi) Welfare of SCs. 8. 12. 4.

Chairman. Hon’ble Minister of State (C&F) receiving dividend cheque from Dr.K. KRIBHCO 4 . Alagiri. Chandrapal Singh. Hon’ble Minister (C&F) along with Shri Srikant Kumar Jena.Shri M.

1.7 lakh MT in 1951-52 to 249. Keeping in view the vital role played by chemical fertilizers in the success of India’s green revolution and consequent self-reliance in food-grain production. As for potash (K) since there are no viable sources/reserves in the country. This is clear from the fact that from a very modest level of 52 million MT in 1951-52. 1. the raw materials and intermediates for are largely imported.3 5 . The industry made a very humble beginning in 1906. Presently.2 The installed capacity as on 31. the annual consumption of fertilizers in nutrient terms (N. green revolution in the late sixties gave an impetus to the growth of fertilizer industry in India and the seventies and eighties then witnessed a significant addition to the fertilizer production capacity. 21 units produce DAP and complex fertilizers. Out of these.1. it provides crucial backward and forward linkages to the rest of the economy. Even for that. co-operative and private sectors. As a result. P & K).2 Growth of Fertilizer Industry 1. 1. there are 56 large size fertilizer plants in the country manufacturing a wide range of nitrogenous.09 lakh MT 2008-09. food grain production rose to about 233.1. making India the 3rd largest fertilizer producer in the world. Besides. which was less than 1 Kg in 1951-52 has risen to the level of 128. has increased from 0. 1.2 1.88 million MT in 2008-09. Successive five-year plan have laid stress on self-sufficiency and self-reliance in food grains production and concerted efforts in this direction have resulted in substantial increase in agriculture production and productivity. the country has achieved near self-sufficiency in production capacity of urea with the result that India could substantially manage its requirement of nitrogenous fertilizers through the indigenous industry. provides sustenance to two-thirds of our population.Chapter-1 1. In India’s success in agriculture sector. (FACT) at Cochin in Kerala and the Fertilizers Corporation of India (FCI) in Sindri in Bihar (now Jharkhand) were the first large sized fertilizer plants set up in the forties and fifties with a view to establish an industrial base to achieve self-sufficiency in food-grains. 30 (as on date 28 are functioning) units produce urea. when the first manufacturing unit of Single Super Phosphate (SSP) was set up in Ranipet near Chennai with an annual capacity of 6000 MT.1 Introduction Agriculture which accounts for one fifth of GDP.2.61 lakh MT of nitrogen of capacity of which the non functional capacity is estimated as 10. Subsequently.2009 has reached a level of 120.1 1. As of now. not only in terms of meeting total requirement of food grains but also generating exportable surpluses the significant role played by chemical fertilizers is well recognized and established.2. its entire requirement is met through imports. The Fertilizer & Chemicals Travancore of India Ltd. nearly 50% of domestic requirement is met through indigenous production. the Government of India has been consistently pursuing policies conducive to increased availability and consumption of fertilizers in the country.52 lakh MT and 56.60 Kg (estimated) in 2008-09.03.59 lakh MT of phosphatic nutrient. The rapid build-up of fertilizer production capacity in the country has been achieved as a result of a favourable policy environment facilitating large investments in the public.1. while per hectare consumption of fertilizers. phosphatic and complex fertilizers. In case of phospatic fertilizers.

3 1.1 Self-sufficiency in Fertilizer Sector Out of three main nutrients namely nitrogen.e. ammonia and phosphoric acid. (Andhra Pradesh).00 1985. nitrogenous fertilizer plants were mainly based on naphtha as feedstock.2009. In the absence of commercially exploitable potash sources in the country. a number of gas based ammonia-urea plants have been set up since 6 . 1. Sector Capacity (lakh MT) N 1 2 3 Public Sector Cooperative Sector Private Sector Total: 34. As the usage of gas increased and its available supply dwindled.03. domestic production based on indigenous / imported intermediates. Under the new pricing regime for urea units applicable since 01. indigenous raw materials are available mainly for nitrogenous fertilizers. and third. import of finished fertilizers. In 1980.04. however. Prior to 1980.2. NUTRIENT-WISE INSTALLED CAPACITY OF FERTILIZER MANUFACTURING UNITS AS ON 31. with natural gas becoming available from offshore Bombay High and South Basin. economically efficient units are being permitted to produce beyond their reassessed capacity to substitute/ minimize imports.13 56. viz. is very sensitive to demand supply scenario.2002 due to technical and financial nonviability. No.f.59 Percentage Share N 29. phosphate and potash. Besides. a number of expansion projects came up in the last few years with dual feed facility using both naphtha and gas. marginal provision through imports could be used to the country’s strategic advantage. (N. is also being explored by various fertilizer companies in India.4.0 26.65 30. This is also desirable as the international market. Indigenous rock phosphate supplies meet only 5-10% of the total requirement of P2O5. the paucity of domestic raw material has been a constraint in the attainment of self-sufficiency in the country. 1. been closed by Government w.5 units produce low analysis straight nitrogenous fertilizers and the remaining 9 manufacture ammonium sulphate as byproduct.13 35. two coal-based plants were set up for the first time in the country at Talcher. The Government’s policy has hence aimed at achieving the maximum possible degree of self-sufficiency in the production of nitrogenous fertilizers based on utilisation of indigenous feedstock.73 100. However. In case of phosphates.33 17.3. there are about 72 medium and small-scale units in operation producing SSP.27 44. the entire demand of potassic fertilizers for direct application as well as for production of complex fertilizers is met through imports.08 100.4. Sr. These coal based plants have.94 120.3. A policy has therefore been adopted which involves mix of three options. Feasibility of making available Liquefied Natural Gas (LNG) to meet the demand of existing fertilizer plant and/or for their expansion projects along with the possibility for utilising newly discovered gas reserves. 1. domestic production based on indigenous/ imported rock phosphate.61 P 4. 1.3. 1. for securing additional indigenous supply of urea. especially in case of urea. Given the volatility in international market for fertilizers in general and urea market in particular.69 53. A number of fuel oil/LSHS based ammonia-urea plants were also set up during 1978 to 1982.3.P&K) required for various crops.00 P 7. During 2008-09 roughly 65% of the requirement of phosphatic fertilizers was met through the first two options.3. (Orissa) and Ramagundam.98 31.2003. viz.27 62. The sector-wise installed capacity is given in the table below: SECTOR-WISE. imported sulphur and ammonia.

The increase in rate of subsidy on fertilizers combined with increase in consumption of fertilizers has led to a substantial increase in requirement of subsidy. the Government has completely kept the farmers insulated from this increase in cost and have increased the subsidy allocations to meet the consumption needs of the farmer at subsidized level of prices.. The selling price of urea. naphtha. sulphur.1. The details of fertilizer subsidy over the last few years are as below:- 1. phosphoric acid.4. necessitating constant upward revision in the retention prices. gas. The difference between the normative delivered cost at farm gate level and the notified selling prices is paid as subsidy to manufacturers/importers on sale of fertilizers to the farmers at the subsidized prices.4 1. The selling prices as notified by Government for the subsidized fertilizers are much lower than the normative delivered cost of these fertilizers at farm gate level. 1981 and July 1991. 1991 after a gap of a decade.4. The cost of various inputs / utilities. went up significantly during the eighties. electricity. The prices of urea were again revised in February 2002 by 5% FERTILIZER SUBSIDY (Rs.1 Fertilizer Subsidy The subsidy on fertilizers is passed on to the farmers in the form of subsidized MRPs. ammonia. rock phosphate. In spite of increase in cost of fertilizers. such as coal.2 The steady increase in fertilizer subsidies over the years has largely been the result of increasing production / consumption and increases in the costs of inputs of indigenous fertilizers and prices of imported fertilizers from time to time. The selling prices of fertilizers to the farmers. The gas-based fertilizer units commissioned during this period also involved higher capital investment per tonne of installed capacity.97. however.4. The subsidy on fertilizers has been increased sharply over the last few years.2. etc. The Government effected an increase of 30% in the issue prices of fertilizers in August. as also the cost of transportation.3 1. which was reduced by 10% in August 1992. in Crores) Years Subsidy Released Total subsidy disbursed Total (P&K) 3225 3326 5142 6550 10598 17134 65555 31798 11013 11835 16128 18299 25952 40338 99456 57056 2002 3372 5914 8788 5000 17158 17498 20841 28826 36550 111614 74214 Liabilities Carryover to next year Net incidence of subsidy Urea 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10* *Estimated 7788 8509 10986 11749 15354 23204 33901 25258 Indigenous Imported (P&K) (P&K) 2488 2606 3977 4500 6648 10334 32957 15447 737 720 1165 2050 3950 6800 32598 16351 7 . remained almost at the same level between July. was revised upwards by 20% in June 1994 followed by another increase by 10% with effect from 21.

1.H. purchased power and water. However. the existing urea units have been divided into six groups based on vintage and feedstock for determining the group based concession.e. 2003 to 31st March. The current price is Rs.1 Fertilizer Pricing Policy Given the importance of fertilizer pricing and subsidization in the overall policy environment. 1st April. Under the scheme. pre-1992 naphtha based units. Under NPS. fuel oil/low sulphur heavy stock (FO/LSHS) based units and mixed energy based units.and by Rs. The views of the fertilizer industry and the State Governments/ Union territories.5. The recommendations of ERC were examined in consultation with the concerned Ministries/Departments. a uniform Normative Referral Price be fixed for existing gas based urea units and also for DAP and a Feedstock Differential Cost Reimbursement (FDCR) be given for a period of five years for non-gas based urea units.f.2.5. post-1992 naphtha based units.7. the ERC recommended. dismantling of existing RPS and in its place the introduction of a Concession Scheme for urea units based on feedstock used and the vintage of plants. the Stage-II of NPS stands extended upto 31st September. Geethakrishnan. With the Stage-III of NPS being implemented w.e. a New Pricing Scheme (NPS) for urea units for replacing the RPS was formulated and notified on 30.4. to review the existing system of subsidization of urea. however. 1. the need for streamlining the subsidy scheme in respect of urea producing units had been felt for a long time.5.3. 2006. suggest an alternative broad-based. which has direct implications with reference to the growth and development of agriculture and sustainability of the fertilizer industry.2002. no reimbursement is allowed in respect of investment made by a unit for improvement in its operations nor are the gains as a result of operational efficiencies to be mopped up.5. 8 . The StageI of NPS was of one year duration from 1st April.e. the hikes in prices of urea have not materially altered the position in terms of the absolute outgo in the form of subsidy. A High Powered Fertilizer Pricing Policy Review Committee (HPC) was constituted.P.2003. because of the steady growth in production to meet the growing demand and rise in the costs of inputs. and recommend measures for greater cohesiveness in the policies applicable to different segments of the industry. 4830 per tonne exclusive of local levies. The mixed energy based group shall include such gas based units that use alternative feedstock/fuel to the extent of more than 25% as admissible on 1. 2003. 1.5 1. 2004 and StageII was of two year duration from 1st April to 31st March.5. besides bringing in greater transparency and simplification in subsidy administration. C. in its report submitted to the Government on 3rd April 1998. Under NPS. scientific and transparent methodology. 2006.f. These groups are : Pre-1992 gas based units.2.f.2003. 1st October.f 12.4. under the chairmanship of Prof.5. recommended that unit-wise RPS for urea may be discontinued and. New Pricing Scheme (NPS) for urea was introduced w. 1.5.2003. and economists/research institutes were also obtained. In its report submitted on 20 th September 2000. instead. 240 PMT of urea w. post-1992 gas based units.4. It aims at inducing the urea units to achieve internationally competitive levels of efficiency.e. inter-alia. later withdrawn w. 28. 1.2003. inter-alia. The price increase made effective from 28. 1. 2006. The new scheme took effect from 1. After due examination of all these views. The Expenditure Reforms Commission (ERC).6. escalation/de-escalation is given in respect of variable cost related to changes in the price of feedstock. fuel. Hanumantha Rao. It has also been provided under the scheme that the concession rates during Stage-II shall 1.2003 was. The HPC. headed by Shri K. had also examined the issue of rationalizing fertilizer subsidies.

1.f 1st April. Reduction in rates of concession during Stage-II of NPS for urea units on account of reduction in capital related charges have also been notified and intimated to urea units.III and help them to generate resources for reinvestment in their plants towards modernization and increased efficiency.1 It has been decided that the reduction in the fixed cost of each Urea units strictly due to Group Averaging principle under the New Pricing Scheme III will be restricted to 10% of the Normated Fixed Cost computed under the base concession rates. To maintain stocks of urea in case there is either a shortfall in production due to disruption in supplies of feedstocks or delay/ disruption in imports and to tide over the sudden spurt in demand/shortages. Pre-set energy norms for urea units during Stage-II of NPS have already been notified and intimated to urea units.6 Amendments to New Pricing Scheme Stage .2 Capacity utilization of Post – 1992 Naptha based Group Average will be considered as 95% instead of 98% for calculating the base concession rates of urea units provided no cost towards conversion is recognized under NPS III. be adjusted for reduction in capital related charges and enforcement of efficient energy norms. The approved amendments will help the indigenous urea units reduce their losses due to the group averaging under New Pricing Scheme Stage . The limitation on 1.3 9 .6.6.Shri M.6.K. a buffer Following amendments in NPS III have been made 1. 1. Alagiri. Hon’ble Minister (C&F) giving awards at Fertilizer Association of India Seminar held at Hyderabad. reduction of fixed cost will be applicable w.III for Urea Units.e. 2009.

1. 1.2008. revised the MRP of NPK Complex Fertilizers downwards w.2008 4830 9350 4455 9350 From 18. 1. additional handling charges at the rate of Rs 30 per MT will be paid to the Fertilizer Company on the quantity sold from the buffer stock.2007) Triple Super Phosphate (TSP) (w. Rock Phosphate and Phosphoric acid increased manifold during 10 . (iv) In addition.7.6.e.f. (ii) The company will be paid warehousing and insurance charges at the rate of Rs 23 per tonne per month on the quantity carried as buffer. 1.e. Then Department of Fertilizers introduced nutrient based subsidy in June 2008 and accordingly.e. 2008. The MRP of fertilizers is shown in the table below:- MAXIMUM RETAIL PRICE OF FERTILIZERS (Rupees per MT) Product From 12. 18.5.e.f. from the plant to the buffer stocking point and then on to consumption points. 1. Sulphur.6.2008 to 30. This rate would be applicable at Rs 4650 per MT (MRP less than the dealer’s margin i.Rs 180) for the quantity and the duration for which the stock is carried as buffer.8 Global Scenario Prices of Major fertilizers. The companies are reimbursed buffer stocking expenses on following parameters. Rs 4830.f.e.N:P:K:S 16:20:00:13 (earlier 16:20:00) 20:20:00:00 20:20:00:13 23:23:00:00 28:28:00:00 10:26:26:00 12:32:16:00 14:28:14:00 14:35:14:00 15:15:15:00 17:17:17:00 19:19:19:00 4830 9350 4455 9350 7460 3400 7460 3400 10350 7100 7280 7280 8000 9080 8360 8480 8300 8660 6980 8100 8300 5875 5343 6295 6145 7481 7197 7637 7050 8185 5121 5804 6487 1. such as Urea. it will be at Rs 4630 per MT as dealers margin in this case is Rs 200 per MT.e. DAP and MOP and fertilizer inputs such as Ammonia.08 Urea Di Ammonium Phosphate (DAP) Muriate of Potash (MOP) Mono-Ammonium Phosphate (MAP) (w. freight from the buffer stocking warehouse to the block in case of movement outside the district in which buffer stocking godown is located.7 1.1 MRP of Decontrolled P & K Fertilizers The MRP of the DAP/NPK/MOP has been constant from February 2003 to 17.4.2008) Grades of Complex Fertilizers .stocking scheme for urea is under implementation in major States. In case of cooperatives. will also be paid to the company. in accordance with the provisions under the Uniform policy for freight subsidy announced by the Government with effect from 1st April.6. the MRP of the other fertilizers remained the same.2008) Single Super Phosphate (SSP) (w. (iii) Since the material will be moved in two stages i.3.f.e.2008. (i) The company operating the buffer stock will be entitled to Inventory Carrying Cost (ICC) at a rate 1 percentage point less than the PLR of SBI as notified from time to time.2003 to 17.2009) all India MRP Ammonium Sulphate (AS) (w.06.6. However.7.4.f.

went up to 1985 cfr pt in April-June 2008 and to US $ 2310 cft pt in July-September 2008.25 cft pt (annual contract price) for 2007-2008. Price of Phosphoric acid which was US $ 566. which prevailed at US $ 170 fob per MT in January 2007 went up to US $ 328 fob per MT in January 2008 and US$ 945 fob per MT in October 2008.00 (in Jan. This resulted in steep increase in prices of both finished fertilizers as well as intermediates and consequently led to substantial increase in subsidy outgo of the Government.760 261. Price of Phosphoric Acid witnessed a sharp increase during the year.00 2200-2310 571. Urea Price.50 35. went upto US $ 389 cfr (India) per MT in January 2008 and US $ 834 cfr (India) in September 2008. India (C&F) Ammonia (C&F) Sulphur (C&F) Rock (C&F) Sulphuric Acid (C&F) Brazil July 2008 1291.88 139. was $ 301. which was US$ 280. From July 2008 to January 2010.5 cfr (India) per in January 2007.50 142. The prices in January 2010 in comparison to that of and July 2008 and March 2009 are as follows : (US $ pmt) Raw material/Intermediate/Fertilizers DAP MOP Urea FOB Phos Acid.25 306.00 384.00 360.0 January 2010 499.75 cfr per MT in January 2007 to US $ 561 cfr per MT in January 2008 and to US $ 846 cfr pt in July 2008. subsidy outgo for 2008-09 was about one lakh crore.00 March 2009 414. the prices of the raw materials/intermediates/finished fertilizers have shown a declining trend.63 650. As a result.5 cfr pt in January 2007 went up to US $ 245 cfr pt in January 2008 and to US $ 460 cfr pt in June 2008.90 725.75 fob per MT in January 2007 increased to US$ 403.88 610-627.00 767. The spurt in international prices have impacted prices of imported finished fertilizers as well as raw material in India.50 327.00 783. on an average.09) 0.13 381. Ammonia price.50 305.00 57.2008-09. which.00 301.00-50. Raw material prices also showed exponential jumps during the last one year. MOP price. Price of DAP. Price of Rock Phosphate which was US $ 79.10 846.75 fob per MT in January 2008 and US $ 815 fob per MT in August 2008. Sulphur price increased from US $ 78.5 cfr per MT in January 2007 increased to US$ 802 cfr per MT in January 2008 and US $ 1331 cfr pt in May 2008.38 11 . which was US $ 320.

7 The list containing the names of Ministerin-charge and the officers of the level of Deputy Secretary and who have worked in the Department during 2009-2010 is given in Annexure-II.1. The FICC comprises of the Secretaries to the GOI in the Department of Fertilizers.4 Joint Secretary (F&P) & ED FICC (Ex officio) is entrusted with the work pertaining to Urea Policy. import and distribution of fertilizers and management of financial assistance by way of subsidy/concession for indigenous and imported fertilizers.1 The office of Fertilizer Industry Coordination Committee is an attached office under the Department of Fertilizers headed by Executive Director. promotion and development of the Fertilizer Industry.1. shipping and import of Urea 0n Government account.6 The Economic Adviser. demand. soil health cards. nutrient absorption issues. FMS. matters relating to agriculture Ministry such as Bio fertilizers. 2.3 The Joint Secretary in-charge of (P&P) looks after the work relating to Policy Coordination. Parliamentary work and coordination. OMIFCO related matters including off-take of Urea.Chapter-2 2. one Economic Adviser & one Additional Secretary cum Financial Adviser.2 The work of these divisions is handled by three Joint Secretaries. List of subjects allocated to the Department of Fertilizers as per Government of India (Allocation of Business) Rules. micro-nutrients. supply. 2.1 Organizational set up and functions 2.2. an officer of Joint Secretary level advises the Department on various economic issues which have economic implications.1.1. intermediates and raw materials and economic analysis of specific importance assisting in firming up policy issues. 2. Industrial 12 . organic fertilizers based on urban solid waste. over all project coordination including JVs and long-term off-take policy. 2.1. P & K Subsidy payments and import on government account payments. Phosphatic Fertilizer Policy. branch administration and vigilance. clean technology and general environmental issues. 2.1 The main activities of Department of Fertilizers (DOF) include planning. revival of closed Urea units including FCIL and HFCL. balanced fertilizers. Movement and Distribution (iii) Administration and Vigilance and (iv) Finance and Accounts. subjects related to renewable and non-renewable energy. implementation of finalized long term offtake arrangements. and WTO related issues. Urea Fertilizers Joint Ventures Projects (domestic and overseas).1. availability and price movement forecasting of various fertilizers. planning and monitoring of production. 2. 1961 amended from time to time has been given at Annexure-I. S&T projects. Joint Venture Projects of P & K Fertilizers (domestic and overseas).1. The Department is broadly divided into 4 Divisions dealing with (i) Fertilizers Projects and Planning (ii) Fertilizer Imports. 2.5 Joint Secretary (A&M) looks after the work relating to the movement of fertilizers and related policies and coordination with States.2 Fertilizer Industry Committee (FICC) Coordination 2. PSUs matters except vigilance Special Purpose Vehicle for exploring Joint Ventures abroad.

12.2003 to administer and operate the New Pricing Scheme (NPS). Agriculture and Cooperation.f. one multi-state cooperative society.e.4. 2. Policy and Promotion.e.3. which has come into existence w.1977 to administer and operate the erstwhile Retention Price cum subsidy Scheme (RPS). Expenditure. 13 . Tariff Commission and two representatives of the urea industry. The list is given at Annexure-III.2. has been replaced vide Resolution dated 13.2003.Shri Srikant Kumar Jena. Ministry of Petroleum & Natural Gas. FICC.2 The Department has under its administrative control nine (9) Public Sector Undertakings (PSUs).f. 1. 1. Chairman. which was initially constituted w. Hon’ble Minister of State (C&F) inaugurating Health Mela organized by IFFCO at Betnoti (Orissa).

646 8.1% in nitrogen and 19.970 8.30 6. taken together.200 3. Gas-Public FO/LSHS-Private Gas-Public Gas-Coop.706 3.868 @ 3. 5 units produce low analysis straight nitrogenous fertilizers and 9 manufacture ammonium sulphate as by-product. The installed capacity of urea units in the country as follows:UREA UNITS SET UP BETWEEN: 1967-2009 WITH INSTALLED CAPACITY Year of Comm.2% in Phosphate as compared to production in 2008-09.400 @ 3.646 8. 3.785 5.068 17.31 Lakh MT of Phosphate. phosphatic and complex fertilizers.115 5. FO/LSHS-Public FO/LSHS-Public Gas—Coop.115 5.65 lakh MT of phosphate.2. equipment breakdowns and RCF Trombay-V & DIL Kanpur remained under unscheduled shutdown.646 2. 3.220 4.60 lakh MT of nitrogen and 53.2004.646 8.150 8. In case of phosphate. Gas-Private Gas-Private Gas-Private Gas-Private Gas-Private Gas-Cooperative Gas-Public Gas—Cooperative Naphtha-Private Naphtha/Gas-Private Gas-Public Installed Capacity (lakh/MT) 3.03.646 5. Production of complexes was higher than the coresponding period of last year. Of these.1 Development & Growth of Fertilizer Industry Capacity Build-up At present.2.1 3.292 3. has margnally incresed to120. The total installed capacity of fertilizer production which was 119.800 4. 1967 1969 1970 1971 1973 1975 1976 1978 1978 1979 1979 1981 1982 1982 1985 1986 1987 1988 1988 1988 1992 1993 1994 1995 1996 1997 1997 1998 1999 2005 Unit Feedstock and Sector Gas-Private Naphtha-Private Naphtha-Private Naphtha-Public Naphtha-Private Naphtha-Private Naphtha-Private FO/LSHS-Public Gas-Coop. there are about 72 small and medium scale units in operation producing single super phosphate (SSP). The production of fertilizers during 2008-09 was 3. Besides. The production performance of both nitrogenous and phosphatic fertilizers during GSFC-Baroda SFC-Kota DIL-Kanpur MFL-Madras ZIL -Goa SPIC-Tuticorin MCFL-Mangalore NFL-Nangal IFFCO-Kalol NFL-Bhatinda NFL-Panipat IFFCO-Phulpur RCF-Trombay-V GNFC-Bharuch RCF-Thal KRIBHCO-Hazira BVFCL-Namrup-III (Formerly HFC) NFL-Vijaipur IFFCO-Aonla Indogulf-Jagdishpur NFCL-Kakinada CFCL-Gadepan TCL-Babrala KRIBHCO SHYAM-Shahjahanpur (Formerly OCFL) IFFCO-Aonla expansion NFL-Vijaipur expansion IFFCO-Phulpur expansion NFCL-Kakinada expansion CFCL-Gadepan expansion BVFCL:Namrup-II Note: @ After revamp 14 .2009. The production target for phospahtic fertilizer is less than installed capacity due to constraints in availability of raw materials/ intermediates which are substantially imported.70 lakh MT of nitrogen and 34.993 6. The production target for 2009-10 was 120. 5.646 8. However. 30 units (as on date 28 units are fucntioning) produce urea.59 lakh MT of phosphate as on 01.970 8.790 7.2. production in DAP plants was low on account of shortage of imported phosphoric acid and ammonia. Gas-Public Gas-Public Gas-Coop. 21 units produce DAP and complex fertilizers. the production of ‘N’ and ‘P’ during the year is higher than that in the corresponding period of last year.2 Production Capacity And Capacity Utilisation the year 2008-09 was less than the target mainly due to constraints in suppply and quality of natural gas.646 8. Production target for nitrogenous fertilizer is more than the installed capacity.646 8.61 lakh MT of nitrogen and 56.360 17.60 lakh MT of phosphate as on 31. representing a growth rate of 11.646 8. there are 56 large size fertilizer units in the country manufacturing a wide range of nitrogenous.Chapter-3 3.1.85 Lakh MT of nitrogen and 41.445 @ 5.

• • Note: Production by DIL-Kanpur (7. 5.95 3.6. Accordingly.3% in 2009. the capacity utilisation in terms of the urea plants was 101. No. because it is clean and efficient source of energy and secondly. the pricing policy. naphtha and FO/ LSHS. • 3.30 3.1 At present.30 0.4. 9.1. Looking at possibilities of revival of some of the closed units by setting up brownfield units subject to available of gas. is expected to improve further through revamping/ modernisation of the existing plants. Name of the Company/Unit FCI: Gorakhpur FCI: Ramagundam FCI: Talcher FCI: Sindri HFC: Durgapur HFC: Barauni RCF: Trombay-I NLC: Neyveli FACT: Cochin-I Total Date of closures 10. production and capacity utilisation during 2008-09 and 2009-10 are given in Annexure-IV. provides that new urea 15 .4 Feedstock Policy 3. apart from the constraints mentioned earlier. 6. 3.95 4.7.1% in 2008-09 and 106.3.53 Strategy for Growth 3. 3.10. the actual production capacity utilisation has also been influenced by the demand trends.2002 1.3.85 4. announced in January 2004. it is considerably cheaper and more cost effective in terms of manufacturing cost of urea which also has a direct impact on the quantum of subsidy on urea.6. non-viability of unit/company and heavy financial losses. 3.1999 16.30 28. The estimated capacity utilisation during 200910 is 99. 3. Sl.1999 The following strategy has been adopted to increase fertilizer production: • Expansion and capacity addition/ efficiency enhancement through retrofitting / revamping of existing fertilizer plants.30 3. natural gas based plants account for more than 66% of urea capacity. The unit-wise details of installed capacity.22 LMT) was suspended due to financial constraints. particularly in respect of urea. etc.4 The following 9 urea plants of the companies are presently closed/under shutdown due to various reasons. on account of technological obsolescence. As for phosphate fertilizers.5.98 1.3. Within this gross capacity utilization.2% of nitrogen and 76.9% of phosphate. to overcome the constraints in the domestic availability of cheap and clean feedstock. The capacity utilisation during 2008-09 was 90.1999 1. firstly.46 3.1% for nitrogen and 61. inter-alia.1995 31. 4.2001 Annual Installed Capacity (In Lakh MT) 2. The domestic fertilizer industry has by and large attained the levels of capacity utilisation comparable with others in the world.1990 1. Working out the possibility of using alternative sources like liquefied natural gas. feedstock limitation. 7.2.2. 8. particularly for the production of urea.2% for phosphate. The two coal based plants at Ramagundam and Talcher were closed down due to technological obsolescence and nonviability. The capacity utilisation of the fertilizer industry. naphtha is used for less than 30% urea production and the balance capacity is based on fuel oil and LSHS as feedstock. 3.2002 15..5. coal gasification.2. Setting up joint venture projects in countries having abundant and cheaper raw material resources.4. Natural gas has been the preferred feedstock for the manufacture of urea over other feedstocks viz. 1. 3.1997 1.4.4.

Gadepan-II and IFFCO-Phulpur-I & II have already converted to NG/LNG.3. Chambal Fertilizers & Chemicals Limited (CFCL). the production capacities in existing units will increase. TATA Chemicals Limited and Chambal Fertilizers and Chemicals Limited have requested for firm availability of gas for taking final investment decision to undertake expansion of their existing units.20 72. 3. closed fertilizer units will be revived new Greenfield/Brown field projects will be set up and non gas based fertilizer plants will be converted to gas.02 42. This has led to a lower cost of production in these countries. 22nd September 2007. The Empowered Group of Ministers (EGOM) in its 65 th meeting held on 27-10-2009 considered the demand of natural gas for expansion and revamp of fertilizer plants and decided that they would be supplied natural gas as and when they are ready to utilize the gas.45 55. It is expected that with above availability of gas at reasonable prices. 3. Urea is the only fertilizer. we are largely import dependent and are subject to large-scale volatility in world prices of these fertilizers.2.4 The indigenous production capacities can come up in future with the above gas availability provided the gas is available at reasonable price. The above requirement of gas is based on the desired need to make the country selfsufficient in urea production. in which the country can become self-sufficient with the projected availability of gas in future. three naphtha based plants namely. Six companies viz IFFCO.5. For the same reasons.projects.1 The projected requirement of gas during the 11th Plan period for fertilizer sector is as below: 2007-08 2008-09 2009-10 2010-11 2011-12 Gas Demand At NCV 8200 Kcal/SM) 41. INDO-Gulf Fertilizers Limited. In phosphatic and potassic sector.5. It is expected that with the 16 . 3. The issue has been taken up with the Ministry of Petroleum and Natural Gas.f. Likewise. The fertilizer sector in Middle East and North East Africa is based on gas prices of approximately 50 cents per MMBTU to $ 1. KRIBHCO. Pursuant to formulation of policy for conversion of non-gas urea units to gas. the country will become selfsufficient in urea requirement by the end of 11th Plan.5. expansion of existing urea units and capacity increase through debottlenecking/revamp/modernization will be also allowed/recognized if the production comes from using natural gas/LNG as feedstock. The above availability of gas will also help our country to become an export surplus nation in urea sector.52 3.5 – 2 per MMBTU. taking the overall production capacity of urea in the country to more than 31 million tonnes. World over the price of gas is showing an upward trend but the countries rich in gas resources are having special assured price for fertilizer sector.76 95.5. Rashtriya Chemicals and Fertilizers Limited. This is necessary in light of the fact that our agricultural sector needs to be insulated from the volatile international prices of fertilizers and at the same time the fertilizer subsidy bill need to be reduced. Shriram Fertilizers & Chemicals Limited (SFC-Kota) has also started using gas w.5 Requirement and Availability of Gas to Fertilizer Sector above availability of gas. which are also the major exporters of urea in the world. the projected requirement of urea by the end of 11th Plan is expected to be around 31 million tones including the required quantities for maintaining the supply chain and buffer stocks. a policy for conversion of the existing naphtha/FO/ LSHS based urea units to natural gas/LNG as feedstock has also been formulated in January 2004. which encourages early conversion to natural gas/LNG.e. 3.

industrial development. etc. In addition to the issue of availability in pricing of gas. Bangalore Kochi-Mangalore-Bangalore Kochi-Mangalore-Bangalore (also from Kochi LNG Terminal) Fuel Oil/LSHS based plants 4. the country will save approximately USD 60 per MT of urea by producing within the country as compared to importing from Middle East countries on price equivalent to cost of production. Proposed pipeline Agency for connecting plants Fertilizer unit proposed to be connected Expected year of connectivity Naphtha based plants 1. there will be savings on account of internal transportation of urea depending upon the location of the plant.3. shipping freight (USD 20 per MT) and port handling charges (USD 20 per MT).6. Haldia 2012-13 GAIL NFL-Nangal. Panipat.5 Though enhancement of indigenous production capacity. the country not only becomes self-sufficient in urea production and immune from demand driven escalation in international prices. Further 8 closed units of FCIL and HFCL are presently away from the gas grid and their connectivity with gas pipeline is prerequisite for revival of these closed units. 3. but it also leads to increase in economic activity within the country. Dhabol. Durgapur HFC. Dadri-Bawana-Nangal Closed Units 5. Sindri FCI. Goa MFCL. At present 8 operational units are not on the gas grid and their connectivity with the gas grid is critical for their conversion to gas.5. Ministry of Petroleum and Natural Gas has projected that the following pipeline connectivity of gas to existing and closed units in the country will be provided by 2012-13 PIPELINE CONNECTIVITY PLAN (As provided by GAIL and MOP&NG S. Mangalore FACT. In addition. 3. Cochin 2011-12 2012-13 2011-12 17 . Bhatinda 2011-12 GAIL GAIL GAIL ZIL. the other major important issue in this sector is provision of gas pipeline connectivity to the existing urea units in the country and proposed urea units in future. Gorakhpur HFC. Barauni HFC. At the same level of gas prices. The savings will be on account of lower capital cost (USD 20 per MT approx).5. Spur from the following pipeline: Jagdishpur-Haldia GAIL FCI.No. increase in employment. 2.

1 Joint Ventures abroad Due to constraints in the availability of gas in the country. The details of the existing joint venture in the fertilizer sector are: 3.2. the company suffered financial losses.6. if any. It consists of 5060 MTPD granular urea and 3500 MTPD Ammonia plants along with utilities in the coastal town of Sur in Oman.Maroc Phosphore (MACID). The restructuring plan after having been approved by the Regional High Court of Dakar (Senegal) on 27th March 2008 has come into effect and ICS Senegal. The entire quantity of urea is off taken by the Government of India as per Urea Off-Take Agreement (UOTA) at pre determined prices. Jordan Phosphates Mines Company Ltd. as per price agreed for the additional quantity. A major portion of the phosphoric acid. (KRIBHCO). namely Oman India Fertilizer Company (OMIFCO). the Government has been encouraging Indian companies to establish Joint ventures production facilities with buy back arrangement in other countries. 2. In addition. (IFFCO) and Southern Petrochemicals Industries Corporation Ltd. Later on SPIC withdrew from the project. Indian Farmers Fertilizer Cooperatives Ltd. about 5. IndoJordan Chemicals Company Limited (IJC) in Jordan in May 1997 with a capacity of 2.3. (SPIC) formed a joint venture company in Senegal named Industries Chimiques du Senegal (ICS). and a near total dependence of the country on imported raw materials for production of Phosphatic fertilizers and full import dependence for MOP.2.3 IJC Jordan SPIC. ICS Senegal has been restructured in 2008 with Government of India.5 lakh MT of surplus Ammonia per year is also produced by the plant for which IFFCO has Ammonia Off-Take Agreement (AOTA). Indian Farmers Fertilizer Cooperative Ltd. 3. which is the preferred feed stock for production of nitrogenous fertilizers. ICS Senegal has a capacity to produce 6. (IFFCO) and Oman Oil Company with respective share holding of 25%. namely. In recent past. DAP and complex fertilizers. However. Government of India also off takes surplus 18 . Morocco in phosphate have given the country assured sources of supply of urea and phosphoric acid.6. (JPMC) and Arab Investment Company (AIC) set up a joint venture project. Senegal and Indo. quantity of Urea.5 LMT produced in the ICS plant is off-taken by IFFCO as per a long term buy back arrangement and utilized for production of phosphate fertilizers in India. is in operation.2.6. 3. OMIFCO is examining possibility of expansion and increase in production of Urea and Ammonia. two more projects. which are rich in fertilizer resources.6 3.60 lakh tones of phosphoric acid per annum and also finished phosphate fertilizer such as DAP and Complex fertilizers. IFFCO and other Indian consortium partners having 85% and Government of Senegal having 15% share. Further.6. The finished fertilizers. a critical input for production of Phosphatic fertilizers.1 OMIFCO Oman: Krishak Bharati Cooperative Ltd. Jordan India Fertilizer Company (JIFCO) in Jordan and Tunisia India Fertilizer Company (TIFERT) in Tunisia are about to be commissioned in the year 2010. The annual capacity of the fertilizer complex is 16.6. produced by ICS Senegal is for domestic consumption in Senegal.24 3.2 Existing joint ventures.52 lakh MT of granular Urea. as restructured.2 ICS Senegal The Government of India (GoI). Oman in Urea ad Industries Chimiques du Senegal (ICS). 25% and 50% have collaborated and set up a world class urea-ammonia fertilizer plant ‘Oman India Fertilizer Company ‘ (OMIFCO) in Oman at a cost of US $ 892 million.

60 lakh MT of phosphoric acid per annum was commissioned in Morocco in October 1999.30 LMT per annum. 3.7.7 3. Equity hodling in the project is 52:48 between IFFCO and JPMC. and Chambal Fertilizers & Chemicals Ltd.6. lakh tonnes of phosphoric acid production per annum.2. 3. Phosphoric Acid produced by IJC is off-taken by SPIC and other fertilizer units in India. After subsequent joining of Tata Chemicals Limited (TCL). both OCP & CFCL have sold one-third of their equity stake in IMACID to TATA Chemicals Limited.86% by JPMC and 12. equity of US$ 65 million in the venture was held by OCP & CFCL equally. 19 . respectively. India to produce 3. (CFCL). a joint venture between Office Cherifien des Phosphates (OCP).97% by AIC. 34.17% of the equity of the joint venture is held by SPIC. Secretary (Fertilizers) inaugurating PDIL Bhawan at Vadodara. Initially.4 IMACID Morocco IMACID. Jordan India Fertilizer Company (JIFCO) in Jordan with an installed capacity of 1500 MT of phosphoric acid per day (MTPD). The plant is expected to be commissioned in 2010.1 Overseas Joint Ventures Under Implementation / Consideration: JIFCO Jordan Indian farmers Fertilizers Cooperative Ltd (IFFCO) and Jordan Phosphate Mining Company (JPMC) have agreed for setting up of a joint-venture Phosphoric Acid production plant. Krishnan. Morocco. 52.Shri S. Subsequently in May 2005. capacity of the plant has been increased to 4.

After finalization and signing 20 .7. JV in Australia: Indian Farmers Fertilizer Cooperative Ltd (IFFCO) has entered into a ‘Principles of Offtake Agreement’ with Legend International Holdings of Australia to undertake joint mining of rock phosphate in Lady Annie mines (Georgina Basins in Queens land) along with an assured three million MT annual off-take. Agreement on mutual Terms & Conditions including the price on which the urea will be made. a consortium of Indian entities including MECON. A total of US $800 million investment has been envisaged for undertaking rock phosphate mining in Australia.2. (TIFERT) at Skhira in Tunisian for production of 3. RITES and PDIL (All central Government PSUs). The project is expected to be commissioned in 2010. having expertise in the fields of mining. which is expected to be finalized soon. IFFCO will receive 30 million options in Legend International Holdings. both Tunisian entities are setting up a joint venture project.7. Government of India and Government of Syria are in dialogue to formalize a Government level MOU spelling out broad framework of cooperation in phosphate sector. Estimated cost of the project is approx. Memorandum of Intent (MOI) at the Government level for the purpose is being finalized. a fertilizer delegation including representative of the Department and RCF and GAIL has visited Ghana. JV in Tunisia Gujarat State Fertilizers & Chemicals Ltd (GSFC) and Coromandel International Ltd (CIL). The entire production of phosphoric acid would be for off take by GSFC and CIL.3. Ghana is considered a rich source of nitrogenous feedstock. are yet to be finalized.5 Cooperation in Ghana Given its gas reserves.6 billion and KRIBHCO’s equity will be approx.3. a private company in Australia are in the process of setting up of a coal bases ammonia-urea plant in Australia. The Australian company proposed to enter into a 20 year agreement for supply of urea. 3. In May 2009. The project cost is approx. Government of India is funding the study. US $ 2.4. MOU has been signed between the Indian Consortium and GECOPHAM and the former has started the studies. Cooperation in Syria The India-Syrian Joint Commission in its meeting held in January 2008 took note of the mutual interest of both countries in the field of Phosphatic raw-materials and products.6 lakh MT of Phosphoric Acid per annum.7. 3. Subsequently. IFFCO would provide both technical and financial facilitation to Legend International Holdings in the development of its phosphate mining and shipment of its product to India. Chairman of Ghana National Petroleum Corporation (GNPC). processing. US $ 165 million + 5% with equity of US$66 million and borrowings of US $99 million. formerly Coromandel Fertilizers Ltd. Possibility of setting up of a joint venture Urea-Ammonia plant in Ghana is being explored. Tunisian Indian Fertilisers S. beneficiation. In Ammonia-Urea sector. KRIBHCO and NWCF. Accordingly.A.(CFL) both Indian entities alongwith Groupe Chimique Tunisien (GCT) & Compagnie Des Phosphates De Gafsa (CPG). Ghana during his visit to India met the Prime Minister of India and possibility of cooperation in fertilizer sector was discussed. 2005 between parties. An MOU to this effect was signed in October. US $ 165 million. 3. Which would also include framework of gas allocation by the GNPC for the project.7. setting-up and running the phosphatic plants and logistic aspects are undertaking capacity enhancement consultancy study with GECOPHAM in Syria. It was agreed that both countries would work for cooperation in the fertilizer sector in Syria.

The project proposes to source Rock from the new mines of Foskor in Phalaborwa. IFFCO and QUAFCO (Public sector entity of Qatar) have signed ‘Agreement of Intention’ on 24. Discussion are also going on for exploring possibilities for a AmmoniaUrea project Qatar with buy back by India. for allocation of gas in Mozambique for setting up a JV ammonia-urea project.00 LMT of urea per annum. both would sides would designate their respective entities for preparing Detailed Pre-Feasibility Report (DPFR). 3. have signed an MOU for JV project with Athabasca for evaluation and assessment in technical.2009 for the same. Consortium of iv) iii) IFFCO and IPL have requested PotashOne for providing detailed costing and other economic parameters involved in the project. the capital city of Mozambique. Two separate consortia of Indian entities comprising IPL & IFFCO and MMTC & RCF are in discussion with M/s PotashOne and M/s Athabasca Inc respectively of Saskatchewan province for setting up Joint Venture projects in mining of Potash and off take to India. RCF and IDC/FOSKOR of South Africa are exploring the possibilities to set up a Phosphoric Acid and Ammonia-Urea fertilizer project near Maputo Port.2.7. An MOU has been signed between RCF and IDC/FOSKOR. Consortium of RCF and MMTC which is pursuing with Athabasca.of the MOI.6 Discussions for cooperation in fertilizer sector. marketing and financial aspect. South Africa. M/s SPIC and Chambal Fertilizers are in the process of setting-up a gas based nitrogenous fertilizer plant at Dubai in UAE to produce 4. Department of Fertilizers has been pursuing with M/s SASOL. ii) v) 21 . Discussion are on with the fertilizer and mining entities in following resource rich countries for long term cooperation for setting up of projects for production and off take of fertilizers: (i) Discussion at Government level is underway with the Government of Senegal for development of Matam phosphate mines. They have also signed a confidentiality Agreement for sharing related information.

19 LMT DAP during Kharif 2009 season. DAP and MOP are the two major decontrolled and decanalised fertilizers.03 LMT during Kharif 2009. Kharif 2009 4. 2010. 2009).1 In case of fertilizers other than the urea.36 LMT.09 LMT and imports of 25.2. Allocation of urea under ECA was restricted to 50% of production of installed capacity of each manufacturer during Kharif 2009 and Rabi 2009-10. Sales of DAP in Kharif 2009 were about 61. Assessment of requirement of Urea. Rabi 2009-10 4.5.11 LMT against the assessed requirement of 136.51 LMT.2. Thus the cumulative availability of urea for Rabi 2009-10 has been estimated to be about 142.2 farmers anywhere in the country at notified maximum retail price.04 LMT and the opening stock of 1.2.1 Availability of Major Fertilizers During 2009-10 4.35 LMT as on 1.61 LMT and imports of about 25.2.3 The requirement of urea for Rabi 2009-10 has been assessed at 145.53 LMT envisaging a growth of about 5. which may be imported freely.2009 coupled with indigenous production of 101. Decontrolled Fertilizers – DAP & MOP Controlled Fertilizer – Urea 4.04 LMT during the season. Kharif 2009 4.60 LMT of DAP as on 1 st April.1.2 DAP 4.55 LMT of DAP coupled with indigenous production of 26.12 LMT of MOP taken together with opening stock as on 1st April.51 LMT.Chapter-4 4. Stocks as on 1.1.1 The availability of urea.18 LMT in Rabi 2008-09. 2009 resulted in availability of about 22. The production of DAP during Rabi 2009-10 is estimated to be about 17.93 LMT by the end of 31st March. which are decontrolled.2009 coupled with estimated imports will be adequate in meeting the 4. DAP and MOP is being made by the Department of Agriculture & Cooperation to enable better monitoring of availability at the national level.3 The imports of 37. MOP 4. The requirement is being met from the opening stocks taken together with estimated production of 111.4.2 The field opening stock of 4.34 LMT helped in progressively ensuring adequate availability to the States throughout the season. The manufacturers are free to sell the remaining quantity of urea to the 22 .4. The cumulative availability of urea at the end of the season was nearly LMT. remained satisfactory throughout the Kharif 2009 season as well as during the current Rabi 2009-10(Up to December.1.03% over the sales of 134. 2009 resulted in satisfactory availability of about 65.10. The sales of MOP were reported as about 18.79 LMT. Rabi 2009-10 DAP 4. 4. which is the only fertilizer under price and partial movement control of Government.4 The imports of 17. The sales have been 120. no allocation is made under Essential Commodities Act (ECA) by the Central Government.

18 19.77 LMT during Rabi 2009-10. 2009 would also be almost same.5 4.7 24.78 65.95 46.75 17.46 -0.2009 coupled with adequate imports till March 2010 will ensure that the country’s requirement of MOP during Rabi 2009-10 is fully met.55 36.6 Stocks of MOP as on 1. DAP & MOP during the last three seasons: Demand Assessment Cumulative Availability Cumulative Sales %age of availability to assessed demand -1.79 37.90 21. Crop season Kharif 2008 Urea DAP MOP NPK Rabi 2008-09 Urea DAP MOP NPK Kharif 2009 Urea DAP MOP NPK 137.54 MT of MOP was extra supplied during Kharif 2009 towards the requirement of Rabi 2009-10.22 52.09 32. distribution and allocation of controlled fertilizer. Urea.61 47.e.7 4.66 53. considering that about 14. MOP 4. The distribution of imported urea is made keeping in view the requirements of each of the States.98 144.42 32.3 Judicious management of the demandsupply balance has helped in maintaining the average lead of fertilizer movement by rail.33 34. 4.2.20 21.1 Under the Allocation of Business Rules.90 120. During the current year. 2010. During 2008-09 the average lead was 801 KMs.85 21.35 milion tonnes of the fertilizers produced indigenously imported in the country.34 18.13 -17.52 134.11 42.e.02 61.88 -9. During the current year the average lead for the period AprilNovember.57 -24.16 -23. 4.3. Railways had moved about 22.34 136.92 5.95 130.00 142.3.42 4.3 Movement of Fertilizers 4. During 200809.51 36.19 48.73 million tonnes of fertilizer produced and imported in the country has been moved during the period April-January. urea.36 49.92 52. the Department of Fertilizers has been entrusted with the responsibility of ensuring movement. i. from various fertilizer plants and ports in accordance with the State-wise requirement assessed by the Department of Agriculture & Cooperation (DAC).07 20.2.39 127.05 -4.66 43.72 35.13 138. about 37.81 23 .52 34.2 The major share in transportation of fertilizers is of the Railways. Following table summarizes the season-wise position in respect of the availability and sales of the major fertilizer i.19 22.58’s requirement of DAP assessed at 57.

56 At the end of Ninth Plan (2001-02) 120. despite phasing out of 10 urea units due to closure.61 56.87 crore consisting of Rs.05 lakh MT.2 The installed capacity of nitrogen and phosphate in the terminal year (1996-97) of the eighth plan was 97.1.-Sikka-II. 20627.1 5.61 lakh MT and 29. 1 Particulars At the end of Eighth Five Year Plan (1996-97) 97. 19135.K.77 lakh MT at the end of eighth plan to 5. (since taken over by IFFCO).78 45. Three major phosphatic fertilizer plants were commissioned during the ninth five year plan period.77 lakh MT and 29.70 lakh MT of nitrogen and 34.77 29. Alagh Committee and DAP capacity by Tariff Commission. respectively.4 The production of fertilizers in nutrient terms during 2008-09 was 108.60 At the beginning of 5th year of Tenth Plan (2006-07) 120.17 Capacity i) Nitrogen ii) Phosphates Production i) Nitrogen ii) Phosphates 2 5. 1492.59 115.2 5.05 LMT to 56. Planning Commission has approved an outlay of Rs.52 lakh MT of phosphate.1. production and imports of fertilizers in nutrients terms are given in Annexure-V.68 38.1. (In lakh MT) Sr. Indo-Gulf CorporationDahej and Gujarat State Fertilizers Company Ltd. in the terminal year of the ninth plan and at the beginning of 5th year of tenth plan (2006-07) are indicated below: 5.99 25. Oswal Chemicals & Fertilizers Ltd. Year-wise consumption. namely.1 Plan Performance The installed capacity and production of fertilizers in the country at the end of eighth five year plan. INSTALLED CAPACITY AND PRODUCTON OF NITROGENOUS AND PHOSPHATIC FERTILIZERS IN EIGHTH. Sector-wise targets and achievements in respect of production and capacity utilization from 2001-02 onwards are given in Annexures-VI & VII. No. NINTH AND TENTH FIVE YEAR PLANS.68 lakh MT of nitrogen and 43.00 crore as Domestic Budgetary Support and Rs.87 as Internal & Extra 5.-Paradeep.05 85. Plan Outlays For the Eleventh Five Year (2007-12).58 52. the installed capacity of nitrogen and phosphate has increased from 97.31 107. The estimated production for 2009-10 is 119.64 lakh MT of phosphate.2.59 LMT respectively during the same period. Consequent upon reassessment of urea capacity on the basis of Dr.Chapter-5 5.1 24 . Y.3 120.1.

National Fertilizers Ltd.5.00 crore under Plan and Rs. 2. 74.45.00 crore under Plan and Rs. 2914.5 crore).00 crore under Non-Plan.2. 74. 45.2. 200. Rs. 5. Rs. and other Mis. Brahmaputra Valley Fertilizers Corporation Limited (Rs. Under the other Departmental Schemes.00 crore. 1160. 5. 50. 53000.38 crore). Since there is no firm proposal in hand right now only a token provision of Rs.99 crore). 900.4 Of the total outlay.89.00 crore is for Fertilizers & Chemicals Travancore Limited (Rs.5 crore). 2914. with Rs.10 crore has been provided.0.29 crore).82 crore). a plan outlay of Rs. the budgetary support of Rs.5 25 .50.200. Departmental Schemes such as (MIS/IT and R&D) 5.2 For the year 2009-10. 2699.89. Madras Fertilizers Limited. (Rs. (Rs.16 crore to be met out of IEBR and balance amount of Rs.200.00 crore is for FCI-FAGMIL (Rs.00 crore as budgetary support.00 crore will be provided by way of budgetary support.Budgetary Resources (IEBR). 11. (Rs. The gross outlay of Rs.3 5.00 crore for S&T Programme: Rs. The outlays for 2010-11 is Rs..50 crore). Krishak Bharti Cooperative Ltd. (Rs. For the year 2009-10. of which an amount of Rs.00 crore. Department of Fertilizers is exploring possibilities of Joint Ventures abroad.96 crore will be met from the internal and extra budgetary resources and the blance amount of Rs. 5.2. Brahamaputra Valley Fertilizer Corporation Ltd.00 crore) and other Departmental Schemes (Rs.215. 50000.16 crore was approved by the Planning Commission. The details of Plan outlays are given in Annexure-VIII.00 crore).001 crore has been for investment for Joint Ventures abroad. there was net budgetary provision of Rs.00 crore under Non-Plan. The details of Non-Plan and Plan Provision in 2009-10 (BE). Project and Development of India Ltd.00 crore. In the Revised Estimate (RE) for 2009-10. 622. 215. 2008-10 (RE) and 2010-11 (BE) are given in Annexure-IX. (Rs. 53200. 5. Madras Fertilizers Ltd. (Rs. the net provision is Rs. 1024. 3. Fertilizers and Chemicals Tranvancore Ltd. there is a provision of Rs. Rs.5 crore for information Technology. Rastriya Chemicals & Fertilizers Ltd. 824. (Rs.0.5 crore).00 crore).2.99 crore). (Rs. 200.

a uniform Normative Referral Price be fixed for existing gas based urea units and also for DAP and a Feedstock Differential Cost Reimbursement (FDCR) be given for a period of five years for non-gas based urea units. urea being the only controlled fertilizer. it is imperative that fertilizers are made available to farmers at affordable prices.2. and recommend measures for greater cohesiveness in the policies applicable to different segments of the industry. Hanumantha Rao. Retention price used to be determined unit wise. feedstock used. The problems faced by the manufacturers in earning a reasonable return on their investment with reference to controlled prices. which differed from unit to unit. Under RPS. instead. to review the existing system of subsidization of urea.Chapter-6 6. the level of capacity utilization.2. and thereby creating new capacities and enhanced fertilizer production along with increasing use of chemical fertilizers. The Expenditure Reforms Commission (ERC). energy consumption. are mitigated by providing support under the New Pricing Scheme for urea units and the Concession Scheme for decontrolled phosphatic and potassic fertilizers.2003. In its report submitted on 20 th September 2000. A High Powered Fertilizer Pricing Policy Review Committee (HPC) was constituted. scientific and transparent methodology. The statutorily notified sale price and indicative MRP is generally less than the cost of production of the respective manufacturing unit. the need for streamlining the subsidy scheme in respect of urea producing units had been felt for a long time. Given the importance of fertilizer pricing and subsidization in the overall policy environment. under the chairmanship of Prof. and decontrolled phosphatic and potassic fertilizers are sold at indicative maximum retail prices (MRPs). had also examined the issue of rationalizing fertilizer subsidies. distance from the source of feedstock/raw materials.P. financial support is also given on imported urea and decontrolled phosphatic and potassic fertilizers.1 Measures of support for fertilizers For sustained agricultural growth and to promote balanced nutrient application. the subsidy to urea manufacturers was being regulated in terms of the provisions of the erstwhile Retention Price Scheme (RPS). As the consumer prices of both indigenous and imported fertilizers are fixed uniformly.2. 6.2. the scheme had been criticized for being cost plus in nature and not providing incentives for encouraging efficiency. 6.1 6. Measures of Support for Urea Until 31.3.1 26 . the difference between retention price (cost of production as assessed by the Government plus 12% post tax return on networth) and the statutorily notified sale price was paid as subsidy to each urea unit.3.1. Though the RPS did achieve its objective of increasing investment in the fertilizer industry. recommended that unit-wise RPS for urea may be discontinued and.H. which has direct implications with reference to the growth and development of agriculture and sustainability of the fertilizer industry. The HPC. suggest an alternative broad-based. inter-alia. in its report submitted to the Government on 3rd April 1998. headed by Shri K. C. Geethakrishnan. depending upon the technology. is sold at statutorily notified uniform sale price. the ERC 6.2 6. etc. With this objective. The difference between the cost of production and the selling price/ MRP is paid as subsidy/concession to manufacturers.

and economists/research institutes were also obtained. besides bringing in greater transparency and simplification in subsidy administration. fuel oil/low sulphur heavy stock (FO/LSHS) based units and mixed energy based units.e. Capacity utilization of Post – 1992 Naptha based Group Average will be considered as 95% instead of 98% for calculating the base concession rates of urea units provided no cost towards conversion is recognized under NPS III. purchased power and water. 1st October.2. inter-alia. escalation/de-escalation is given in respect of variable cost related to changes in the price of feedstock. post-1992 naphtha based units.3. To maintain stocks of urea in case there is either a shortfall in production due to disruption in supplies of feedstocks or delay/ disruption in imports and to tide over the sudden spurt in demand/shortages. 2009. With the Stage-III of NPS being implemented w.2002. 1st April. 6.3 Amendments to New Pricing Scheme Stage .2.2003. The new scheme took effect from 1. Reduction in rates of concession during Stage-II of NPS for urea units on account of reduction in capital related charges have also been notified and intimated to urea units.2 6.recommended.6 Under NPS. 2006. 2006. The limitation on reduction of fixed cost will be applicable w. The recommendations of ERC were examined in consultation with the concerned Ministries/Departments. 2003. 6. 6.f. investment made by a unit for improvement in its operations nor are the gains as a result of operational efficiencies to be mopped up. The views of the fertilizer industry and the State Governments/ Union territories. 6.3.3 6.5. 2003 to 31st March.2. The approved amendments will help the indigenous urea units reduce their losses due to the group averaging under New Pricing Scheme Stage . Under NPS. The mixed energy based group shall include such gas based units that use alternative feedstock/fuel to the extent of more than 25% as admissible on 1. a buffer stocking scheme for urea is under implementation in major States. Following amendments in NPS III have been made 6.4. fuel.III and help them to generate resources for reinvestment in their plants towards modernization and increased efficiency.1.2003.e.f 1st April.3. the Stage-II of NPS stands extended upto 31st September. New Pricing Scheme (NPS) for urea was introduced w.1 It has been decided that the reduction in the fixed cost of each Urea units strictly due to Group Averaging principle under the New Pricing Scheme III will be restricted to 10% of the Normated Fixed Cost computed under the base concession rates. 2004 and StageII was of two year duration from 1st April to 31st March. After due examination of all these views.4. pre-1992 naphtha based units. It aims at inducing the urea units to achieve internationally competitive levels of efficiency.III for Urea Units.4. Pre-set energy norms for urea units during Stage-II of NPS have already been notified and intimated to urea units. These groups are : Pre-1992 gas based units. Under the scheme. 6. It has also been provided under the scheme that the concession rates during Stage-II shall be adjusted for reduction in capital related charges and enforcement of efficient energy norms.8.7.2. The StageI of NPS was of one year duration from 1st April.2. post-1992 gas based units. no reimbursement is allowed in respect of 27 . a New Pricing Scheme (NPS) for urea units for replacing the RPS was formulated and notified on 30. dismantling of existing RPS and in its place the introduction of a Concession Scheme for urea units based on feedstock used and the vintage of plants. the existing urea units have been divided into six groups based on vintage and feedstock for determining the group based concession.f.e. 2006. The 6.

i. Beyond this time limit. 2008. The company operating the buffer stock will be entitled to Inventory Carrying Cost (ICC) at a rate 1 percentage point less than the PLR of SBI as notified from time to time.4.1 Phased Decontrol of Urea Distribution As per the New Pricing Scheme for urea units. are to maximize urea production from the Urea units including through conversion of non-gas based Units to gas.2006 to 31. which are unable to tie up gas will have to explore alternative 6.4. Rs 4830. The total decontrol of urea distribution was deferred initially for a period of six months w. 28 . respectively.companies are reimbursed buffer stocking expenses on following parameters. NFLPanipat) in the country which are based on naphtha or FO/LSHS as feed stock.e. The company will be paid warehousing and insurance charges at the rate of Rs 23 per tonne per month on the quantity carried as buffer. there are 8 urea units (MFL. up to Kharif 2004. Alagh. The salient features of the proposed StageIII Policy which is aimed at promoting further investment in the urea sector. It was further envisaged that during Stage-II commencing from 1. Since the material will be moved in two stages i.2 urea distribution will be totally decontrolled after evaluation of Stage-I and with the concurrence of the Ministry of Agriculture. from 1. All these 8 units are required to switch over to natural gas/LNG within a period of next three years.3. 1.e. The existing system of 50% ECA allocation and 50% outside ECA allocation has been extended upto 31-3-2010. additional handling charges at the rate of Rs 30 per MT will be paid to the Fertilizer Company on the quantity sold from the buffer stock. will also be paid to the company. it will be at Rs 4630 per MT as dealers margin in this case is Rs 200 per MT.4. This rate would be applicable at Rs 4650 per MT (MRP less than the dealer’s margin i. The policy lays down a definite plan for conversion of all non-gas based urea units to gas.2004.K.3.2006. Y..e.2004 i.f.Rs 180) for the quantity and the duration for which the stock is carried as buffer.4.2003 to 31. In addition. freight from the buffer stocking warehouse to the block in case of movement outside the district in which buffer stocking godown is located.4. NFL-Bhatinda. up to 31. It is also aimed at establishing a more efficient urea distribution and movement system in order to ensure availability of urea in the remotest corners of the country. 6.4. in accordance with the provisions under the Uniform policy for freight subsidy announced by the Government with effect from 1st April.4. ZIL.e. The Stage-III policy seeks to promote usage of most efficient and comparatively cheaper feed stock natural gas/LNG for production of urea in the country. 6. The pricing policy for urea units for Stage-III of New Pricing Schemes (NPS) which is effective from 1.10. III.. I. the high cost urea produced by these non-gas based units will not be entitled to subsidy at the existing levels and it will be restricted to import parity price of urea.SPIC.4 6. NFL-Nangal. MCFL.2010 has been formulated keeping in view the recommendations of the Working Group set up under the Chairmanship of Dr. In case of cooperatives. the allocation of urea under the Essential Commodities Act 1955 (ECA) was restricted up to 75% and 50% of installed capacity (as reassessed) of each unit in Kharif 2003 and Rabi 2003-04.3. GNFC.e. from the plant to the buffer stocking point and then on to consumption points. At present. During Stage-I. it was also envisaged that decontrol of urea distribution/movement will be carried out in a phased manner. which has been subsequently deferred up to Rabi 2005-06 i. The units.3 II. 6.4.2004. incentivising additional urea production and encourage investment in Joint Venture (JV) projects abroad.e.

7 to encourage the existing urea units to produce beyond 100% of their installed capacities by introducing a system of incentives for additional urea production subject to merit order procurement.4. Secretary(Planning Commission) as its members to deliberate upon various issues relating to connectivity and assured supply of gas to the fertilizer sector. The State Governments will be required to allocate the entire quantity of planned urea arrivals including both regulated and de-regulated urea in districtwise.4.2007. 6. the policy seeks 6. The Committee will also develop an appropriate mechanism for fixing the price of the gas in a transparent manner. A specific policy to this effect has been announced by the Government on 6th March 2009. they will be given only 75% of the fixed costs beyond 93% of capacity utilization in the 1st year (1. the policy provides for a regime where there will be no mopping up of energy efficiency for a fixed period of five years for naphtha based as well as FO/LSHS based units. To this end. It recognizes our heavy dependence on imported raw materials/intermediates and feedstock in the fertilizer sector and to properly leverage this position.9.2008) onwards. The Government will continue to regulate movement of urea up to 50% of production depending upon the exigency of the situation. Secretary(Expenditure).e. the indigenous availability is not sufficient to meet the demand of existing gas based urea units in the country.8 29 .6 In order to incentivise conversion of non gas based units to gas.4. the Department of Fertilizers constituted a Committee under the chairmanship of Secretary(P&NG) with Secretary(Fertilizers). To the extent Government does not require any quantities of additional production.4. The policy also recognizes the comparative higher cost of conversion of FO/ LSHS based units to gas and provides for one time capital investment assistance to these units for conversion to gas during the next three years. The policy of requiring prior Government permission for additional urea production has been dispensed with. The units increasing production beyond 110% will be compensated at their concession rate subject to the over all cap of Import Parity Price (IPP). the urea companies would be free to dispose of the remaining quantities by way of export or sale to complex manufacturers without any permission. The policy also encourages setting up of Joint Venture projects abroad where gas is readily available at reasonable prices. If they do not. 6. 6. It is proposed that these units may be allowed to produce 100% of capacity should they adhere to an agreed timetable for conversion to Gas and tie up requisite Gas/CBM/Coal gas.f. The policy also lays down a formulation to dis-incentivise high cost production from the non-gas based units and to facilitate their early conversion to gas.4. The units will be required to maintain a district level stock point and the subsidy will be paid only 6. The availability of gas is critical to the growth of urea industry in the country. monthwise and supplierwise format. Presently.5. the policy seeks to create specialized agency to coordinate investments abroad in fertilizer sector.feedstocks like Coal Bed Methane (CBM) and coal gas. All production between 100% and 110% of the existing reassessed capacity will be incentivised on the existing net gain sharing formula between the Government and the unit in the ratio of 65:35 respectively with the proviso that the total amount paid to the units after including the component of variable cost will be capped at the units own concession rate. 22.4. SFC has started using gas w.9 The policy seeks to rationalize distribution and movement of urea and the system of freight reimbursement with the objective of ensuring availability of urea in all parts of the country.4. Considering the likely growth in consumption of urea in the years to come.2007) and 50% of the fixed cost beyond 93% capacity utilization from 2nd year (1.

5. The respective pre-set energy consumption norm of each urea units during Stage-II of NPS or the actual energy consumption achieved during the year 2003. 6.4.11 NPS Stage-III seeks to take forward the principles of uniformity and efficiency in urea production as enunciated during Stage I and II of NPS and also aims at bringing in more transparency in distribution of fertilizers across the country. It is expected that the policy will encourage increase in indigenous production from the existing urea units in the country and facilitate early conversion of nongas based units to gas leading to substantial savings in subsidy. In addition.2 30 .when the urea reaches the district. The policy was based on the principle of Long Run Average Cost (LRAC). Urea 6.5 Pricing policy for investment in Fertilizer sector. which is the critical feedstock for production of urea. 6. the distribution of fertilizers in remote corners of the country will improve considerably without any complaints of shortages in future.1. The new policy aimed at enabling the entrepreneurs to decide about their investment plans in the fertilizer sector. 6. The policy also provides for updation of costs on account of cost of bags through 3 year moving weighted average cost of bags to compensate for the rise in prices for the last three years. The nonavailability of natural gas. The rail freight will be reimbursed as per the actual expenditure and the road freight will be escalated as per composite road transport index every year. The Department of Fertilizers will continue its endeavour to promote the growth of fertilizer industry in the country and ensure adequate availability of fertilizers to the farmers. The existing special freight subsidy scheme will continue for supply of urea to the North Eastern States except Assam and Jammu & Kashmir. One time enhancement of 33% will be granted on the road component of primary freight to offset the impact of Supreme Court directive regarding maximum truck load limit of 9 MT on road vehicles.10 The Stage-III of NPS seeks to carry on the existing 6 group classification of urea manufacturing units in the country with updation of all costs upto 31st March. it is expected that investment in fertilizer sector will also take place. will be recognized as the norm for Stage-III of NPS. on actual basis. The above policy was not successful in attracting investment in this sector. However with the projected improved availability of gas from 2009 onwards. whichever is lower. It also provides for payment of sales tax on input and other taxes recognized under erstwhile Retention Price Scheme. the Department will operate a buffer stock through the state institutional agencies/fertilizer companies in major urea consuming States up to a limit of 5% of the seasonal requirement. has also been one of the major constraints in further addition of indigenous capacity for production of urea.1 A pricing policy was announced on 29. It is also expected that with the launch of Fertilizer Monitoring System (FMS) to monitor movement of fertilizers upto district level and the freight rationalization proposed in the new policy. The monitoring of movement and distribution of urea throughout the country up to the district level will be done by an On line Web based monitoring system. To facilitate movement of fertilizers to far flung area. 2003.2004 for setting up new urea projects and expansion of existing urea projects for augmenting the domestic production capacity of urea to meet the growing demand for enhancing the agricultural production in the country.5. 6. The Government has recently announced on 4th September 2008. The new policy was expected to encourage setting up of plants with international efficiency standards for fresh investment in new projects and expansion of existing units. the reimbursement of freight will be based on actual leads for rail and road movement.4.

2. 6. after firming up of the location (States) of the proposed new plants.a new investment policy for urea sector to attract the much required investment in this sector. The policy is likely to substantially bridge the gap in next five years between the consumption and domestic production subject to confirmed and adequate availability of gas at reasonable prices. The additional urea from the revamp of existing units will be recognized at 85% of IPP with the floor and ceiling price as indicated above. 3. Revival/Brownfield projects: T h e urea from the revived units of Hindustan Fertilizer Corporation Limited(HFCL) and Fertilizer Corporation of India Limited (FCIL) will be recognized at 95% of IPP with prescribed floor & ceiling price. Allocation of Gas: Only non-APM gas will be considered for the new investment in urea sector. However. The New Investment Policy aims at revamp. Gas transportation charges: An additional gas transportation cost will be paid to units undertaking expansion and revival on the basis of actuals (upto 5.2 Gcal per MT of urea) as decided by the Regulator(Gas) subject to a maximum ceiling of USD 25 per MT of urea. with the floor and ceiling price as indicated above.5. Expansion projects: Setting up of a new ammonia-urea plant (a separate new ammonia-urea train) in the premises of the existing fertilizer plants. in the existing train of ammonia-urea production will be treated as revamp of existing units. 9. 8. Revamp project: Any improvement in capacity of existing plants through investment upto Rs. utilizing some of the common utilities will qualify for being treated as expansion project. 6. if the revival of closed units takes placed in public sector. The investment should exceed a minimum limit of Rs. The urea from the expansion of existing units will be recognized at 90% of IPP. 4. 1000 crore. Greenfield projects: The pricing of Greenfield projects will be decided based on a bidding process which will be for a discount over IPP. revival of existing urea units and setting up of Greenfield/ Brownfield projects.3 The policy is expected to lead to savings to the Government in the form of availability of Urea at a price below IPP and will also lead to indirect savings by bringing down the import price due to reduction in imports. the principle for deciding upon the maximum price will be the price achieved under Greenfield projects or 95% of IPP as proposed for revival projects (in absence 5. In addition. 31 . The policy is based on Import Parity Price (IPP) benchmarked with suitable floor and ceiling prices of USD 250/MT and USD 425/MT respectively. expansion. Coal gasification based Urea Projects: The Coal gasification based urea projects will also be treated on par with a revival or a Greenfield project as the case may be. Joint Ventures abroad: The Joint Venture projects abroad in gas rich countries are also proposed to be encouraged through firm offtake contracts with pricing decided on the basis of prevailing market conditions and in mutual consultation with the joint venture company. The policy is based on IPP benchmark and has been finalized in consultation with the industry. The salient features of the new investment policy are as under :1. any other incentives or tax benefits as provided by Government for encouraging coal gasification technology will also be extended to these projects. 7.3000 crore.

Urea. 6. which are agronomically better fertilizer products. For Zincated Urea and Boronated SSP. is expected to promote balanced fertilization by encouraging usage of complex fertilizers. In terms of this policy. DAP. 6. MOP and SSP. the indigenous manufacturers/ producers of the subsidized fertilizers are allowed to produce fortified/coated subsidized fertilizers up to a maximum of 20% of their total production of respective subsidized fertilizers. the Department of Fertilizers has notified on 17 th June 2008 a nutrient based pricing regime for all subsidized fertilizers.7. the Department of 6. Department of Fertilizers has notified on 2nd June 2008 a policy for encouraging production and availability of fortified and coated fertilizers in the country. MOP and SSP. Policy for encouraging production and availability of fortified and coated fertilizers in the country.6.1 The Government intends to move towards a nutrient based subsidy regime in order to ensure balanced application of fertilizers and increase in agriculture productivity. The time period for setting up of new Joint Ventures would also be five years under the new investment policy. thus. the farm gate price of each nutrient will be uniform across all subsidized fertilizers.6. The manufacturers/producers are allowed to sell all the FCO approved fortified/ coated subsidized fertilizers. except for Zincated Urea and Boronated SSP at a price up to 5% above the MRP of the subsidized fertilizer as indicated in the table above.of any Greenfield projects) with a cap of USD 405 CIF India per MT and a floor of USD 225 CIF India per MT (inclusive of handling and bagging costs) 10. The selling price of subsidized fertilizers will be determined on the basis of the nutrients contained therein 6. Similarly production from expansion and revival (brownfield) units that come about within five years of notification of the new policy would qualify for dispensation provided in the policy. It has been further decided to fix the farmgate price of nutrients at the level of their existing price in straight fertilizers viz. If the production does not come through within the stipulated time period. DAP.1 32 . such brownfield projects will be treated similar to a Greenfield projects wherein price will be decided through limited bidding options. Time period for proposed investment policy: Only those revamp projects which start production of additional capacities within four years of notification of the new policy would qualify for the dispensation recommended above. Nutrient based pricing regime for all subsidized fertilizers. To ensure easy availability of fertilizers in all parts of the country.6. This will lead to significant reduction in existing Maximum Retail Prices (MRPs) of complex fertilizers. the manufacturers are allowed to charge up to 10% above MRP of Urea and SSP respectively. 6. the price of nutrients in complex fertilizers were higher than the price of same nutrients in other straight fertilizers like Urea. Under this regime. The nutrient based pricing will lead to parity in price of complex fertilizers with other straight fertilizers and.2 Under existing pricing regime.7 Policy for uniform freight subsidy on all fertilizers under the fertilizer subsidy regime. This led to comparatively higher usage of straight fertilizers vis-à-vis complex fertilizers. Keeping in view the interests of the farmers and to promote balanced use of fertilizers. The Nutrient Based Subsidy regime is under consideration of Group of Ministers constituted to examine the nutrient based subsidy policy and measures for rationalization of fertilizer subsidy disbursement.

wherein freight subsidy will be paid separately on receipt of all subsidized fertilizers in the districts/blocks. 6. Department of Agriculture & Cooperation (DAC) introduced a scheme of concession on decontrolled P & K fertilizers in 1992-93 on adhoc basis. Government of India decontrolled Phosphatic and Potassic (P&K) fertilizers with effect from 25th August 1992 on the recommendations of Joint Parliamentary Committee. rail freight and road freight.4 6. The policy for New Pricing Scheme (Stage – III) notified on 8th March 2007 committed Capital Subsidy for FO/LSHS based units through a separate Scheme to be notified in consultation with Department of Expenditure (DOE) and completion of conversion within three years. The units are in regular touch with gas suppliers for confirm commitment towards supply of gas.8. In order to cushion the impact of increase in prices of the decontrolled P & K fertilizers and promote balanced usage of NPK nutrients. The rail freight will be paid on actual. The issue of notification of a scheme for Capital Assistance towards FO/ LSHS conversion was considered by the Department in consultation with DOE and it was decided to finalise a scheme based on the deferred payment of project cost linked to production of urea post conversion. The Concession Scheme initially covered Di-ammonium 6. Under New Pricing Policy Stage-III. Afterwards. 6.3 The 4 FO/LHS based units have already started work on conversion of units to gas. This exercised an adverse impact on the demand and consumption of the P&K fertilizers.8 6.7. The policy for conversion subsidy towards conversion of FO/LSHS projects provides for reimbursement of project cost as approved by Public Investment Board (PIB) through a special fixed cost component and retention of energy savings for five years after conversion to Natural Gas. Proposal of NFL has been submitted to CCEA for clearing the investment for the projects while GNVFC is initiating actions for their conversion project. Accordingly. PIB agreed to the above proposals for conversion in the meetings held on 5th and 13th November. a separate scheme for conversion of FO/LSHS units to gas was finalized and notified on 6th March 2009.1. The proposals for conversion of FO/LSHS plants of NFL and GNVFC were submitted to PIB for their consideration.Fertilizers has notified on 17th July 2008 a uniform freight subsidy regime for all subsidized fertilizers. namely. Policy for Conversion of existing non-gas based Urea units to Natural gas/LNG for feedstock/fuel At present there are 8 units in this country which is based on Naphtha (4) and FOLHS (4) as feedstock/fuel. and the road freight will be paid on a normative average district lead (average of the actual leads of block headquarters from the nearest rail rake point) and a normative per KM rate. Concession Scheme for decontrolled P&K Fertilizers Background 6. in turn. 2009. especially in areas which are far from the production facilities and ports by reimbursing freight on actual.2 The uniform freight subsidy regime will facilitate availability of fertilizers in all parts of the country. the prices of these fertilizers registered a sharp increase compared to Urea.8. after which conversion process will be expedited.8.1 6. specific time schedule of three years has been laid down for conversion of the non gas based units to gas. led to fear of imbalance in the usage of Nitrogen (N). The freight subsidy will constitute of two components.8. Phosphate (P) and Potash (K) nutrients in the soil and adverse effect on agricultural productivity. Assured availability of gas is main constraint for expediting conversion process.9.9 6.2 33 . It.

Department of Agriculture & Cooperation started announcing rates of concession based on the cost plus approach on quarterly basis w. Muriate of Potash (MOP) and 11 grades of NPK complex fertilizers.4. Accordingly.2000. The manufacturers/importers were given payment of concession on 100% basis based on certification of sales up to 1996-97. the Department of Agriculture & called Tariff Commission). Freight for movement of Fertilizers in other areas was included in the concession amount. Accordingly.e. 1. Oswal Chemicals & Fertilizers Ltd. some major changes took place in the Concession Scheme. During 1997-98 itself. Major Changes in Concession Scheme during 1997-98 During 1997-98.e. Scheme of concession for P&K fertilizers has been allowed to continue till date with further amendments therein from time to time. Department of Agriculture & Cooperation administered the Concession Scheme from 1992 to September 2000.1997. the structure of DAP industry changed as some of the new DAP manufacturing plants like M/s. 1. the Tariff Commission made a fresh Cost Price Study and submitted its report in February 2003.e. 1.4. the complex manufacturers were divided into two groups based on feedstock for sourcing Nitrogen. the administration of the Concession Scheme was transferred from Department of Agriculture & Cooperation to Department of Fertilizers w.2002 based on the recommendations of the Tariff Commission. Accordingly. Department of Agriculture & Cooperation started releasing payment of concession to the manufacturers/importers from 1994-95 based on the certification of sales carried out by the State Governments. and M/s Indo Gulf Fertilizers Corporation Ltd.f. Cost Price Study of DAP and MOP Based on the cost price study of DAP and MOP conducted by Bureau of Industrial Costs & Prices (BICP .4. Subsequently. 6. October 2000. the Department of Agriculture & Cooperation also introduced the system of releasing 80% ‘On Account’ payment of concession to the manufacturers/importers on the sale of decontrolled P & K fertilizers w. The responsibility of indicating MRP in respect of SSP rested with the State Governments. Then. The Scheme was further extended to certain areas of Himachal Pradesh subsequently.3. it was extended to SSP in 1993-94. were established using the Rock Phosphate for manufacturing indigenous Phosphoric acid/ DAP. Payment of concession to the DAP manufacturing units from 2003-04 to 2007-08 was made as per 34 . The balance 20% payment of concession was released to the manufacturers/importers after the certification of sales by the State Governments.f.Phosphate (DAP). started indicating an all India uniform Maximum Retail Price (MRP) for DAP/NPK/MOP. The Special Freight Subsidy Reimbursement Scheme was also introduced in 1997 for supply of fertilizers in the difficult areas of J&K and North-eastern States. During 1992-93 and 1993-94. With the passage of time.9. The basic purpose of this Scheme has been to provide fertilizers to the farmers at the subsidized rates and also to ensure reasonable rate of return on the investments made by the entrepreneurs in the Fertilizer Sector.e.e.10.1999. the State Governments released payment of concession to the manufacturers/importers of P&K fertilizers based on the grants provided by Department of Agriculture & Cooperation. the difference in the delivered price of fertilizers at the farm gate and the MRP is compensated by the Government as subsidy to the manufacturers/importers for selling the fertilizers at the MRP indicated by the Government. The Government introduced a new methodology for working out subsidy to complex fertilizers w. In the meantime. the scheme was transferred to Department of Fertilizers w. 6.9.f. 1.2.f. The total delivered cost of fertilizers being higher than the MRP indicated by the Government.

revised the MRP of NPK Complex Fertilizers downwards w. directed Department of Fertilizers to evolve a methodology for working out concession of P&K fertilizers based on the international price of DAP to be adopted as a bench mark.5. Subsequently.e. The Expert Group submitted its report in October 2005.2008 to 30. 6.2009) all India MRP Ammonium Sulphate (AS) (w.2008. the matter was referred to the Expert Group.f.e.f. 18.7.2008) Single Super Phosphate (SSP) (w.2008) Grades of Complex Fertilizers . The recommendations of the Expert Group were considered by the IMG.2008 4830 9350 4455 9350 7460 3400 From 18.4. The MRP of fertilizers is as below as on date MAXIMUM RETAIL PRICE OF FERTILIZERS (Rupees per MT) Product Urea Di Ammonium Phosphate (DAP) Muriate of Potash (MOP) Mono-Ammonium Phosphate (MAP) (w. However.9.4. Expert Group CCEA while approving price of Phosphoric acid for the year 2004-05.f.2007) Triple Super Phosphate (TSP) (w. MRP of decontrolled P&K Fertilizers The MRP of the DAP/NPK/MOP has been constant from February 2003 to 17. The Department of Fertilizers accordingly framed a proposal suggesting methodology to link phosphoric acid price with international DAP price.f.08 4830 9350 4455 9350 7460 3400 10350 7100 7280 7280 8000 9080 8360 8480 8300 8660 6980 8100 8300 5875 5343 6295 6145 7481 7197 7637 7050 8185 5121 5804 6487 35 .6.two groups depending upon the source of the raw materials (Rock Phosphate/ Phosphoric acid).6.5. 1.6.9. 1.2003 to 17.e.e. 6.e.4.3.f.N:P:K:S 16:20:00:13 (earlier 16:20:00) 20:20:00:00 20:20:00:13 23:23:00:00 28:28:00:00 10:26:26:00 12:32:16:00 14:28:14:00 14:35:14:00 15:15:15:00 17:17:17:00 19:19:19:00 From 12. Then Department of Fertilizers introduced nutrient based subsidy in June 2008 and accordingly. 1.6.06. the MRP of the other fertilizers remained the same. 1.2008.

1.6 Recent Changes in the Concession Scheme Policy For Uniform Freight Subsidy : Department of Fertilizers also announced a policy for uniform freight subsidy on 17. (i) Final rates of concession is worked out on monthly basis taking into account the average international price of the month preceding the last month or the actual weighted average C&F landed price at the Indian ports for the current month. Baroda and FACT.2008.9. The NPK complex industry has been divided into 4 groups depending upon the source of Nitrogen. Udyogmandal. As per this policy. Concession for indigenous DAP is the same as that of imported DAP (on the basis of import parity price).5 Lakh MTs for DAP and 1 Lakh MTs for MOP as buffer. The final rates of concession is worked out on monthly basis. TSP (with effect from 1. 1st April.2008 for DAP/ MOP/NPK Complexes/MAP. Accordingly. the following changes have been effected in the existing policy for P &K Fertilizers. Abhijit Sen.4.f.2007)/Ammonium Sulphate.f.2009 to adjust parameters of concession scheme to International pricing dynamics and rationalize ‘N’ grouping as well as payment system. the payment of freight subsidy is made to the manufacturers/importers based on the actual lead based on the actual expenditure on the basis of actual lead for supplying the fertilizers in the states/districts.f.2008 on all fertilizers under the fertilizer subsidy regime w. as on date. 1.e.7. group-wise ‘N’ has been adopted w.e. 2009.f. there is a lag of one month. 1st April. Department of Fertilizers has assigned Tariff Commission to undertake study for finalizing the freight per kilometer per tonne for road transportation of fertilizers.e.9.4.7 Concession Scheme for Decontrolled P & K Fertilizers Tariff Commission conducted fresh cost price study of DAP/MOP and NPK complexes and submitted its report in December 2007. 1.4.2008 for GSFC.2008. Modifications in certain elements of the Concession Scheme were also carried out with effect from 1.e. 1. The Buffer Stocking Scheme has also been allowed to continue with 3. The Government approved the Concession Scheme with effect from 1. 1st April. 1. Triple Super Phosphate (TSP) has been included in the Concession Scheme from 1.4.e.f. In case of raw materials/inputs for complex fertilizers.e. MRP of the decontrolled P & K fertilizers is as mentioned above. the special freight reimbursement scheme for J & K and North Eastern States has been withdrawn retrospectively w. The input/fertilizer prices for Concession Scheme are derived on the basis of an outlier methodology. Accordingly. Based on the examination of the Tariff Commission Report and the long-term approach suggested by the Expert Group under the Chairmanship of Prof.2008. 2009 with respect to DAP and MOP w.2008) and SSP. 6.e.e. 2009. Concession on complex fertilizers is based on the methodology recommended by Tariff Commission with certain modifications.f. From A separate cost of ‘S’ for Sulphur containing complex fertilizers has also been recognized w.7. 2009 for computation of concession for complex fertilizers w. the P & K fertilizers covered under the Concession Scheme are DAP/MOP/NPK Complexes/MAP (introduced w.2008 (except SSP).4. payment of concession is made to the manufacturers/importers of the Decontrolled fertilizers (except SSP) on the basis of arrival/receipt of fertilizers and certificate of receipt by the State Government/statutory auditor of the company subject to final settlement on the basis of sale of the quantity.f.6.2008 and Ammonium Sulphate has been included in the Concession Scheme w. 1st April. whichever is lower w.f.f. Accordingly. 36 . the Concession Scheme was examined.4.e. (ii) (iii) Instead of product-wise.

PMT) 6406 8942 9160 10391 11661 13003 7914 8965 8075 7503 5870 2927 2709 2453 2510 Rates of Concession based on Indigenous Rock Phosphate (Rs. Separate rate of concession for SSP were announced month-wise based on the indigenous and imported Rock Phosphate depending upon the rise/fall of the cost of raw materials (Rock Phosphate and Sulphur) as well as exchange rate. The manufactures/ marketers of SSP are eligible to claim 85% ‘On Account’ payment of concession month-wise w. the manufacturers were required to sell SSP at all India uniform MRP of Rs. 1. 6. 2009 February.f. 2000/. 2008 October.6. 6.10.2009. The balance payment of concession shall be released by the Department of Fertilizers based on the sale certificates issued by the State Governments in prescribed Proforma ‘B’. which remained in operation from 1. 3400/. 2009. 2009 June.f.2008. Month/year Rates of Concession based on Imported Rock Phosphate (Rs. 2009 37 . 2008 June. 2009 will be provided to those eligible SSP units only.5.e. Government have decided to implement a revised policy for ad-hoc subsidy for SSP w.10.2009 in place of all India MRP of Rs. Accordingly. 1st October. The manufacturers must have the well equipped laboratory to test the samples of the SSP. 1 st October.PMT for Powdered. 1.10 Revised policy for ad-hoc concession for single super phosphate(SSP) with effect from 1.2009. which have either annual capacity utilization of at least 50% or annual production of 40. While claiming ‘On Account’ payment of concession. PMT) 4587 5383 5674 6776 6990 5823 3070 2012 1967 1961 1944 1873 2006 1982 1986 May. Ad-hoc concession for SSP w. 2008 November. 2009 May.10.per MT. For the purpose of recognizing capacity utilization/production.8. 2009 March. 2008 July. 2008 August.2009 in the prescribed Proforma ‘A’ & ‘C’ duly certified by the Statutory Auditor of the Company.e. Granulated and Boronated SSP. which includes open selling price of SSP w. 2009 will be taken into account.000 MT of SSP.e. capacity as on 31st March. 2009 July. The month-wise rates of concession announced during May 2008 to July 2009 for SSP have been as follows: The manufacturers of SSP are allowed to claim 85% (90% with Bank Guarantee) ‘On Account’ payment of concession. 2008 January.2008 to 30.9.8 Cost Price study of Ammonium Sulphate Department of Fertilizers have assigned the Tariff Commission to conduct cost price study of Ammonium Sulphate (AS) by GSFC/FACT included under the Concession Scheme. 1. The manufacturers are required to put stamp/print “Quality Certified” on each bag of SSP released in the market. Department of Fertilizers revised the Concession Scheme on SSP on 25.e. the manufacturers are required to produce a certificate issued by the State Government of the State in which the unit is located about the certification of the quality.2008 December.9 Concession Scheme for single super phosphate (SSP) At present 77 SSP manufacturing units all over India are covered under the Concession Scheme.2008 w. Government provides an ad-hoc concession of Rs.9. 2008 September. 2009 April.e.9. 3400/PMT prevailed earlier.9.5.f.f.f. The balance payment of concession is settled based on the certificates of sales issued by the State Governments in prescribed Proforma ‘B’.

was constituted. by Projects & Development India Ltd. On an average. 6.. Rock imported from Syria BRP from RSMML and blending rock from Madhya Pradesh State Mining Corpn. Syrian rock with 29. Accordingly. On an average. On an average. F Jordan rock with 31.Ltd. 38 . On an average Jordan Rock with 30. Beneficiated rock phosphate (BRP with 33.9. On an average. Jhabua rock with 25% P2O5 content by wt to get a mixture having 30% and above P2O5 content by wt. 2001 S.6.55% and above P2O5 content by wt. RSMML B C – – D E – Jhabua A or B grade rock with 23% P2O5 content by wt.M-19011/33/2001-MPR dated 19th September. To get a mixture having 31. (MPSMC) Rock imported from Jordan and blending rock from MPSMC.0% and above P2O5 content by wt.55% and above P2O5 content by wt. The objective behind the constitution of TAC is to put a curb on the sale of non-standard SSP to the farmers and to cross check the concession claimed by the industry.6% and above P2O5 content by wt.12 In order to be eligible for concession under the Concession Scheme. which are notified by Department of Fertilizers from time to time. On an average. along with technical parameters. the TAC is assigned the task of examining various grades of Rock Phosphate (both indigenous and imported) and recommending the grades of Rock Phosphate with source of origin.6% and above P2O5 content by wt.36% and above P2O5 content by wt. the manufacturers of SSP are required to use only those grades of Rock Phosphate as raw material for SSP.5% and above P2O5 content by wt. (PDIL). Primary Grade of rock phosphate A Mined rock chips with 31. On an average Beneficiated rock phosphate (BRP with 33.11 Rationalizing and Streamlining Concession Scheme of To ensure standard and quality of SSP. On an average.9. The grades/ sources of Rock Phosphate notified by the Department are as below: Notification No. a Technical Audit & Inspection Cell (TAC). such as consumption norms of each grade for manufacture of SSP as per FCO specifications. The TAC is also mandated to conduct six monthly techno-commercial audits of SSP plants and to confirm to whether the SSP units are using the specified/notified grades of Rock Phosphate. Specification of blending rock – Source of origin Rajasthan State Mines & Minerals Limited (RSMML) Rock imported from Jordan.No.

19011/33/2001-MPR dated 13th May. On an average.66% P2O5 content by wt. (iv) Rock with 23% P2O5 content by wt. J Jordan rock with 32% and above P2O5 content by wt.4% and above P2O5 content by wt on an average. Lower grade rock with 25% P2O5 content by wt.Notification No. From mines of RSMDC to get a mixture having 31. (ii) Rocks with 25% and above to 27% P2O5 content by wt. (iii) Rocks with +30% P2O5 content by wt. 2002 K Israeli Rock phosphate with 32% P2O5 content and above by wt. Not applicable Rock phosphate imported from Israel. Blending rock from RSMDC and RSMML.4% and above P2O5 content by wt. Notification No. (HZL). M-19011/33/2001-MPR dated 31st January.M-19011/33/2001-MPR dated 8th October. On an average. On an average. RSMML. – Lower grade rocks with 25% P2O5 content by wt.55% and above P2O5 content by wt..7% and above P2O5 content by wt. (i) Lower grade rocks with +22% but less than 25% P2O5 content by wt. on an average. from mines of RSMDC to get a mixture having 31. BRP from RSMML.55% and above P2O5 content by wt. 2001 G H Egyptian rock with 32% and above P2O5 content by wt. On an average. On an average. From mines of RSMML to get a mixture having 31. Rajasthan State Mineral Development Corpn. Notification No. Blending rock from MPSMC. From mines of Madhya Pradesh State Mining Coproration Ltd. Rock imported from Egypt. Beneficiated rock phosphate (BRP) with 33. From mines of RSMML to get a mixture having 30. Of RSMDC to get a mixture having 31. On an average. RSMDC. BRP from RSMML.4% P2O5 content by wt. On an average. on an average. On an average.5% P2O5 content by wt. of Matton mines to get a mixture having 31. Ltd. Rock imported from Egypt and blending rock from RSMML. 2002 I Beneficiated rock phosphate (BRP) with 33. 39 . (RSMDC) or 27-31% P2O5 content by wt. RSMML and Hindustan Zinc.

5% P2O5 content by wt on an average. Krishana Phoschem Ltd.9.19011/33/2001-MPR dated 14. – RSMML N O 19011/33/2001-MPR (Vol-II) dt. 15.9.02% P205 content by weight on an average.2007 Primary grade of Rock Phosphate of Algeria with 31. 19011/33/2001-MPR (Vol-II) dt. Meghnagar.6. BRP from RSMML.5. P. Bilaspur Chhattisgarh P Q R 6.2006) Beneficiated rock phosphate (BRP with 33.II) dt. Blending rock from Hirapur Mines of MPSMC. On an average.O. Notification No. BEC fertilizers Ltd. Madhya Pradesh 19011/33/2001-MPR dated 19.2% P205 content by weight on an average. Madhya Pradesh and Rajasthan have been requested to consider the possibility of de-reserving mines (so far reserved only for State mining entities) for collaboration with mining entities of other States and also private for financial 40 . Rajasthan State Mines & Minerals Ltd.55% and above P2O5 content by wt. M-19011/33/2001-MPR (Vol.2007 Primary grade of Rock Phosphate of Egypt with 31. M/s. The State Governments endowed with the natural resources of Rock Phosphate e. Jhabua. As per the modified guidelines. M/s. 115-118.12. A few more such units propose to install Beneficiated Rock Plant (BRP) units in the country. Department has also allowed to produce Beneficiated Rock Phosphate in the private sector by M/s.g.78% average iron oxide content of MPSMC to get a mixture of 31.9.11. For this purpose. Krishna Phoschem Ltd. Meghnagar. Madhya Pradesh State Mining Corpn. Lower grade rock with P2O5 content 29% by wt and above with 2.13 In the wake of shortage of Rock Phosphate of the specified/notified grades.2006 (Notified on 19. M Notification NO.10.2009 Beneficiated Rock Phosphate with 31% P2O5 produced by M/s. 8. the Geological Survey of India. 19011/33/2001-MPR (Vol-II) dt.2005 Beneficiated Rock Phosphate with 30. Department of Fertilizers modified the existing guidelines pertaining to the use of Rock Phosphate and issued fresh guidelines on 10 August 2005. 30.. 19. AKVN Industrial Area.4% on an average..2% P2O5 produced by M/s. Keeping in view the worldwide scarcity of Rock Phosphate and its rising prices in the international market.2007 Primary grade of Rock Phosphate of Vietnam with 34% P205 content by weight on an average. Ltd... Indian Bureau of Mines. have been involved in the process. 19011/33/2001-MPR (Vol. Department of Fertilizers is taking steps to explore the Rock Phosphate indigenously.II) dated 23rd April 2003 L Beneficiated rock phosphate with 33.Notification No. whereby the scope of grades/sources of Rock Phosphate were expanded. Madhya Pradesh. the manufacturers of SSP can procure the Rock Phosphate from the sources other than the notified ones.

Department of Fertilizers also proposes to explore the possibility of mining Potash from the indigenous sources. 6. Steps are being taken in this regard. Years Subsidy release on P & K Fertilizers (Rs. Muriate of Potash (MOP).11 Fulfillment of Social Responsibility by virtue of Concession Scheme. The difference between the total delivered cost of the fertilizers at the farm gate and the MRP payable by the farmer is given by the Government of India. Ammonium Sulphate (AS) and SSP are covered under the Concession Scheme. Di Ammonium Phosphate (DAP).10 Subsidy Amount The following amounts of subsidy have been released on P&K Fertilizers including SSP. 41 . In Crore) 3225 3326 5142 6550 10598 17134 65555 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 6. The objective of the Concession Scheme is to make the above mentioned decontrolled Phosphatic & Potassic fertilizers available to the farmers at the affordable prices and also to ensure reasonable rate of return on the investments made by the entrepreneurs in the Phosphatic & Potassic fertilizers sector. Mono Ammonium Phosphate (MAP). Presently. The total delivered cost of fertilizers under the Concession Scheme at the farm gate is higher than the MRP payable by the farmers. Triple Super Phosphate (TSP). Department of Fertilizers as concession/subsidy to the farmers and reimbursed to the fertilizer manufacturers/importers.and technical support. The Concession Scheme for decontrolled P & K fertilizers being administered by Department of Fertilizers aims at providing the Phosphatic & Potassic fertilizers to the farmers at the subsidized rates. 12 grades of NPK complex fertilizers.

7.1 Public Sector Undertaking and Cooperative Societies There are nine public enterprises and one multi-state co-operative society namely Krishak Bharati Cooperative Limited (KRIBHCO) under the administrative control of the Department. A statement indicating profitability of these organizations has been given at Annexure–X. 7.2. 7.2.1 The Fertilizer Corporation of India Limited (FCIL) Introduction Incorporated on 1st January, 1961, FCI was re-organized along with National Fertilizers Ltd. (NFL) with effect from 1.4.1978 into five companies namely, FCI, NFL, Hindustan Fertilizer Corporation Ltd.(HFC), Rashtriya Chemicals & Fertilizers Ltd. (RCF) and Projects & Development India Ltd. (PDIL). Following re-organisation, FCI comprised four units located at Sindri (Jharkhand), Gorakhpur (Uttar Pradesh), Ramagundam (Andhra Pradesh) and Talcher (Orissa), with a total annual capacity of 5.87 lakh MT of nitrogen besides an abandoned project at Korba (Chhattisgarh). As on 31.3.2009, FCI had an authorized share capital of Rs.800 crore and paid up share capital of Rs.750.92 crore. The accumulated losses as on 31.3.2009 were Rs.9878.36 crore. 7.2.2 Reference to BIFR The Corporation was declared sick in November, 1992 by the Board for Industrial and Financial Reconstruction (BIFR), and on 2.11.2001, the BIFR ordered winding up the FCI in terms of Section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Appellate Authority for Industrial and Financial Reconstruction 7.2.3 (AAIFR) on 9.4.2002 upheld BIFR’s order dated 2.11.2001. However, on appeals filed by the Government and the Company against the orders of AAIFR and BIFR for winding up of FCI, the High Court of Delhi on 26.11.2002 directed the BIFR to reconsider their order dated 2.11.2001 to the extent of hiving off the Jodhpur Mining Organisation for forming a new company and revival of other units if any proposals are received within a reasonable time. BIFR in their meeting held on 2.4.2004 sanctioned the scheme of arrangement of de-merger between FCI and FAGMIL with effect from 1.4.2003 and confirmed their prima facie opinion regarding winding up of the company. BIFR vide their orders dated 17.5.2004 conveyed their opinion to High Court of Delhi. This reference was registered as Company Petition (C.P.) No.183/2004 in the High Court. Pursuant to the prayer of the Department of Fertilizers, the High Court has, inter-alia, granted further time to the company and the Department for submission of a viable proposal for revival of the FCIL. The matter is pending before the High Court. The matter last came up for hearing in the Delhi High court on 21.12.2009 and on the request of FCIL for referring the matter back to BIFR, the Hon’ble Court desired the opinion of the official liquidator of Delhi High Court. The matter is fixed for hearing on 15.2.2010. Closure of the Company In view of the continuing losses of the Company, stemming from technical and financial non-viability of operations, the Government decided to close down FCI in September 2002. Consequently, a Voluntary Separation Scheme (VSS) was offered to all


its 5712 employees. All the employees, who opted for VSS have since been released, except 46 employees who are engaged in discharging statutory obligations including safety and security of properties/assets of the various units of the Company. 7.2.4 Production / Sales Performance In view of the closure of the Company, the operations have remained suspended as per details given below: Name of Unit Gorakhpur Ramagundam Talcher Sindri Korba Year of stoppage 1990 1999 1999 2002 (*) : The project was never commissioned. Financial Results During the year 2008-09, the Company earned a net profit of Rs. 5800.22 crore, as against a loss of Rs. 1504.83 crore during 2007-08. The profit has been arrived at after withdrawal of normal and penal interest on GOI loan amounting to Rs. 6541.56 crore, as confirmed by Pay and Accounts Office after reconciliation. During the year 2009-10 (Up to December 2009), the Company has incurred a loss of Rs.524.21 crore (Prov.) 7.3. 7.3.1 Hindustan Fertilizer Corporation Limited (HFCL) Introduction The Hindustan Fertilizer Corporation Limited (HFC) was incorporated on 14th March, 1978 as a result of the reorganization of the erstwhile Fertilizer Corporation of India Limited (FCIL), and NFL Group of Companies. The HFCL comprised Barauni unit (Bihar), Durgapur unit and Haldia Project (West Bengal) and Namrup Unit (Assam). The Namrup Unit was hived off with effect 7.3.2

from 1.4.2002 to form a separate entity with the name of Brahmaputra Valley Fertilizer Corporation Ltd.(BVFCL). As on 31st March 2009, HFC had an authorized capital of Rs. 1200 crore and a paid up capital of Rs. 686.54 crores. Closure of the Company/ Reference to BIFR The Company was declared sick by B.I.F.R. in November 1992. During the course of proceedings before BIFR, the AAIFR through its order dated 26.4.2002 permitted hiving off the Namrup units of HFC into a new company under the name of “Brahmaputra Valley Fertilizer Corporation Limited” w.e.f. 1.4.2002 and remitted back the matter to BIFR for reconsideration of its decision regarding revival of Durgapur, Barauni units and the Research Division. Thereafter, Namrup units of the Company were demerged with effect from 1.4.2002 and the residual Company comprising three units at Barauni, Durgapur and Haldia and the Fertilizer Promotion & Agricultural Research Division (FP&ARD) was ordered to be closed on account of techno-economic non-viability. Almost all employees had opted for Voluntary Separation Scheme (VSS) and as on 31.12.2009, only 31 employees are on the rolls of the company to carry out post-closure activities. The case registered as Case No.516/1992 is pending before the BIFR. In the hearing held on 19/10/2009, the BIFR had directed the company/ Ministry of Chemicals and Fertilizers, Government of India to file a written submission giving details of milestones to be achieved in revival of the company specifying the time lines. The Department of Fertilizers has conveyed the intention of the Government for exploring possibilities of revival of the HFCL to the BIFR. 7.3.3 Operating Performance The operational activities of the Company were suspended due to the decision taken



by the Government for closure. Due to suspension of operations of Barauni unit since January 1999 and of Durgapur unit since July, 1997, the production performance has been nil. The Haldia Project was never commissioned. During the year 2008-09, HFCL earned a net profit of Rs. 4841.16 crore after considering prior period adjustments and tax, as compared to the previous year’s net loss of Rs. 1101.98 crore. The profit is due to write-back of Rs. 5357.15 crore towards interest on Govt. of India loan as confirmed by the Pay and Accounts Office DoF. The provisional loss during current year upto December 2009 is Rs. 288.35 crore. 7.4. Revival of Closed Units of FCIL and HFCL The Government had taken a decision on 12th April, 2007 to examine the feasibility of reviving the closed units of FCIL and HFCL subject to the confirmed availability of gas. The revival of the closed fertilizer units through brown field projects subject to confirmed availability of gas having been found feasible, the Government on 30th October 2008, considered the proposal of the Department of Fertilizers for revival of Barauni Unit of Hindustan Fertilizer Corporation through a Special Purpose Vehicle (SPV) viz. Urvarak Videsh Limited (UVL) which is promoted by National Fertilizers Limited (NFL), Rashtriya Chemicals & Fertilizers Limited (RCF) and Krishak Bharti Cooperative Limited (KRIBHCO). The SPV would submit a fully tied-up revival scheme for the closed fertilizer unit at Barauni. 2. The Government also accorded approval for constitution of an Empowered Committee of Secretaries (ECOS) under the Chairmanship of Secretary (Fert.) and Secretaries of Department of Expenditure, Department of Disinvestment, Planning Commission, Department of Public Enterprises and Ministry of Petroleum & Natural Gas as members, to look into all the

financial models for revival of each of the closed units. The Committee would also look into various linkages including gas for facilitating revival of the closed units. The Committee will submit its recommendations including the model for revival of each of the closed units, to the Government. 3. Pursuant to the decision dated 30.10.2008, an Empowered Committee Secretaries (ECOS) was constituted on 7.11.2008 under the Chairmanship of Secretary (Fertilizers) and Secretaries of Department of Expenditure, Department of Disinvestment, Planning Commission, Deptt. of Public Enterprises and Ministry of Petroleum & Natural Gas as Members to look into all the financial models for revival of each of the closed units. 4. The Committee in its first meeting on 05.12.2008 had approved the terms of reference (TOR) for consultants and that FCIL and HFCL should finalize appointment of consultants as per the TOR already approved. The second meeting of the ECOS was held on 24.08.2009 in which various financial models for revival were considered and it was decided to recommend the Revenue Sharing Model, for approval of the CCEA. M/s Deloitte India Pvt. Ltd. have been selected as Project Advisers for implementation of the selected options for revival of the closed units of Sindri, Ramagundam, Talcher and Gorakhpur in respect of FCIL and Durgapur Unit of HFCL. M/s PDIL has been appointed by HFCL as Consultant for evaluation of existing assets of the closed units and certification through Registered Valuer. ECOS has advised to obtain the approval of Government for the recommended Revenue Sharing Model for revival before implementation of the same. 5. Further, the SPV viz. UVL has initiated necessary action for revival of the Barauni Unit by establishing a brown field project at Barauni. The foundation stone for the project was laid on 12.11.2008. The Empowered Committee of Secretaries (ECOS) has been


5 7. Ammonium Nitrate. Hon’ble Prime Minister giving MoU Excellence Award to Shri U S Jha.54 lakh MT of nitrogen and 1.17 lakh MT of phosphate.5.Dr. cumulative production of urea at Thal and Trombay 45 . constituted on 7. Manmohan Singh. Besides fertilizers. The gas based Thal-Vaishet fertilizer complex about 100 Kms from Trombay.46 lakh tonnes of nitrogen and 0. At the time of its formation.2008 with the mandate to evaluate all investment options for revival of the closed units of HFCL and FCIL and to make suitable recommendations for considerations of the government. During April-December 2009. 1985. CMD. Rashtriya Chemicals and Fertilizers (RCF). 551.2 Production Performance The annual installed capacity of all the units of RCF is about 10.1 Rashtriya Chemicals and Fertilizers Limited (RCF) Introduction Rashtriya Chemicals and Fertilizers Limited (RCF) was incorporated as a separate company on 6th March 1978 as a result of reorganization of the erstwhile Fertilizer Corporation of India Limited. Concentrated Nitric Acid. Argon. Methylamines. the company also produces a number of industrial products such as Methanol.. Dimethyl Acetamide. 7. Ammonium Bicarbonate. ECOS has submitted their recommendation in this regard. As on 31st March 2009. The production during 2008-09 was 9. 7. Dimethyl Formamide.69 Crore. Production during the year was affected due to feedstock natural gas short supply and due to suspension of ANP production which is under revamp. the company had only one operating unit at Trombay (near Mumbai) and two major projects under implementation viz.5. etc. which is under consideration of the Government. Sodium Nitrite. Trombay IV and Trombay-V expansion. 800 Crore and a subscribed and paid up capital of Rs.706 lakh tonnes of phosphate. the company had an authorized share capital of Rs.11. was later implemented by RCF and it commenced commercial production on June 1. Sodium Nitrate.

Methanol plant at Trombay. The commissioning of the plant is under progress.65 Crore & net profit after tax of Rs.3 Sales Performance The sales turnover (including traded products) during the year 2008-09 was Rs. The name. the Company has made a net profit (before tax) of Rs. Joint Venture company has been formed and investment decision will be taken by the JV.75 crore.40 Crore for the year 2008-09. During the period April-December. Rapidwall plant for manufacturing of unique building material has been set up at Trombay using phospho-gypsum as a raw material which is a by-product of Phosphoric Acid 7. The project is estimated to cost Rs.65 LMT last year. 135 Crore.5 Modernization/Expansion Schemes For Thal Ammonia Revamp. Scheme for Nitrous Oxide abatement in HP and MP Nitric Acid plants under Clean Development Mechanism (CDM) was taken up and has been registered with UNFCCC in November 2009.5. 428. to reduce energy consumption.together was 15.45 Crore. 781.55 LMT last year. During the period AprilDecember 2009 is Rs. 240. Planning Commission’s in principle approval has been obtained. a scheme has been finalized with process designer M/s Haldor Topsoe for reducing energy consumption and capacity enhancement. address and telephone The sales turnover of industrial products division of the Company was Rs.4281. Project execution has been taken up at an estimated cost of Rs 488.5. 7. commissioned in 1965.4 Financial Results During the year 2008-09. Trial runs have started and Commercial production is expected in January 2010. 2009 .5.65 LMT as against 3. Any citizen having complaints in respect of the product or services rendered may approach the Company through complaints/suggestion boxes placed at convenient locations in the Area Offices/ Administrative Building at Trombay and Thal. During the period April-December. To manufacture indigenous DAP and reduce dependence on import RCF is putting up a plant in Joint Venture with RSMML to produce 850 MTPD “DAP” Plant at Rajasthan.6 plant.33 LMT as against 14.5. Complex fertilizer ANP (20:20:0) has been revamped from Prilling route to Granulation route. 211.10 Crore. 2009 sales of industrial production division was Rs. Any aggrieved customer/ dealer or other citizen can approach the Company for any failure of the quality/price charged/conduct of any officer/employee to the addresses mentioned and will be dealt as under: The grievances can be addressed to a special designated officer of the Company not below the rank of General Manager who acts as the Nodal Officer for redressal.8455. the Company reported a net profit (after tax) of Rs.32 Cr. The production of complex fertilizers during April-December. 165. The capacity of ANP Granulation plant is 900 MTPD. Technology selection and DFR preparation is being undertaken.rcfltd. Grievance Redressal The Company has a good grievance address and redressal system.58 Crore. 2009 is 3. of the officers is available on Intranet on Company’s website www. It is assured that the Nodal Officer will immediately take up the issue with the concerned department and 46 . 7. is being technologically upgraded with an estimated cost of Rs. RCF envisages expansion project at Thal (Thal-III Expansion) by setting up 2200 MTPD ammonia plant and 3500 MTPD Urea plant at an estimated cost of Rs. 75 Crore.4200 Crore.01 Cr. Generation of CERs has started. 7.

A similar grievance address and redressal system procedure is followed by the Company in issues related to staff also. Preference in supply of material for first three years of operation. Some of the concessions given to these dealers are 50% concession in dealership deposit (Rajya Sabha . Some of the programmes carried out under Integrated Rural Development Programme (IRDP) are as under: Number of Employees belonging to SC 2202 185 147 31 583 ST 44 76 127 12 259 Exservicemen 3 4 0 2 9 Minority 81 72 86 15 254 Physically Handicapped 7 6 10 4 27 OBC 90 08 140 48 286 A B C D Total 7. one at Nagpur and other at Thal to impart training to farmers and farm labourers in integrated development and new farming techniques etc.for other categories). ST. The Integrated Rural Development Programme is implemented in various villages of the country. 47 . Meeting Basic Needs of Rural Community: The scheme covers providing essential amenities like drinking water supply. development of irrigation systems etc.11.8 Welfare of Minorities & Reservation in Fertilizer Dealership RCF as a policy includes representative of the minorities in the recruitment selection boards to ensure that the minorities get an adequate share in the services and benefit of developments.9 Corporate Social Responsibility The company continued with its Fertilizer Promotion Programmes to educate the farmers in the scientific and balanced use of fertilizers. 000/.5. of Employees 1452 1408 1215 145 4220 7.7 Employment of SC/ST.5. school buildings. Agricultural Development Programme: This focuses on economic upliftment of small/ marginal farmers and landless labourers through training and education.10.appropriate action will be taken within seven days from the date of receipt of the complaint or an appropriate reply is sent within seven days as the case may warrant. community centers.5. 7. Overall development of these villages is the focal point. RCF has two Farmer Training Institutes. Subsidiary Occupational Artisan Development Programme: This provides a platform for training and making available financial facilities to rural artisan and entrepreneurs which enable them to revive and develop their skill for commercial use. Ex-Servicemen and Physically Handicapped Persons are followed details are given below:Group Total No. Physically Handicapped & other Backward Classes as on 1. Efforts to provide training to them so that they can acquire necessary knowledge of business. OBC. The total number of SC/ ST dealers as on date is 1601 (24. Ex-Servicemen.000/as against Rs.5.2009 The guidelines regarding reservation in Recruitment and Promotion for SC.8% of active dealers).

The company also produces various industrial products like nitric acid. 1. About 1000 samples are analysed every year.1978.e.31 lakh MT of urea corresponding to 14.f.f. 1st April. The production capacity of gas based plants in the country has been re-assessed w.e. dry land farming and biogas development. Consequent upon the reorganization of the FCI. social forestry. 2000 resulting in capacity revision from 7. village sanitation.64 lakh tones for both Vijaipur-I and Vijaipur-II. sodium nitrite/nitrate. 1st Feb. The company commissioned an Argon gas plant designed 48 . The students are required to do field extension work for promoting specialty fertilizers. These students are trained to understand latest developments in agriculture and transfer this knowledge to the farming community.86 lakh MT of ‘N’ (Nitrogen) in terms of fertilizer nutrient. ammonium nitrate.6.26 lakh MT to 14. Earn While You Learn Scheme: This unique scheme that has been developed by the Company. besides bio-fertilizers. About 90000 soil samples are analyzed every year. With this.2001.6 7. liquid nitrogen. Public Health & Village Sanitation Programme: This covers health care. Soil diagnostics find a major part of determining which fertilizer needs to be used for each soil and crop.3. The students participating are offered token money which supports them while studying and at the same time imparts practical knowledge of agriculture to them.e. waste land use. Micronutrients analysis identifies the deficiency in the soil and prescribes doses of micronutrients that need to be applied to ensure optimum yield. A revamp of urea plant at Nangal was successfully completed three months ahead of schedule and commercial production commenced w. It seeks to educate and train children studying in class IX and above to participate in the process of agriculture development.52 lakh MT per annum on commissioning of its expansion unit on 31. The Company has 5 static and 3 mobile soil testing laboratories across its major marketing territories which undertakes soil sample analysis.4. liquid oxygen etc. methanol.26 lakh tonnes Urea commenced commercial production on 1.1 National Fertilizers Limited (NFL) Introduction National Fertilizers Limited (NFL) was incorporated on 23rd August 1974 for setting up two nitrogenous plants.11 lakh MT per annum. the installed capacity of urea at Nangal Unit increased from 3. Soil Testing: The Company places tremendous importance on empowering farmer to increase his yield.1997. The urea capacity was doubled from 7. The scheme provides all opportunities to students to earn while they learn. 7.Social Forestry and Waste Land Development Programme: This focuses on development of sericulture. health camps.f.30 lakh tonnes to 4. at Bathinda (Punjab) and Panipat (Haryana) with LSHS as feedstock. micronutrients & bio fertilizers during vacation and holidays. each having Urea production capacity of 5. and veterinary camps.26 lakh tones to 8. with an annual installed capacity of 7.78 lakh tones per annum raising the company’s total installed capacity to 32. A gas based ammonia and urea fertilizer project on the HBJ pipeline at Vijaipur in Guna District of Madhya Pradesh. sulphur.7. Micronutrient Analysis: To increase crop yield the presence of micronutrients in adequate proportion is necessary.1988. Youth and Women Skill Development Programme: Rural sports and cultural activities are organized in different villages to encourage participation by youths. the Nangal Unit (including Nangal Expansion Project) of FCI was also transferred to NFL w.

7.490.479 crore (97.44 LMT of urea. of Argon gas at the Panipat Unit in October 1997.58 crore (2.187 crore and Profit after tax (PAT) of Rs.500 crore and the paid up capital at Rs. during 2009-10 (up to December 2009) sold 25.6.3. The authorized capital of the company as on 31. 2009). The percentage share of NFL in Urea production in the country has been estimated at 16. 49 . 7.124 crores during 2009-10 (up to December 2009). 7.56 lakh Tonnes of urea in addition to 167 Tonnes of Bio-fertilizers and 8800 tonnes of Industrial Nitrogen (‘N’).11. NFL recorded its ever-best sales turnover of Rs.80 lakh tonnes of Urea & 167 tonnes of Bio-fertilizers.8% for the year 2008-09.77 LMT of urea.6. 3768 crores which includes a record sale of industrial products worth Rs.4 Financial Performance NFL registered a Profit before tax (PBT) of Rs.36%) held by financial institutions and others. A Methanol Augmentation Scheme at Nangal Unit was commissioned in October 1998 thereby enhancing the daily production capacity of Methanol from 50 tonnes to 67 tonnes. comprising Government of India’s share of Rs. to produce 120 NM3/hr.Shri M.3 Sales performance The Company. During 2008-09 the company sold 33. Alagiri.58 crore.6. During 2008-09 the company produced 33. the company produced 25. The company’s bio fertilizers plant at Indore produces three strains of bio fertilizers with an installed capacity of 100 MT per annum.64%) and the remaining Rs.K. Hon’ble Minister (C&F) receiving dividend cheque from Chairman and Managing Director National Fertilizers Limited (NFL).2009 stood at Rs.2 Production Performance During the year 2009-10 (up to December.117 crore.

the then Secretary (Fertilizers) exchanging MoU document with Shri V K Sharma.46 Cr. Number of SC/ST/OBC/EXSM/PH ST 79 158 44 3 284 OBC 88 114 124 8 334 *EXSM 7 37 45 2 91 **PH 10 22 20 3 55 *EXSM – Ex.Shri Atul Chaturvedi.2% of the Profit after tax of the company.150.5 Employment of SC/ST. CMD.6. Physically Handicapped & Other Backward classes (OBCs) Persons in Public Sector Undertakings (As on 30.Service men **PH – Physically Handicapped 50 . The company earned PBT of Rs. and PAT of Rs.29.61 Cr.43 crores for the year 2008-09. The company maintained its trend of paying dividend of last 24 years and paid a total dividend of Rs. during 2008-09. Group Total number of employees SC A B C D Total 1710 1936 1006 147 4799 362 507 251 115 1235 7. The dividend works out to 30.09).09. NFL. 97. Ex-Servicemen.

7 Information relating to welfare of Minorities and reservation in dealership. Barbering and Rehri for vegetable selling etc.77% as on 30. The following social welfare projects were undertaken by the Company : Help to poor and needy people: Sewing machines. Based on the model grievance procedure notified by DPE.6 Public/Staff Machinery Grievance Redressal 7. were distributed for self-occupation of handicapped persons of nearby villages. public convenience. Clean Development Mechanism (CDM) Projects to reduce GHG gas emissions to earn carbon credits. The organization believes in equality of all communities and celebrates festivals with great fervor for all the communities. the company has undertaken the following revamp projects: Capacity Enhancement by 23% of Urea plant at Vijaipur. Clean Development Mechanism (CDM) project for Nitric Acid plant at Nangal. education material. Installation of Carbon dioxide Recovery plant (CDR) at Vijaipur Complex.6. Revamp of FO Based plants at Panipat.6. a drive was initiated in 2004-05 to fill up the gap for allotment of dealership to SC/ST category and as a result their share increased from 1. 7.92% to 13. Presently as per policy of the Government of India.6. 51 .9 Corporate Social Responsibility NFL is committed to give utmost importance to several community welfare and development programme and the company’s endeavor will be to intensify these activities in future so that the benefit reaches to the needy people of the society. the company has also set up “Public Grievances Centres” at the Units. Second drive has been initiated during 2007-08 and % share in NFL dealership under SC/ST category has increased to 27. Clean Development Mechanism (CDM) project for revamp of Vijaipur plants and FO Based plants. Revamps: After notification of new investment policy in Urea sector by GoI in September 2008.7. Energy Saving project (ESP) & Capacity enhancement of Urea by 16% at Vijaipur-I. 7. Head of Corporate HR Department has been nominated as Director (Grievance) as per the directives of the Government.7%. Company follows all Government regulations on empowerment of minorities such as representation of the minority communities on interview boards in Group C & D. For systematic monitoring and supervision of Public Grievances. Village Development: Construction of steps and floors.8 Brief description of major expansion projects / revamp etc. 25% of total dealership are for SC/ST category. Bathinda & Nangal for change over of Feedstock from LSHS/FO to NG/RLNG.V.II.6.2009. sports material and 424 jerseys were distributed among the children. mechanics. Development of Schools & help to children: 65 ceiling fans and 20 wooden desks were distributed to schools. The objective of the ‘Grievance Redressal Procedure’ is to provide easily accessible machinery for expeditious settlement of grievances of staff and officers with the aim of providing satisfaction and in improved productivity and job efficiency of the organization. material for T.9. bricks road. the company has framed a ‘Grievance Redressal Procedure’ for staff and officers of NFL. whose working is supervised by grievance officer. tube wells and other infrastructure facilities were provided by NFL to villagers. who generally belongs to senior management cadre. In addition to this in-built system. In order to achieve the desired target of 25%.

The authorized share capital of the company was Rs.3. a profit of Rs.7. Trombay. Weak Area analysis & Health assessment for 4 streams of Urea Plant. The company has its registered office at Noida. It has also diversified its activities into the field of Oil and Gas. construction of bus stand.09. 7.57. During the period April to December 2009. Procurement.75 Crores during 2008-09 on total income of Rs. 7.30 crores as on 31.4 Engineering & Consultancy Division The company is mainly engaged in Design.3 Excellent Ranking In MoU PDIL has obtained Excellent rating in the year 2006-07. procurement assistance and other consultancy services for the Methanol Revamp Project of Rashtriya Chemicals & Fertilizers Ltd.Other activities undertaken by the Company: Health camps for women and children were organised. Refinery and Infrastructure Development such as Housing project and City Gas Distribution etc. This award was conferred by Hon’ble Prime Minister of India Dr. Detailed Engineering Consultancy for Thal Ammonia De-bottlenecking for RCF. PDIL has also won prestigious MOU Excellence Award for the year 2007-08 under the category of “Turnaround CPSE”. During 2009-10. 18. PDIL has performed exceedingly well in last five years continuously and has become eligible for Mini Ratna – Category-II Status under the DPE Scheme of Mini Ratna. 14. Hand pumps.5 Techno-Economic Feasibility Report PDIL established itself as a major player in the Industry as a Consultant for preparation of Techno – Economic Feasibility Studies and 52 . Detailed Engineering Consultancy for capacity enhancement of Vijaipur I Urea for NFL. trouble shooting and NDT services for health maintenance of plants. It has played a pivotal role in establishing fertilizer plants in India from concept to commissioning.73 Cr. dresses and bags.10. Detailed Engineering Consultancy for Revamp of Ammonia and Urea plants at Surat for KRIBHCO.7.2009. 7. installation of water tanks. besides providing revamping for Energy saving and capacity augmentation. toilets. Pipeline.89 Cr. tricylcles. Engineering. off site & power plant at Surat for KRIBHCO.04 Crores has been earned on income of Rs. 17. 2007-08 and 2008-09. platform on creation ground. Manmohan Singh on 15.7 7. Uttar Pradesh. PMC Services for Algeria Oman Fertilizer Project at Arzew. Distribution of ceiling fans. Store Management and Supervision during construction and commissioning of fertilizer and chemical plants. Detailed Engineering consultancy for capacity enhancement for Vijaipur II Ammonia. water coolers and rural sports etc.1 Projects & Development India Limited (PDIL) Introduction Projects & Development India Limited (PDIL) an erstwhile Division of the Fertilizers Corporation of India (FCIL) was registered as a separate company in March 1978.Urea for NFL. Inspection. Algeria.7. Company is expecting ‘Excellent” rating for the year 2009-10 also.2 Operating Results The company had earned net profit of Rs. 7. school books. 60 crores and paid up capital was Rs.7. 7. the following major projects / assignments in the fertilizer sector are under execution for various clients:Detailed Engineering Consultancy for 525 MTPD Methanol Plant for M/s GSFC Baroda Detailed Engineering.7.

7.30. study of uniform Urea price mechanism for Department of Fertilizers. On the basis of credential and satisfactory past performance. Presently PDIL is executing the job of Detailed Engineering and procurement services for 3 nos. PDIL is providing PMC Services for Algeria Oman Fertiilizer Project at Arzew. 7.Detailed Project Reports.000 MTPA Hydrogen Plant for M/s IOCL Barauni. PDIL is also providing Project Management Consultancy Services for installation of a 20.7. Setting of Greenfield Ammonia –Urea plant in Karnataka for ZIL and preparation of DFR for the proposed Ammonia-Urea Plant for MATIX. Japan. Inspection and recommissioning of Ammonia Storage Tanks etc. In the OIL & Gas and refinery sector.6 Assignments Abroad PDIL continued its extensive efforts to secure jobs in Projects being set up outside the country. 7. Oil & Gas and other Sectors Apart from the fertilizer sector PDIL has established its credential in Oil and gas and Refinery sector also.7. who are one of the leading international EPC Contractors in the Fertilizer field and as a part of this contract PDIL provides services for Tatarstan Ammonia Urea Project. PDIL signed a General Cooperation Agreement with M/s. Mitsubishi Heavy Industries Ltd.9 Inspection & NDT PDIL established its credentials for Third Party Inspection (TPI) and Non Destructive Testing (NDT) Services – Statutory inspection. 7. During the year the major jobs secured in fertilizer sector were: Preparation of TEFR for Phosphatic Fertilizer complex of GECOPHAM-SYRIA Project advisory services for Revival of four units of FCIL Units & HFCL-Durgapur. Job is being carried out to the full 53 . Algeria. Mounded LPG Bullets. PMC services for Installation of Hydrogen generation unit of 21000 MTPA at Manali refinery for CPCL. 7. testing and certification of Horton Spheres. Opportunities for providing services to various Joint Venture Companies with Indian Fertilizer Companies as stake holders setting up projects abroad and avenues for back-up engineering support to international EPC Contractors in Fertilizer Projects are being pursued. Dahej.7. again awarded the TPI rate contract for the period 2008-2010 for third party inspection of various equipments and bought out items ordered by all Manufacturing Units of BHEL through out India. Algeria for AOA. The Audits were undertaken and the reports with TAC observation and comments have already been submitted to DOF. PMC Services for sulphur Recovery unit for IOCL Mathura and PMC services for C2. Bharat Heavy Electricals Limited (BHEL).. of Hydrogen manufacturing units. C3 & C4 product pipeline for ONGC. continued to be a specialized activity of PDIL.8 Jobs in Diversified Sector Refinery. Further DOF continued to engage PDIL for Techno. PDIL is executing job for preparation of Feasibility Study Report for feedstock change of existing Hydrogen plant at Visakha refinery of HPCL and consultancy services for processing proposals for laying .000 NM3/hr at the Vadinar Refinery from Essar Engineering Centre and detailed engineering for Debottlenecking of FCCU-I (Fractionators) & GCU for HPCL Visakhpatnam.commercial Audits of SSP Plants located throughout India. operating or expanding City Gas Distribution (CGD) Network for PNGRB. each with a capacity of 1. building.7 Technical Audit Department of Fertilizer (DOF) entrusted the job of technical audit of Fertilizers plant in India for the purpose of their benchmarking with respect to the performance of and Energy efficient Ammonia and Urea plant abroad.

Haryana PWD. FACT has grown and diversified into a multi-division/ multifunction Organization with basic interest in manufacture and marketing of Fertilizers and Petrochemicals. During the current year upto December 2009. From a modest beginning.11.3 Sales Performance During 2008-09.33 LMT of Fertilizers and 0. Ammonium Sulphate was 1. customers and community in which it operates.13 LMT.09 is as follows:EMPLOYEE STRENGTH AS ON 30. 7.81 LMT of NP.2 Production Performance During the Financial Year 2008-09 FACT has made an upsurge in sales turnover and profit. 7. PDIL has decided to make funds available for CSR activities upto 1% of Net profit after tax. PRG Catalyst. Hyderabad Metropolitan Water Supply & Sewerage Board etc.8.1 The Fertilizers and Chemicals Travancore Limited (FACT) Introduction Fertilizers And Chemicals Travancore Limited (FACT) was incorporated in 1943. The production of the Catalyst was 182 MT in the year 200809 as compared to 105 MT in the previous year.7.15 LMT of Ammonium Sulphate and 0. PDIL continued to extend required number of facilities to SC/ST/OBC employees. In the year 1960.7. 7. 7.12 Corporate Social Responsibility In pursuance of fulfilling its Corporate Social Responsibility (CSR) objectives. 54 . towards this objective.8. keeping in mind the interest of its employees.10 Catalyst PDIL continued to produce catalyst for Fertilizer Industry such as HT CO Conversion shift catalyst (conventional).000 MT per annum at Udyogamandal.8.09 Category A B C D On contract Total Total MIP 438 38 30 49 555 SC 44 5 10 0 8 67 ST 20 0 0 0 0 20 OBC 58 1 6 0 16 81 7. Engineering Consultancy and Design and in Fabrication & Erection of Industrial Equipments. In 1947 FACT started production of Ammonium Sulphate with an installed capacity of 50. PDIL also supplied HT Catalyst to Chennai Petroleum and V2O5 Catalyst to SAIL Rourkela.29 LMT of Caprolactam. LT CO Conversion Shift Catalyst (conventional).11. PDIL executed order of GSFC for HT. shareholders. LT and Methanation Catalyst. total income was 2209. 7. Uttar Pradesh Jal Nigam. PDIL also carry out Third Party Inspection job for various State Government organizations like PHED – Rajasthan & West Bengal. Madhya Pradesh Laghu Udyog Nigam. RCF for SR catalyst and HPCL Visakhaptnam for HT catalyst.05 LMT. FACT became a PSU and towards the end of 1962.28 LMT and Caprolactam was 0. 7.satisfaction of BHEL and their clients NTPC and PGCIL.12 LMT of Caprolactam. Iron oxide and Alumina Balls. Government of India became the major shareholder.72 Cr. The details of employees as on 30.11 Facilities to SC/ST/OBC/Employees In line with Government Guidelines issued from time to time.7. 1. the company produced 4. government.8. on 8. Production of NP was 6. Vanadium Pentoxide Catalyst. During the year. near Cochin.

rubber. Mechanization of bagging operation at Cochin Division.8. expansion of existing complex fertilizer plant at Cochin Division from 2000 MT to 3000 MT per day.16 Cr. etc. banana. establishment of container freight stations in association with 55 .27 LMT of Caprolactam. the company earned net profit of Rs. the total sale of NP Fertilizers is 5.).10 LMT of AS and 0. till December. During the current financial year upto December 2009. Total value of external orders on hand as on November 2009 is Rs. setting up of a urea plant at Udyogamandal with a capacity of 1500 TPD.792 lakh and a profit of Rs.39 Cr. FEDO expects a turnover of Rs.42.Shri Mathew C Kunnumkal.221. During the year FEW has entered into a MOU with Cochin Shipyard Limited for joint operations. Special Secretary and Financial Advisor addressing at function for commissioning of SAP implementation in FACT Cochin. During the period FACT has launched new products like organic manure and crop specified mixture for coconut.28 LMT. 7. The company has earned net loss of Rs. 1. 2009.63.48 lakh for the year 2009-10.95 Cr. FEDO & FEW: The turnover of FEDO upto November 2009 is Rs. (including extraordinary items of Rs.4 Financial Performance In 2008-09.5 Modernization/Revamp Projects 1.292 lakh. The Company has handled a total quantity of 83375 MT of urea at Cochin Port which is an all time record.2168 lakh. 7.8.

Generally the grievances are related to work. transfer. salary fixation. The Company has drawn up plans for switch over of feedstock for the Ammonia Plant and fuel for the boilers and complex fertilizer plants to LNG as and when the LNG terminal comes online at Kochi. no grievance received from public is pending for redressal. 4. The respective Committee will deliberate on the grievance and give their recommendations to the management for appropriate action. 3. 7. as per norms laid down by Government of India. FACT formed a joint venture company in association with RCF for the manufacture of value added load bearing building panels using the huge stock of Gypsum available at FACT. there is an SC/ST Grievance Cell that looks into complaints received from SC/ST Employees. Physically Handicapped and Other Backward Classes (OBCs) as on 30. In addition. At present. etc. Separate grievance committees exist for examining and redressal of grievances of managerial and non-managerial employees.7 Employee Grievance Redressal Machinery A machinery for redressal of employee grievances exists in the Company.2009 Group A B C D D-S TOTAL Total Employees 515 1418 817 782 37 3569 SC 89 209 82 124 10 514 ST 10 51 23 21 0 105 OBC 76 348 334 307 18 1083 GEN 340 810 378 330 9 1867 WOMEN 47 123 59 9 21 259 EXSERVICE 0 14 25 11 0 50 PH 4 21 14 33 1 73 56 .8 Employment of SC/ST. Ex-servicemen. 2. FACT implemented a new ERP system SAP. if required. 7. The individual concerned is given an opportunity to present his grievance in person before the committee. promotion. The project is expected to be commissioned during the year 2009-10. shift arrangement. An aggrieved employee may submit a complaint / request for settling the grievance in the Division and if still aggrieved with the decision of the Division Head. etc. are some of the major expansion and diversification projects on the anvil.12. During the year. 7.Central Warehousing Corporation and Container Corporation of India.8.8. The required modifications on the plants to switch over of the feed stock has been planned for completion by end 2011. work place.6 Redressal of Public Grievances and Welfare Measures A Public Grievance Cell is functioning in the Company. it may be submitted before the appropriate Grievance Committee.8. grant of increment.

9 Welfare of Minorities. Udyogamandal. This has benefited the people at large as experienced Doctors attached to our factory Occupational Health Centres provide the medical expert The premises and facilities such as Electricity.8.7. Details of dealership allotted to SC/ST are given below: Category of Dealership Total Dealership SC / ST As on 31. Ambalamedu 40 cents 4 separate cemeteries to above 4 Christian Churches in Ambalamedu Cremation ground for Muslims (Khabaristan) in Ambalamedu Cremation ground for Muslims in Udyogamandal No security deposit is collected from SC/ST Dealers and they are encouraged to do business by constant advice/follow up. The Company has taken all measures for reservation of SCs/STs in accordance with the Presidential directives.2009 8066 657 Land for Jacobite Syrian Church.8.8. An SC/ST Grievance Cell is functioning in the Company to redress the grievances of SC/ST employees.03. water etc. To meet the scarcity of water in Eloor Panchayath. The grievances received are examined in detail by the Cell and appropriately redressed.8. 619 are SC/ST employees. 2. a) b) c) d) e) f) g) h) i) j) k) Land for Mosque near FACT Junction. The Company had provided the following facilities for the Welfare of Minority Communities. 7. are extended free of cost.51 cents Land for Catholic Church. Ambalamedu 40 Cents Land for Mosque. 7. Udyogamandal Land for Christian Cemetery in Udyogamandal Pathway to St:Joseph’s Church near JNM Hospital. Community Health Centre The Community in which factories at Udyogamandal and Cochin Divisions are located are given free medical consultation services on two days in a month.12. Out of the total employees of 3569 as on 30. All efforts will be made to ensure that maximum representation is given for SCs/STs in Dealer appointments wherever additional dealerships are provided.73 cents Land for Marthoma Ambalamedu 45.10 Welfare of SCs & STs Employment. 7. Drinking Water Supply to Residents of Eloor Panchayath FACT processes water from the River Periyar at their advanced drinking water facility for their industrial/township needs. Ambalamedu 44. 1. the Grievance Cell.01 cents Church. The employee concerned is informed of the decision / action taken on the grievances by 57 . FACT is providing about 1500 M3 water per day to more than 500 residential users of the Eloor Grama Panchayath.12 Corporate Social Responsibility As part of Corporate Social Responsibility. Ambalamedu 25. Further there are Associations representing SC/ST employees and these Associations also take up individual grievances of SC/ST employees with the management for direct redressal. Land for CSI Church. FACT has undertaken the following activities.2009.11 Reservation in Dealership FACT has always followed a policy of encouraging SC/ST Candidates to take up dealership.

1997.1 crore from Government of Kerala. A separate Society under the Travancore Literary. 1955 was registered for conducting the courses relating to welding technology with a grant of Rs. which were purchased by GOI and NIOC in their respective proportions on 22. Soil Testing and Agronomy Services During the year 2008-09. 1997 was GOI 69. Government of Kerala for establishment of Kerala Institute of Welding and Research to conduct courses for qualification as IBR approved welders to cater the growing needs for skilled welders both for the industries in India and abroad. 3.9 7.diagnosis and services. use of available organics in fields. Kerala Institute of Welding & Research functioning at FACT Training Centre has started a 3 months Certificate course in Welding leading to award of IBR certificate in Welding. Tamilnadu and Kerala.1 Madras Fertilizers Limited (MFL) Introduction Madras Fertilizers Limited (MFL) was incorporated in December 1966 as a Joint Venture between GOI and AMOCO India Incorporation of USA (AMOCO) with GOI holding 51% of the equity share capital.22%. On May 12. namely crop variety selection. These activities have benefited the farming community to maximise their crop yields. Scientific and Charitable Societies Act. 4.45%. field demonstrations etc. The focus was on collecting samples from remote tribal areas with limited access to Government laboratories. utilizing its resources for the benefit of the public at large: (a) One year Diploma in Fire & Safety Engineering for ITI / Plus 2 passed students – 1st batch started in February 2008. 6. AMOCO disinvested their shares.78% and NIOC 30. and inculcate the adoption of modern technology for integrated farming. dosage of fertilizers to be used etc.1985. Karnataka. 5. were conducted. The share holding pattern upto May 11. dealer training programmes. MFL made its maiden Public Issue of 2. This helped the farmers to gain experience of scientific practices to be adopted for successful farming. crop campaigns. 7. Fire and Emergency Services The well equipped fire services established in FACT provide emergency services not only to the surrounding areas but also to Ernakulam district as well.000 shares of face value of Rs 10 at a premium of Rs 5 per 58 . (b) 3 months Certificate course in Heavy Equipment Operation – 1 st batch commenced in October 2008 (c) 3 months Certificate course in Instrumentation & Maintenance – 1st batch commenced in September 2008. 3160 number of soil samples were collected by our field staff from various villages in the states of Andhra Pradesh. The revised share holding pattern was GOI 67.30.55% and NIOC 32.9. Training facilities In addition to Employees and Apprentices Training. First batch commenced in September 2009. The Company has entered into a Joint Venture agreement with Department of Factories and Boilers. type of soil tillage to be adopted. 7. This helps the people to avoid traveling long distances to get routine medical care. Based on the soil tests the farmers were educated on the agronomic practices to be adopted.07.86. Farmer Education programme Regular agricultural seminars. FACT Training Centre has of late emerged as a Skill Development Academy offering the following courses. In 1985. Our field staff regularly make follow up to clarify doubts if any.

financial difficulties and problems of capacity utilization etc. After the Public Issue.54 lakh tonnes of N and 1. Cr 95. continued and financial position started deteriorating. which came into effect from 1.700 shares were subscribed. enhancing the annual installed capacity to 2. low capacity utilization and resultant financial difficulties and liquidity problems. with an annual installed capacity of 1. there were also problems of adjusting to the Urea Pricing Policy with effect from 1.10 % 59.2003 and the norms of determination of concession on decontrolled complex fertilizers. 58.4.85 41. Of these. certain problems were also experienced in the revamp process which led to frequent shut downs. However.7 lakh tonnes of Nitrogen (N) and 1. the shareholding pattern is as follows: Shareholder GOI NIOC Public Total Rs.. As on 31.10 Cr.86. corresponding to 4. In the wake of this.2008.77 14.52 23. 59 . the paid-up equity was Rs 161.750 MT of urea and 8. 09.3.4. 2.2009.73 161.4. A major revamp / expansion was carried out in 1998 at a cost of Rs 601 crore.42 lakh tonnes of P.50 25.2002 and 1. The preference share capital is yet to be issued and subscribed.00 The company has an authorized share capital of Rs 365 Cr comprising of Rs 175 Cr as equity and Rs 190 Cr as preference share capital. Over a period of time.12 lakh tonnes of Phosphate (P).40.000 MT of complex fertilizers. despite two rounds of financial restructuring.Tableau of Madras Fertilizers Limited (MFL) at Republic Day celebration 2010 at Chennai. MFL commenced commercial production in 1971. share. have.73 100.

2010 would be Rs 826.06 LMT of Urea. till December.25 LMT of Urea.9. The Company is expected to produce 450 tonnes of Biofertilizers during the year 2009-10.2 Reference to BIFR The Company has informed the Board for Industrial and Financial Reconstruction (BIFR) of the total erosion of net worth and its current negative value.9.28 Cr and the total accumulated losses as on 31. The BIFR has registered the Company as Case No.93 Cr. the Company produced 4.51.2009 was Rs 793. Revised Proposal for Restructuring Based on the outcome of inter-ministerial meetings.6 4.7. MFL have also engaged M/s Project and Development India Ltd (PDIL) as consultants for study of technical viability of the Plant. the Company had engaged M/s Deloitte Touche Tohmatsu India (P) Ltd (DTT) as consultants for study of MFL and assistance in preparing a revival plan.5 Sales Performance The sales performance of the company is given below: Product (In MT) Actual 2008-09 Urea NPK Imported MOP Bio Fertilizers 7. During the year 7. In the first hearing held on 2nd April 2009. During the year 2009-10 the Company is likely to end up with a loss of Rs 32. The final report of M/s PDIL has been received and based on their recommendation the Company is preparing a fresh Financial Restructuring proposal along with the support from OA for submission to DOF/BRPSE for their consideration. The Company’s operations are viable after implementation of NPS III amendment restricting the reduction in fixed costs by 10% from 01. MFL was declared as a sick Company and State Bank of India (Commercial Branch. Financial performance: During 2008-09. The Company is planning to produce 60 thousand tonnes of NPK-Complex fertilizers during the year 2009-10 on tolling basis through M/s Indian Potash Limited. The Company may end up with a small cash profit for year 2009-10. During the current financial year.04.06 LMT of Urea and “Nil” NPKComplex fertilizers with capacity utilisation of 83% and “Nil” respectively. Further during the year 2008-09.7 Welfare of SC/ST and reservation in dealership. 2009-10.21 Cr.2009 and therefore the Company has been making profit on a monthly basis from August 2009.9.4 Production Performance During the year 2008-09.38 Cr and the total accumulated losses as on 31.54 Cr. 7. State-wise SC/ST dealer strength is as below: 60 .3. the Company ended up with a net loss of Rs 145. Actual production upto December.9. MFL has earned net loss of Rs.3. 2009 has been 3. 2009. 501/ 2007. Chennai) was appointed as the Operating Agency (OA) to prepare a Draft Revival Scheme (DRS).15. the Company is expected to produce 4.06000 460 7. the Company produced 458 tonnes of Biofertilizers.266 463 AprilDecember 2009 3.

69% of the total dealer strength. To educate farmers about balanced fertilization. The other establishments of the company are Liaison Offices at NOIDA & Kolkata and Marketing Offices at Guwahati. Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) 7. 61 .9.00. MFL organized 7 Nos. Exemption from seasonal minimum sales norms. usage of biofertilizers & Neem products for environment friendly atmosphere and fertilizer recommendation (Macro & Micro) for different crops.State Tamil Nadu Pondicherry Andhra Pradesh Karnataka Kerala Total SC/ST Dealers 533 9 400 481 189 1612 SC/ST dealers constitute 26. which includes 27% from SC/ST.10 ExServicemen 13 13 Physically Handicapped 1 1 3 5 BC / OBC 53 80 126 9 268 A B C D Total 7. MFL has appointed 5986 retail dealers. With regard to micro-nutrient analysis. The following special terms are allowed for the above category : Waiver of security deposit of Rs 5000/-.1 Introduction Brahmaputra Valley Fertilizers Corporation Limited (BVFCL) has two operating units at Namrup Assam. there is a plan of 500 samples for the year 200910 and so far 400 samples have been collected. method demo on biofertilizer usage was planned for 20 nos. Employees SC Group Number of Employees belonging to ST 3 5 1 9 7. Analysis report has been distributed to the farmers for follow up.9 241 208 329 40 818 24 46 84 28 182 Corporate Social Responsibility MFL marketing personnel contacted 2. for the year 2009-10.8 Statement showing employment of SC/ST.10. So far MFL has conducted 17 demonstrations in the marketing territory. of agro based exhibitions during the year against the Annual Plan of 10 Nos.000 farmers for the year 2009-10 and educated the farmers about soil health techniques. 7. MFL collected and analysed 7860 soild samples from farmers against the annual target of 7200 number of samples.919 farmers during th current year against the yearly target of more han 3. Ex-Servicemen and Physically handicapped persons.39. For eco-friendly environment and to improve soil health. analysed and the reports have been sent to farmers.9. To ensure fertilizer distribution upto rural area. Its Corporate Office is also situated at Namrup.

The company manufactured 15.76 MT of vermin-compost. Performance of Namrup-II was also below par due to repeated problems in CO2 Compressor in Urea Plant.63 MT of Biofertilizer during the period April 2009 to December 2009 and plan to produce 20 MT Bio-fertilizer in 2009-10.95 MMSCMD of gas.70.2 Physical Performance The actual production from Namrup units for April 2009 to December 2009 was 218733 MT.83 Crores respectively.65 lakh have been sold to farmers to farmers through its dealer network.2009 were Rs. 510 Crores and Rs. Performance of the Company has been adversely affected due to frequent power failures.View of Brahmputra Valley Fertilizers Corporation Ltd (BVFCL) Plant at Namrup (Assam).. This has increased cost of production of Namrup-II plants. Worth Rs. Problems in BFW Pumps and Synthesis Gas Compressor. The company has started production of Vermicompost and has sold 26. 7.72 MMSCMD gas against requirement of 1. 365.3. 12. In Namrup-III performance was affected due to poor conversion in Synthesis Converter and tube leakages in Coolers. The targeted production for the year 2009-10 is 3. Further vegetable seeds procured from M/s Numhens Pvt. The company has sold 177 MT Quality Seeds in Kharif season of 2009-10 and 268 MT of Wheat seeds are being sold during Rabi season 2009-10. The authorised share capital and paid up capital of the company as on 31.10. Ltd.100 MT of Urea as per MOU Target for 2009-10. Siliguri & Patna . Tube leakages in Flue Gas Heat Recovery Section and RG Boiler 1st compartment tube leakage. 62 . Namrup-II Plant could be run at 50% load only due to availability of only 1.

25% of the appointment of dealers is to be reserved for SC/ ST category. As per the scheme for appointment of SC/ ST candidates for dealers formulated by the Government of India.197. In 200809. a representative of the minority is included in the Selection Committee. There is no reservation for minorities.170. the company earned net loss of Rs. Category – wise details of which are as follows. Physically handicapped & other backward classes are taken care of at the time of recruitment/ promotions. 7.10.10.servicemen. education. during recruitment and promotion.4 Public / Staff grievance redress machinery and Status of Grievances: An Employees Grievance Redressal Committee headed by GM (HR) with the representatives of both the recognized Unions & Joint Council of Officers is in operation to look into the individual grievances of the employees. during current year upto December.48 Cr.10.07 Cr. 7. Aggrieved employees submit the grievances to the Coordinator of the Committee. BVFCL had regularly contributed to various corporate social responsibility initiatives in the areas of health. As Namrup Fertilizer Complex is located at remote area in the Dibrugarh District of Assam. on Sales turnover of Rs.7 Corporate Social Responsibility : Since its inception. there has been added social responsibility for development of areas adjoining its factory and township.104. BVFCL is getting very limited applications from SC/ST candidates.72 Cr. infrastructure and culture. 2009. No specific complaint has been received about its unsatisfactory functioning.3 Financial Performance The company earned net loss of Rs. Further to this. Requested information has been provided as per the Act.10. 63 .6 Welfare of minorities and reservation in dealership : Welfare of minorities are looked after as per directive of Prime Minister’s 15 Point Programme relating to welfare of minorities.2009 1205 407 798 SC 91 ST 181 OBC 365 ExPhysically servicemen handicapped 4 4 7. on turnover of Rs. Information on employment under different categories are stated as under : Men in Position Executive Non-executive as on 31. At the time of promotion and recruitment.5 Employment of SC/ ST. BVFCL is extending following welfare facilities to its employees and their families and to the neighbouring villages. Thereafter.12.7. Ex. Reservation policy has been followed as per Government guidelines. Physically Handicapped & other backward classes persons : The matter of employment of persons belonging to SC/ST.150. information is provided to the citizens under Right to Information Act 2005 and 10 applications have already been received during 2009-10 and 19 applications were received during 2008-09. ST SC Total Dealers 55 13 601 In spite of advertisement.10.40 Cr. Ex-servicemen. all the grievances are examined and put up to the Chairman of the Committee for redressal. 7.

47 Cr. The corporation has extended its patronage for establishment of Namrup College and B.3 Financial Performance The Company has earned a net profit of Rs. accommodation for telephone exchange. FAGMIL has earned net profit of Rs. Medical: A 60 bed hospital with modern equipments is operated with qualified doctors and para-medical staff.1 Introduction The FCI Aravali Gypsum & Minerals India Limited was incorporated under the Companies Act 1956 as a Public Sector Undertaking on 14. (ii) For Staff Grievance a. (i) For Public Grievance Head Office at Jodhpur receives the public grievances. no grievance is pending.98.2.11. Recreation facility: There are 2 clubs. one Higher Secondary School and one Primary School for students of neighbouring areas and wards/children of its employees as well.a) Education: BVFCL is running one Kendriya Vidyalaya.2003 after being hived off the Jodhpur Mining Organization (JMO) of Fertilizers Corporation of India limited.11.6 Corporate Social Responsibility Construction of separate Water Tanks at Village Mohangarh.servicemen. District Jaisalmer at the 64 . route their grievances through Sectional Heads to Chief Manager (Mining).2009. 7.4. 1 stadium with play ground where regular cultural functions/sporting even are organised.65 lakh MT. During the current year 2009-10.11. the Company has produced 4. Physically handicapped & OBCs as on 31st March. (FCIL). At present. Patients from adjoining are treated. The authorized share capital of the Company was Rs. The revised production/sale revised target for the year 2009-10 is 7. 32.93 Cr. Information in respect of employment of SCs/ STs.2 Production Performance The Production/Sale of gypsum in 2008-09 was 9. FCI Aravali Gypsum & Minerals India Limited (FAGMIL) 7. which are redressed by the Grievance Cell. 903.11. Ex.000/.89 LMT and sold 5. on sales of Rs.35. The employees working at Head Office. no grievance is pending. Jodhpur.08 LMT of Gypsum up to December 2009.15 lakh MT.4 Grievance Cell Grievance Cell is functioning to redress the public an staff grievances and no grievances is pending as on date.5 Employment of SC/ST. 10 crore and the paid up capital was Rs. on 31. 7.16 lakh MT as against the target of 9. for Higher Education at Namrup. post office etc. The employees who are working in various Mines are advised to submit their grievances through the respective Area Managers to Chief Manager (Mining). Physically Handicapped & Other Backward Classes (OBCs) persons. b. Upto December 2009. Civic Amenities: The company provided drinking water and lighting facilities to public of Namrup.11. Total employees 109 SC 17 ST 5 ExPHC Serviceman 1 NIL OBC 8 b) c) d) 7.42.11 7. ExServicemen. 7. 2009 is as furnished below.55 lakh (after deferred tax charge) during the year 2008-09 on sales of Rs.Ed.40 Cr.11. At present.3. 7.

KRIBHCO’s Hazira Plant.29 lakh MT. As on 31.1980 to implement the Ammonia/Urea fertilizer project at Hazira.1 Lakh to provide drinking water facilities for the villagers as well as for cattle.68 crore.P in September 2003 and another one in Lanja.11. The capacity of this Unit was enhanced from 100 MTPA to 250 MTPA in 1998. thus. 7. Two more Bio-fertilizer units of 150 MTPA capacity each have also been installed one at Varanasi.03.390.12.12 Krishak Bharati Cooperative Limited (KRIBHCO) The Hazira complex has two streams of Ammonia plants and four streams of Urea plants. KRIBHCO has also installed a Bio-fertilizer unit at Hazira in 1995.1 Introduction KRIBHCO was incorporated as a Multi State Cooperative Society on 17. 7. cost of Rs. 65 .500 crore and the paid up share capital is Rs. Maharashtra in March 2004. reservation for minorities is not applicable. The Society commissioned its Ammonia/Urea Plant in 1985. 7. U. The company does not have any system of engaging dealers.7 Information relating to welfare of Minorities and reservation in dealership.03.2009 was 6523. based on natural gas from Bombay High/South Bassein. The annual capacity of Urea Plants is 17. The total membership as on 31.04.2009 the authorised share capital of the Society is Rs.

2009. During the year 2009-10 upto November 2009. BIO-FERTILIZERS SALE : During the year 2008-09 the sale of Biofertilizer was 867MT.13 crore (post-tax). 7.09 lakh MT of KSFL Urea.45 crore to GOI upto 31. Since inception KRIBHCO has paid dividend of Rs.20 lakh Mt in terms of nutrient “N”) of capacity utilization of 103%.27 lakh MT of OMIFCO Granular Urea. Society sold 23. AMMONIA SALE : During the year 2008-09 the Society has sold 0.8 % and 10. Society has sold 6.79 lakh MT of surplus Ammonia. KSFL UREA: During the year 2008-09 Society has sold 8. the Society has produced 13.59 lakh MT of total Urea. The expected production for the year 200910 would be 17.12. During the year 2009-10 upto November 2009. Society has sold 655 MT of Bio-fertilizer.3 Sales Performance: TOTAL UREA : In the year 2008-09. During the year 2009-10 up to November 2009.12. During the year 2009-10 upto November 2009.85 lakh MT of Ammonia achieving capacity utilization of 108. Society has sold 1692 thousand NM3 of Argon.77 lakh MT OMIFCO Granular Urea. During the year 2009-10 upto November 2009.43 lakh MT of Urea (8.23 lakh MT of own Urea.250.4 Financial Results : During the year 2008-09.7. Society has sold 0. ARGON SALE : During the year 2008-09 the Society has sold 4215 thousand NM3 of Argon.2 Production Performance UREA & AMMONIA : During the year 2008-09 KRIBHCO produced 17. 7. Society has sold 6. 66 . Society has produced 679 MT of Biofertilizer.11 lakh MT of own Urea.1%. This is the highest total annual sales of Urea achieved by KRIBHCO since inception. Society has sold 11.36 LMT of Urea (6. During the year 2009-10 upto November 2009. Society has produced 1726 thousand NM3 of Argon.76 lakh MT of total Urea. KRIBHCO has achieved highest turnover of Rs. During the year 2009-10 upto November 2009. KRIBHCO has conducted several promotional programmes on use and benefits of Biofertilizers.03. 2559.12.12 crore during the year 2008-09. the Society earned a net profit of Rs. ARGON GAS : During the year 2008-09 KRIBHCO produced 4245 thousand NM3 of Argon gas.14 lakh MT in terms of nitrogen “N”) achieving capacity utilisation of 103 %. During the year 2009-10 upto November 2009.57 lakh MT of Ammonia.02 lakh MT in terms of nitrogen “N”) achieving capacity utilization of 100.82 lakh MT of Urea(8. OWN UREA : In the year 2008-09 the Society has sold 18. OMIFCO GRANULAR UREA: During the year 2008-09 Society sold 10. During the year 2009-10 upto November 2009. During the year 2009-10 upto November 2009. the Society sold 37. BIO-FERTILIZERS : During the year 2008-09 KRIBHCO produced 865 MT of Bio-fertilizers.88 lakh MT of KSFL Urea. 871.

IFFCO and Oman Oil Company with a share holding of 25%. 10.75 crore equity (as on 31.12. Oman (OMIFCO): KRIBHCO.68 Lakh MT of Ammonia (110.3 % capacity utilization). 7.7 Projects under consideration 1. KSFL has produced 6. GSEG is a Joint Venture with Gujarat State Petroleum Corporation Limited (GSPCL). other Gujarat Government companies and GAIL (India).9.138. 465. During the financial year 2009-10 upto November 2009. During the financial year April ‘08 to March ’09 OMIFCO has produced 20. The annual capacity of the fertilizer complex is 16.08 Lakh MT of Granular Urea. 1160 crore. of India and half of the produce is being marketed by KRIBHCO. During the financial year 2009-10 upto November’09. 7. 2. During the Financial Year 2008-09 plant achieved an overall Plant Load Factor (PLF) of 71. The Urea produced in OMIFCO is being purchased by Govt. plant produces 2. In addition. GSEG is operating a 156 MW combined cycle power plant based on natural gas at Mora.5 Joint Ventures 1. which is 2.12.29 lakh MT 67 . OMIFCO has produced 13.15% of NFCL’s paid-up share capital of Rs.1 % capacity utilization) and 5.64 Lakh MT. which is to be brought to India.5 lakh MT of surplus Ammonia per year. During the financial year 2008-09 KSFL produced 8.65 lakh MT of Urea (100. U.13 Lakh MT of Ammonia (102.16 crore. The project is expected to be completed in 27 months from the Zero Date of January 28.During the financial year 2009-10 upto November’09. 72. 7.9 lakh MT of Ammonia.1 % capacity utilization) and 3. Nagarjuna Fertilizers & Chemicals Limited (NFCL): Society has an equity participation of Rs.6 Equity Participation 1. 2. 2008. EPC Contract has been awarded. Oswal Chemicals and Fertilizers Ltd. 25% and 50% respectively have collaborated and set up a world-class fertilizer plant at Sur in Oman. Society has made a provisional profit (pre-tax) of Rs. GSEG is implementing a Combined Cycle gas based Power Project of capacity 350MW expansion project at its existing site at an estimated cost of Rs.60 Lakh MT of Granular Urea.52 lakh MT of granular Urea and 11.2009) in Gujarat State Energy Generation Limited.42 crore. Joint Venture Oman India Fertilizer Company.03. implementation/ Revamp of Ammonia and Urea Plant: Society has initiated action to Revamp its existing plant and enhance its annual capacity of Urea Plant from 17.02 Lakh MT and two streams of Urea plant with a combined annual capacity of 8. management control and the entire marketing rights of Urea and other products of the company.00 crore in NFCL.23 lakh MT of Urea (108. consisting of a single stream Ammonia plant of annual capacity 5. Further.5 crore and declared dividend of 5% on the share capital. KRIBHCO Shyam Fertilizers Limited (KSFL): KRIBHCO Shyam Fertilizers Limited (KSFL) has acquired Ammonia –Urea Fertilizer Complex of M/s.22%. at Shahjahanpur. KRIBHCO holds 85% of the equity.2 % capacity utilization). Gujarat State Energy Generation Limited (GSEG): KRIBHCO has diversified into power sector and has invested Rs. district Surat. GSEG has posted a provisional post-tax profit of Rs.P.12.

apart from using KRIBHCO website for display of results. cooperative conferences. the Society also made available 8. Logistics: KRIBHCO has diversified into Logistic Business and has acquired License to operate Private Container Trains in CategoryI (entire rail network in relation to both Exim & Domestic Traffic). NOIDA continued free consultancy to farm-related problems. 7. 2. Zero date has been achieved on 27 th January 2009. KRIBHCO Krishi Pramarsh Kendra. During 2008-09. To back up the Agriculture Technology transfer. a Joint Venture company constituting KRIBHCO. Basic Engineering work for Ammonia and Urea is completed. One container train has been dispatched on trial basis from Hazira to national capital region on 10th December 2009.95 lakh MT and of Ammonia plants capacity from 10. kisan melas.69 lakh farmers and cooperatives across the country. benefiting 11. like rainfall. 3. KRIBHCO has signed concession Agreement with Ministry of Railways. for use in planning farm operations and mid-term 68 . KRIBHCO is in the advanced stage of setting up rail-linked terminal at Hazira. GOI has accorded approval to UVL to set up Fertilizer Project at the existing Barauni Unit of Hindustan Fertilizer Corporation Limited (HFCL). phosphatic and potassic fertilizers and fertilizer raw materials including exploring the possibility of making investments and rendering consultancy services in this regard in India and abroad. The centre also propagated efficient and balanced use of fertilizer by testing 4994 soil samples collected scientifically for micro-nutrients and 1014 samples for macro-nutrients & irrigation water from 10 states free of cost. field demonstrations. KRIBHCO organized more than 2500 programmes for farming community such as farmers meetings.12.35 lakh technical folders on various crops to the farmers and cooperatives.8 Corporate Social Responsibility KRIBHCO with its large dedicated team of agriculture professionals continued its significant contribution along with other serious players in latest farm technology transfer and other rural welfare schemes for improving the profitability of farming community. Results alongwith recommendations were forwarded through electronic medium to farmers at their doorsteps. KRIL has placed order for procurement of four rakes and is in advanced stage for procurement of containers. Bids for major items have been received and are in advanced stage of evaluation. It is setting up ICD/CFS at various places in the country on its own and through strategic alliances. special campaign etc. group discussion. temperature.5 crore for undertaking infrastructure projects. Civil work at site has started. a hightech centre at KRIBHCO Bhawan. The estimated project cost is Rs 1301 Crore.0 lakh MT. The detailed Engineering work and procurement services by M/s. mining.03 lakh MT to 13. long term tie ups for nitrogenous. Paramarsh Kendra also provided latest information on weather. The completion period of the project is 32 from months zero date. relative 21. monsoon movement etc. Urvarak Videsh Limited (UVL): “Urvarak Videsh Limited”. PDIL are under progress. Orders have been placed for long term items.500 crore and initial paid up capital of Rs. NFL & RCF has been incorporated for setting up the Joint Ventures in India and abroad for manufacturing. field days. KRIBHCO Infrastructure Limited (KRIL) a 100% subsidiary of KRIBHCO has been incorporated with authorized share capital of Rs.

Kisan Melas. Dealers’ Conferences. an amount of Rs.corrections in the event of crop failure generally through kisan help lines. phone. 19603 cooperative managers were trained through 210 cooperative conferences and workshops and 17 study visits. directly benefiting 8.P. In this direction 60 cooperative societies were adopted.34 lakh farmers. KRIBHCO also joined hands with ICAR. wherein they were educated about the use of Society’s product for improving farm productivity and also enhanced our corporate image. Cooperative Conferences. Delhi & KRIBHCO Krishi Pramarsh Kendra. EC. KRIBHCO continues to provide Insurance coverage for farmers as a method of sustaining the sales of the product.63 lakh has been disbursed as insurance claims to 61 families of the deceased farmers. Kisan Helpline has been strengthened with the help of KRIBHCO Reliance Kisan Ltd. KRIBHCO continued to promote information Communication Technology (ICT) through KRIBHCO Kisan help line using e-mail. All State Directors of Agriculture were informed about educational programmes conducted and soil samples tested from their states along with district wise deficiency noticed in various soil samples. SMS. As a step towards modernization. During the financial year 2009-10. Technical Wall Paintings.40. Block Demonstrations. State Agriculture Universities. It is a Personal Accident Insurance Scheme for the welfare of the farmers who purchase KRIBCHO Urea bag from any cooperative outlets and Krishak Bharati Sewa Kendras (KBSK). known as “Kisan Aapda Nivaran Bima Yojna” for any accidental death / injury. Bengal. During the year. a programme dedicated to national integration of farmers was organized at Pusa. Information on monthly farm operations are also made available on website. Health Campaigns for human and animals. KRIBHCO continued its services to farmers & cooperatives. macro and micronutrients from 83 districts of 11 states. An High level delegation from Ministry of Agriculture Medagasker visited KRIBHCO Krishi Paramarsh Kendra and described it as one of the best in the world. Storage-cum-community centre scheme started on Golden Jubilee celebration of India still continuing with 141 centers sanctioned and 130 are completed and being used fully. A group of Representative General Body Members from Bihar. A total of 1279 programmes so far have been organized upto November 2009 which mainly include Farmers Meetings. Technical Literature Printing & Distribution and Soil Testing Campaign. Group Discussions. Krishak Parivar Sangam. KRIBHCO Kisan Helpline was used by 584 69 . promoted 7 water facilities including microirrigation systems for crops in rainfed areas and rural sports for integrated rural development. Besides this 3.5 lakh Technical Crop Folders were distributed and 3719 Soil Samples were tested for pH. State Cooperative Federations for free soil testing and technology transfer which was thankfully acknowledged and appreciated at all platforms. The society also organized 46 health campaigns for livestock and humans. M. Chhattisgarh & Maharashtra visited Hazira plant to apprise themselves of the steps taken to maintain the quality of the product. W. Strengthening cooperatives and rural development always remained a priority for KRIBHCO. NOIDA werein 41 farmers from 13 states participated for about one week and deliberated about the agriculture practices of their respective states and this provided an opportunity for better understanding of the use of KRIBHCO’s products and services. computer and KRIBHCO website for informing farmers about latest farm technology alongside with traditional tools.

9 Seed Multiplication Programme KRIBHCO also initiated Seed Production Programme in 1990-91 to provide quality/ certified seeds of main crops to the farmers which has had a very encouraging response from farmers and cooperative societies. the Society has produced 1. Government of India. During the financial year 2009-10 upto November’09.18 lakh quintals and sold 2. The seeds are made available to the farmers through KBSKs. 7.12.96 lakh quintals of seeds which is highest since inception. However. the set up of Public Grievance Redressal Machinery is in operation in KRIBHCO. During the financial year 2008-09.11 National Policy for persons with disabilities KRIBHCO does not have any separate financial allocation for persons with disabilities. Society has produced 2. The Complaint Box is opened regularly. DGM(HR). 7. Cooperative Societies and State Cooperative Federations in different states.2009) Name of Society Group Total number of employees (3) 1359 309 390 26 2084 Number of employees belonging to SC (4) 32 19 44 3 98 ST (5) 13 16 23 0 52 Ex-servicemen (6) 8 4 3 4 19 Physically Handicapped (7) 2 NIL 5 NIL 7 OBC (8) 134 55 66 14 269 (1) KRIBHCO HaziraSurat. This is the highest ever production of seeds so far.12. The Society stepped up production of seeds from 2928 quintals in 1991-92 to 1.12. Corporate Office is designated as Grievance Officer to attend any public grievance/complaint. of Fertilizers. 7.03.10 Public/Staff Grievance Redress Machinery Based on the directives of Department of Fertilizers.12. (2) A B C D Total 70 . Society promotes farmers belonging to SC/ST/OBC through various programmes and rural for solving their farm related problems. Grievance/Complaint Box is kept at the reception of office for convenient registration of complaints by member of the public.98 thousand quintals and sold 1.98 Lakh quintals of Seeds in 2008-09. 7. A quarterly progress report of redressal of Public Grievance is being sent to Deptt.20 lakh quintals.12 Statement showing employment of SC/ST/Ex-Servicemen/Physically handicapped persons (As on 31. Government of India.

KVK is managed by GVT Regional Head Quarter East located at Ranchi. Subsequently IOC has principally agreed to involve GVT in the implementation of the project. The Institute has become operational since September 2007 and was formally inaugurated on 14th May 2008. Govt. Tree Programme is an important component of the GVT’s environmental programs.GRAMIN VIKAS TRUST 7. GVT has carried out the SWC work on fifty thousand acres of land and near about thirteen thousand households were benefited. GVT is an independent legal entity implementing various Rural Development Projects in Rainfed areas of Western and Eastern India.13 Gramin Vikas Trust (GVT) was established by Krishak Bharati Cooperative Ltd. GVT has been incessantly working on issues such as crop research. like Ministry of Rural Development. GVT has established the Krishi Vigyan Kendra (KVK). Agro-forestry. Impact Assessment Studies etc. Ministry of Panchayati Raj. of India has identified Gramin Vikas Trust as Gateway Agency for facilitation of the Rural Business Hub(RBH) in Ranchi and Deoghar districts of Jharkhand and Birbhum District of West Bengal in order to identify the local products/ skills that hold good business potential and mobilizing convergence of different schemes and institutions that hold the key inputs for setting up RBHs through Private –PublicPanchayat-Partnership. Ministry of Agriculture. GVT has been awarded with FCRA project on Improving Livelihoods in Tribal areas of India through sustained access to technologies in Rainfed areas for a period of three years to be implemented in Jhabua MP and Dhamtari. Crop Research. The Trust is operating in Madhya Pradesh. at Godda at the Subdivisional Agriculture farm near Rautara Chowk funded by ICAR. GVT has established a state-of-the art National Livelihoods Resource Institute (NLRI) on the picturesque locale outside the city of Ratlam in Bhadwasa Village of Madhya Pradesh. GVT has also tied up with other development organizations like Mott MacDonald. etc. Since the survey work has been done by GVT in Jhabua for energy plantations on revenue waste land and contract farming model has been completed and accepted. (KRIBHCO) with the support from Government of India and Department for International Development (DFID) U. Asian Development Bank etc for various projects like Migrant Labour Support Programme (MLSP). Livestock etc. Natural Resource Management. Chattisgarh. GVT has undertaken various land development programs including Soil Water Conservation.K. Rajasthan. Larsen & Turbo. The Energy and Resource Institute (TERI). In East India. Water Resource Development. Vocational Training & Capacity Building. Chattishgarh and West Bengal in Eastern India. tree plantations and Agroforestry works etc. The Project is funded 71 . Gujarat in the Western India and Orissa. So far 38 on campus Training Programmes (including 2 Management Programmes for KRIBHCO) and 183 off campus Programmes have been organised. The Ministry of Panchayati Raj. the project not only emphasized on plantation and creating awareness among the participants but also on development of skills of participants to grow nurseries in their villages. NIRD. Skill Up-gradation. Ministry of Environment and Forest. New Delhi in the year 2006. Under farming system for development of natural resources.12. In the post DFID phase GVT has collaborated and implementing project of various ministries at the state level as well as at the national level. Jharkhand. Ranchi and Godda in Jharkhand and Baripada in Orissa covering four states.

Shuttering Carpentry & Bar Binding. 2007-July 2008 with the support of Asian Development Bank. NABARD has awarded a Capacity Building Phase (CBP) Project on Watershed in Pairachali. 72 .g. Bangor. UK and being implemented in their partnership. After the successful implementation of MLSP under DFID till June. Mason. West Bengal in February. 2007. Plumbing and General Supervisor is implemented with specific target to train 5000 construction sector DFID through CAZS. Skill Development Training Project on four trades e. 2008. National Bank For Agriculture and Rural Development (NABARD) has awarded Integrated 7 Tribal Development Programme to GVT under the title “WADI (Orchards)”. GVT has completed a MLSP Project in Ratlam district from June.

orientation programmes. 8. bio fertilizers. At present there are 651 soil testing laboratories in the Country including 517 static and 134 mobile laboratories having annual analyzing capacity of about 7 million soil samples. some fertilizer companies including PSUs do undertake such projects as part of their extension and marketing activities. The main activities undertaken by various fertilizer companies under the Fertilizers Education Projects are agricultural seminars. Department of Fertilizers does not implement Fertilizer Education Projects. Cooperative Societies. It further proposes to upgrade 63 existing state fertilizer quality control laboratories and setting up of 20 new such laboratory plus 50 laboratories for advisory purposes. upgrading the skill of staff working in soil testing laboratory and strengthening the fertilizer quality control facilities. A project sanctioning cum monitoring committee under the Chairmanship of Additional Secretary. The implementing agencies shall be agro-clinics. Resultantly. R&D trials.Chapter-8 8. The total outlay of the project is 429. State Governments. which shall be advised by National Monitoring Team of Experts. It also aims at strengthening soil testing facilities. the following amounts of subsidy is to be provided by Department of Agriculture & Cooperation for STL. NGOs. soil sample analysis. The PSUs under the Administrative control of Department of Fertilizers are encouraged to launch fertilizer education projects for the benefit of farming community as per the MOUs signed with the Department of Fertilizers in this regard. Private Entrepreneurs. State Governments and the agriculture universities. However. Department of Agriculture & Cooperation has launched National Project on Management of Soil Health and Fertility to promote integrated nutrient management 73 . secondary and micro nutrients coupled with organic and bio fertilizer for improving the soil health and crop productivity. Such projects are administered by Department of Agriculture & Cooperation. It also proposes to strengthening of 315 existing state static laboratory during the 11th Five Year Plan.1 Fertilizer Education Projects through judicious use of chemical fertilizers. the farmers are encouraged by the companies to use the balanced fertilizers based on the quality of the soil nutrient wise and apply fertilizers accordingly. ICAR. The above said national projects proposes to set up 500 new soil testing laboratories and 250 mobile soil testing laboratories for micro nutrient analysis. soil test recommendations. exhibitions. Department of Agriculture & Cooperation has been constituted.1. The Fertilizer companies launch their fertilizer projects for educating the farmers about the quality/contents of the soil for crops.1 The basic purpose of the application of fertilizer is to enhance the crop productivity in the country. demonstration. field trials of fortified fertilizers. dealers meetings and trainings. As per the above said scheme. distribution of crop literature.85 crore during the five year plan. organizing Krishi Melas etc and media publicity.

@75%of project cost limited to maximum of Rs. For Setting up of additional Soil Testing Laboratories by Agri clinics/NGOs /Cooperative. 8. Rashtriya Chemicals & Fertilizers Ltd. @Rs. entrepreneurs.20000 per Frontline Field Demonstration. 30 lakh as one time subsidy. GSFC. (SPIC) • • • • 8.Sl. under Pvt. Indian Potash Ltd. Krishak Bharati Cooperative Ltd. Particulars 1. etc. 74 . Department of Agriculture & Cooperation has been requested by the Department to release subsidy to the above said fertilizer companies as per the policy. 3. (ZIL) Southern Petrochemical Industries Corporation Ltd. Mangalore Chemicals & Fertilizers Ltd. (MCF) Zuari Industries Ltd. under Private partnership mode. Policy @50% of project cost limited to maximum of Rs. For Adoption of village by Soil Testing Laboratories through Frontline Field Demonstration. partnership mode.1.3 • • • • • Gujarat Narmada Valley Fertilizers Company Ltd. 2.No. 30 lakh as one time subsidy. etc. For Setting up of Mobile Soil Testing Laboratories by Agri Laboratories by Agri clinics/NGOs/Cooperative. Private entrepreneurs.2 The following nine fertilizer companies have submitted their proposals to Department of Agriculture & Cooperation for setting up soil testing laboratory: FCI Arawali Gypsum and Minerals India Ltd.1.

The system provides analysis in identifying the macro and micro level factors responsible for deviations in production on plant to plant basis in order to take corrective measures to enhance fertilizer production in the country. quality control. subsidies and concessions has been felt essential. 9. movement.1.4 Application System for Monitoring Energy Consumption Norms The system is used to calculate the overall energy consumption in urea production by plants based on various inputs and their calorific values purchased from various sources and consumed in ammonia production. requirement and consumption of raw materials/ intermediates for fertilizer plants.. normative costs of various utilities and fixed cost are then summed to arrive at the rate of concession. The processing of monthly claims through application system helps in timely release of subsidy to the urea manufacturers.1. production targets. The software derives energy consumption proportions of various inputs w.. adequately in good quality and at affordable price to the farmers by maintaining growth of fertilizer industry through subsidies/concessions. capacity utilization. distribution. equated 75 . installed capacity. average productive hours. actual production.Chapter-9 9. 9.1.t the total normative energy and computes input wise proportional costs.1 Information Technology (IT) e-Delivery for Fertilizer Management Fertilizer Management On-line has been developed in Department of Fertilizers in close collaboration with National Informatics Centre to meet the national objective of making fertilizers available timely. 9. The system provides information support to monitor operational performance of the plants viz. The system also maintains consumption and balance of ammonia for each quarter.1.2 Web Based Fertilizer Monitoring System Production freight rates and sales tax rates notified by the Government for the quantity moved by the urea manufacturers to the consumption centres across the country.r. sales. The total input energy cost. imports.3 Fertilizer Subsidy Payment Information System The system is used to compute the subsidy amount based on the subsidy rates. stocks. Proper planning and monitoring of various aspects like fertilizer production. the following applications systems have been developed/ upgraded in order to pace with the IT enhancements and change in fertilizer policy:9. The total The application system facilitates on-line data entry and provides information support for planning and monitoring the fertilizer production in the form of material as well as nutrients. daily reassessed capacity. and daily production rate and capacity utilization of ammonia/ urea. The system helps in monitoring various activities pertaining to the payment of subsidy by generating various periodic reports as well as query retrieval.1.1 9. The system covers various aspects viz. In order to manage these issues effectively.5 Application System for Revision in Urea Concession Rates The system facilitates in quarterly revision of concession rates for urea manufacturing units in each group under group concession scheme on account of escalation/deescalation in the variable cost of various inputs and utilities consumed in urea production.

1. plan outlays and yearly outlays.9 Web Based Handling & Payments System for Fertilizer Imports The application system provides decision support to the Department of Fertilizers in selecting handling agents. Udyog Bhawan.r. opening stocks with state institutional agencies & fertilizer companies. The system also maintains details of Department of Fertilizer’s authorization to State Trading Enterprises (STEs)/ Handling & Marketing Agents for import of urea during a scheduled period. availability and sales of different fertilizers.1. 9.1. Udyog Bhavan and Sewa Bhavan protect computer systems of DOF’s intranet from network security attacks. Janpath Bhawan and Sewa Bhawan. Expenditure & Control Register(ECR) and various queries/ reports are generated to make and monitor the concession payments. ‘Differential’ and ‘Balance’ are processed using the software based on base/final rates.e. bank guarantee.t. The system processes the claims from handling/ marketing agents towards making payments of inland freight and handling charges after adjusting the recovery of cost of cargo at Pool Issue Price (PIP) from handling/ marketing agencies. The monthly claims at various stages i. 9. Department of Fertilizers and is being used as an effective mode of communication for inter-Ministerial consultations and quick decision making. 9. settlement of the port dues/ICC/other charges and demurrage/ despatch with handling/ marketing agencies. Point-to-Point Video Conferencing can be initiated by anyone connected to EVCS and multi-point Video Conferencing can be organized through NIC. ‘On Account’.1. monthly movement orders. despatches (regulated/ de-regulated/imported by rail/road). 9. 9.10 Fertilizer Project Monitoring System The system facilitates in monitoring monthly expenditure incurred through Internal and Extra-budgetary Resources(IEBR) and Budgetary Support on various schemes/ projects approved by DoF during Five Year Plans w.r.2 Executive Video Conferencing System (EVCS) NICNET Based Executive Video Conferencing System (EVCS) has been made operational on the desk of Secretary. fertilizer requirements in states/UTs. fixation of handling rates and monitoring of expenditure. 76 .financial impact is exercised w. account under ECA demand and import of granular urea from OMIFCO under UOTA.8 Web Based Fertilizer Import Management System The system assists in monitoring the fertilizer Import Plan based on actual imports against targets.1. Delhi. registration for sales. imports. 9.t the previous rate of concession and despatched quantities. status of FOB and C&F import contracts for prilled urea on Govt. 9. eligibility and sales certification. NIC’s iNOC (Integrated Network Operation Centres) at Shastri Bhavan.7 Web Based Fertilizer Concession Scheme Monitoring System The computer based application system is the major integral process of Fertilizer Concession Scheme for timely release of concession payments to the fertilizer manufacturers and importers for the sales of indigenous/ imported phosphatic and potassic fertilizers in States/ UTs. The computerised notings for approval and sanctions for payments to PAO.3 Information & Communication Technology (ICT) Infrastructure DOF’s intranet consisting of 270 nodes is operational in Department’s offices located in Shastri Bhawan.6 Web Based Fertilizer Distribution and Movement Information System The system maintains the data related to ECA supply plan.

The web based applications for fertilizer production. Application Monitoring 77 . Cabinet Secretary to the Government of India directed all Government Ministries/ Departments to have their websites as per the guidelines adopted by DAR&PG. NIC Hqrs.5 E-Governance Department of Fertilizers has taken various measures to bring e-Governance: Office Automation Packages : CompDDO (Comprehensive Function Management of Drawing & Disbursing Officer) Payroll System for Central Government Offices. Accordingly. Web based File Tracking System. imports & handling are operational from IDC.Dealers Meet at Mysore. For accessing the internet through RF link of NICNET. in a secured ICT environment to bring citizen interface and transparency in Government functioning. the website of Department of Fertilizers has been redesigned and enriched in order to make it compliant to the guidelines. 9. informative and user friendly to bring transparency in Government functioning and citizen interface.4 Site Web / Web Applications Hosting The websites of DOF and fertilizer PSUs are hosted at Internet Data Center(IDC). The website has been made more qualitative. concessions payment. all the computers are connected through NIC’s proxy server where built-in firewall capabilities are enabled. 9. The clients systems in the Department have been provided upto LDC level with internet connectivity to make wider use of IT services. Karnataka. The remote facility through secured Virtual Private Network (VPN) connection of NIC is being used in DOF and Fertilizer PSUs for instant updations in the websites. movement.

Also various stages (within the Department) at which the claim is lying can be tracked using the system.5 In order to make sure that the availability of upto date data. availability of fertilizers was being tracked till the State level(manually) with the frequency of data updation once a week. with FMS data is now updated on daily basis and upto date information on availability in the country is available readily. E-mail service is being extensively used by the officials of Department of Fertilizers for information exchange with fertilizer companies and other agencies. Office Orders.7 9.6 Supply Plans are being captured at both District as well as Block levels and system has appropriate checks to ensure that Companies do not exceed the supply plan as given by the Movement Division. TSP. 9.6. In order to ensure this. 9.6. This has reduced the processing time considerably. Letters. 9. FMS facilitates to process the subsidy payment (on basis of Receipts) of DAP.8 9. However. store and manage different kinds of official letters viz.6. Letters. With this 60 more companies will start entering the daily transaction on the system.6. TSP. 9.6. The facility of word processing in Hindi is available in all the computers in the Department. Press Communiqués etc in compliance with Manual of Office Procedures (MOP). appropriate locks are available on the entry of date into FMS. same is captured as soon as the transaction is completed on the ground. 2007. D.6 Fertilizer Monitoring System level. This is a major achievement for the Department as majority of the losses occur at the Block and Warehouse levels.6.6.6. Inter-Departmental Notes. Office Memorandum. MAP. Data from FMS provides a complete and comprehensive picture in this regard.3. Fertilizer Monitoring System (FMS) was formally launched on 22nd January. Leave Management System. To strengthen further the Office Automation in Department of Fertilizers.O. MOP. Reports are available in the system in order to view the cleared as well as pending claims. 9. Prior to the FMS. Receipts and sales of DAP.1. 9. MAP. NPK Fertilizers. The system is ready to capture the movement of SSP. MOP.4 FMS has been developed with the facility to monitor the distribution till warehouses. 78 . the entire movement of fertilizers will be viewed using a single window. an IT based system “Office Notifications Management System” has been developed and implemented to generate.System under RTI Act. FMS is a path breaking initiative undertaken by Department of Fertilizers (DOF). NPK & Urea (Indigenous and imported) Fertilizers. With this. 9. These locks have following time frames: Production: Within 3 days Dispatches: Within 24hrs after the same has taken place Receipts: Within 5 days Sales: Within 5 days Failure to do so in the stipulated time locks the system and the same then can then be unlocked only after approval from Director (Mov) and Director (FA). Freight subsidy under the uniform Freight Policy for both controlled and decontrolled fertilizers is being generated and processed using the system. At present this information is available at District 9. dispatches.2.6. It monitors the production. PGRAMS (Public Grievances Software Package) and CPENGRAMS (Centralized Pension Grievance Redress And Monitoring System) developed by NIC are operational in the Department of Fertilizers. Resolutions.9. FMS monitors movement of different fertilizers at various stages in their value chain. Orders.

6.11 System enables the Department to make the subsidy payment in Cash. It will also help them to settle the disputes online. 9. Tracking of Imports of Fertilizers (Despatch/ Demurrage settlement). there is an option in the system using which the Supply plan can be with held for the State.6.10 As per the policy. Cost & Evaluation department does a lot of complex calculation in order to derive concession rate of Indigenous Urea fertilizers for a quarter. Thus system has been modified to pay the On Account claims on the basis of receipts and Balance Claims on the basis of Sales. These claims are time bound and require to be processed within stipulated time. claims are now being processed on the basis of receipts. This will also help them to make repository of their old records.This module will enable MPR Section to calculate subsidy rate online which will save time and effort. Indigenous Urea Fertilizer cost evaluation – In FICC. 9.This module will facilitate the shipping wing to calculate Lay Time Calculation online.14 Expenditure Control Register (ECR) is online. 79 . Imported Urea Claim generation & processing. FICC will start processing all the claims electronically. This module will assist them to compile the data in such fashion that without much effort the concession rate will be calculated in time. 9. In case the State fails to submit the proforma.9. System Requirement Specifications for the following modules have already been submitted and it is expected that in the coming year these modules will go live.With the introduction of Port modules. 9.13 The recoveries can now be adjusted against any claim.6. Bonds or Special Banking Arrangement according to the availability of Budget. System gives the officials an option to choose the claim against which he/ she wishes to make the adjustment. 9.6.12 Official are able to split the Sanction Advice in order to make part payment as required.6.15 Submission of Proforma ‘B’ by the States is now linked to the Supply Plan.6. Indigenous Urea Claim generation & processing – Using this module. With this module the notification of Final concession rate would be possible on time. 9.16 In addition to the features mentioned above. P&K Fertilizer cost Evaluation. the generation & processing of Imported Urea Claim would enable Department of Fertilizers to settle claim before time.6.

were held. Under Secretary (Vigilance) and other vigilance staff. 10. The Department plays a proactive role in ensuring the prompt disposal of vigilance cases and in framing preventive guidelines. Banners and posters were displayed in the Department to create vigilance awareness among the staff. 10. CVC advice/Departmental proceeding/ 80 . Quiz. including KRIBHCO and various competitions like slogan writing. 15 more complaints were added.2 Vigilance Activities during 2009 The number of pending vigilance cases. During the year 2009. In the meeting. a meeting of the Chief Vigilance Officers of the Fertilizer PSUs was convened under the chairmanship of the Secretary (F) on 18. The Department has been regularly monitoring the pending complaints/investigations by having close inter action with the concerned CVOs and constant efforts are being made to ensure the disposal of disciplinary proceedings. Further.Chapter-10 10.1. 10.2009.2 Efforts are made by the Department to simplify the procedures in the PSUs to make them work in transparent manner. There was active and enthusiastic participation from the officers and employees of the Department in this Essay Competition.2009 were 18.03.3 Vigilance Week Celebrations The ‘Vigilance Week’ was celebrated during the 3rd to 7th of November 2009.1. Accordingly. The departmental vigilance set up is headed by a Joint Secretary who is designated as the Chief Vigilance Officer of the Department. extends not only to the Department but also to that of 8 Public Sector Undertakings and one Multi State Cooperative Society. an appraisal of the working/ functioning and achievements of the CVOs was done. Workshops etc. a number of officials/officers of the Department who were looking after sensitive nature of work on a particular seat for more than three years were transferred.4 Surveillance and detection Agreed list of public servants as well as List of Public Servants of Doubtful Integrity for the year 2009 are complete. 10. 10. The ‘Vigilance week’ was also celebrated with great gusto in the fertilizers PSUs. This reduces the chance of corruption. Most of the cases are at the advance stages of completion. Essay.1. the ‘Rotational Transfer of Staff’ as per the norms/guidelines issued by CVC was implemented.1 Vigilance Activities complaints in PSUs as on 31. The meeting was also attended by the CVO of the Department.1 The vigilance activities of the Department. Debate. The Department supervises the vigilance activities within the framework provided by the Central vigilance Commissioner. A pledge was administered to the staff by Secretary (Fertilizers) and an essay competition was held thereafter. viz. The CVO of the Department is assisted by a Deputy Secretary (Vigilance).11.3 As per the framework provided by the CVC. This helps in minimizing the occurrence of vigilance cases. with a view to check corruption in the Department. 10. The initiatives taken by CVOs towards pro-active vigilance environment of the PSUs were also discussed.

11. namely.1.e.1.nic. designation of Public Information Officers(CPIO).12. placed on website. Some of the Sections of the Act.1 The Right to Information Act. with required details.1. 11.Chapter-11 11. 2005 on RTI giving general information about the Department required under the Act.6.2005.27 & 28 relating to obligations of Public Authorities for maintenance and computerization of record/information.2005 and notified on 21. Constitution of Central Information Commission and State information Commission. came into force immediately.16. Some of the important steps taken by the Department in compliance of the Act are:Created a separate link for RTI Act on its website http://fert. 115 applications and 1 appeal were received of which 112 applications and the only appeal were disposed of during the said year and the remaining 3 applications are under process for sending reply to the applicants. Orders designating PIOs. 2005 (RTI) was assented by the President of India on 15. 11.13.3 The Department has started registration of Requests and Appeals under the RTI Act on the Management Information System (RTI – RAMIS) software available on the Web-Site of CIC.1. The respective PSUs under the administrative control of the Department have been directed to ensure compliance of the RTI Act.2 In compliance of the RTI Act the Department has designated CPIOs and CAPIO.15.1 Right to Information Act. exclusion of certain organization etc. Sections 4(1). Counter opened at Public Information Centre of DoF at Shastri Bhavan for applications as well as prescribed fee under RTI. 12th October 2005.6. 11.4 During the year placing a Handbook 81 .24. Appointment of Nodal Officer intimated to Department of Post enabling providing of services by that Department as CAPIOs across the country. The remaining provision of the RTI Act came into force on the 120th day of its enactment i. which are up dated from time to time. 5(1) &(2).

2 12.2 12. will be competent in doing their work in Hindi. All the 250 Computers (PCs) in the Department are equipped with bilingual facility.1 There is an Official Language Implementation Committee (OLIC) under the Chairmanship of Joint Secretary (Adm.4.) in the Department. Under this scheme. under its administrative control. a Senior Translator. of India.. its attached office of FICC. Rajbhasha Shields are awarded by the Hon’ble Minister for Chemicals and Fertilizers in the Hindi Advisory Committee Meetings. The work pertaining to the progressive use of Hindi in the Department is under the administrative control of Joint Secretary (Administration).. ‘B’ and ‘C’. which were yet to be trained in Hindi typing & shorthand have been nominated for training. action plan based on the checkpoints identified in the Department has been prepared to ensure compliance of the official language policy. All officers/ employees of the Department are having working knowledge of Hindi. With the Completion of this training all typists/ stenographers working in the Deptt.1 12.4 Rajbhasha Shield/Trophy 12. Efforts are being made to promote the use of Hindi in the correspondence. three Junior Translators and an Assistant.3 12.1. its attached offices. FICC. assisted by a Deputy Director (OL). PSUs and a Cooperative Society namely KRIBHCO on quarterly basis. 1963 are being issued both in English and Hindi. This committee periodically reviews the progress made in the use of Hindi in the Department.1 The Department is operating a Scheme which was drawn up in the year 20012002 for the grant of awards to various PSU’s/cooperative society/office under the administrative control of the Department. 12.1. Details of these measures are summarized below:- 12.3. It gives appropriate suggestions and recommends measures to be taken for the effective implementation of the official language policy. PSU’s and the multi-statecooperative society namely KRIBHCO.Chapter-12 12. Besides 82 . In order to ensure issuance of correspondence in Hindi to Central Government offices located in Region ‘A’. Adequate reading material in Hindi has been made available in the library of the Ministry of Chemicals & Fertilizers.1 Implementation of Section 3(3) of the Official Language Act.2.1 Progressive use of official language Hindi Department of Fertilizers continued its efforts towards greater use of Hindi in official work during 2009-2010 keeping in view the Annual Programme issued by the Department of Official Language. Besides. Two typists and four stenographers of the Deptt. The Hindi Section consists of one Assistant Director (OL). In pursuance of the official language policy of the Govt. Official Language Implementation Committee (OLIC) 12. a number of measures have been taken for the promotion of progressive use of Hindi in the Department. Ministry of Home Affairs for implementation of the Official language policy of the Union. all documents covered under section 3(3) of the Official Language Act.

a multi-states co-operative society under this Department.1 Hindi Salahkar Samiti With a view to render advice for effective implementation of the official language policy of the Government.each. Incentive Scheme for original noting/ drafting work in Hindi The incentive scheme for noting/drafting in Hindi introduced by the Department of Official Language is continued. various competitions such as Hindi Essay writing. Cash prize scheme for dictation in Hindi An incentive scheme for officers for giving dictation in Hindi is in operation in the Department. 2009 at Vigan Bhawan.10 12.1 In order to oversee the implementation of the official language policy 8 offices/units of different PSUs were inspected by the Deputy Director (O.each. Hindi noting and drafting.1 12. an appeal was made by 12.8 12. meeting of the Hindi Salahkar Samiti (Advisory Committee) of the Ministry of Chemicals and Fertilizers (The joint committee of the Department of Chemical & Petro-Chemical and the Department of Fertilizer) under the chairmanship of the Minister for Chemicals and Fertilizers was held on 10.1000/.) of the Department during the year. 83 . 2009.11.9. 1000/each (one for Hindi speaking and other for Non-Hindi speaking).8.this. 2009.1 12. In addition.6.1 During the year. Hindi typing. During the Hindi fortnight. This scheme carries two prizes of Rs.1 the Honourable Minister on 14th September. the first SubCommittee of the Parliamentary Committee on Official Language inspected 1 office under the administrative control of the Department. 3 Hindi workshops were organised in the Department to encourage the officials to undertake more work in Hindi and altogether 25 officers/employees participated in these workshops. one word/phrase in Hindi and its English equivalent was being displayed on the White Board installed on the second floor ‘A’ wing Shastri Bhavan.11 Inspections regarding progressive use of Hindi 12.300/.1 12. Prati Din Ek Shabd The Scheme named ‘Prati Din Ek Shabd’. three second prizes of Rs. which has been launched in the Department is continued for the last six years.5 12.7. which was organised in the Department from 14 th September.08 by the hon’ble President of India at a function organised by Department of Official Langauage on 14th September.5.L. These words/ phrases are generally of administrative and technical in nature which are used in dayto-day official work. Under this scheme.2009. Hindi shorthand. Hindi Workshops 12. Hindi general knowledge and poetry recital competitions were organised and 26 officers/employees took part in these competitions and won prizes.600/. 2009 to 29th September. HindiEnglish translation.6 12.7 12. there is a provision of two cash prizes of Rs. New Delhi.9 12.2. Kribhco has been awarded First Indira Gandhi Rajbhasha award for the year 2007-.10.each and five third prizes of Rs. 12. Hindi Day/Hindi Fortnight In order to encourage the use of Hindi in official work amongst officers/employees of the Department. 12. Under this scheme.

and making fertilizers available in small packs in the tribal predominated areas. wherever feasible. physically handicapped persons and OBCs in the PSUs is given in the Annexure-XI. have been implemented in all the PSUs/ Cooperative under the administrative control of the Department. OBCs and Physically Handicapped Persons Due care has been exercised during the year under review to implement Government’s instructions regarding recruitment and promotion of candidates belonging to the Scheduled Castes (SCs).1 Presidential Directives on reservation for the candidates belonging to the SCs and STs issued from time to time by the Department of Public Enterprises (DPE). PSUs/ Cooperative have been advised to prepare and implement special programmes/ schemes for education of tribals in scientific use of fertilizers. 1. of Officers/ Staff 38 99 65 59 261 SC ST OBC PH Department. The representation of SCs. and to take steps to increase awareness of candidates belonging to the communities about employment opportunities. KRIBHCO has also adopted the guidelines relating to OBCs w.f.03. The Presidential Directives regarding reservation for OBCs have also been made applicable w.2 02 15 13 20 50 01 06 03 02 12 03 06 06 06 21 01 01 02 Representation of SCs. STs. To ensure availability of sufficient numbers of Group A B C D Total 13. 13. Other Backward Classes (OBCs) and Physically Handicapped (PHPs) categories in various groups of services in the Department. The representation of these categories in the Department as on 31.e.1 Welfare of Minorities The PSUs/Co-operative under the Department have further been advised to provide facility of pre-examination coaching to the candidates of minority community.1 84 . STs.e.9.95. The Cooperative Society viz.4. They have also been advised to include a representative of the minorities in the recruitment selection boards to ensure that the minorities get an adequate share in the services and benefit from development schemes.f.1 13. ex-servicemen.2010 was as under:Total No.3. 8. Scheduled Tribe (STs).3. Reservation in Dealership The Department had instructed all the PSUs under its administrative control to reserve at least 25% of dealerships of fertilizers for the members belonging to SCs/STs. building up of dealer/ retailer network in the tribal areas.Chapter-13 13.1 Welfare of SCs.10.4 13. Besides providing employment.93 in the 13. The implementation of these directives is being monitored in the Department and concerted efforts are being made to fill up the vacancies for the reserved categories.2. OBCs and Physically Handicapped Persons in PSUs 13.1. 13. STs.

suitable SC/ST candidates. and free training for handling of fertilizers. preference in supply of fast moving materials. • 13.2 The PSUs have also been advised to reserve 10% of fertilizer dealerships for exservicemen. • higher rate of dealership margin as compared to that allowed to general dealers.4. 85 . the following concession are generally given by the undertakings:• • exemption/relaxation from security deposits.

Chapter-14 14.2. Opportunities for growth.4 • • All the benefits under legal requirements such as Maternity Benefits.2. Department has also allocated a separate room for women to serve as common room.1. The Department of Fertilizers is committed towards giving importance to women in different spheres. etc. the PSUs and Co-operative under its administrative control are involved in year long activities to create large scale awareness among women with their active participation.23% of the total workforce of the NFL. Some RCF women officers have been working with the forum as heads of taskforces. Fundamental Duties and Directive Principles. It is a corporate member of this forum and has been representing in all activities of the forum with total support and participation in all activities. as such. (The Company has a female Full-time Functional Director on its Board). RCF RCF as an organization has always been fair in treating employees without any gender bias.1 NFL Female employees comprise 5. Women are working in technical / nontechnical / managerial positions and some of them have risen to the level of top management positions in the organization. The Constitution not only grants equality to women but also empowers the State to adopt measures of positive discrimination in favour of women.1 14. As a part of regular training. Though there is no specific scheme. Women represent in fair numbers in the batch of apprentice trainees in technical areas. 14. learning are equally available to both men and women employees of RCF.3 All the welfare and employee benefit schemes are equally applicable to male and female employees of RCF.2 86 .2. for women.1 Women Empowerment The principle of gender equality is enshrined in the Indian Constitution in the Preamble. are given to women employees.2 14. Department of Fertilizers has a “Complaints Committee” to attend to grievances of its women employees.2. RCF is one of the pioneer members in the Forum of Women in Public Sector (WIPS) since its inception (1990).1 14.3. 14. Fundamental Rights. Under the special schemes and policies for women employees RCF has set up – • Special Cell for Women Employees (as per Communication from National Commission on Women) Committee for Sexual Harassment Cases (as per Supreme Court Guidelines) Special Medical check-ups/camps.3 14. challenging jobs. The Department takes pride in providing congenial environment to women employees. These programmes are aimed towards enabling women to realize their full potential and involvement in decision making. training.The Company has adopted 14. RCF incorporates awareness building for all officers (Men and Women) on the Sexual Harassment Guidelines and also covers gender sensitization issues. 14. Nursing Breaks. members of committees and have contributed in policy making and development of women to a great extent.

Discipline & Appeal) Rules and Standing Orders have also been amended to include sexual harassment of women at workplace as ‘Misconduct’.5.25% of the total strength. 14.Chief Managers/ Dy. from time to time. 14. Besides this. Exception has been made only for jobs involving shift-work round the clock. Nursing mothers are given two intervals of 15 minutes each as feeding time. the working hours of women employees covered under the Act is restricted between 6 am and 7 pm. up to a maximum of fifteen months after confinement. Computer. Marketing etc. NFL Employees (Conduct.4 14.Chief Engineers in various Engineering disciplines like Chemical.2 14.3 Under the Maternity Benefit Act. or alternatively as a working arrangement of 30 minutes at a stretch. distribute useful items like Utensils. Out of 3569 employees. Civil.4.6. 259 are women employees which constitutes 7.5 14. Human Resources.4. Industrial Engineering etc.7 FAGMIL As such.1 BVFCL lays emphasis in development of employees without any gender discrimination. This has enabled some of our women officers to excel in their respective field of activities leading to their being chosen for the coveted Merit Award given for outstanding performance and achievements. Recruitment of women candidates are made in the company. Blankets etc. Women executives occupy key positions in the Management cadre as Chief Managers/ Chief Engineers & Dy. The working atmosphere is very cordial and harmonious. Equal remuneration is paid to employees of both genders doing the same type of work.6 BVFCL 14. Materials. women employees undergoing family planning operation are given special leave up to 2 weeks.4 As per GOI Orders. miscarriage etc. 14. for feeding their infants.2 There is no instance of any Gender inequality and both men and women employees are enjoying equal rights. 96 out of 873 are women which constitutes 11% of the managerial strength. FACT Equal opportunity has been provided to women in recruitment to posts both in technical and administrative disciplines.4. In the managerial cadre. and administrative disciplines like Finance. Electrical. delivery. However a wing of Women in Public Sector (WIPS) is functioning at MFL and women employees are nominated for the programs organized by WIPS.4.adequate measures to facilitate a congenial work atmosphere for its women employees.3.1 14. 14. women employees are entitled for maternity leave of 90 days and medical benefits associated with pregnancy. There is no discrimination on grounds of gender. ladies club at units. Sewing Machines. MFL 14. A Committee is functioning at all the Units / Offices of the Company to deal with the cases of sexual harassment at work place. As per the guidelines circulated by the National Commission for Women. to the poor women in the neighboring villages. the company is a new Company and is engaged in the business of mining 87 . 14. There is no discrimination against any woman at any point of time.3 14.3. a complaint committee has already been constituted under the Chairmanship of a lady officer to look into the matter of sexual harassment of women employees at the workplace.1 MFL do not have any problems related with gender issues. Under the provisions of the Factories Act.

3 imparting them specialized training and nominating in specialized women empowerment seminars and programmes. The physical & mental growth and development of women employees in KRIBHCO are given special attention by 14. special provisions have been incorporated in the Conduct.1 KRIBHCO KRIBHCO the role of women employee has been seen in more holistic term. 14.8. Women’s issues are well integrated in the total development endeavor. In order to avoid any incidence of misconducts relating to harassment towards women employees. Discipline & Appeal (CDA) Rules of the Society to prevent the same and protect the female employees.8 14.8. 14. Women are provided equal opportunities with their counterpart keeping in mind the principles of equality in gender with respect to their working.8. Complaint Committee headed by a woman officer as its chairperson has been functioning to resolve their the desert areas of Rajasthan. if any. development and growth.2 88 . Female officers are equally associated in formulation of policies be it promotion and recruitment policies or other matters of importance. Suitable measures will be taken for the welfare and the empowerment of women and for mainstreaming gender issues.

6. namely.ANNEXURE. Administration of concession schemes and management of subsidy for controlled as well as decontrolled fertilizers including determination of retention price for urea. Krishak Bharti Cooperative Limited. 2. 1960. 4. 1961 (See Chapter. 3. Planning for fertilizer production including import of fertilizer through a designated canalising agency. Allocation and supply linkages for movement and distribution of urea in terms of assessment made by the Department of Agriculture & Cooperation.2) 1. Administrative responsibility for the Indian Potash Limited (IPL). 89 . Administration of the Fertilizers (Movement Control) Order. 5.I LIST OF SUBJECTS ALLOCATED TO THE DEPARTMENT OF FERTILIZERS AS PER GOVERNMENT OF INDIA (ALLOCATION OF BUSINESS) RULES. quantum of concession of decontrolled fertilizers costing of such fertilizers and pricing of Phosphatic and Potassic fertilizes. Administrative responsibility for fertilizer production units in the cooperative sector.

PS to Minister(C&F) Smt. Sr.2009) Shri A.2009) Shri Mathew C.2010) Shri Sudhir Bhargava Shri Satish Chandra Shri Deepak Singhal Shri A.A.10.01.2009) Shri M.01.K.f.ANNEUXRE-II (See Chapter-2) Minister for Chemicals & Fertilizers Minister of State for C&F Secretary Special Secretary & Financial Adviser Joint Secretary : : : : : Shri M. Sandhu (FICC) Shri Sanjay Kumar Sinha Shri H. Sr. Basil (FICC) Shri Umesh Dongre (FICC) Shri A. T.f. Kunnumkal (upto 05. 30.f. Parashar.12.2009) Deputy Secretary : Controller of Accounts Deputy Secretary Level Officer : : 90 . Chandwani. Padmanabhan Shri Hemant Jain (Upto 22.K. Alagiri Shri Srikant Kumar Jena Shri Atul Chaturvedi (upto 22. Mehtani Manoj Kumar Gupta Rajesh Agrawal (upto 14.e.C. Abbas Shri K.e.10.B.K. PPS (w. Dandayudhapani (FICC) Shri Pradeep Yadav.A Kalayani (Director of Accounts) Shri T.e. 22.2010) Shri Akhilesh Jha (w.2010) Shri Nand Lal.11. Joint Adviser (upto 30.N. 22. Eeconomic Adviser Shri B.02.K.10. Sri Chandra.S.2009) Shri S.2010) Joint Secretary Level Officers Directors : : Director Level Officer : Dr. PPS (upto 28. DDG Shri Shri Shri Shri Deepak Kumar B. Tiwari.01. Krishnan (w.

7. 1978 April. 8. 2002 February. No. Name of the Company Fertilizers And Chemicals Travancore Ltd. 1980 91 . 1943 New Delhi Noida Mumbai Chennai Noida New Delhi Guwahati Jodhpur January. 3. 2003 COOPERATIVE SECTOR : 10 Krishak Bharati Cooperative Limited (KRIBHCO) Noida April. (RCF) Madras Fertilizers Limited (MFL) Projects & Development India Limited (PDIL) Hindustan Fertilizer Corporation Limited (HFC) Brhamaputra Valley Fertilizer Corporation Limited (BVFCL) FCI Aravali Gypsum And Minerals India Limited (FAGMIL) Headquarters Incorporation in Udyogamandal September.ANNEXURE-III LIST OF PUBLIC AND COOPERATIVE SECTOR UNDERTAKINGS UNDER THE ADMINISTRATIVE CONTROL OF DEAPRTMENT OF FERTILIZERS (See Chapter-2) PUBLIC SECTOR : Sl. 2. (FCI) National Fertilizers Limited (NFL) Rashtriya Chemicals & Fertilizers Ltd. (FACT) Fertilizer Corporation of India Ltd. 1974 March. 1961 August. 4. 1978 March. 9. 1978 December. 6. 1. 1966 March. 5.

8 268. 20:20 Urea Urea A/S .0 50.1 0.8 386.1 1057.2 114.6 279.5 116.0 111.2 116.+Coop.1 107.6 14.9 3089.5 57.8 77.1 190.2 224.0 0.3 186.0 174.3 235.6 87.0 108.8 98.9 104.8 97.8 107.0 817.1 65.0 107.3 103.2 Percentage capacity utilization 2008-09 2009-2010 (Estimated) 95.8 34.6 92 .4 116.8:20.9 85.1 52.1 95.7 106.4 233.8 3133.0 38.6 94.2 6666.5 100.0 75.0 468.4 819.1 110.9 Urea / 17:17:17 CAN A/S 15:15:15 20.3 38.0 97.0 18.0 6058.9 145. PRODUCTION AND CAPACITY UTILIZATION FOR THE YEAR 2008-09 & 2009-10 (Estimated) (Chapter-3) NITROGEN Name of Company/Plant Name of Products Annual Installed Capacity (As on 1-04-06) (in ‘000’ MTs) Production (‘000 MT) 2008-09 2009-2010 (Estimated) 209.5 236.7 398.1 107.1 6475.5 105.3 165.7 120.1 157.9 255. TOTAL (NFL): BVFCL:Namrup-II BVFCL:Namrup-III TOTAL (BVFCL): FACT:Udyogamandal FACT:Cochin-II TOTAL (FACT): RCF:Trombay RCF:Trombay-IV RCF:Trombay-V RCF:Thal TOTAL (RCF): MFL:Chennai SAIL:Roulkela By Product Total (Public): Cooperative Sector IFFCO:Kandla IFFCO:Kalol IFFCO:Phulpur-I IFFCO:Phulpur-II IFFCO:Aonla-I IFFCO:Aonla-II IFFCO:Paradeep TOTAL(IFFCO): KRIBHCO:Hazira Total(Co-operative): Total(Pub.7 207.2 88.8 795.0 462.9 148.9 0.1 70.3 463.5 25.8 785.): Urea 10:26:26 / 12:32:16 /DAP Urea Urea Urea Urea Urea DAP / 10:26:26 / 20:20 / 12:32:16 351.2 117.0 18.2 129.7 397.0 464.9 59.0 875.1 3386.2 27.5 304.9 156.ANNEXURE-IV UNIT-WISE INSTALLED CAPACITY.2 100.0 34.2 102.4 3497.5 250.1 Public Sector: NFL:Nangal-II NFL:Bhatinda NFL:Panipat NFL:Vijaipur NFL:Vijaipur Expn.9 2925.5 103.8 426.2 97.2 100.8 0.0 366.0 417.3 257.0 45.8 86.9 99.1 110.9 57.3 397.0 0.1 1037.3 244.1 75.2 431.0 49.2 97.5 253.5 1538.6 946.9 18.1 87.7 0.1 302.2 107.1 108.5 328.3 77. 20:20 20:20 Urea Urea Urea Urea Urea Urea Urea 220.5 397.8 2569.6 247.3 98.4 74.4 252.7 325.1 103.3 86.5 50.8.0 0.1 70.0 49.8 120.2 83.9 90.7 0.2 2373.5 89.7 397.3 40.6 98.4 3169.2 801.0 133.8 1531.7 1486.4 144.0 105.7 454.1 151.5 2331.0 102.7 397.2 59.1 235.

Name of Company/Plant

Name of Products

Annual Installed Capacity (As on 1-04-06) (in ‘000’ MTs)

Production (‘000 MT) 2008-09 2009-2010 (Estimated)

Percentage capacity utilization 2008-09 2009-2010 (Estimated)

Joint Venture GSFC:Vadodara GSFC:Sikka-I GSFC:Sikka-II TOTAL(GSFC-Sikka): GNFC:Bharuch KSFL:Shahjahanpur Private Sector CFL:Vizag CFL:Ennore CFL:Kakinada SFC:Kota DIL:Kanpur ZIL:Goa SPIC:Tuticorin MCF:Mangalore TAC:Tuticorin TCL:Haldia PNF:Nangal IGCL:Jagdishpur Hin.Ind.Ltd.:Dahej DFPCL:Taloja NFCL:Kakinada-I NFCL:Kakinada-II TOTAL(NFCL): CFCL:Gadepan-I CFCL:Gadepan-II TOTAL(CFCL): TCL:Babrala PPL:Paradeep Urea DAP / 14:35:14 / 20:20 / 12:32:16 / 10:26:26 / 28:28 A/S Urea Urea 28:28 / 14:35:14 / 20:20 / 16:20 / 10:26:26 16:20 / 20:20 DAP / 10:26:26 / 20:20 / 14:35:14 / 12:32:16 Urea Urea Urea / DAP / 19:19:19 / 10:26:26 / 12:32:16 Urea / DAP / 20:20 / 17:17:17 Urea / DAP / 20:20 / 16:20 A/C DAP / 10:26:26 / 12:32: 16/ 14:35:14 / 15:15:15 A/C Urea DAP / 10:26:26 /12:32:16 23:23 Urea Urea 124.0 41.2 120.6 174.3 332.1 288.7 370.7 207.2 16.0 121.5 16.0 397.7 72.0 52.9 274.8 274.8 549.6 397.7 397.7 795.4 397.7 129.6 157.3 25.3 160.1 181.9 0.0 268.5 0.0 217.8 0.0 70.0 0.0 491.6 30.4 13.3 353.7 280.2 633.9 418.5 463.8 882.3 470.9 159.4 216.2 32.5 203.1 168.8 0.0 275.4 89.0 234.7 6.2 89.6 0.0 503.3 33.8 28.6 345.9 327.6 673.5 477.8 462.9 940.7 557.6 197.6 126.9 61.4 132.8 104.4 0.0 93.0 0.0 105.1 0.0 57.6 0.0 123.6 42.2 25.1 128.7 102.0 115.3 105.2 116.6 110.9 118.4 123.0 174.4 78.9 168.4 96.8 0.0 95.4 24.0 113.3 38.8 73.7 0.0 126.6 46.9 54.1 125.9 119.2 122.5 120.1 116.4 118.3 140.2 152.5 Urea / CAN / 20:20 Urea Urea / DAP / 20:20 / A/S DAP / 12:32:16 DAP / 12:32:16 248.1 105.8 71.3 177.1 356.7 397.7 194.0 48.0 71.5 119.5 333.9 397.5 253.9 78.4 89.3 167.7 375.1 440.6 78.2 45.4 100.3 67.5 93.6 99.9 102.3 74.1 125.2 94.7 105.2 110.8

By Product Total (Private Sector): Total(Pub+Coop+Pvt):

7.5 5394.3 12061.0

3.8 4811.4 10869.6

5.4 5493.3 11968.5

50.7 89.2 90.1

72.0 101.8 99.2


Name of Company/Plant Name of Products Annual Installed Capacity (As on 1-04-06) (in ‘000’ MTs) Production (‘000 MT) 2008-09 2009-2010 (Estimated) 31.8 107.3 139.1 70.6 14.0 84.6 0.0 0.0 0.0 223.7 786.1 386.8 1172.9 1396.6 58.1 200.8 228.2 429.0 38.4 257.2 40.6 516.3 247.5 34.8 109.8 243.0 86.5 28.6 433.8 432.0 2955.6 4352.2 Percentage capacity utilization 2008-09 2009-2010 (Estimated) 107.1 110.6 109.8 156.9 18.6 70.4 0.0 0.0 0.0 51.7 86.4 48.2 68.5 65.1 76.5 74.2 125.2 94.8 134.7 154.9 84.6 167.5 125.4 15.9 132.6 72.1 47.0 54.1 131.0 41.9 84.1 76.9

Public Sector: FACT:Udyogamandal FACT:Cochin-II Total(FACT): RCF:Trombay RCF:Trombay-IV Total(RCF): MFL:Chennai HCL:Khetri SSP Units Total(Public): Cooperative Sector IFFCO:Kandla IFFCO:Paradeep Total(Co-op.) Total(Pub.+Coop.): Joint Venture GSFC:Vadodara GSFC:Sikka-I GSFC:Sikka-II TOTAL(GSFC-Sikka): GNFC:Bharuch Private Sector CFL:Vizag CFL:Ennore CFL:Kakinada ZIL:Goa SPIC:Tuticorin MCF:Mangalore TCL:Haldia Hin.ind.Ltd.:Dahej DFPCL:Taloja PPL:Paradeep SSP Units Total (Private Sector): Total(Pub+Coop+Pvt): 14:35:14 / 28:28/10:26:26/ 20:20 16:20 / 20:20 DAP / 12:32:16 / 20:20 / 14:34:14 / 10:26:26 DAP / 19:19:19 / 10:26:26/ 12:32:16 DAP / 17:17:17 / 20:20 DAP / 20:20 / 16:20 DAP / 10:26:26 / 12:32:16/ 14:35:14 DAP / 10:26:26 / 12:32:16 23:23 DAP / 14:35:14 / 20:20 / 12:32:16 / 10:26:26 / 28:28 SSP 166.0 48.0 308.2 197.4 218.5 82.8 336.9 184.0 52.9 331.2 1030.6 3513.6 5658.9 176.5 31.7 395.1 193.0 0.0 87.7 202.2 77.6 13.3 355.1 432.0 2356.6 3464.6 106.3 66.0 128.2 97.8 0.0 105.9 60.0 42.2 25.1 107.2 41.9 67.1 61.2 20:20 DAP / 20:20 DAP , 12:32:16 DAP 75.9 270.5 182.2 452.7 28.5 59.5 123.4 182.7 306.1 26.8 78.4 45.6 100.3 67.6 94.0 DAP / 10:26:26 / 12:32:16 DAP / 10:26:26 / 20:20 / 12:32:16 910.0 802.8 1712.8 2145.3 541.5 374.7 916.2 1108.0 59.5 46.7 53.5 51.6 20:20 / 19:19:19 / 17:17:17 SSP SSP 15:15:15 20.8:20.8 20:20 20:20 29.7 97.0 126.7 45.0 75.1 120.1 142.8 30.1 12.8 432.5 23.2 97.9 121.1 70.7 0.0 70.7 0.0 0.0 0.0 191.8 78.1 100.9 95.6 157.1 0.0 58.9 0.0 0.0 0.0 44.3

* 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.


(lakh M.T.) YEAR N 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 40.69 42.24 52.86 54.87 56.61 57.16 57.17 72.51 73.86 79.97 80.46 84.27 87.89 95.07 98.23 103.01 109.01 113.54 115.92 109.20 113.10 104.74 110.76 117.14 127.23 137.74 144.19 150.9 N.A. CONSUMPTION P 13.22 14.37 17.07 18.86 20.05 20.79 21.87 27.21 30.14 32.21 33.21 28.44 26.69 29.31 28.98 29.77 39.14 41.12 47.99 42.15 43.82 40.19 41.24 46.24 52.04 55.43 55.15 65.06 N.A. K 6.73 7.27 7.99 8.38 8.08 8.50 8.80 10.68 11.68 13.28 13.61 8.84 9.08 11.25 11.56 10.30 13.73 13.32 16.78 15.67 16.67 16.01 15.98 20.61 24.13 23.34 26.36 33.13 N.A. TOTAL 60.64 63.88 77.92 82.11 84.74 86.45 87.84 110.40 115.68 125.46 127.28 121.55 123.66 135.63 138.77 143.08 161.88 167.98 180.69 167.02 173.59 160.94 167.98 183.99 203.40 216.51 225.70 249.09 N.A. N 31.44 34.24 34.85 39.17 43.28 54.10 54.66 67.12 67.47 69.93 73.01 74.30 72.31 79.45 87.77 85.99 100.86 104.80 108.90 109.61 107.68 105.64 106.34 113.38 113.54 115.78 109.00 108.7 119.68 PRODUCTION P 9.49 9.80 10.48 12.64 14.28 16.60 16.65 22.52 17.96 20.52 25.62 23.06 18.16 24.93 25.58 25.56 29.76 31.41 33.99 37.43 38.60 39.10 36.32 40.67 42.21 45.17 38.07 34.64 43.52 K 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL 40.93 44.04 45.33 51.81 57.56 70.70 71.31 89.64 85.43 90.45 98.63 97.36 90.47 104.38 113.35 111.55 130.62 136.21 142.89 147.04 146.28 144.74 142.66 154.05 155.75 160.95 147.07 143.34 163.20 N 10.54 4.25 6.56 20.08 16.80 11.03 1.75 2.19 5.23 4.14 5.66 11.37 15.88 14.76 19.93 11.67 13.62 6.35 8.33 1.54 2.69 0.66 1.32 4.09 13.85 26.88 36.77 38.44 30.85 P 3.43 0.63 1.43 7.45 8.16 2.55 0.00 4.07 13.11 10.16 9.67 6.89 7.22 3.80 6.47 2.46 6.72 9.68 15.03 3.96 4.29 1.70 3.38 2.96 11.21 13.23 12.53 29.27 24.99 IMPORTS K 6.44 6.44 5.56 8.71 9.03 9.52 8.09 9.82 12.80 13.28 12.36 10.82 8.57 11.09 13.15 6.13 11.40 15.42 17.39 15.41 17.01 14.38 15.48 20.45 27.47 20.69 26.53 33.80 25.39 TOTAL 20.41 11.32 13.55 36.24 33.99 23.10 9.84 16.08 31.14 27.58 27.69 29.08 31.67 29.65 39.55 20.26 31.74 31.45 40.75 20.91 23.99 16.74 20.18 27.50 52.53 60.80 75.83 101.51 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.


0 307.3 3904.0 4820.9 5526.5 2958.7 2699.2 11811.8 10935.5 14707.5 2854.0 11897.7 15821.0 5583.5 5502.8 3089.7 16320.7 2587.9 1035.4 3046.3 3087.1 2955.3 3091.3 3051.8 1104.3 383.0 3031.0 3106.8 4640.9 2862.6 4221.3 16332.8 2832.0 223.4 3464.9 3429.5 232.1 16331.4 949.3 10561.0 5382.8 4517.7 5549.0 Grand Total: 16589.3 778.9 2706.0 2901.1 266.7 916.3 938.0 3054.0 294.0 14628.7 4352.0 16434.0 10768.6 11968.7 875.7 4434.3 3400.6 4811.3 678.4 14465.9 776.2 161.0 11615.0 16215.4 2676.7 3303.9 11908.7 15402.8 3366.7 3007.2 241.4 969.0 479.5 5401.9 3106.7 4067.0 5437.8 191.6 2668.ANNEXURE-VI SECTOR-WISE PRODUCTION OF NITROGENOUS AND PHOSPHATIC FERTILIZERS (See Chapter .5 11448.7 3807.0 353.5 3260.7 3141.0 4982.7 1129.1 4906.8 11335.5 16474.9 5130.0 880.5 2691.7 402.2 Total (Phosphate): 4930.8 16269.5 399.3 11354.1 14334.8 10869.9 5485.5 11180.3 15575.0 5493. 96 .2 4914.4 2887.2 3464.3 11577.2 3133.4 14736.1 3386.5 3404.3 2986.8 4131.3 3119.0 4663.6 2958.3 937.7 234.0 1496.9 2797.1 16822.7 3004.1 10900.2 3184.2 2672.6 1172.6 5224.8 3280.0 3053.7 12084.1 2879.1 2800.8 387.2 207.5 5749.3 2356.3 3860.2 4819.7 2925.5) (‘000’ MT) Nutrient 2001-02 Target Nitrogen (N) Public Sector Co-operative Sector Private Sector Total(Nitrogen): Phosphate (P) Public Sector Co-operative Sector Private Sector 749.8 3154.3 3117.1 Actual 2002-03 Target Actual 2003-04 Target Actual 2004-05 Target Actual 2005-06 Target Actual 2006-07 Target Actual 2007-08 Target Actual 2008-09 Target Actual 2009-10 Target Estimated 5523.3 2972.7 * Estimated Production figures have been reported for the year 2009-10.3 776.4 3800.7 11405.0 2890.5 5837.0 3364.1 2647.3 11659.1 16095.0 5196.4 3648.5 2812.3 1461.1 4925.8 776.4 793.

0 94.8 99.1 94.1 87.4 69. 2008) 97 .3 141.5 96.2 90.4 83.8 79.3 106.1 87.8 94.5 82.5 67.6 72.5) (% age) Nutrient Nitrogen (N) Public Sector: Co-operative Sector: Private Sector: Total(Nitrogen): Phosphate(P) Public Sector: Co-operative Sector: Private Sector: Total(Phosphate): 58.9 89.3 71.5 76.7 94.8 60.8 102.6 75.0 63.6 78.6 93.0 95.4 64.6 92. 2008-October.6 53.5 95.7 65.7 99.7 64.3 44.1 61.9 68.4 90.ANNEXURE-VII SECTOR-WISE CAPACITY UTILIZATION OF NITROGENOUS AND PHOSPHATIC FERTILIZERS (See Chapter .2 60.5 89.8 87.0 89.2 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 (Estimated) * Estimated (Actual Production have been considered from April.1 94.0 85.8 101.7 91.6 98.3 60.0 82.1 84.2 51.8 81.3 53.1 70.8 131.8 37.1 61.0 84.2 67.1 66.1 76.1 88.9 74.1 101.3 74.9 101.3 100.6 103.5 89.2 86.2 102.

00 1024.00 34.82 11.00 96.50 45.00 2914.ANNEXURE-VIII ANNUAL PLAN 2010-11 DEPARTMENT OF FERTILIZER (Chapter-5) (Rs.50 65.1 Lakh has been provided. Schemes (MIS/IT and R&D) Capital Subsidy for conversion Investments for JVs abroad# Revival of Closed Units Total CS 200.05 29.00 4.01 0.00 2269.00 89.00 34.99 74.38 900.01 0.00 96.99 * 45.01 0.00 96.01 0.00 * The amount earmaked for BVFCL will be utilised for the benefits of North-East Region # DOF is exploring posiibilities of JV Abroad.50 622.38 139.01 5.5 1160. Name of the Scheme Annual Plan 2009-10 (BE) GBS Total Outlay Earmarked for NER Annual Pan 2009-10 (RE) GBS Total Outlay Earmarked for NER Annual Plan 2010-11 (BE) GBS Total Outlay Earmarked for NER Centally Sponsored Schemes-CSS Total CSS Central Sector Scheme (CS) 1 2 3 4 5 6 6(i) 6(ii) 6(iii) 6(iv) 6(v) 6(vi) 7 8 9 10 RCF FAGMIL PDIL NFL KRIBHCO Revival of Sick CPSEs BVFCL FACT MFL FCI HFC PPCL Misc.99 65. No. crores) S.50 * 988.01 0.00 34.15 497 250.00 4.01 4.25 421. 98 .00 4.99 65.35 550.68 4.99 0.99 74.29 5.56 200. Since no firm proposal is at hand right now only a token amount of Rs.00 89.35 8.00 5.16 215.50 5.00 96.99 * 65.00 34.

01 0.ANNEXURE-IX DETAILS OF HEAD-WISE ALLOCATION OF FUNDS UNDER NON-PLAN AND PLAN FOR BE 2009-2010 and RE 2009-2010 (Chapter-5) (Rs In Crore) I A NON-PLAN PROVISIONS: REVENUE SECTION 1.96 16000.96 (ii) Imported Decontrolled Fertilizers (Gross) Total (Decontrolled Fertilizers)-(Gross) 6. Proper (MH 3451) Office of FICC & other Programmes (FICC+MIT) (MH 2852) Subsidy on Nitrogenous Fertilizers (MH 2852) 9780.01 0.01 0.01 0. 2.47 BE 2009-2010 RE 2009-2010 Indigenous Urea including Frieght Subidy (Gross) 4.25 17.01 0. 7.22 2.00 18952.00 0. MFL. PDIL and FACT (MH 3475) Post closure adjustment liabilities of PPL (MH 3475) TOTAL : (REVENUE SECTION) Gross Net B. CAPITAL SECTION Non-Plan loans to PSUs (MH 6855) HFC FCI PPCL BVFCL FACT TOTAL (CAPITAL SECTION) TOTAL : NON-PLAN Gross Net 0.01 0.00 99 .50 5947.06 0.50 3947. Payment to Manufacturers/ Agencies for concessional sale of Decontrolled Fertilizers (MH 2401) (i) Indigenous Decontrolled Fertilizers (Gross) 9548.25 14080.94 16800. Subsidy on Imported Fertilizers (MH 2401) Gross Recovery(-) Net 5.50 53000.01 —0.01 0.22 2.01 0.06 34952. 3.00 17452.01 —0.44 3600.04 53600.01 53600.06 34252.47 17. Write off of loans.01 56600.44 3600.46 52999. FCI.46 49999.50 50000.94 7548. Sectt.06 0. interest and penal interest on GOI loan outstanding against HFCL.04 56600.

00 TOTAL (REVENUE SECTION) B. 3.00 53800.99 —— —— 0. 4.00 2. 3.00 65.00 —2. 5.00 0. CAPITAL SECTION : Investment in and loans to PSUs (MH 6855) 1.00 0. 2.00 —— —— 96.00 65. FACT BVFCL HFC PDIL MFL FCI PPCL 34.00 2.00 200.50 53200. 2. 6.01 196.00 200.99 —— —— 0. 4. 7.50 50200. Grant to PDIL for R&D S&T Programme of Department (MH 2852) Grant in the field of Management Information Technology (MH 2852) Capital subsidy for conversion of 4 existing FO/LSHS Plants to NG/LNG (MH 2852) —2.00 4.00 Investments for JVs abroad (MH 4855) TOTAL (CAPITAL SECTION) TOTAL PLAN TOTAL-DEPARTMENT OF FERTILIZERS (Gross) TOTAL-DEPARTMENT OF FERTILIZERS (Net) 100 .00 —— —— 96.01 196.00 34.00 4.II A.00 56800. PLAN PROVISIONS: REVENUE SECTION 1.

83 (-)1101.16 211.37 11.97 (-)134. 101 .26 (-) 63.24 209.66 (-)131.72 (-)114..15 109.26 8.54 (-) 104. 09) (-)417.39 (-) 51.60 **4841.74 (-)99.78 (-)62.93 Fertilizer Corporation of India Limited (FCI) Hindustan Fertilizer Corporation Limited (HFC) Rashtriya Chemicals & Fertilizers Limited (RCF) National Fertilizers Limited (NFL) Project & Development India Limited (PDIL) Fertilizers And Chemicals Travancore Limited (FACT) Madras Fertilizers Limited (MFL) Brahamputra Valley Fertilizer Corporation Ltd.10 11. ** Profit is due to write back of interest on Govt.51 (-)1504.54 (-)752.04 9. of India loan.40 4.74 176.85 (-)105.35 165.20 (-) 124.04 140.00 12.61* * pre tax profit.83 7.96 116.64 (-) 235.85 (-)1422.20 (-)288.58 97 14.40 10.95 193.98 158.ANNEXURE-X PROFITABILITY OF THE PUBLIC SECTOR UNDERTAKINGS AND COOPERATIVES UNDER THE DEPARTMENT OF FERTILIZERS (See Chapter-7) (Rupees in Crores) Name of Undertaking/ Cooperative 2005-06 Net profit(+)/Net loss(-) 2006-07 2007-08 2008-09 2009-10 (Up to Dec.45 118 9.77 9.61 147.95 (-)145.13 203.20 250.82 42.01 (-) 964.14 148.38 (-)215. (BVFCL) FCI Aravali Gypsum & Minerals India Limited (FAGMIL) Cooperative Sector Krishak Bharti Cooperative Limited (KRIBHCO) (-)1299.63 (-)1065.

PHYSICALLY HANDICAPPED & OTHER BACKWARD CLASSES(OBCs) PERSONS IN PUBLIC SECTOR UNDERTAKING (See Sub Para 13. 5. RCF FACT TOTAL A B C D E TOTAL 8. 7.ANNEXURE-XI EMPLOYMENT OF SC/ST. KRIBHCO A B C D TOTAL 2. EX-SERVICEMEN.1 of Chapter 13) Name of PSU Group Total No. of Employees belonging to ST 13 16 23 52 79 158 44 3 284 3 5 1 9 5 20 — — — — 20 259 10 51 23 21 105 181 Ex.Ser 8 4 3 4 19 7 37 45 2 91 — — 13 13 1 — — — — —— 9 14 25 11 50 4 P. BVFCL TOTAL 1359 309 390 26 2084 1710 1936 1006 147 4799 241 208 329 40 818 109 438 38 30 49 555 4220 515 1418 817 782 37 3569 1205 32 19 44 3 98 362 507 251 115 1235 24 46 84 28 182 17 44 5 10 8 67 583 89 209 82 124 10 514 91 No. MFL A B C D TOTAL 4.Hs 2 Nil 5 Nil 7 10 22 20 3 55 1 1 3 5 Nil — — — — —— 27 4 21 14 33 1 73 4 OBC 134 55 66 14 269 88 114 124 8 334 53 80 126 9 268 8 58 1 6 16 81 286 76 348 334 307 18 1083 365 102 .2. NFL A B C D TOTAL 3. of Employees SC 1. FAGMIL PDIL TOTAL A B C D E TOTAL 6.

7.20000 crore and MFL Rs.6: Irregular Re-appropriation from Capital to Revenue Section 12.00 crore (ii) Loan to FA &CT Rs. No.12.19.of ATNs not sent by the Ministry even for the first time No.90 crore 7.1: Overall position of the Grant for the last five years viz.95 crore 12.ANNEUXRE-XII STATUS OF ACTION TAKEN NOTES S.2: Unspent Provision in 1999-2000 under Revenue Section and Excess in Capital Head 12.00 crore (ii) Loan to FCI Rs.K. 1 of 2001 1 of 2002 — — — — — — — — 12. 1 of 2001 — — — — 4. of ATNs which have been finally vetted by audit but have not been submitted by the Ministry to PAC — 1. 8.3(24): (i) Investment in PPL (ii) Loan to FA &CT 12. 1 of 1999 14.Budget provision actual expenditure and unspent provision 12.4: Rush of Disbursement 12.3(3): Grants under U..47. 1 of 2001 — — — — 10.12: Lumpsum provision for projects / scheme for the benefit of the North Easter Region and Sikkim Loans to HFC Rs. 1 of 2001 — — — — 7. 1 of 2000 — — — — 3. — — 1 of 1999 — — — — 2.5: Unrealistic Budgeting – Surrender of funds for the year 1997-98 12.7: Delay in surrender of unspent provision 8. 1 of 2005 — — — — 103 .40. 1 of 2001 — — — — 5. Report No & Year Number of paras of CAG Report & PAC Report on which ATNs submitted to PAC and monitoring cell of Ministry of Finance after vetting by Audit / Brief Subject No. Fertilizer Development Programme 14.8: Test Check of Re-appropriation of orders for 2003-04 amounting to Rs.3(24): (i) Investment in /Loan to HFC Rs. 11. of Paras/PA Reports on which ATNs have been submitted to PAC after vetting by Audit No.12(27): (i) Investment of HFC Rs.3: Unspent Amount and Excess leading to net unspent provision 12.90 crore 11. 1 of 2001 — — — — 6.1088 crore. 1 of 2001 1 of 2001 — — — — — — — — 9.of ATNs sent but returned with observations and Audit is awaiting their resubmission by the Ministry — No.

Report No & Year Number of paras of CAG Report & PAC Report on which ATNs submitted to PAC and monitoring cell of Ministry of Finance after vetting by Audit / Brief Subject No. 1. ATN on 54th Report of PAC ATN on 54th Report of PAC ATN on 54th Report of PAC ATN on 54th Report of PAC ATN on 54th Report of PAC ATN on 54th Report of PAC — — — — 31.1 to 3.2.98 crore.45 crore due to deployment of a driver without valid driving licence to transport its crane in violation of the terms of the insurance policy. of ATNs which have been finally vetted by audit but have not been submitted by the Ministry to PAC 13. +13 =26 27./Fin. — — — — Audit Report No.of ATNs not sent by the Ministry even for the first time No.8: Re-appropriation of funds 52: Strictly complying with the instruction of Min.15: Unnecessary Supplementary Grants 6. 29. The Fertilisers And Chemicals Travancore Limited The Company’s decision to defer procurement of sulphur resulted in additional expenditure of Rs. Para 7. — — — — — — — — — — — — — — — — 35. No.13): Disbursement 3.44 crore.S. 32. 1 of 2005 3 of 2005 1 of 2005 1 of 2006 1 of 2006 6.10(12. Para 7. Para 7.1.of ATNs sent but returned with observations and Audit is awaiting their resubmission by the Ministry — — — — — No. 33. The Company irregularly paid additional house rent allowance and short recovered rent from the employees provided with leased accommodation in violation of the DPE guidelines. CA 24 of 2009-10 (Compliance Audit) National Fertilizers Limited The Company suffered a loss of Rs.13: Concession Scheme Information system 7. 34. of Paras/PA Reports on which ATNs have been submitted to PAC after vetting by Audit No. 104 . 3.2. resulting in extra expenditure of Rs.10: Disbursement (Appendix –VI-D16) 7. 28. On Monitoring of expenditure 53: Measures for check on excess expenditure 54: Explanatory note on excess expenditure 58: Repayment of Debt 59: Corrective measure alongwith specific results achieved to curb excess expenditure 60: Regularizing Expenditure under Acrticle 115(1)(b) — — — — — — — — — — — — — — — Fifty – Fourth Report (14th Lok Sabha) of PAC on Excess over Voted Grants and Charged Appropriations 2005-06 30.


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