Annual Report2012 13

Annual Report
2012-13
Government of India
Ministry of Chemicals and Fertilizers
Department of Fertilizers
S.No. Subjects Page No.
1. Introduction 1 - 3
2. Organisational set-up and functions 5 6
3. Development and Growth of Fertilizer Industry 7 16
4. Availability and Movement of Major fertilizers during 2012-13 17 19
5. Plan Performance 21 22
6. Measures of support for fertilizers 23 58
7. Public sector Undertakings 59 103
8. Fertilizer Education Projects 105 106
9. Information Technology (IT) 107 110
10. Vigilance Activities 111 111
11. Right to Information Act, 2005 113 113
12. Progressive use of Official Language 115 117
13. Welfare of SCs, STs, OBCs and Physically Handicapped 119 120
Persons
14. Women Empowerment 121 123
15. Sevottam 125 126
16. Annexure I to XVI 127 168
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CONTENTS
Annual Report 2012-13
Chapter - 1
Introduction
1.1.1. Agriculture which accounts for one fifth
of GDP, provides sustenance to two-
thirds of our population. Besides, it
provides crucial backward and forward
linkages to the rest of the economy.
Successive five-year plan have laid
stress on self-sufficiency and self-
reliance in foodgrain production and
concerted efforts in this direction have
resul ted i n substanti al i ncrease i n
agriculture production and productivity.
This is clear from the fact that from a
very modest level of 52 million MT in
1951-52, foodgrain production rose to
about 259.32 million MT in 2011-12. In
India's success in agriculture sector, not
onl y i n t er ms of meet i ng t ot al
requirement of food grains but also
generating exportable surpluses, the
significant role played by chemical
f ert i l i zers i s wel l recogni zed and
established.
1.1.2 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,
the Government of India has been
consistently pursuing policies conducive
t o i n c r e a s e d a v a i l a b i l i t y a n d
consumption of fertilizers in the country.
As a result, the annual consumption of
chemical fertilizers in nutrient terms (N,
P & K), has increased from 0.7 lakh
MT in 1951-52 to 277.39 lakh MT 2011-
12, while per hectare consumption of
chemical fertilizers, which was less than
1 Kg in 1951-52 has risen to a level of
141.30 Kg (estimated) in 2011-12.
1.1.3 As of now, the country has achieved
75% sel f-suffi ci ency i n producti on
capacity of urea with the result that
India could substantially manage its
requirement of nitrogenous fertilizers
through the indigenous industry and
i mports. Si mi l arl y, 50% i ndi genous
capacity has developed in respect of
phosphatic fertilizers to meet domestic
r equi r ement s. However, t he r aw
materials and intermediates for the
same are largely imported. As for
potash (K) since there are no viable
sources/reserves in the country, its
enti re requi rement i s met through
imports.
1.2.1. The industry made a very humble
begi nni ng i n 1906, when the fi rst
manufacturing unit of Single Super
Phosphate (SSP) was set up in Ranipet
near Chennai with an annual capacity
of 6000 MT. The Fertilizer & Chemicals
Travancore of India Ltd. (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
s el f - s uf f i c i enc y i n f ood- gr ai ns .
Subsequently, green revolution in the
late sixties gave an impetus to the
growth of fertilizer industry in India and
t he sevent i es and ei ght i es t hen
witnessed a significant addition to the
fertilizer production capacity.
GROWTH OF FERTILIZER INDUSTRY
1
1.2.2 The installed capacity as on 31.03.2012
has reached a level of 120.41 lakh MT
of nitrogen and 56.19 lakh MT of
phosphatic nutrient, making India the
3rd largest fertilizer producer in the
world. The rapid build-up of fertilizer
production capacity in the country has
been achi eved as a r esul t of a
favourable policy environment facilitating
large investments in the public, co-
operative and private sectors.
1.2.3 Presently, there are 30 large size urea
plants in the country manufacturing
urea (as on date 29 are functioning),
21 units produce DAP and complex
fertilizers, 5 units produce low analysis
straight nitrogenous fertilizers and the 2
manufacture Ammonium Sulphate as
by-product. Besides, there are about 85
medi um and smal l -scal e uni ts i n
operation producing SSP. The sector-
wise installed capacity is given in the
table below: -
SELF- SUFFI CI ENCY I N FERTI LI ZER
SECTOR
1.3.1 Out of three main nutrients namely
Ni t rogen, Phosphat e and Pot ash,
(N, P & K) required for various crops,
indigenous raw materials are available
mainly for nitrogenous fertilizers. The
Government's policy has hence aimed
at achieving the maximum possible
degr ee of sel f - suf f i ci ency i n t he
production of nitrogenous fertilizers
based on uti l i sati on of i ndi genous
feedstock. Prior to 1980, nitrogenous
fertilizer plants were mainly based on
naphtha as feedstock. A number of
Fuel Oil/LSHS based ammonia-urea
plants were also set up during 1978 to
1982. In 1980, two coal-based plants
were set up for the first time in the
count ry at Tal cher, (Ori ssa) and
Ramagundam (Andhra Pradesh). These
coal based plants have, however, been
closed by Government w.e.f. 1.4.2002
due to technical and financial un-
viability. However, with natural gas
becomi ng avai l abl e f rom off shore
Bombay Hi gh and South Basi n, a
number of gas based ammonia-urea
plants have been set up since 1985. As
the usage of gas increased and its
available supply dwindled, a number of
expansion projects came up in the last
few years with duel feed facility using
both naphtha and gas. Feasibility of
making available Liquefied Natural Gas
SECTOR-WISE, NUTRIENT-WISE INSTALLED CAPACITY OF FERTILIZER
MANUFACTURING UNITS (as on 31.03.2012.)
Sr

No

Sector

Capacity (lakh MT)

Percentage Share

N

P

N

P

1

2

3

Public Sector

Cooperative Sector

Private Sector

34.98

31.66

53.78

4. 02

17.03

35.14

29.04

26.29

44.67

7.15

30.31

62.54

Total:

120.47

56.19

100.00

100.00

Department of Fertilizers 2
(LNG) to meet the demand of existing
f er t i l i zer pl ant s and/ or f or t hei r
expansi on proj ects al ong wi th the
possibility for utilising newly discovered
gas reserves, is also being explored by
various fertilizer companies in India.
1.3.2. In case of phosphates, the paucity of
domestic raw material has been a
constraint in the attainment of self-
sufficiency in the country. Indigenous rock
phosphate supplies meet about 10% of
the total requirement of P2O5. A policy
has, therefore, been adopted which
involves mix of three options, viz,
domestic production based on indigenous
/imported rock phosphate, imported
sul phur and ammoni a; domest i c
production based on indigenous/ imported
i nt er medi at es, vi z. ammoni a and
phosphoric acid; and third, import of
finished fertilizers.
1.3.3. I n t he absence of commer ci al l y
expl oi tabl e potash sources i n the
country, the entire demand of potassic
fertilizers for direct application as well
as for production of complex fertilizers
is met through imports.
1.3.4. Given the volatility in international
market for fertilizer in general and urea
market in particular, strategic imports
could be used to the country's strategic
advantage. This is also desirable as
the international market, especially in
case of urea, is very sensitive to
demand supply scenario. Under the
new pri ci ng regi me for urea uni ts
applicable from 01.04.2003, for securing
additional indigenous supply of urea,
economically efficient units are being
permitted to produce beyond their re-
assessed capaci t y t o subst i t ut e/
minimize imports.
1.3.5 Government has recently announced
New Investment Policy-2012 in order
facilitate fresh investments in urea
sector.
Annual Report 2012-13 3
2.1.1 The main activities of Department of
Fertilizers (DOF) include planning,
promotion and development of the
fertilizer industry, planning and monitoring
of production, import and distribution of
fertilizers and management of financial
assistance by way of subsidy/concession
for indigenous and imported fertilizers. A
list of activities being carried out by the
Department of Fertilizers is given at
Annexure-I.
2.1.2 The Department is broadly divided into
5 Wings dealing with (i) Fertilizers
Projects and Planning (ii) Fertilizers
Imports, Movement and Distribution
(iii) Administration and Vigilance (iv)
Finance and Accounts and (v) Economic
and Statistics. The work of these Wings
i s bei ng handl ed by t hr ee Joi nt
Secretaries, one Economic Adviser & one
Additional Secretary cum Financial
Adviser.
2. 1. 3 One Joi nt Secret ary l ooks af t er
the work relating to Fertilizer Policy
of decontrolled (P&K) Fertilizers and
subsi dy payment of de-cont rol l ed
(P&K) Fertilizers in imported Urea on
Government account, domestic Joint
Venture projects of P&K Fertilizers, SPV
for exploring JVs abroad, Revival of
closed Urea units and work relating to
FCIL & HFCL.
2.1.4 Second Joint Secretary is entrusted
wi t h al l wor k r el at i ng t o Br anch
Administration including parliamentary
work and coordination, IT initiatives,
plan and Budget coordination, WTO
i ssues, al l works rel ated to PSUs
excluding vigilance matters, Sovereign
Funds and SPV (UVL) and general
coordination for overseas JVs including
related off takes. This Joint Secretary is
also Executive Director of the Fertilizer
Industry Coordination Committee.
2.1.5 Third Joint Secretary looks after the
work rel at i ng t o Urea Pol i cy and
domest i c Urea Fert i l i zer proj ect s,
Movements of Fertilizers and related
policies and coordination with States,
Shi ppi ng and I mpor t of Ur ea on
Government Account including policy
mat t ers on t hese subj ect s, Chi ef
Vigilance Officer of the Department and
vigilance matters related to PSUs, FMS
including direct cash transfer of subsidy,
OMIFCO matters including off-take of
Urea.
2.1.6 The Economic Adviser, a Joint Secretary
level officer, advises the Department on
various economic issues which have
economic implications, S&T projects,
matters relating to Agriculture Ministry
such as Bi o f ert i l i zers, bal anced
fertilizers, soil health cards, nutrient
absorpti on i ssues, mi cro-nutri ents,
organic fertilizers based on urban solid
waste, subject related to renewable and
non-renewable energy, clean technology
and general envi ronmental i ssues,
supply, demand, availability and price
movement f or ecast i ng of var i ous
f ert i l i zers, i nt ermedi at es and raw
materials. Economic analysis of specific
Chapter - 2
Organisational set up and functions
importance assisting in firming up policy
issues, analysis of domestic fertilizer
industry specially with reference to
investment climate including fiscal and
financial policy issues and quarterly
review of CPSUs.
2.1.7 The l i st cont ai ni ng t he names of
Minister-in-charge and the officers of the
level of Deputy Secretary and above,
who are working in the Department
during 2012-2013 (as on 31.1.2013) is
given in Annexure-II and a list of nine
Public Sector Undertakings and one
Cooperative under the administrative
control is given at Annexure-III.
2.2.1 The of f i ce of Fer t i l i zer I ndust r y
Coordination Committee (FICC) is an
attached office under the Department of
Fertilizers headed by an Executive
Director. FICC, was initially constituted
w.e.f. 01.12.1977 to administer and
operate the erstwhile Retention Price
cum Subsidy Scheme (RPS). The RPS
stimulated indigenous production and
consumption of fertilizers in the country.
However, for attaining greater internal
efficiencies and global competitiveness,
unit specific approach of RPS was
replaced by a group based concession
FERTILIZER INDUSTRY COORDINATION
COMMITTEE (FICC)
scheme called the New Pricing Scheme
(NPS) from 01 April, 2003. The FICC
continues under the New Pricing Scheme
for administration of the scheme for
domestically produced urea.
2.2.2 FICC is responsible to evolve and
review periodically, the group conce-
ssi on rates i ncl udi ng frei ght rates
for units manufacturing nitrogenous
fertilizers, maintain accounts, make
payments to and to recover amounts
from fertilizer companies, undertake
costing and other technical functions
and collect and analyse production
data, costs and other information.
2.2.3 The Fertilizer Industry Coordination
Committee comprises of the Secretaries
to the Government of India in the
Department of Fertilizers, Industrial
Policy and Promotion, Agriculture and
Cooperation, Expenditure, Ministry of
Petroleum & Natural Gas, Chairman,
Tariff Commission and two represen-
tatives of the urea industry namely
Mr R G Rajan, CMD, RCF and Dr A C
Muthiah, Chairman, SPIC.
2.2.4 The pricing policy for period beyond
31.03.2010 is under finalization and
extended NPS-III is being administered
till such time.
CAPACITY BUILD-UP
PRODUCTION CAPACITY AND CAPACITY
UTILISATION
3.1.1 At present, there are 30 large size
f er t i l i z er pl ant s i n t he c ount r y
manufacturing urea (as on date 29 are
functioning), 21 units produce DAP and
complex fertilizers, 5 units produce low
analysis straight nitrogenous fertilizers
and the 2 units manufacture ammonium
sulphate as by-product. Besides, there
are about 85 medium and small-scale
units in operation producing SSP. The
total i nstal l ed capaci ty of ferti l i zer
production which was 119.60 lakh MT of
ni t r ogen and 53. 60 l akh MT of
phosphat e as on 31. 03. 2004 has
marginally increased to120.42 lakh MT
of nitrogen and 56.19 lakh MT of
phosphate as on 01.04.2012.
3.2.1 The production of fertilizers during 2011-
12 was 122.59 lakh MT of Nitrogen and
41.04 lakh MT of Phosphates. The
production target for 2012-13 was 129.21
Lakh MT of Nitrogen and 47.55 Lakh MT
of Phosphates, representing a growth
rate of 5.4% in Nitrogen and 15.9% in
Phosphate as compared to production
i n 2010-11. Product i on t arget f or
nitrogenous fertilizer is more than the
installed capacity. The production target
for phospahtic fertilizer is less than
installed capacity due to constraints in
availability of raw materials/intermediates
whi ch are subst ant i al l y i mport ed.
However, taken together, the production
of 'N' and 'P' during the year is very near
to the corresponding period of last year.
3.2.2 The production performance of both
nitrogenous and phosphatic fertilizers
during the year 2011-12 was satis-
factory. Production of nitrogenous &
phosphatic was less than the target
by 4.98 Lakh MT and 8.2 Lakh MT
respectively.
3.2.3. The installed capacity of urea units in
the country as follows:-
UREA UNITS SET UP BETWEEN: 1967-2005 WITH REASSESSED CAPACITY
Year of
Comm.

Unit Sector Feedstock

Installed Capacity
(lakh/MT)

1967

GSFC-Baroda

Private

Gas

3.706

1969 SFC-Kota Private Naphtha 3.790
1970 DIL-Kanpur Private Naphtha 7.220
1971

MFL-Madras

Public

Naphtha

4.868 @

1973

ZIL -Goa

Private

Naphtha

3.993

Chapter - 3
Development and Growth
of Fertilizer Industry
Year of
Comm.

Unit Sector Feedstock

Installed Capacity
(lakh/MT)

1975

SPIC-Tuticorin

Private

Naphtha

6.200

1976

MCFL-Mangalore

Private

Naphtha

3.800

1978

NFL-Nangal

Public

FO/LSHS

4.785

1978

IFFCO-Kalol

Coop.

Gas

5.445 @

1979

NFL-Bhatinda

Public

FO/LSHS

5.115

1979

NFL-Panipat

Public

FO/LSHS

5.115

1981

IFFCO-Phulpur

Coop.

Gas

5.511

1982

RCF-Trombay-V

Public

Gas

3.30

1982

GNFC-Bharuch

Private

FO/LSHS

6.360

1985

RCF-Thal

Public

Gas

17.068

1986

KRIBHCO-Hazira

Coop.

Gas

17.292

1987

BVFCL-Namrup-III

(Formerly HFC)
Public

Gas

3.150

1988

NFL-Vijaipur

Public

Gas

8.646

1988

IFFCO-Aonla

Coop.

Gas

8.646

1988

Indogulf-Jagdishpur

Private

Gas

8.646

1992

NFCL-Kakinada

Private

Gas

5.970

1993

CFCL-Gadepan

Private

Gas

8.646

1994

TCL-Babrala

Private

Gas

8.646

1995

KRIBHCO SHYAM-
Shahja-

hanpur
(Formerly OCFL)

Private

Gas

8.646

1996

IFFCO-Aonla
expansion

Coop.

Gas

8.646

1997

NFL-Vijaipur
expansion

Public

Gas

8.646

1997

IFFCO-Phulpur
expansion

Coop.

Gas

8.646

1998

NFCL-Kakinada
expansion

Private

Naphtha

5.970

1999

CFCL-Gadepan Private

Naphtha/Gas

8.646

2005

BVFCL:Namrup-
II

Public

Gas

2.400 @

Note: @ After revamp
8
3.2.4 The following 9 urea plants of the
compani es ar e pr esent l y cl osed/
under shutdown due to various reasons,
inter-alia, on account of technological
absolescence, feedstock limitation, non-
viability of unit/company and heavy
financial losses :-
Sl.
No.
Name of the
Company
Place Date of closure Annual Installed
Capacity (In Lakh MT)
1. FCI Gorakhpur 10.6.1990 2.85
2. FCI Ramagundam 1.4.1999 4.95
3. FCI Talcher 1.4.1999 4.95
4. FCI Sindri 16.3.2002 3.30
5. HFC Durgapur 1.7.1997 3.30
6. HFC Barauni 1.1.1999 3.30
7. RCF Trombay-I 1.5.1995 0.98
8. NLC Neyveli 31.3.2002 1.53
9. FACT Cochin-I 15.5.2001 3.30
Total 28.46

is expected to improve further through
revamping/modernisation of the existing
plants.
3.2.7 The unit-wise details of installed capacity,
producti on and capaci ty uti l i sati on
during 2010-11 and 2011-12 are given in
Annexure-IV.
3.3.1 The f ol l owi ng st r at egy has been
adopted to increase fertilizer production:
?Expansion and capacity addition/
effi ci ency enhancement through
retrofitting / revamping of existing
fertilizer plants.
STRATEGY FOR GROWTH
3.2.5. The domestic fertilizer industry has
by and large attained the levels of
capacity utilisation comparable with
others i n the worl d. The capaci ty
utilisation during 2010-11 was 100.9%
for nitrogen and 75% for phosphate.
The capacity utilisation during 2011-12
is 101.8 % of nitrogen and 72.9% of
phosphate. Within this gross capacity
utilization, the capacity utilisation in
terms of the urea plants was 109.2% in
2010-11 and 109.8% in 2011-12. As for
phosphate fertilizers, apart from the
constraints mentioned earlier, the actual
production capacity utilisation has also
been influenced by the demand trends.
3.2.6 The capacity utilisation of the fertilizer
industry, particularly in respect of urea,
Note: Production by DIL-Kanpur (7.22 LMT) was suspended due to financial constraints
9
?Setting up joint venture projects in
countri es havi ng abundant and
cheaper raw material resources.
?Working out the possibility of using
alternative sources like liquefied
natural gas, coal gasification, etc.,
to overcome the constraints in the
domestic availability of cheap and
clean feedstock, particularly for the
production of urea.
?Looking at possibilities of revival of
some of the closed units by setting
up Brownf i el d uni t s subj ect t o
availability of gas.
3.4.1 At present natural gas based plants
account for 80% of urea capacity,
naphtha is used for 9% urea capacity
and the balance 11% capacity is based
on fuel oil and LSHS as feed stock.
Th e t wo c o a l b a s e d p l a n t s a t
Ramagundam and Talcher were closed
down due to technological obsole-
scence and non-viability.
3.4.2 Natural gas has been the preferred
feedstock for the manufacture of urea
over other feed stocks viz. naphtha and
FO/LSHS, firstly, because it is clean
and efficient source of energy and
secondly, it is considerably cheaper and
mor e cost ef f ect i ve i n t er ms of
manufacturing cost of urea which also
has a direct impact on the quantum of
subsidy on urea.
3.4.3 Accordingly, the pricing policy, annou-
nced in January 2004, provides that
FEEDSTOCK POLICY
new urea projects, expansion of existing
urea uni t s and capaci t y i ncrease
t h r o u g h d e - b o t t l e n e c k i n g /
revamp/moderni zati on wi l l be al so
allowed/recognized if the production
comes from using natural gas/LNG as
feedstock. For the same reasons, 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 pursuant to formulation of
policy for conversion of non gas urea
units to gas, three naphtha based
plants namely, Chambal Fertilizers &
Chemicals Limited (CFCL), Gadepan- II
and IFFCO Phulpur I & II have
already converted to NG/ LNG. Shriram
Fertilizers & Chemicals Limited (SFC)
Kota has also started using gas w.e.f.
22th September 2007. Four Urea units,
three of NFL and one of GNVFC
representing about 11% of domestic
urea capaci ty are expected to be
converted into gas based units by
March 2013.
3.5.1. Urea (N) is the only fertilizer, the
requirement of which is largely (around
8 0 %) me t t h r o u g h i n d i g e n o u s
resources. The production of urea using
natural gas as feedstock is energy
efficient and cheaper. The fertilizer
sector has been treated as a priority
sector along with power in the context
of allocation of domestic gas. One of
t he most i mport ant f act ors t o be
considered while deciding the priority of
allocation of Gas is that fertilizer sector
REQUIREMENT AND AVAILABILITY OF
GAS TO FERTILIZER SECTOR
is the only sector which uses both the
heat value and chemical components of
Gas. Further, the Hydrogen content in
gas is maximum, to the extent of about
25% as compared to about 15% in
Naphtha / FO/LSHS, whereas very less
in coal. All other sectors use only heat
value of the Gas. Other sectors may
use alternate fuels e.g. Coal, Fuel
Oil/LSHS etc. whereas fertilizer sector
has constraint to use alternate fuels.
3.5.2. Department of Fertilizers has projected
the following requirements of natural
gas for allocation by the Ministry of
Petroleum & Natural Gas:-
Requirement
of daily Gas
( 2012-13)
Additional
Gas
requirement
of natural gas
(2013-14)
Additional
Gas
requiremen
t of natural
gas (2016 -
17)
mmscmd mmscmd mmscmd
A Naphtha based
1 ZACL-Goa 0.00 1.28
2. MCFL-Mangalore 0.00 1.00
3 SPIC-Tuticorin 0.00 1.66
4. MFL-Manali 0.00 1.54
I Sub-Total of Naphtha
based plants
0.00 5.48
B Fuel-oil Based
5. NFL-Panipat 0.00 0.90
6. NFL-Nangal 0.00 1.0
7. NFL-Bathinda 0.00 0.90
8. GNVFC-Bharuch 0.00 0.95
II Sub-Total of Fuel -Oil
Based
0.00 3.75
C Gas Based
9. BVFC-Namrup-III 1.04
10. IFFCO-Aonla-I 4.480

11. IFFCO Aonla - II

12. Kribhco-Hazira 4.950
13. NFL-V Pur 4.250

14. NFL-V Pur Exp.
15. KSFL - Shahjahanpur 2.253
16.
CFCL-Kota
2.120
17. TATA 2.169
18. NFCL-Kakinada 3.2
19. NFCL-Kakinada exp
20. Indogulf - Jagdishpur 2.230
21. RCF Trombay-V 2.050
22. IFFCO-P,PUR Exp. 3.700
23. IFFCO-P, Pur Exp.
24. SFC-Kota 0.620
25. CFCL-II 2.040
26. GSFC Baroda 2.486
27. IFFCO Kalol 1.300
28. RCF-Thal 4.750
29. BVFC-Namrup II 0.98
III Sub-Total of Gas Based 44.618
IV Green Field Projects
(Matrix Fert. 7 Chem.
Burdwan)
2.4 (0.5 CBM
and 1.9 NG)

V Expected
expansion/Brownfield units
(8 Units)
8*2.4=19.2
VI Revival units (Ramagundan
and Sindri)
2*2.4=4.8
Sub
Total
47.108 11.63 24

3.5.3. Gas pipeline connectivity - Connectivity
to all FO/LSHS and Naphtha based
urea units converting to gas, revival of
Details of Natural Gas Pipeline Projects Under Construction

S.
No.

Name of the
Pipeline

Name of
Entity

Length
(Kms)

Completion
Status

Remarks

1

Dadri-Bawana-
Nangal*

GAIL (India)
Limited

886

Partly-
Commissioned

Authorized by Central Government
prior to the appointed day. Main
trunk pipeline from Dadri to
Nangal up to Bhatinda is
commissioned. Spur -lines are
under-construction.

2

Chhainsa-
Gurgaon-Jhajjar-
Hisar*

GAIL (India)
Limited

455

Partly-
Commissioned

prior to the appointed day. Main
trunk pipelines from Chhainsa to
Jhajjar and Sultanpur -Neemrana
are commissioned. However, the
project is currently on hold from
Sultanpur-Hissar section as per
information submitted by GAIL .

3

GSPL's High
Pressure Gujarat
Gas Grid*

Gujarat State
Petronet
Limited

2239

Partly-
Commissioned

Authorized by PNGRB after the
appointed day under Regulation
18. Approx. 1820 KM pipeline
already commissioned. Balance
pipeline sections are under -
execution.

4

Kochi-Koottanad-
Bangalore-
Mangalore*

GAIL (India)
Limited

1104

2012-13

prior to the appointed day and the
projects are under -execution
stage.

5

Jagdishpur-
Haldia

GAIL (India)
Limited

1860

2013-14**

6

Dabhol-
Bangalore*

GAIL (India)
Limited

1414

2012-13

7

Mallavaram-
Bhopal-Bhilwara-
Vijaipur

GSPL INDIA
TRANSCO
LIMITED

2042

2014-15
Authorized by PNGRB

8

Mehsana-
Bhatinda

GSPL INDIA
GASNET
LIMITED

2052

2014-15

9

Bhatinda-Jammu-
Srinagar

GSPL INDIA
GASNET
LIMITED

725

2014-15

10

Surat-Paradip

GAIL (India)
Limited

2112

2015-16

TOTAL:

14889

* Projects partially commissioned

** As per the Central Government authorization, project has to be completed within 36 months from the date of the
first 3(1) notification under PMP Act, 1962. No 3(1) notification has been done so far for this project

closed urea units of FCIL and HFCL
and proposed Greenfield units need to
be provided on priority basis.
JOINT VENTURES ABROAD
3.6.1 Due to constraints in the availability of
Gas i n t he count ry, whi ch i s t he
preferred feed stock for production of
nitrogenous fertilizers, a near total
dependence on imports for Phosphatic
fertilizer and its raw materials and full
i mport dependence f or MOP, t he
Government has been encouraging
Indian companies to establish Joint
Ventures abroad in Countries which are
rich in fertilizer resources for production
facilities with buy back arrangements
and to enter into long term agreements
for supply of fertilizers and fertilizer
inputs to India. Further, the Department
is also working with the goal of having
access to / acquisition of the fertilizer
raw materials abroad.
3.7.1 Fertilizer joint ventures have been set
up in 6 Countries in the previous years.
The details of these joint ventures in
the fertilizer sector are given below:
JOINT VENTURES PROJECTS

Sl. No. JV Project- Country JV participants with equity % Product and the project status
1.

Oman India
Fertilizer Co.
(OMIFCO), Oman

Oman Oil Co. (OOC -
50%),

IFFCO (25%) &
KRIBHCO (25%)

16.52 lakh MT Urea & 2.48
lakh MT Ammonia.

Production started in the
year 2006.

2.

ICS Senegal,
Senegal

ICS Senegal and IFFCO
consortium

5.5 lakh MT phosphoric
acid. Production already
started.

3.

Indo-Jordan
Chemicals
Company (IJC),
Jordan

JPMC (Jordan) & SPIC
(India)*

SPIC has no more in the
JV.

acid. Already producing.

4.

JPMC

IFFCO
JV, Jordan

JPMC & IFFCO

4.8 lakh MT phosphoric acid
to be commissioned by
2013.

5.

IMACID, Morocco

OCP (50%)

Morocco,
Chambal (25%) & TCL
(25%)-

India

acid

6

Tunisia-India
Fertilizer Company
(TIFERT), Tunisia

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

3.60 lakh MT of phosphoric
acid. Commercial
production was delayed for
some political reasons.
Now, the production will start
in 2013.

Following developments have taken
place in the year 21012-13 with regard
to cooperation in fertilizer sector in
different countries :-

3.7.2 On 28th August 2012 a Protocol has been
signed between this Department and the
Ministry of Industry & Trade of the Russian
Federation after the meeting of the Sub-Group
on Fertilizers. In the protocol, it has been
recommended that the FAI from India and the
Russi an Associ at i on of Fert i l i zers
Manufactures (RAFM) should regularly
exchange information and develop direction
for long-term cooperation with the
coordination of their activities with the work
plans of the Sub-Group on fertilizers. The
protocol further envisages that both
associations could also explore possible
areas of cooperation in the field of Technology
up-gradation of Indian fertilizer plants for
granulations of Urea. In the protocol the
associations were desired to summit
corresponding proposals on cooperation for
consideration of working group.
3.7.3 To follow up, of a high level industry
delegation led by Secretary(F) visited
Russi a duri ng 14-16th Jan. 2013.
During the visit an MOU has been
signed between FAI and RAFM to
enhance cooperation in fertilizer sector.
3.7.4 On 14th November 2012, during the
visit of Prime Minister of Belarus to
India, a MOU has been signed between
DOF and the Belarusian Ministry of Oil
& Chemistry for cooperation in the field
of Potash in supply of these elements
to India. According to this MOU, Indian
Russia
Belarus
entities and Belarus Potash Company
was to finalize a long-term agreement
for off-take of Potash, by 15th January
2013.
3.75 Recently a high level industry delegation
led by Secretary(F) visited Belarus
during 8th-11th January 2013 to discuss
the possibilities of joint ventures for
investment in fertilizer assets and joint
ventures in Belarus and also long term
agreement for supply of Potash.
3.7.6 A high level industry delegation led by
Secretary(F) visited Ukraine during 11th
14th January 2013. Followed this
visit, DOF has requested the Indian
Mission in Ukraine and the MEA to
pursue the Ukrainian authorities to hold
the first meeting of above mentioned
JWG at the earliest and also has
proposed following items for inclusion in
the Agenda items for the proposed
meeting.
(i) Interest of India / Indian fertilizer
entities for equity participation in
the Odessa plant of Ukraine;
(ii) Interest of India/Indian fertilizer
entities for any other existing or
new fertilizer project of Ukraine;
(iii) Interest of India for entering in to
long term agreement for supply of
fertilizers from Ukraine to India;
and
(iv) Possibilities of Ukrainian invest-
ment in the fertilizer sector of India
speci al l y for revi val of cl osed
fertilizer units in India
Ukraine
Togo
3.7.8 Togo has good reserve of Rock Phosp-
hate, estimated to be around 130 million
tonnes. After the visit of Secretary(F) led
delegation to Togo during 10th-11th July
2012 which discussed about oppor-
tunities between the two Countries for
cooperati on to devel op Phosphate
Industry in Togo, considerable progress
has been made i n t he mat t er of
cooperation between the two countries
for development of phosphate fertilizer
sector of Togo. The Togolese Minister for
Mines requested for a formal proposal
from India. It was reciprocated by way
of a proposal for participation of the
Indian Fertilizer entities in mining and
production of phosphate in Togo, either
by way of acquiring equity in the existing
Togolese phosphate companies or new
companies, or by acquiring new mining
areas. Togolese authorities reciprocated
with a modified proposal. The views of
this Department were communicated to
Togo through MEA on 28.08.2012.
Response from the Togo is awaited.
3.7.9 On 12th November 2012, an MOU was
signed for cooperation in the field of
fertilizer sector.
A proposal for setting up of a joint
venture for production of Urea- Amonia in
Ghana is presently under consideration
of Government of Ghana. RCF, the
nominated agency for India, has forwa-
rded a draft Joint Venture Agreement to
Govt. of Ghana. The response of Govt.
of Ghana ia awaited, particularly on the
issue of confirmed availability of gas and
its price. Meanwhile, RCF has initiated
preliminary work on various studies for
the project for which land has already
been identified.
Afghanistan
Ghana
Chapter - 4
Availability & Movement
of Major Fertilizers During 2012-13
4.1.1 The season/month-wise demand is
assessed and projected by the Depart-
ment of Agriculture and Cooperation
(DAC) i n consul t at i on wi t h St at e
Governments, before commencement of
each cropping season. Accordingly,
month-wise, state-wise supply plan is
made and monitored upto State level by
the Department of Fertilizers. The
concerned State Governments are
responsible for monitoring the availability
intra-state.
4.2.1 The availability of urea, which is the
only fertilizer under price and partial
movement control of Government,
remained satisfactory throughout the
seasons of Kharif 2012 and the current
Rabi 2012-13 (up to January, 2013).
4.2.2 The requirement of Urea for Kharif
2012, as assessed by DAC was 150.82
LMT i.e. an increase of 8.3% over the
sales of 139.21 LMT in Kharif 2011.
The opening stock, taking into account
prepositioned stock was 15.29 LMT (as
on 01.04.2012). Indigenous production
of 108.71 LMT and Imports of 27.52
LMT hel ped i n ensuri ng adequate
availability in all the states, throughout
the season. The cumulative availability
of urea with the states for the season,
CONTROLLED FERTILIZER (UREA)
Kharif 2012
was nearly 153.47 LMT (taking into
account pre-positioned of stock),against
the assessed requirement of 150.83
LMT. The sales were only135.79LMT
during Kharif 2012.
4.2.3 The requirement of urea for Rabi 2012-
13, as assessed by DAC, was 164.60
LMT i.e. an increase of 6.12% over the
sales of 155.10 LMT in Rabi 2011-12.
The requirement is being met from the
openi ng st ock of 6. 29 LMT, wi t h
estimated production of 117.71 LMT
and imports of about 53.01 LMT during
t he season. Thus t he cumul at i ve
availability of urea for Rabi 2012-13 has
been estimated to be about 177.01
LMT by the end of 31st March, 2013,
which will be sufficient to meet the
requirement. The sales are 138.95 LMT
(upto February'13).
4.3.1 DAP, NPK and MOP are the major
decontrolled and decanalised fertilizers,
which may be imported freely.
4.3.2 In case of fertilizers, which are decon-
trolled, no allocation is made under
Essential Commodities Act (ECA) by the
Central Government.
Rabi 2012-13
Kharif 2012
DECONTROLLED FERTILIZERS (DAP, NPK
& MOP)
4.3.3 DAP : The opening stock of 4.39 LMT
(as on 1st April, 2012), coupled with
indigenous production of 16.64 LMT
and Imports of 43.46 LMT, resulted in
adequate availability of about 64.09
LMT, as agai ns t t he as s es s ed
requirement of 69.40 LMT for Kharif
2012 season. The sales of DAP in
Kharif 2012 were only 40.78 LMT.
4.3.4 MOP: The opening stock of 4.71LMT
(as on 1st April, 2012), coupled with
Imports of 17.20 LMT resul ted i n
availability of about 21.81 LMT, as
against the assessed requirement of
21.97 LMT for Kharif 2012. The sales
of MOP were only10.84LMT.
4.3.5 NPK : The opening stock of 10.83 LMT
( as on 01/ 04/ 2012) , coupl ed wi t h
indigenous production of 32.18 LMT and
I mport s of 3. 08 LMT, resul t ed i n
adequate availability of about 46.09LMT,
as against the assessed requirement of
55.53 LMT for Kharif 2012. The sales of
NPK in Kharif 2012 were only38.84 LMT.
4.3.6 DAP : The opening stock of 23.71 LMT
(as on 01. 10. 2012), coupl ed wi t h
estimated production of 19.39 LMT and
estimated imports of 13.37 LMT, makes
total avai l abi l i ty of 56.40 LMT, as
Rabi 2012-13
against then assessed requirement
54.18 LMT for Rabi 2012-13 which is
sufficient to meet the requirement. The
Sal es ar e onl y 43. 04 LMT ( upt o
February'13).
4.3.7 NPK : The opening stock of 7.25
LMT(as on 01.10.2012) coupled with
estimated production of NPK of about
45.02 LMT and estimated imports of
1.46 LMT, makes total availability of
53.73 LMT, as against the assessed
requirement of 55.99 LMT for Rabi
2012-13, which will be sufficient to meet
the requirement. The sales are only
26.33 LMT (upto February'13).
4.3.8 MOP : The opening stock of MOP was
10.97 LMT (as on 01.10.2012), coupled
with estimated imports of 6.92 LMT,
makes total availability of 17.89 LMT,
as against the requirement of 25.84
LMT for Rabi 2012-13, which will be
sufficient to meet the requirement. The
sal es ar e onl y 8. 55 LMT ( upt o
February'13).
4.4.1 Following table summarizes the season-
wise position of Demand/Availability and
Sales of the major fertilizers, i.e. Urea,
DAP, NPK & MOP, for the last three
seasons:
SEASON WISE SUMMARY
Crop season

Demand

Assessment

Cumulative

Availability

Cumulative

Sales

% age of
availability to

assessed
demand

1

2

3

4

5

Kharif 2011

Urea

DAP

NPK

MOP

142.16

71.38

52.06

22.54

146.23

60.80

59.34

10.73

139.21

48.71

53.95

7.00

102.86

85.17

113.98

47.60

Crop Season
Demand
Assessment
Cumulative
Availability
Cumulative
Sales
% age of
availability to
assessed
demand
1 2 3 4 5
Rabi 2011-12
Urea
DAP
NPK
MOP

162.99
54.78
55.30
25.72

158.98
67.15
59.97
24.62

155.10
63.13
59.60
22.90

97.53
122.58
126.52
95.72
Kharif 2012
Urea
DAP
NPK
MOP

150.82
69.40
55.53
21.97

142.06
64.09
46.09
21.81

135.77
40.78
38.84
10.84

94.19
93.34
83.00
99.27
RAIL MOVEMENT
4.5.1 The major share in transportation of
fertilizers is of the Railways. During
2011-12, Railways moved more than
75% of the fertilizers.
5.1.1 The installed capacity and production of
fertilizers in the country at the end of
ninth five year plan, in the terminal
year of the tenth five year plan and at
the eleventh five year plan ( 2011-12)
are indicated below:
Sr.
No
Particulars At the end of
Ninth Plan (
2001-02).
At the end of Tenth
Plan ( 2006-07).
At the end of
Eleventh Five ye ar
plan (2011-12)
1 Capacity
i ) Nitrogen
ii) Phosphates

120.58
53.87

120.61
56.59

120.61
56.59
2 Production
i ) Nitrogen
ii) Phosphates

107.68
38.60

115.78
45.17

122.59
41.04

5.1. 2 The installed capacity of nitrogen and
phosphate in the terminal year (2001-
02) of the ninth plan was 120.58 lakh
MT and 53.87 lakh MT, respectively.
Three major phosphatic fertilizer plants
were commissioned during the ninth
five year plan period, namely, Oswal
Chemicals & Fertilizers Ltd.-Paradeep, (
since taken over by IFFCO), Indo-Gulf
Corporation-Dahej and Gujarat State
Fert i l i zers Company Lt d. -Si kka-I I .
Consequent upon reassessment of urea
capacity on the basis of Dr. Y.K. Alagh
Committee and DAP capacity by Tariff
Commission, despite phasing out of 10
urea units due to closure.
5.1.3 Year-wise consumption, production and
imports of fertilizers in nutrients terms
are given in Annexure-V.
5.1.4 The production of fertilizers in nutrient
terms during 2011-12 was 122.59 lakh
MT of nitrogen and 41.04 lakh MT of
phosphate. The estimated production for
2012-13 is 123.99 lakh MT of nitrogen
and 38.76 l akh MT of phosphate.
Sector-wise targets and achievements
in respect of production and capacity
utilization from 2004-05 onwards are
given in Annexure-VI & VII.
INSTALLED CAPACITY AND PRODUCTON OF NITROGENOUS AND
PHOSPHATIC FERTILIZERS IN NINTH, TENTH AND ELEVENTH FIVE YEAR PLANS (In lakh MT)
Chapter - 5
Plan Performance
PLAN OUTLAYS
5.2.1 The Plan outlay for 2012-13 was approved by
the Planning Commission. The total outlay is
Rs.3331.29 crores out of which an amount of
Rs.3075.29 crores will be from profit making
companies in the shape of Internal & Extra
Budgetary Resources (IEBR) and the balance
amount of Rs.256.00 crore will be provided to
loss making entities by way of Gross
Budgetary Support (GBS) from the
Government. The outlay is for Rashtriya
Chemicals & Fertilizers Limited (RCF)
Rs.673.75 crores, FCI Aravali Gypsum
Minerals India Ltd. (FAGMIL) Rs.23.51
crores, Project & Development India Limited
(PDIL) Rs.6.05 crores, National Fertilizers
Limited (NFL), Rs.1696.98 crores, Krishak
Bharati Cooperative Ltd. (KRIBHCO)
Rs.675.00 crores, Brahmaputra Valley
Fertilizers Corporation Ltd. (BVFCL)
Rs.94.62 crores, Fertilizers and Chemicals
Travancore Ltd. (FACT) Rs.61.75 crores,
Madras Fertilizers Limited (MFL) Rs.87.62
crores.
5.2.2 Out of the Gross Budgetary Support
provided by the Government, bulk of
allocation was made to three loss
making PSUs, namely BVFCL, FACT
and MFL for meeti ng thei r urgent
capital expenditure requirement. Under
Miscellaneous Scheme, a small amount
of Rs.8.5 crore has been earmarked in
the Department for Management of
Information Technology(MIT) and Rs.3.5
crore under Research & Development
programme. Department of Fertilizers is
expl ori ng the possi bi l i ti es of Joi nt
Ventures abroad. Since there is no firm
proposal in hand right now, only a
token amount of Rs.0.01 crore has
been kept.
5.2.3 For the year 2012-13, there was net
Budgetary Provision (BE) of Rs 61,256
crore. Out of which Rs 256 crore was
under Plan and Rs 61000 crore was
under Non- Pl an. I n t he Revi sed
Estimates (RE) for 2012-13, the net
provision is Rs 66010 crore out of
which Rs10 crore under Plan and Rs
66000 crore under Non-Pl an. The
details of Plan and Non-Plan provisions
in BE and RE for FY 20112-13 are
given in Annexure-VIII.
6.1.1 For sustained agricultural growth and to
promote balanced nutrient application, it
is imperative that fertilizers are made
available to farmers at affordable prices.
With this objective, urea being the only
controlled fertilizer, is sold at statutorily
notified uniform sale price, and decon-
trolled phosphatic and potassic fertilizers
are sol d at maxi mum retai l pri ces
(MRPs). The problems faced by the
manufacturers in earning a reasonable
return on their investment with reference
to controlled prices, are mitigated by
providing support under the New Pricing
Scheme f or ur ea uni t s and t he
Concession Scheme for decontrolled
phosphatic and potassic fertilizers. The
st at ut ori l y not i f i ed sal e pri ce and
indicative MRP is generally less than
the cost of production of the respective
manufacturing unit. The difference
between the cost of production and the
selling price/MRP is paid as subsidy/
concession to manufacturers. The
consumer prices of both indigenous and
imported fertilizers are generally same.
Financial support is given on imported
urea and decontrolled phosphatic and
potassic fertilizers.
6.2.1 Until 31.3.2003, the subsidy to urea
manufacturers was being regulated in
terms of the provisions of the erstwhile
Retention Price Scheme (RPS). Under
RPS, the difference between retention
price (cost of production as assessed
by the Government plus 12% post tax
MEASURES OF SUPPORT FOR UREA
return on net worth) and the statutorily
notified sale price was paid as subsidy
to each urea unit. Retention price
used to be determined unit wise, which
differed from unit to unit, depending
upon the technology, feedstock used,
the level of capacity utilization, energy
consumption, distance from the source
of feedstock/raw materials, etc. Though
the RPS did achieve its objective of
increasing investment in the fertilizer
industry, and thereby creating new
capaci ti es and enhanced ferti l i zer
production along with increasing use of
chemical fertilizers, the scheme had
been criticized for being cost plus in
nature and not providing incentives for
encouraging efficiency.
6.2.2 Given the importance of fertilizer pricing
and subsidization in the overall policy
env i r onment , whi c h has di r ec t
implications with reference to the growth
and development of agriculture and
sustainability of the fertilizer industry, the
need for streaml i ni ng the subsi dy
scheme in respect of urea producing
units had been felt for a long time. A
High Powered Fertilizer Pricing Policy
Re v i e w Co mmi t t e e ( HPC) wa s
constituted, under the chairmanship
of Prof. C.H. Hanumantha Rao, to
review the existing system of subsi-
dization of urea, suggest an alternative
broad-based, scientific and transparent
methodology, and recommend measures
for greater cohesiveness in the policies
applicable to different segments of the
industry. The HPC, in its report subm-
Chapter - 6
Measures of Support for Fertilizers
itted to the Government on 3rdApril
1998, inter-alia, recommended that unit-
wise RPS for urea may be discontinued
and, instead, a uniform Normative
Referral Price be fixed for existing gas
based urea units and also for DAP and
a Feedstock Differential Cost Reimbu-
rsement (FDCR) be given for a period
of five years for non-gas based urea
units.
6.2.3 The Expenditure Reforms Commission
(ERC), headed by Shri K.P. Geetha-
krishnan, had also examined the issue of
rationalizing fertilizer subsidies. In its
report submitted on 20th September
2000, the ERC recommended, inter-alia,
dismantling of existing RPS and in its
place, introduction of a Concession
Scheme f or urea uni t s based on
feedstock used and the vintage of plants.
6.2.4 The recommendations of ERC were
exami ned i n consul tati on wi th the
concerned Ministries/Departments. The
views of the fertilizer industry and the
State Governments/Union territories,
and economists/research institutes were
also obtained. After due examination of
all these views, a New Pricing Scheme
(NPS) for urea units for replacing the
RPS was formulated and notified on
30.1.2003. The new scheme took effect
from 1.4.2003. It aimed at inducing the
urea units to achieve internationally
competitive levels of efficiency, besides
bringing in greater transparency and
simplification in subsidy administration.
6.2.5 New Pricing Scheme (NPS) for urea
was introduced w.e.f. 1st April, 2003.
The Stage-I of NPS was of one year
duration from 1st April, 2003 to 31st
March, 2004 and Stage-II was of two
year duration from 1st April,2004 to
31st March, 2006. With the Stage-III of
NPS bei ng i mpl emented w.e.f. 1st
October, 2006, the Stage-II of NPS was
extended upto 30th September, 2006.
6.2.6. Under NPS, the existing urea units have
been divided into six groups based on
vintage and feedstock for determining
the group based concession. These
groups are : Pre-1992 gas based units,
post-1992 gas based units, pre-1992
naphtha based units, post-1992 naphtha
based units, fuel oil/low sulphur heavy
stock (FO/LSHS) based units and mixed
energy based units. The mixed energy
based group shall include such gas
based uni t s t hat use al t er nat i ve
feedstock/fuel to the extent of more than
25% as admissible on 1.4.2002.
6.2.7. Under NPS, escalation/de-escalation is
given in respect of variable cost related
to changes in the price of feedstock,
fuel, purchased power and water. Under
the scheme, neither any 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 are mopped
up.
6.2.8. It has also been provided under the
scheme that the concessi on rates
during Stage-II shall be adjusted for
reduction in capital related charges and
enforcement of efficient energy norms.
Pre-set energy norms for urea units
during Stage-II of NPS have already
been notified and intimated to urea
units. 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.
6.3.1. As per the New Pricing Scheme for urea
uni ts, i t was al so envi saged that
decontrol of urea distribution/movement
will be carried out in a phased manner.
During Stage-I, i.e. from 1.4.2003 to
31.3.2004, the allocation of urea under
the Essential Commodities Act 1955
(ECA) was restricted up to 75% and 50%
of installed capacity (as reass-essed) of
each unit in Kharif 2003 and Rabi 2003-
04, respectively. It was further envisaged
that during Stage-II commencing from
1.4.2004, urea distribution will be totally
decontrolled after evaluation of Stage-I
with the concurrence of the Ministry of
Agriculture.
6.3.2. The total decontrol of urea distribution
was deferred initially for a period of six
months w.e.f. 1.4.2004 i.e., up to end of
Kharif 2004, which was subsequently
deferred up to Rabi 2005-06 i.e. up to
31.3.2006. The existing system of 50%
ECA allocation and 50% outside ECA
allocation has been extended upto 31-
3-2010.
6.3.3. The pricing policy for urea units for
Stage-III of New Pricing Scheme (NPS)
which is effective from 1.10.2006 has
been formulated keeping in view the
recommendations of the Working Group
set up under the Chairmanship of
Dr. Y.K. Alagh. The Policy aimed at
promoting further investment in the urea
sector, to maximize urea production
PHASED DECONTROL OF UREA
DISTRIBUTION
from the urea units including through
conversion of non-gas based units to
gas, i ncent i vi si ng addi t i onal urea
production and encourage investment in
Joint Venture (JV) projects abroad. 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.
6.3.4. The Stage-III policy seeks to promote
usage of most efficient and compa-
ratively cheaper feed stock natural
gas/LNG for production of urea in the
country. The policy lays down a definite
plan for conversion of all non-gas
based urea units to gas. At present,
there are 8 urea units (MFL, SPIC, ZIL,
MCFL, GNFC, NFL- Nangal , NFL-
Bhatinda, NFL-Panipat) in the country
whi ch ar e based on napht ha or
FO/LSHS as feed stock. All these 8
units are required to switch over to
natural gas/LNG within a period of next
three years. Beyond this time limit, 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. The units, which are unable to tie
up gas will have to explore alternative
feed stocks like Coal Bed Methane
(CBM) and coal gas. Shriram Fertilizers
and Chemicals Ltd has started using
gas w.e.f. 22.9.2007.
6.3.5. The availability of gas is critical to the
growth of urea industry in the country.
Presently, the indigenous availability is
not sufficient to meet the demand of
existing gas based urea units in the
country. To this end, the Department of
Fertilizers constituted a Committee
under the chairmanship of Secretary
(P&NG) with Secretary (Fertilizers),
Secretary (Expendi ture), Secretary
(Planning Commission) as its members
to del i berate upon vari ous i ssues
relating to connectivity and assured
supply of gas to the fertilizer sector.
The Committee was also to develop an
appropriate mechanism for fixing the
pri ce of the gas i n a transparent
manner. It was expected then that the
availability of gas in the country will
improve from 2008-09 onwards and the
new policy, taking into account the
above fact, has laid down specific
timelines for conversion of all non-gas
based units in the country to gas.
6.3.6. In order to incentivise conversion of
non gas based units to gas, the policy
provided for a regime where there
would be no mopping up of energy
efficiency for a fixed period of five
years for naphtha based as well as
FO/LSHS based units. The policy also
recognized 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. A specific policy to this effect
has been announced by the Govern-
ment on 6th March 2009.
6.3.7. 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.
It is proposed that these units may be
allowed to produce 100% of capacity
shoul d they adhere to an agreed
timetable for conversion to Gas and tie
up requisite Gas/CBM/Coal gas. If they
do not, they will be given only 75% of
the fixed costs beyond 93% of capacity
utilization in the 1st year (1.4.2007) and
50% of the fixed cost beyond 93%
capaci ty uti l i zati on from 2nd year
(1.4.2008) onwards.
6.3.8. Consi der i ng t he l i kel y gr owt h i n
consumption of urea in the years to
come, the policy seeks 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. The policy of
requiring prior Government permission for
additional urea production has been
dispensed with. All production between
100% and 110% of the existing reass-
essed 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
wi l l be capped at t he uni t s own
concession rate. The units increasing
pr oduct i on beyond 110% wi l l be
compensated at their concession rate
subject to the over all cap of Import Parity
Price (IPP). To the extent Government
does not require any quantities of
additional production, 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. It recognizes our
heavy dependence on imported raw
materials/ intermediates and feedstock in
the fertilizer sector and to properly
leverage this position, the policy seeks to
create specialized agency to coordinate
investments abroad in fertilizer sector.
6.3.9. The policy seeks to rationalize distri-
bution and movement of urea and the
system of freight reimbursement with
the objective of ensuring availability of
urea in all parts of the country. The
Government will continue to regulate
movement of urea up t o 50% of
production depending upon the exigency
of the situation. The State Governments
will be required to allocate the entire
quantity of planned urea arrivals inclu-
ding both regulated and de-regulated
urea in district-wise, month-wise and
supplier-wise format. The units will be
required to maintain a district level stock
point and the subsidy will be paid only
when the urea reaches the district. 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 moni tori ng system. To
facilitate movement of fertilizers to far
flung area, the reimbursement of freight
will be based on actual leads for rail and
road movement. 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. One time enhancement of 33% will
be granted on the road component of
primary freight to offset the impact of
Supreme Court di recti ve regardi ng
maximum truck load limit of 9 MT on
road vehicles. The existing special freight
subsidy scheme will continue for supply
of urea to the North Eastern States
except Assam and Jammu & Kashmir. In
addition, 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.
6.3.10.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, 2003. 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, whichever is
lower, will be recognized as the norm
for Stage-III of NPS. The policy also
provi des for updati on 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. It also provides for
payment of sales tax on input and other
t axes recogni zed under erst whi l e
Retention Price Scheme, on actual
basis.
6.3.11. 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
bri ngi ng i n more t ransparency i n
distribution of fertilizers across the
country. It is expected that the policy
will encourage increase in indigenous
production from the existing urea units
i n the country and faci l i tate earl y
conversion of non-gas based units to
gas leading to substantial savings in
subsidy. 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 distribution of
fertilizers in remote corners of the
count ry wi l l i mprove consi derabl y
without any complaints of shortages in
future. The Department of Fertilizers will
continue its endeavour to promote the
growth of ferti l i zer i ndustry i n the
country and ensure adequate availability
of fertilizers to the farmers.
6.4.1. The Stage-III of New Pricing Scheme
(NPS) is being implemented w.e.f. 1st
October, 2006. In the Policy proposal
approved by CCEA, it was mentioned
t hat s ome ur ea uni t s s uc h as
Nagarjuna Fertilizers & Chemicals Ltd.
(NFCL), Kakinada, Southern Petro-
chemicals Industries Corporation Ltd.
(SPIC), Tuticorin etc. has represented
that the implementation of group based
NPS in place of unit specific cost plus
Retention Price Scheme (RPS) has
resulted in certain under recoveries of
their individual costs of production. It
was proposed to take appropriate action
in these cases on merits in consultation
with Department of Expenditure (DoE).
6.4.2. Accordingly, after notification of NPS-III
on 8th March, 2007, a number of units
have represented to Department of
Fertilizers indicating the under recoveries
on account of various provisions of the
group based NPS. The issues raised by
the units have been examined within the
Department and these can be divided
into two categories. The first issue relates
to losses due to group averaging, and
the second issue relates to increase
in capacity utilization norms for NPS
Stage-III.
AMENDMENTS TO STAGE III OF NEW
PRICING SCHEME (NPS).
6.4.3. It was found that some of the companies
are losing upto 85% of their fixed cost
due to the group averaging principle
followed under NPS-III, making their
operations unsustainable from day one.
Thus, there was a need to limit the
reduction due to averaging procedure for
various units so as to ensure sustain-
ability of production while encouraging
efficiency. It has been, therefore, decided
to restrict the reduction in fixed costs of a
unit due to group averaging under NPS-
III to 10% of the total fixed cost of the
unit, w.e.f 1st April 2009 onwards.
6.4.3. It was al so found that for al l the
compani es the capaci ty uti l i sati on
norms have been increased by 3%
from NPS-II stage to NPS-III. However,
for post-92 Naphtha based group it has
been increased by 8% on the pretext
that the units have converted to gas.
But since the cost of conversion is not
bor ne by GOI , an i ndi scr i mi nat e
increase by 8% for this group has put
t he uni t s under t hi s gr oup at a
disadvantage. It was thus decided to
take capacity utilisation for post 1992
naphtha group at 95%, instead of
earlier approved 98% under NPS-III, for
calculation of notional retention price
of the units within the group, if there
has been no recognition of cost of
conversion under NPS-III.
6.5.1. The tenure NPS Stage-III policy ended
on 31st March 2010. The provisions of
the NPS-III policy has since been
extended provisionally till further order.
Now the policy beyond NPS-III is under
consideration of Government. The Group
UREA POLICY BEYOND NPS-III
of Ministers (GoM) constituted to review
the fertilizer policy has decided in its
meeting held on 5th January 2011 to
constitute a Committee under the Chair-
manship of Dr. Saumitra Chaudhuri,
Member Pl anni ng Commi ssi on t o
examine the proposal for introduction of
NBS in urea, including various options
therefore, and make suitable recommen-
dations. The committee has also to exa-
mine the issues relating to investment
pol i cy and amendment s proposed
therein, and make appropriate recom-
mendations.
6.5.2 The Committee constituted under the
Chairmanship of Dr. Saumitra Chaudhuri,
Member Planning Commission has
submitted its report on 26-04-2011 on the
proposal for Nutrient Based Subsidy in
Urea sector. The Group of Ministers,
considered the report of the Committee
of Secretary in its meeting held on 5th
August 2011 and directed that the
proposal on Nutrient Based Subsidy
(NBS) for Urea may be placed before
CCEA al ong wi th the proposal of
Department of Fertilizers and the views
of Minister of Chemicals & Fertilizers and
sought directions of CCEA. As per the
directions of Cabinet Secretariat, the
Department of Fertilizers has consulted
concerned Ministries/Departments and
revised the CCEA Note on formulation of
policy for existing urea units beyond
Stage-III of NPS The proposal for
formulation of policy for existing urea
units beyond Stage-III of New Pricing
Scheme for existing urea units was
forwarded to Cabinet Secretariat on 23-
11-2012 for consideration of CCEA. The
Prime Minister's office examined the
CCEA note dated 23-11-2012 and
requested Department of Fertilizers to
r ef er t he pr oposal t o Gr oup of
Ministers(GOM) as decided earlier by the
CCEA in its meeting of CCEA held on
14- 06- 2012. Cons equent l y, t he
Department of Fertilizers requested
Cabinet Secretariat to constitute the
Group of Ministers so that the proposal
for formulation of policy for existing units
beyond Stage-III of New Pricing Scheme
is placed for consideration of the GoM.
The Cabinet Secretariat has constituted
the GoM with the approval of Prime
Mi ni st er consi st i ng of Mi ni st er of
Agriculture and Minister of Food Proce-
ssing Industries, Minister of Finance,
Minister of Petroleum & Natural Gas,
Minister of Chemicals & Fertilizers,
Minister of Rural & Development, Deputy
Chairman of Planning Commission and
Minister of State (Independent Charge),
Ministry of Consumer Affairs, Food and
Public Distribution to look into all aspects
relating to formulation of policy for the
existing urea units beyond Stage-III of
New Pricing Scheme. The meeting of
GoM ,scheduled to be held on 20th
February 2013, was postponed. Agenda
note regarding formulation of policy for
existing units beyond Stage-III of New
Pricing Scheme entirely based on the
proposal submitted to CCEA on 23rd
November 2012 has been circulated.
6.6.1. The MRP of urea since 2003 was Rs.
4830/- per tonne. The MRP of urea
was increased to Rs. 5310/- per tonne
w.e.f. 1st April 2010. The MRP fixed is
excl usi ve of CST, Sal es Tax and
Central Excise Duty. With effect from
01st November 2012, the urea is be
MRP OF UREA
sold at Maximum price of Rs. 5360 per
tonne (exclusive of the central excise
duty, central sales tax, countervailing
duty, the state tax and other local taxes
wherever levied, whether at the retail
sal es poi nt or at an i ntermedi ate
stages. The retailer margin is increased
by Rs. 50 PMT, which will be paid to
retailers acknowledging the receipt of
work and reporting the stock through
mFMS as additional incentive in the
retailer margin.
6.7.1 A pricing policy was announced on
29.1.2004 for setting up new urea
projects and expansion of existing urea
projects for augmenting the domestic
production capacity of urea to meet the
growing demand for enhancing the
agricultural production in the country.
The new policy aimed at enabling the
entrepreneurs to decide about their
investment plans in the fertilizer sector.
The new pol i cy was expect ed t o
encourage setting up of plants with
international efficiency standards for
fresh investment in new projects and
expansion of existing units. The policy
was based on the principle of Long
Run Average Cost (LRAC).
6.7.2 The above policy was not successful in
attracting investment in this sector. The
non-availability of natural gas, which is
the critical feedstock for production of
urea, has also been one of the major
const rai nt s i n f urt her addi t i on of
indigenous capacity for production of
PRICING POLICY FOR INVESTMENT IN
FERTILIZER SECTOR
Urea
urea. However with the projected
improved availability of gas from 2009
onwards, it is expected that investment
in fertilizer sector will also take place.
The Government had announced on 4th
September 2008, a new investment
policy for urea sector to attract the
much required investment in this sector.
The policy was based on IPP bench-
mar k and had been f i nal i zed i n
consultation with the industry.
6.7.3 The policy is expected to lead to
savings to the Government in the form
of availability of Urea at a price below
IPP and wi l l al so l ead to i ndi rect
savings by bringing down the import
price due to reduction in imports. The
New I nvest ment Pol i cy ai med at
revamp, expansion, revival of existing
urea units and setting up of Greenfield/
Brownfield projects. The policy was
likely to substantially bridge the gap in
next five years between the consu-
mption and domestic production subject
to confirmed and adequate availability
of gas at reasonable prices. The
salient features of the new investment
policy are as under :-
(i) 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.
(ii) Any improve-
ment in capacity of existing plants
through investment upto Rs. 1000
crore, i n the exi sti ng trai n of
ammonia-urea production will be
treated as revamp of exi sti ng
units. The additional urea from the
Revamp project:
revamp of existing units will be
recognized at 85% of IPP with the
floor and ceiling price as indicated
above.
(iii) Expansion projects: Setting up
of a new ammonia-urea plant (a
separate new ammonia-urea train)
in the premises of the existing
fertilizer plants, utilizing some of
the common utilities will qualify for
being treated as expansion project.
The investment should exceed a
minimum limit of Rs. 3000 crore.
The urea from the expansion of
existing units will be recognized at
90% of IPP, with the floor and
ceiling price as indicated above.
(iv) Revival/Brownfield projects: The
urea from the revived units of
Hindustan Fertilizer Corporation
Limited(HFCL) and Fertilizer Cor-
poration of India Limited (FCIL) will
be recognized at 95% of IPP with
prescribed floor & ceiling price, if
the revival of closed units takes
placed in public sector.
(v) Greenfield projects: The pricing
of Greenfi el d proj ects wi l l be
deci ded based on a bi ddi ng
pr ocess whi ch wi l l be f or a
discount over IPP, after firming up
of the location (States) of the
proposed new plants.
(vi) 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 Regu-
lator (Gas) subject to a maximum
ceiling of USD 25 per MT of urea.
(vii) Allocation of Gas: Only non-APM
gas will be considered for the new
investment in urea sector.
(viii) 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. In addition, any other incen-
tives or tax benefits as provided by
Government for encouraging coal
gasification technology will also be
extended to these projects.
(ix) Joint Ventures abroad: The Joint
Venture projects abroad in gas rich
countries are also proposed to be
encouraged through firm off-take
contracts with pricing decided on
the basis of prevailing market
conditions and in mutual consu-
l t at i on wi t h t he j oi nt vent ure
company. However, the principle
for deciding upon the maximum
price will be the price achieved
under Greenfield projects or 95%
of IPP as proposed for revival
pr oj ect s ( i n absence of any
Greenfield projects) with a cap of
USD 405 CIF India per MT and a
floor of USD 225 CIF India per MT
(inclusive of handling and bagging
costs)
(x) Time period for proposed inves-
tment policy: Only those revamp
projects which start production of
additional capacities within four
years of notification of the new
policy would qualify for the dispen-
sation recommended above. Simi-
larly 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. If the production
does not come through within the
st i pul at ed t i me per i od, such
Brownfield projects will be treated
similar to a Greenfield projects
wherei n pri ce wi l l be deci ded
through limited bidding options.
The time period for setting up of
new Joint Ventures would also be
five years under the new invest-
ment policy.
6.8.1. The urea manufacturing units have
expressed concern regarding pricing
and firm availability of gas before taking
final investment decision in terms of
New Investment Policy 2008. Keeping
in view the concern of industry, the
Department of Fertilizers decided to
amend the New Investment Policy
2008.
6.8.2. The Group of Ministers (GoM) consti-
tuted to review the fertilizer policy has
decided in its meeting held on 5th
January 2011 to constitute a Committee
under the Chairmanship of Dr. Saumitra
Chaudhary, Member Planning Commi-
ssion to examine the proposal for
introduction of NBS in urea, including
various options therefore, and make
sui t abl e r ecommendat i ons. The
committee has also to examine the
issues relating to investment policy and
amendments proposed therein, and
CONCERNS OF INDUSTRY ON NEW
INVESTMENT POLICY 2008
make appropriate recommendations.
The r epor t of t he Commi t t ee on
Investment Policy in Urea sector has
been fi nal i sed and si gned on 7th
January 2012.
6.8.3. Keeping in view the recommendations
made in the report submitted by the Dr.
Saumitra Chaudhary committee, the
Department of Fertilizers has issued the
New Investment Policy 2012 on 02nd
January 2013.
6.9.1 The Government has recently announced
a New Investment Policy 2012 in order
to facilitate the fresh investment in Urea
sector on 2nd January, 2013. The New
Investment Policy 2012 provides a
structure of a floor price and a ceiling
price for the amount payable to Urea
units, which will be calculated based on
the delivered gas price (inclusive of
charges & taxes) to respective urea
units. The floor and ceiling price of
each urea unit shall be operative with
respect to the computed Import Parity
Price(IPP) (Annexure-IX). The IPP
definition for urea, under the investment
policy of 2008, is the average C&F
price without any applicable custom
dut i es and handl i ng and baggi ng
charges at the port. If the computed
IPP (payable) is between the floor and
the ceiling price for that gas cost, it is
the IPP (payable) which will be used. If
the IPP (payable) is above or below the
ceiling or the floor respectively, it is the
cei l i ng or fl oor pri ce that wi l l be
acceptable as the case may be.
T
NEW INVESTMENT POLICY 2012 (NIP-2012)
6.9.2 he criteria according to which plants
will qualify under different categories
namely Revamp, Expansion, Revival
and Greenfield shall be as under:
(i) Revamp projects: Any improve-
ment or incremental increase in
capacity of existing plants by way
of capi t al i nvest ment i n t he
existing train of ammonia-urea
product i on wi l l be t reat ed as
revamp of existing units.
(ii) Expansion or Brownfield projects :
Setting up of a new ammonia-urea plant
(a separate new ammonia-urea train) in
the premises of the existing fertilizer
plants, utilizing some of the common
utilities will qualify for being treated as an
expansion project. The investment
should exceed a minimum limit of
Rs.3000 crore.
(iii) Revival of closed urea units: The
three closed urea units of Hindu-
stan Fertilizer Corporation Ltd.
(HFCL) at Barauni, Durgapur and
Haldia, and five closed urea units of
Fertilizer Corporation of India Ltd.
(FCIL) at Sindri, Talcher, Ramag-
undam, Gorakhpur and Korba being
proposed for revival shall fall under
'Revival of closed urea units'.
(iv) Greenfield Projects: Any urea
unit which shall be set-up at the
project site where no previous
si mi l ar manufacturi ng faci l i ti es
existed i.e. acquisition of land
followed by construction of an
ammonia-urea plant with storage
facilities, transportation facilities,
water and sewage treatment etc.
shall be treated as a Greenfield
project.
6.9.3
6.9.4
Greenfield / Revival of Closed HFCL
& FCIL Projects
Substantial Expansion or Brownfield
Projects
(i) At a delivered gas price of upto
USD 6.5 per mmbtu for Greenfield/
Revival Urea units
(a) the Floor price is fixed at
USD 305 per MT of Urea
(b) the Ceiling price is fixed at
(ii) For each 0.1 USD per mmbtu
revision in delivered gas price, it
will correspondingly change the
(a) Floor and Ceiling price by
USD 2 per MT up t o a
delivered gas price of USD 14
per mmbtu.
(b) Floor by USD 2 per MT for
delivered gas price exceeding
USD 14 per mmbtu.
` (iii) The urea from Greenfield/Revival
of closed urea units of HFCL and
FCIL units will be recognized at a
uniform rate of 95% of IPP (C&F)
subject to floating floor and ceiling
prices mentioned at 3 (i) and 3 (ii)
above.
USD 6.5 per mmbtu for Expansion
/ Brownfield Urea units
(a) the Floor price is fixed at USD
285 per MT of Urea
USD 2 per MT up t o a
per mmbtu.
(b) Floor by USD 2 per MT for
USD 14 per mmbtu
(iii) The ur ea f r om Expansi on /
Brownfi el d Urea uni ts wi l l be
recognized at a uniform rate of
90% of IPP (C&F) subj ect to
floating floor and ceiling prices
menti oned at 4 (i ) and 4 (i i )
above.
6.9.5
USD 7. 5 per mmbt u f or new
Revamp Urea units
(a) the Floor price is fixed at USD
245 per MT of Urea
USD 2.2 per MT up to a
per mmbtu.
Revamp Projects
(b) Floor by USD 2.2 per MT for
USD 14 per mmbtu.
(iii) The urea from Revamp Urea units
will be recognised at a uniform
rate of 85% of IPP (C&F) subject
to floating floor and ceiling prices
menti oned at 5 (i ) and 6 (i i )
above. These will be applicable for
all output above the cut-off point.
(iii-a) Cut-Off Quantity - The urea
pr oduced f r om exi st i ng uni t s
beyond their reassessed capacity
under NPS or t he maxi mum
achieved capacity by a unit for
330 days in last four years (2003-
07), whichever is higher (cut off
quantity), is recognised as the
production under revamp of the
existing unit. However, the urea
produced under revamp quantity
will only be eligible for the above
di spensat i on once t he t ot al
production of the unit crosses 105
per cent of the cut off quantity or
110 per cent of the reassessed
capacity, whichever is higher.
(iv) No Administered Pricing Mech-
anism (APM) gas shall be consi-
dered for allocation for production
beyond cut-off quantity.
(v) The Ur ea uni t s, whi ch have
under t aken r evamp and ar e
already availing the provisions of
the Investment Policy of 2008, will
remai n under t he I nvest ment
Policy of 2008 In the event of
doubl i ng of gas pr i ce f r om
USD4.88 per MMBTU (base price
.
including applicable taxes) for a
unit under the Investment Policy of
2008, appropriate revision will be
worked out under that Policy, in
consultation with the Department
of Expenditure.
(vi) Any further revamp undertaken by
an already revamped unit, will be
considered to be eligible under the
same Revamp pol i cy as t hat
applicable to the original revamp. In
case a unit under the policy of
2008 undertakes further revamp
and the additional quantity is more
than 10% of the present production
( maxi mum pr oduct i on i n any
continuous one year period of the
last three years, which should not
be less than the quantity produced
in similar period of previous years
after implementation of NIP-2008
policy), the Urea unit may opt for
the dispensation as mentioned at 5
(i, ii and iii). Once new investment
policy gets applied on the unit for
the extra production beyond 10%
of existing production as discussed
above, the entire revamp produ-
ction from the unit (existing & new
combined) will be recognised as
per NIP-2012. The option will have
to be exercised by the unit within
three months of start of new
increased production.
6.10.1 In the event the delivered gas price
crosses USD 14 per mmbtu, the units
(whether revamp, expansion, Brown-
NON-OPERATION OF CEILING PRICE AND
IPP IF DELIVERED GAS PRICE EXCEED
USD 14 PER MMBTU.
field, Greenfield or revival) shall be paid
onl y the fl oor pri ce based on the
delivered gas price as mentioned at
3(ii)(b), 4(ii)(b) and 5(ii)(b). All other
conditions like ceiling price and recog-
nition of urea w.r.t IPP shall become
non-operational.
6.11 OPERATIONAL PRINCIPLES- The
following is adopted for operating the
policy:
(i) The increase/decrease of the floor
and ceiling price will be calculated
at the end of each quarter, on the
basis of average gas price of
previous three months. Accordingly,
IPP shall also be calculated for
each quarter for each plant.
(ii) The price of the delivered gas will
be calculated based on delivered
gas price as certified by MoPNG/
Central PSU/State PSU.
(iii) The policy shall be applicable to
urea units to be based on gas i.e.
natural gas (domestic/RLNG) and
CBM. In case of CBM, price of
NG equivalent of CBM as given by
Public agency will be considered.
For revival of closed urea units
based on coal gasification and
Greenfield projects based on coal
gasification, a dispensation that is
the same as that of CBM will be
extended after arriving at equi-
valent NG price.
(iv) While fixing the floor and ceiling
pr i ce of Gr eenf i el d, Revi val ,
Brownfield and Expansion urea
units, It has been presumed that
the delivered cost of CBM/Actual
mix of gas to the urea unit shall
not be less than USD 6.5/mmbtu.
6.12.1 It is proposed that only those units
whose production starts within five
years from the date of notification of
the policy would be covered under the
policy. The dispensation of guaranteed
buy-back under this policy will be
available to the units for a period of
eight years from the date of start of
production. Thereafter, the units will be
governed by the Urea policy prevalent
at that time.
6.13.1 In order to improve the efficiency in the
use of Urea, as a part of product
management strategy, all new urea
capacities in the country are mandated
to produce Urea in granulated form
orcoated/fortified Urea. Taking into
account the additional investment on
account of a granulation plant and the
i ncr ement al oper at i ng cost s, an
additional amount of USD 10 per MT, is
allowed in the floor and ceiling prices
for all plants Greenfield/ Revival/
Brownfield producing Granulated
Urea.
6.13.2.As part of the present pol i cy, an
additional 5% / 10% additional MRP
may be al l owed i n case of Neem
coated / Zincated Urea.
6.14.1 Deci si on r egar di ng Ur ea of f - t ake
TIME PERIOD FOR THE INVESTMENT
POLICY
MANDATING OF GRANULATED UREA /
COATED UREA
JOINT VENTURE UNITS
agreement for Joint Venture units set
up abroad shall be taken on case-to-
case basis, based on the prevalent IPP
of Urea, pri ce and avai l abi l i t y of
indigenous gas, cost of gas being
offered to the JV and demand supply
gap of Urea in the country. The guiding
principle shall, however, be that the
offered supply on C&F basis from the
JV should be equal to or less than the
floor price for domestic Greenfield units
at a gas cost of USD 6.5 per mmbtu.
Thus extending the floor price corres-
ponding to a gas price of USD 6.5 per
mmbtu to the JV's abroad will actually
mean get t i ng i mpor t ed gas at a
delivered price of USD 6.5 per mmbtu
which will result in substantial saving to
GOI. While fixing the floor and ceiling
price for a JV abroad, subject to a
maximum floor price corresponding to a
delivered gas price of USD 6.5 per
mmbtu for domestic units, a higher
return may be considered keeping in
view factors such as risks involved,
likely time and cost overruns, etc.
Approval of CCEA would be obtained in
each case.
6.15.1 For uni ts comi ng up i n the North
Eastern States, the special dispensation
regarding pricing of gas that is being
extended by the Central Government/
State Government will also be available
to any new Investments in the region
as well. Suitable adjustments will be
made to the applicable floor and ceiling
prices in case the delivered price (after
allowing for the special dispensation)
falls below USD 6.5 per mmbtu, subject
DISPENSATION FOR UNITS IN NORTH
EAST
to approval of Ministry of Finance.
6.15.2 As per the budget provisions annou-
nced for 2012-13, capital investment in
fertiliser sector has been made eligible
for Viability Gap Funding (VGF) under
the Scheme for Support to PPP in
infrastructure sector. However no VGF
shall be allowed to Urea units in Public
or Private sector. In case incentives
under VGF are required to be extended
to Fertilizer units being set up in remote
areas/difficult terrains like north east or
uni t s whi ch ar e based on coal
gasification, where the capex involved
is substantially higher, the same will be
examined by DOF in consultation with
DoE on case to case basis.
6.15.3 The broad stages for setting up a urea
project is given at Annexure-X. Since
t he pol i cy envi sages payment of
subsidy/ incentives to the urea units by
the Government, all the urea units who
plan to set-up urea units in the country
should mandatorily provide information
at beginning and completion of each
st age of t he proj ect as gi ven at
Annexure-X. This is also required to
assess the demand and production gap
in the country as well as the cost of
gas expected to be used in production
of urea from new investments.
6.16.1.Keeping in view the interests of the
farmers and to promote balanced use
of f er t i l i zer s, t he Depar t ment of
Fertilizers notified on 17th June 2008 a
nutrient based pricing regime for all
subsidized fertilizers. It has been further
NUTRIENT BASED PRICING REGIME FOR
ALL SUBSIDIZED FERTILIZERS
decided to fix the farmgate price of
nutrients at the level of their existing
price in straight fertilizers viz. Urea,
DAP, MOP and SSP. This will lead to
significant reduction in existing Maxi-
mum Retail Prices (MRPs) of complex
fertilizers. Under this regime, the farm
gate price of each nutrient will be
uniform across all subsidized fertilizers.
The selling price of subsidized fertilizers
will be determined on the basis of the
nutrients contained therein
6.16.2.Under existing pricing regime, the price
of nutrients in complex fertilizers were
higher than the price of same nutrients
in other straight fertilizers like Urea,
DAP, MOP and SSP. Thi s l ed t o
comparatively higher usage of straight
fertilizers vis--vis complex fertilizers,
which are agronomically better fertilizer
products. The nutrient based pricing will
lead to parity in price of complex
fertilizers with other straight fertilizers
and, thus, is expected to promote
balanced fertilization by encouraging
usage of complex fertilizers.
6.17.1. Department of Fertilizers has notified on
2nd June 2008 a policy for encou-
raging production and availability of
fortified and coated fertilizers in the
country. In terms of this policy, the
indigenous manufacturers/producers of
the subsidized fertilizers are allowed to
produce forti fi ed/coated subsi di zed
fertilizers up to a maximum of 20% of
their total production of respective
POLICY FOR ENCOURAGING PRODUCTION
AND AVAI LABI LI TY OF FORTI FI ED
AND COATED FERTI LI ZERS I N THE
COUNTRY
subsidized fertilizers. The manufacturers
/ producers are allowed to sell all the
FCO approved fortified/coated subsi-
dized fertilizers, except for Zincated Urea
and Boronated SSP at a price up to 5%
above the MRP of the subsi di zed
fertilizer as indicated in the table above.
For Zincated Urea and Boronated SSP,
the manufacturers are allowed to charge
up to 10% above MRP of Urea and
SSP respectively. In January 2011, the
ceiling of production of Neem Coated
urea which has been incor-porated in
Schedule 1 of the Fertilizer Control
Order, 1985 has been increased from
the existing limit of 20% to a maximum
of 35% of their total production, comp-
any wise of their respective subsidized
fertilizers.
6.18.1.To ensure easy availability of fertilizers
i n al l par t s of t he count r y, t he
Department of Fertilizers has notified on
17t h Jul y 2008 a uni f orm f rei ght
subsi dy regi me f or al l subsi di zed
fertilizers, wherein freight subsidy is
pai d separat el y on recei pt of al l
subsidized fertilizers in the districts/
bl ocks. The f r ei ght subsi dy wi l l
constitute of two components, namely,
rail freight and road freight. The rail
freight is paid on actual, 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.
POLICY FOR UNIFORM FREIGHT SUBSIDY
ON ALL FERTI LI ZERS UNDER THE
FERTILIZER SUBSIDY REGIME
6.18.2.The uniform freight subsidy regime will
facilitate availability of fertilizers in all
parts of the country, especially in areas
whi ch are far from the producti on
faci l i ti es and ports by rei mbursi ng
freight on actual.
6.19.1.It was decided in the policy for Stage-III
of New Pri ci ng Scheme f or urea
manufacturing units notified on 8th
March 2007 that Tariff Commission will
be requested to fix Per Tonne Per Km
(PTPK) base rates for road transpor-
t at i on i n t he case of secondar y
movement of fertilizers from unloading
Rake Point to retail points. The Tariff
Commission has conducted the study
and submitted the report to Department
of Fertilizers on Finalizing Per KM Per
Tonne Rat e f or Transport at i on of
Fertilizers by road. These rates will be
escalated by WPI (composite road
transport index) every year. As per the
recommendations made by the Tariff
Commi ssi on i n t hei r r epor t , t he
Government has issued a notification
on 1st September 2011 notifying the
district wise revised road transportation
rates for UREA dispatches by all the
units with effect from 1st April 2008.
The normative PTPK rate is to be
annually escalated/de-escalated based
on a composite road transport index as
per NPS-III policy dated 8th March
2007. In case of Jammu and Kashmir
t he rat es recommended by Tarri f
Commission for Jammu region (Rs 5.29
per km per metric tonne) will be treated
for all the districts in Jammu as well as
ROAD FREIGHT RATES FOR UREA MANU-
FACTURING/ IMPORTING UNITS UNDER
THE UNIFORM FREIGHT SUBSIDY SCHEME
Srinagar in J&K. The adhoc PTPK
t ransport at i on rat es f or Hi machal
Pradesh Rs. 4.13 and North-Eastern
St at es ( i . e. Rs. 2. 22 PTPK f or
Arunachal Pradesh, Rs. 4.38 PTPK for
Manipur, Rs. 6.39 PTPK for Meghalaya,
Rs. 3.44 PTPK for Mizoram, Rs. 3.50
PTPK for Nagaland, Rs.7.07 PTPK for
Sikkim and Rs. 4.27 for Tripura) will
continue to be as notified earlier.
6.20.1.At present there are 8 units in this
country which is based on Naphtha (4)
and FOLHS (4) as feedstock/fuel .
Under New Pricing Policy Stage-III,
specific time schedule of three years
has been laid down for conversion of
the non gas based units to gas.
6.20.2.To incentivise conversion of non gas
based units to gas, it has been decided
that units will be allowed to keep the
savings on account of improved energy
efficiency after conversion for first five
year s of commer ci al pr oduct i on.
Further to compensate for the higher
cost of conversion of FO/LHS based
units to gas, the scheme for capital
assistance to these units has also
been agreed to under New Pricing
Scheme Stage-III.
6.20.3.Assured availability of gas is main
constraint for expediting conversion
process. The units are in regular touch
with gas suppliers for firm commitment
f or suppl y of gas, af t er whi ch
conversion process will be expedited.
To encourage the conversion of existing
POLICY FOR CONVERSION OF EXISTING
NON- GAS BASED UREA UNI TS TO
NATURAL GAS/ LNG FOR FEEDSTOCK/
FUEL
Fuel Oil/Low Sulphur Heavy Stock
(FO/LSHS) based urea units to gas, the
Department of Fertilizers has notified on
6t h Mar ch, 2009, t he pol i cy f or
conversion and restart of existing urea
units to increase indigenous production
and also efficiency in production of
fertilizers. The policy provides for a
Special Fixed Cost towards reimbur-
sement of the cost of conversion to the
urea units after its conversion to gas is
completed. The conversion of these
units will lead to increase in efficiency
of urea production in the country and
also add to usage of natural gas, which
i s the most effi ci ent and cl eaner
fuel/feedstock for production of urea in
the country.
6.20.4.The policy also approved a special
di spensat i on under New Pr i ci ng
Scheme, Stage-III, to enable restart of
production of urea from the Trombay-V
unit of M/s Rashtriya Chemical and
fertilizers Limited (RCF) which has
remained closed for last more than 4
years. The restart of RCF Trombay will
add to indigenous production of urea
and reduce import dependence towards
meeting the requirement of urea in the
count ry. Besi des, t he pol i cy has
provision to restart of existing Naphtha
based units which are under shutdown,
on naphtha, provided they convert to
gas before March, 2010, as is nece-
ssary for other operational Naphtha
based units.
6.21.1
NFL has stipulated feedstock change-
FO/LSHS PLANTS TO NATURAL GAS
Conversi on of NFL pl ants from
FO/LSHS to Natural Gas
over of its three fuel oil based plants
sited at Panipat, Bathinda & Nangal,
the zero date of all the three feedstock
conversions from fuel oil / LSHS to
Natural gas (NG) was 29th January
2010.
Ammonia Feedstock Conversion Projects at
Panipat & Bathinda
The projects are being executed on
Lump Sum Turnkey (LSTK) basis by
M/s Larsen & Toubro (L&T) for Panipat
& Bathinda units with M/s Projects &
Development India Limited (PDIL) as
the Project Management Consultant
(PMC).
The status of Panipat unit is as under:

Status of Bathinda unit is as under:
Description Contractual Actual Remarks
Zero date (notification of award) 29.01.2010 29.01.2010
Project Commissioning
(36 months from zero date)
28.01.2013

11.01.2013
(expected)
Within
schedule
Handing-over & Final
Acceptance (2 months)
27.03.2013

27.03.2013
(as per schedule)

28.01.2013

09.01.2013 Within
schedule
Handing-over & Final
Acceptance
(2 months)
27.03.2013

27.03.2013
(as per schedule)

40
Ammonia Feedstock Conversion Project at
Nangal
For the Nangal plant, the project is
bei ng i mpl emented on Lump Sum
Turnkey (LSTK) basis by Consortium of
M/s TecnimontSpA Italy (TCM) & M/s
Tecnimont ICB Mumbai (TICB), with M/s
Projects & Development India Limited
(PDIL) as the Project Management
Consultant (PMC).
6.21.2
Est i mat ed cost of t he pr oj ect i s
Rs.1215.74 crore, with a foreign excha-
nge component of Rs.132.94 crore.
I mpl ement at i on wor k has been
Conversion of GNFC plant from
FO/LSHS to Natural Gas
completed and the plant is ready for
commi ssi oni ng. The company has
requested for allocation of Natural Gas
and its source. The company had
entered into agreement with M/s GSPC
for supply of RLNG till 31st January
2013 for commissioning of the plant.
Note 1:The project commissioning of AFCP Nangal unit is decelerated for about 10 to 12 weeks. The
specified reasons for the delay are as follows:
Impeded supply of major equipments like Process Air Compressor from Siemens, Refrigeration
compressor from BHEL, Reformer package from ITT, Bulk material like piping etc.
Delayed plying of equipments has resulted into correspondingly deferment in erection &
construction activity at location.
Delay in pre-commissioning of packages / sections like Process Air Compressor, Inert Gas
Generation Unit (IGGU) etc due to non-availability of Vendor representatives.
The status of Nangal unit is as under:

28.12.2012

March 2013
(expected)
Note 1
Handing-over & Final Acceptance
(2months)
27.02.2013

-

State Government in subsidy. Depart-
ment of Fertilizers had submitted a
proposal on 11th January 2011 for
consideration of the Cabinet Committee
on Economic Affairs (CCEA) to resolve
t he l ong pendi ng i ssue of non-
reimbursable input taxation levied by
the State Government. It had been
proposed to allow the companies to
recover the incidence of non-reimbur-
sabl e St at e l evi es under subsi dy
regime, from the sale of subsidized
Urea within that State in the form of
additional cost over and above the
MRP. The CCEA in its meeting held
on 03-03-2011 has approved the above
proposal in the CCEA Note. Depart-
ment of Fertilizers has implemented the
deci si on of CCEA and noti fi cati on
issued vide letter No. 12014/4/2009-
FPP, dated 29th March 2011 and dated
31st March 2011. Under this scheme,
the urea units are allowed to recover
GREENFIELD PROJECT OF MATIX
RECOVERY OF THE INCIDENCE OF NON-
REIMBURSABLE INPUT TAXATION LEVIED
BY STATE GOVERNMENTS FROM TIME TO
TIME IN SUBSIDY REGIME
6.23.1 Matix Fertilizers and Chemicals Limited
(MFCL), a part of Matix Group is in the
process of setting up of a Greenfield
Ammonia-Urea complex at Panagarh
near Durgapur, west Bengal based on
Coal Bed Methane (CBM) gas from
Raniganj CBM block. Daily requirement
of CBM Gas is 76603 mmbtu and the
project time schedule is 33 months.
The estimated cost of the project is
around Rs. 4700.00crore.
6.24.1 Under the New Pricing Scheme (NPS)
for urea policy, additional VAT is not
considered for reimbursement. There-
fore there is no provision for reimbur-
sement of additional VAT levied by
additional incidence of non-reimbursable
taxes on the urea sold in the States
l evyi ng addi t i onal VAT by l evyi ng
additional MRP in these States and
deposit the same with Government.
Thereafter, the same will be redistri-
but ed on quar t er l y basi s t o t he
concerned urea producing units. As
regards the impact of non-reimbursed
additional taxation for the period from
1-10-2006 to 31-03-2011, the fertilizer
companies have to intimate to Depart-
ment of Fertilizers, the amount of ACTN
(Additional Cost due to Non-Recognized
input taxation) due to additional VAT,
levied by the State Governments for
urea sold in the States from 1-10-2006
to 31-03-2011. The issue was taken up
with the Government of Gujarat and the
Govern-ment of Uttar Pradesh but
confirmation regarding reimbursement of
ACTN for the past period is awaited
from the Government of Gujarat. In an
interim reply, the Government of Uttar
Pradesh informed to waive the recovery
of ACTN. The issue was examined in
consultation with the Ministry of Finance
/ Depar t ment of Expendi t ur e. The
Ministry of Finance has observed that
the Government of Uttar Pradesh has
not offered comments on the issue of
recovery of prior period losses on
account of additional VAT levied by the
Government of Uttar Pradesh during the
period 1-10-2006 to 31-03-2011. The
Department of Fertilizers is still awaiting
the response from the Government of
Gujarat and the Government of Uttar
Pradesh. It has been deci ded the
Government is not in favour of charging
ACTN from farmers on their future
purchases of urea to compensate the
manufacturers for their past period
losses.
6.25.1 Growth of agriculture sector has been
the main focus of the Government to
promote rural livelihood and employ-
ment, ensure food security and also to
sust ai n t he overal l growt h i n t he
economy. Agricultural productivity plays
critical role in ensuring the level of food
secur i t y, whi ch i n t ur n, r equi r es
availability of fertilizers as input on
sustained basis. To make fertilizers
available to the farmer at affordable
prices, subsidy/concession to fertilizers
is an integral part of Government policy.
6.25.2 Right from independence, Government
of India has been regulating sale,
pricing and quality of fertilizers. For this,
GOI passed Fertilizer Control Order
(FCO) under Essential Commodities Act
(EC Act) in the year 1957. To regulate
the distribution of fertilizer, movement
control order was passed in 1973. No
subsidy seems have been paid on
fertilizer before 1977 except subsidy on
Phosphate during 1977 due to its high
prices in the international market at that
time.
6.25.3 On the recommendation of the Maratha
Commi t t ee, t he Gover nment had
introduced Retention Price Scheme
(RPS) for nitrogenous fertilizers in
November 1977. Subsequently, this
was extended to phosphatic and other
complex fertilizers from February 1979
and to Single Super Phosphate from
SUBSIDY POLICY FOR DECONTROLLED
PHOSPHATIC & POTASSIC (P&K) FERTI-
LIZERS
May 1982, which continued up to 1991.
Later on, subsidy was also extended to
i mport ed phosphat i c and pot assi c
fertilizers.
6.25.4 In early 1990s, the country was facing
mounting fiscal deficit and there was an
impending danger of foreign exchange
crisis. To overcome this, the Government
announced an increase of 40% in the
price of fertilizers in July, 1991. Some of
the fertilizers which were under the
subsidy scheme were decontrolled.
Subsequently, apprehending low consu-
mption of fertilizer due to increase in
prices and consequently low agriculture
productivity, the Government rolled back
10% of increase in urea price.
6.25.5 In December 1991, the Government set
up a Joint Parliamentary Committee
(JPC) on Fertilizer Pricing to review the
existing methods of computation of
retention prices for different manu-
factures of fertilizers and to suggest
measures for reducing fertilizers prices
without straining the exchequer. The
JPC submitted its report on 20th August
1992. The mai n concl usi ons and
recommendations of the Committee were
that the rise in subsidy was mainly due
to increase in the cost of imported
fertilizer, de-valuation of rupee in July
1991 and the stagnant farm gate prices
from 1980 to 1991. The Committee did
not favour total decontrolled of fertilizers
but recommended decontrolled of import
based phosphatic and Potassic fertilizers
along with a marginal 10% reduction in
the consumer price of Urea.
6.25.6 Based on the recommendations of JPC,
Government of India decontrolled all
Phosphatic and Potassic (P&K) fertili-
zers namely DAP, MOP, NPK complex
fertilizers and SSP with effect from 25th
August 1992 which were under RPS
since 1977 whereas Urea remained
under RPS.
6.25.7 Since subsidy was retained on the
nitrogenous fertilizers (Urea) while
phosphatic fertilizers were decontrolled,
the prices of phosphatic fertilizers in the
market became comparatively high. As
a result, production and consumption of
nitrogenous fertilizers increased and
consumption of P&K fertilizers decre-
ased. This led to severe imbalance
consumption of nitrogenous, phosphatic
and Potassic fertilizers. Apprehending
imbalanced in fertilization of the soil,
un-affordability of fertilizers due to
increase in phosphatic and potassic
fertilizer prices, the Government of
India announced ad hoc concession for
phosphatic and potassic fertilizers from
Rabi 1992 to cushion the impact of
price hike and to encourage balanced
fertilization.
6.25.8 The basic purpose/objective of the
Concession Scheme for P&K fertilizers
has been to provide P&K fertilizers to
the farmers at affordable prices so as
to increase the food productivity in the
count ry t hrough bal anced use of
fertilizers. The concession scheme was
also aimed at ensuring reasonable rate
of return on the investments made by
the entrepreneurs in the fertilizer sector.
6.25.9 Initially, the ad-hoc Concession Scheme
was applicable to DAP, MOP and NPK
Complex fertilizers. This scheme was
subsequently extended to SSP from
1993-94. Concession was disbursed to
the manufacturers/importers by the
State Governments during the period
1992-93 to 1993-94 based on the
grants provi ded by Department of
Agriculture & Cooperation.
6.25.10 In 1997-98, Department of Agriculture
& Cooperation started indicating an all
India uniform Maximum Retail Price
( MRP) f or DAP/ NPK/ MOP. The
responsibility of indicating MRP in
respect of SSP rested with the State
Governments. The Special Freight
Subsidy Reimbursement Scheme was
also introduced in 1997 for supply of
fertilizers in difficult areas of J&K and
North-eastern States, which continued
upto 31.3.2008. The total delivered
cost of fertilizers being invariably
higher than the MRP indicated by the
Government, the difference in the
delivered price of fertilizers at the
farm gate and the MRP was compe-
nsated by the Government as subsidy
to the manufacturers/importers.
6.25.11 Till 30th September 2000, the ferti-
lizers subsidy was being looked after
by DAC and thereafter it was conti-
nued by Department of Fertilizers with
changed parameters from time to
time. The MRP of P&K fertilizers
were revised on 28.2.2002, which
continued upto 31.3.2010 in case of
DAP and MOP. However, in case of
complex fertilizers, the MRP was
revised on 18.6.2008.
6.25.12 The subsidy on SSP was paid by the
central Govt whereas the MRP was
fixed by the respective State Govt's till
March 2008. With effect from May
2008 to September 2009, the MRP of
the SSP was announced by DOF on
all India basis. MRP of SSP was left
open w.e.f. 1.10.2009 to 30.4.2010
and a fixed subsidy of Rs.2000 PMT
was paid on SSP.
6.26.1 The computation of subsidy on P&K
fertilizers was based on Cost Price
Study on DAP and MOP conducted
by Bureau of Industrial Costs and
Pri ces (BI CP) now cal l ed Tari ff
Commission (TC). The subsidy rates
wer e deci ded on t he cost pl us
approach on quarterly basis w.e.f.
1.4.1999. The total delivered cost of
the fertilizers being invariably higher
than MRP fixed by the Government,
the difference between delivered price
of fertilizers at farm gate level and the
MRP was compensated by Govern-
ment in the form of subsidy.
6.26.2 The Government introduced a new
methodology for working out subsidy
on complex fertilizers w.e.f. 1.4.2002
based on the recommendation of TC.
The complex manufacturers were
divided into two groups based on feed
stock for sourcing nitrogen i.e. Gas
and Naphtha. With passage of time,
DAP industry started using different
raw materials such as Rock Phos-
phate for producing phosphoric acid.
DOF framed a proposal suggesting
methodology to link phosphoric acid
price with inter-national DAP price.
The matter was referred to Expert
COMPUTATI ON OF SUBSI DY ON P&K
FERTI LI ZERS UNDER CONCESSI ON
SCHEME
Group under chairmanship of Prof.
Abhijit Sen. The report of this Group
was received in October 2005 and
considered by the Inter Ministerial
Group. TC conducted fresh cost price
study of DAP/MOP and NPK comp-
lexes and submitted its report in
December 2007. Based on this TC
report, the subsidy was calculated on
monthly basis till 31.3.2010.
6.27.1 The MRP of P&K fertilizers provided
to farmers were much lower than its
delivered cost. This led to increase in
consumption of fertilizers during the
last three decades and consequently
increase in food grain production
within the country. However, it was
observed in last few years that the
margi nal response of agri cul tural
productivity to additional fertilizer
usage i n the country had fal l en
sharply, leading to near stagnation in
agricultural productivity and conse-
quently agricultural production. The
di sproporti onate NPK appl i cati on,
rising multi-nutrient deficiency and
lack of application of organic manures
leading to reduction in carbon content
of the soil, was attributed to the
stagnating agricultural productivity.
The fertilizer sector worked in a highly
regulated environment with cost of
production and selling prices being
determined by the Government of
India, due to which fertilizer industry
suffered from l ow profi tabi l i ty as
compared t o ot her sect ors. The
growth of fertilizers industry was
stagnated with virtually no investments
for the past 11 years in urea sector
IMPACT OF CONCESSION SCHEME
and for over eight years in P&K
sector. The fertilizer industry had no
incentive to invest towards moder-
nization and increase efficiency.
6.27.2 The innovation in fertilizer sector also
suffered as very few new products
were introduced by fertilizer com-
panies, since they get out priced by
subsidized fertilizers. The industry had
no incentive to focus on farmers
l eadi ng t o poor f ar m ext ensi on
services, which were necessary to
educate farmers about the modern
fertilizer application techniques, soil
health and promote soil test based
application of soil and crop specific
fertilizers.
6.27.3 The subsidy outgo of Government had
i ncreased exponenti al l y by 500%
during the past five years (2005-06 to
2009-10) under t he Concessi on
Scheme wi t h about 94% of t he
increase due to increase in intern-
ational prices of fertilizers and fertilizer
inputs, and only 6% attributable to
increase in consumption.
6.27.4 It was, thus, observed that over the
last few years the product based
subsidy regime (erstwhile concession
scheme) had been proving to be a
losing proposition for all the stake
holders viz farmers, industry and the
Government. Accordingly, considering
all the issues relating to agriculture
productivity, balanced fertilization and
growth of indigenous fertilizer industry,
competiveness amongst the fertilizer
compani es and to overcome the
deficiency of concession scheme, the
Government i nt roduced Nut ri ent
Based Subsidy (NBS) Policy for P&K
fertilizers w.e.f 1.4.2010.
6.28.1 Under the NBS Policy, the Gover-
nment announces a fixed rate of
subsidy (in Rs. per Kg basis), on each
nutrient of subsidised P&K fertilizers,
namely Nitrogen (N), Phosphate (P),
Potash (K) and Sulphur (S), on annual
basis taking into account all relevant
factors including international prices,
exchange rate, inventory level and
prevailing Maximum Retail Prices of
P&K fertilizers. The per Kg subsidy
rates on the nutrients N, P, K, S is
converted into per Tonne subsidy on
the various subsidised P&K fertilizers
covered under NBS Policy.
6.28.2 At present 21 grades of P&K ferti-
lizers namely DAP, MAP, TSP, MOP,
Ammonium Sulphate produced by M/s
FACT and M/s GSFC, SSP and 15
grades of NPKS complex fertilizers
are covered under the NBS Policy.
6.28.3 Under the Policy, MRP of P&K ferti-
lizers has been left open and fertilizer
manufacturers/marketers are allowed
to fix the MRP at reasonable rates. In
ef f ect , t he domest i c pr i ces ar e
det er mi ned by demand suppl y
mechanism.
6.28.4 Under the policy, any variant of the
subsi di sed P&K f er t i l i zer s wi t h
secondary and micronutrients (except
Sulphur 'S'), as provided for under
FCO, is also eligible for subsidy.
There is separate additional subsidy
NUTRIENT BASED SUBSIDY (NBS)
POLICY (W.E.F. 1.4.2010)
for micronutrients namely Boron and
Zi nc. The secondary and mi cro-
nutrients (except 'S') in such fertilizers
attracts a separate per tonne subsidy
to encourage their application along
with primary nutrients.
6.28.5 An Inter-Ministerial Committee (IMC)
has been constituted with Secretary
(Fertilizers) as Chairperson and Joint
Secretary level representatives of
Department of Agriculture & Coop-
eration (DAC), Department of Expen-
diture (DOE), Planning Commission
and Depar t ment of Agr i cul t ur al
Research and Education (DARE). This
Committee recommends per nutrient
subsidy for 'N', 'P', 'K' and 'S' before
the start of the financial year for
decision by the Government (Depar-
tment of Fertilizers). The IMC recom-
mends a per tonne additional subsidy
on forti fi ed subsi di zed ferti l i zers
carrying secondary (other than 'S') and
micronutrients. The Committee also
recommends inclusion of new ferti-
lizers under the subsidy regime based
on appl i cati on of manufacturers/
importers and its need appraisal by
the Indian Council for Agricultural
Research (ICAR), for decision by the
Government.
6.28.6 The distribution and movement of
fertilizers along with import of finished
f er t i l i zer s, f er t i l i zer i nput s and
production by indigenous units is
monitored through the online web
based Fertilizer Monitoring System
(FMS) as was being done under the
Concession Scheme for P&K fertilizers.
6.28.7 20% of the decontrolled fertilizers
produced/imported in India has been
placed in the movement control under
the Essential Commodities Act 1955
(ECA). Department of Ferti l i zers
regulates the movement of these
fertilizers to bridge the supplies in
underserved areas.
6.28.8 In addition to NBS, freight for the
movement and distribution of the
decontrolled fertilizers by rail and road
is being provided to enable wider
availability of fertilizers even in the
remotest places in the country.
6.28.9 Import of all the subsidized P&K
fertilizers, including complex fertilizers
has been placed under Open General
License (OGL). NBS is available for
i mported compl ex ferti l i zers al so
except Ammonium Sulphate. However,
in case of Ammonium Sulphate (AS)
t he NBS i s appl i cabl e onl y t o
domestic production by M/s FACT and
M/s GSFC.
6.28.10 Though the market price of subsidized
fertilizers, except Urea, is determined
based on demand-supply dynamics,
the fertilizer companies are required
to print Retail Price (RP) along with
applicable subsidy on the fertilizer
bags clearly. Any sale above the
printed MRP is punishable under the
EC Act.
6.28.11 Manufacturers of customized fertilizers
and mixture fertilizers have been
per mi t t ed t o sour ce subsi di zed
fertilizers from the manufacturers/
importers after their receipt in the
districts as inputs for manufacturing
customized fertilizers and mixture
fertilizers for agricultural purpose.
However, no separate subsidy is
provi ded on sal e of cust omi zed
fertilizers and mixture fertilizers.
6.28.12 A separate additional subsidy is also
provided to the indigenous manu-
facturers producing complex fertilizers
us i ng Napht ha bas ed c apt i v e
Ammoni a to compensate for the
higher cost of production of 'N' for a
maximum period of two years during
whi ch t he uni t s are requi red t o
convert t o gas or use i mport ed
Ammonia as feedstock. The quantum
of additional subsidy is finalized by
Department of Fertilizers in consul-
tation with DOE, based on study and
r ecommendat i ons by t he Tar i f f
Commission.
6.28.13 The NBS is passed on to the farmers
through the fertilizer industry. The
payment of NBS to the manufacturers
/importers of P&K fertilizers is rele-
ased as per the procedure notified by
the Department.
6.29.1 P&K Fertilizers (except SSP): 85%
(90% with Bank Guarantee) of the
subsidy claims of fertilizer companies
is paid as 'on account' payment on
receipt of fertilizers in the district on
certification by the Company's Statu-
tory Auditor. The balance 15-10% is
rel eased on St at e government ' s
certification of quantity in m-FMS and
fertilizer receipt confirmation by retail
PROCEDURE FOR PAYMENT OF SUBSIDY
UNDER NBS
deal ers through mobi l e Ferti l i zer
Monitoring System (m-FMS).
6.29.2 SSP:85% (90% with Bank Guarantee)
of the claim of subsidy is paid as 'on
account' payment on 1st point sale of
fertilizers in the districts on certi-
fication by the Company's Statutory
Auditor. The balance 10-15% claim is
released subject to State Govern-
ment's certification on quantity and
quality in m-FMS as well as fertilizer
receipt confirmation by retail dealers
through m-FMS.
6.30.1 Based on the recommendations of the
I nt er Mi ni st eri al Commi t t ee, t he
Government has announced the per
Kg rates of NBS for the nutrients
namely ' N' , ' P' , ' K' & ' S' for the
financial years 2010-11, 2011-12 and
2012-13 as under:
PER KG SUBSIDY RATES UNDER
NBS POLICY
*Including Rs 300 per MT for secondary freight from rake point to retail points.

** Excluding the secondary freight of Rs 300 PMT.
6.30.2 The Per MT subsidy on different grade
of P&K fertilizers covered under the
NBS Policy during the financial years
2010-11, 2011-12 and 2012-13 is given
in the Annexure-XI.
SUBSIDY FOR FORTIFIED FERTILIZERS
6.31.1 As per the NBS Policy a fixed Subsidy
is also provided on fortified fertilizers
with micro-nutrients namely Boron and
Zinc. The rates of subsidy during the
years, 2010-11, 2011-12 and 2012-13
are as under:
NBS rates (Rs. per Kg)
Nutrients
1.4.2010 to
31.12.2010*
1.1.2011 to
31.3.2011**
2011-12

2012-13
N 23.227 23.227 27.153 24.000
P 26.276 25.624 32.338 21.804
K 24.487 23.987 26.756 24.000
S 1.784 1.784 1.677 1.677
Sl.
No.
Nutrients for fortification
as per FCO
Additional subsidy per MT of
fortified fertilizers (in Rs. PMT)
1. Boron B 300
2. Zinc Zn 500
ADDITIONAL SUBSIDY ON COMPLEX
FERTILIZERS PRODUCED USING COSTLY
FEEDSTOCK
6.32.1 As per NBS Policy, additional com-
pensat i on has been provi ded t o
indigenous manufacturers producing
complex fertilizers using Naphtha/Fuel
Oil/LSHS as feedstock to compensate
for their higher cost of production of
'N' for two years w.e.f. 1.4.2010 to
31.3.2012, during which the companies
were asked to convert their feedstock
to gas or use imported Ammonia. As
per this FACT, MFL, and GNFC rece-
ived additional compensation. Beyond
31. 3. 2012 t he Gover nment has
approved additional compensation only
to FACT upto 30.06.2013. The rates of
additional compensation provided to
these units are as under:
FREIGHT SUBSIDY POLICY FOR P & K
FERTILIZERS
6.33.1 The freight subsidy for distribution/
movement of subsidized P&K fertilizers
(except SSP) under the NBS Policy
w.e.f. 1.4.2010 to 31.12.2010 was
restricted to the rail freight, whereas the
secondary freight (from rake point to
districts) was assumed to be part of the
fixed subsidy. Freight reimbursement on
account of direct road movement was
made payable as per the actual claim
subject to the equivalent rail freight
upto a maximum of 500 Kms.
6.33.2 W.e.f. 1.1.2011 to 31.3.2012, freight on
account of Primary Movement (by rail
from the plant or the port to various
rake points) and Secondary Movement
(by road from nearest rake points to the
block headquarters in the Districts) of
all P&K fertilizers (except SSP) was
reimbursed as per the Uniform Freight
Subsidy policy applicable to urea during
the period. Freight subsidy for Direct
Note: The above ad-hoc additional compensation was announced on provisional basis subject to final
recommendation of Tariff Commission.
Name of the
company
Grades of Fertilizers Rates (Rs/MT) of additional
compensation (Provisional)
FACT(Cochin)
20-20-0-13 3121
20.6-0-0-13 3658
MFL, Manali
20-20-0-13 5434
17-17-17-0 4640
GNFC, Bharuch 20-20-0-0 2534

Road Movement (by road from plant or
port to blocks) of all P&K fertilizers
(except SSP) was reimbursed as per
actual claim subject to the equivalent
rail freight upto a maximum of 500
Kms. The rates for reimbursement of
freight for direct road movement from
1.4.2010 to 31.3.2012 were as under:
6.33.3 Freight subsidy for P&K fertilizers w.e.f.
1.4.2012, is as under:
(i) Freight on account of Primary
Movement of all P&K fertilizers
(except SSP) is reimbursed on the
basis of actual rail freight, as per
the railway receipts.
(ii) No reimbursement on account of
Secondary Movement of all P&K
f ert i l i zers (i ncl udi ng SSP), i s
provided.
(iii) Freight subsidy for Direct Road
Movement of all P&K fertilizes
(excluding SSP) is reimbursed as
per the actual claims subject to
equi val ent r ai l f r ei ght t o be
announced by DOF time to time.
However, the maximum allowable
distance under the direct road
movement shall be 500 KMs.
(iv) Special compensation on account
of Secondary movement for all
P&K fertilizers (except SSP) is
provided for difficult areas namely
Himachal Pradesh, Uttarakhand,
Si kki m, J&K, 7 North Eastern
states and A&N Islands.
6.34.1 Government has announced special
compensations for freight on account of
secondary movement of all the P & K
fertilizers (except SSP) to difficult areas
namely Himachal Pradesh, Uttarakhand,
Si kki m, J&K, 7 N- E st at es and
Andaman & Nicobar Islands.
6.34.2 The special compensation for freight on
secondary movement of P&K fertilizers
(except SSP) to the difficult areas shall
be the excess of expenditure incurred
as per the rates mentioned below
above Rs. 300 PMT. The rates for
secondar y movement of P & K
fertilizers (except SSP) w.e.f. 1.4.2012
in various States shall be as under:
SPECIAL COMPENSATION FOR FREIGHT
ON ACCOUNT OF SECONDRY MOVEMENT
FROM THE NEAREST RAKE POINTS TO
THE BLOCK QUARTERS IN THE DISTRICTS
OF ALL THE P& K FERTILIZERS EXCEPT
SSP I N DI FFI CULT AREAS/ REGI ONS
UNDER THE NBS POLICY W.E.F. 1.4.2012
Movement(K.M.)

Rates Rs. per MT
Upto 100

108

101-200

183

201-300

256

301-400

327

401-500 400
Sl.
No.

Name of States

Rate of secondary
movement of P & K
Fertilizers
(in Rs/MT/KM)
(1)

(2)

(3)
1.

Andeman & Nicobar

2.33
2.

Himachal Pradesh

7.25
3.

Uttarakhand

6.31
4.

Jammu & Kashmir

5.29
5.

Assam

4.81
6.

Arunachal Pradesh

6.88
7.

Manipur

9.08
8.

Meghalaya

9.40
9.

Mizoram

9.64
10. Nagaland 5.00
11. Tripura 7.95
6.34.3 Alternatively, the special compensation
for freight on account of secondary
Sl.
No.

Name of States

Distance up to which
special compensation
is to be provided

(In KM)

Rates of special
compensation
beyond the
distance indicated
in column 3

(in Rs./MT/KM)

(1)

(2)

(3)

(4)

1.

Andeman & Nicobar

128.76

2.33

2.

Himachal Pradesh

41.38

7.25

3.

Uttarakhand

47.54

6.31

4.

Jammu & Kashmir

56.71

5.29
5.

Assam

62.37

4.81

6.

Arunachal Pradesh

43.60

6.88

7.

Manipur

33.04

9.08

8.

Meghalaya

31.91

9.40

9.

Mizoram

31.12

9.64

10.

Nagaland

60.00

5.00

11. Tripura 37.74 7.95
movement of P & K fertilizers (except
SSP) shall be as per the table below:
6.35.2 The country is fully dependent on
imports in Potassic sector and to the
extent of 90% in Phosphatic sector in
the form of either finished products or
its raw material. Subsidy being fixed,
any fluctuation in international prices
has effect on the domestic prices of
P&K fertilizers. The prices of P&K
fertilisers have increased during the
year 2012-13 due t o i ncrease i n
international prices of fertilizers and its
raw material and also on account of
depreciation of Indian Rupee. MRPs of
P&K fertilizers for the last 10 years is
placed at Annexure- XII.
6.34.4 The above rates of special compen-
sat i on of f r ei ght on account of
secondary movement of P&K fertilizers
are provisional subject to finalization of
rates based on the study of Tariff
Commission.
6.35.1 Under NBS policy, the MRP of P&K
ferti l i zers i s determi ned based on
demand-supply dynamics. The MRP is
open and ferti l i zer compani es are
allowed to fix MRP at reasonable level.
PRI CES (MRP) OF P&K FERTI LI ZERS
DURING THE YEAR 2012-13
SUBSIDY OUTGO ON P&K FERTILIZERS DURING THE PREVIOUS YEARS
Year Subsidy on
P&K fertilizers
(in Rs. Crore)
Subsidy on Urea Total Subsidy Regime
for P&K fertilizers
2005-06 6596.19 12793.45 19389.64
Concession
Scheme
2006-07 10298.12 17721.43 28019.55
2007-08 16933.80 26385.36 43319.16
2008-09 65554.79 33939.92 99494.71
2009-10 39452.06 24580.23 64032.29
2010-11 41500.00 24336.68 65836.68
NBS regime
2011-12 36107.94 37683.00 73790.94
2012-
13(BE)
28576.12 37016.01
65592.13

DIRECT TRANSFER OF SUBSIDY TO THE
FARMERS
6.36.1 The Government is in the process of
passing on the fertilizer subsidy directly
to the intended beneficiaries. In this
regard, a Task Force on direct subsidy
has been set up to exami ne and
recommend a solution for transfer of
subsidy directly to the consumers. In
respect of fertilizers, the task force has
recommended a three stage approach
with respect to payment of subsidy
directly to the farmers. Phase-I is to
capture the information on availability of
fertilizers at the farm gate level wherein
the availability at the retailer level will
be captured. In Phase-II, which will be
implemented after the Phase-I stabili-
zes, the subsidy is expected to be
transferred to the last point sale and in
Phase-III, the subsidy is expected to be
transferred directly to the intended
benef i ci ar i es based on AADHAR
Numbers.
6.36.2 Phase-I has already been implemented
with effect from 1.11.2012. For implem-
entation of this Phase, about 1.93 lakh
dealers have been registered in the
mobile Fertilizer Monitoring System (m-
FMS) who will acknowledge the receipt
of the fertilizers through mobile. The
government has provided an incentive
of Rs. 50 per MT for acknowledging
such receipt. The acknowledgment of
fertilizer receipt by the dealer has been
linked to subsidy payment as 5-15% of
subsi dy wi l l be r el eased t o t he
companies only on the basis of ackno-
wledgement of receipt. With implemen-
tation of this phase, the information on
availability of fertilizers at the last point
of sale to the farmers shall be available
on real time basis in m-FMS.
6.36.3 In order to expedite the process the
Government has decided to move to
phase-III directly. Accordingly, it has
been deci ded to i mpl ement di rect
transfer of subsidy to the intended
benefi ci ari es on pi l ot basi s i n 11
districts across 10 States.
6.37.1 Government of India has declared
fertilizer as an essential commodity
under the Essential Commodities Act,
1955 (ECA) and has notified Fertilizer
Control Order, 1985 (FCO) under this
Act. As per the provision of the FCO,
the fertilizers, which meet the standard
of quality laid down in the order, should
only be sold to the farmers. The State
Governments are supposed to check
the quality of the fertilizers to ensure
supply of quality of fertilizers by the
manufacturers/importers of fertilizers as
prescribed under the FCO and are fully
empowered to take action under EC
Act, if the fertilizers are found to be
non/sub standard.
6.37.2 The quality of the imported fertilizers is
checked by the fertilizer quality control
laboratories of the Government of India.
It can only be sold if it conforms to
quality as per FCO specification.
6.37.2 The penal provision under the ECA,
1955 for violation of quality standards
includes prosecution of offenders and
sentence if convicted up to seven years
imprisonment besides cancellation of
authori zati on certi fi cate and other
administrative action. The Department
of Fertilizers does not pay any subsidy
on sale of non-standard fertilizers and
in case it has been paid, a recovery
alongwith penal interest is made. To
ensure this, Department of Fertilizers
obtains quality certificate of all fertilizers
on which subsidy is paid.
QUALITY OF FERTILIZERS
6.37.3 The Department of Fertilizers has taken
various preventive measures to ensure
quality of SSP which has always been
an issue. The measures are as under:
?To conduct first time technical inspe-
ctions by PDIL of the then existing
SSP units/new units in order to
ascertain the technical competence of
the units to manufacture SSP of the
standards laid down under the FCO.
?To conduct six monthly inspections
of t he exi st i ng SSP uni t s by
PDIL/FEDO in order to ascertain as
to whether the units are adhering to
the policy guidelines of concession
scheme for claiming payment of
concession and to ensure quality.
?To recommend and notify the vari-
ous grade of rock phosphate of
various origins/countries suitable for
manuf act ur i ng SSP under t he
concession scheme as per the FCO
after obtaining recommendation from
PDIL/FEDO. SSP units are allowed
to use only notified rock phosphates.
?The Government also checks the
quality of imported Rock Phosphate
through PDIL/FEDO in some cases
to ensure the quality of SSP.
?At times the Department conducts
periodic inspections of SSP units.
The Department is in process of
institutionalising surprise inspection
to SSP units for ensuring quality.
?Subsi dy i s provi ded subj ect t o
monthly quality checks of SSP by
the State government.
?There is separate payment proc-
edure for SSP. Full payment of
subsidy is made only after State
Government certifies the quality of
SSP sold in the States.
Note: (i) Grades mentioned at S. No.7, 23, 24 & 25 are now not in the NBS Scheme.
(ii) The MRP is per records entered in FMS by the companies
(iii) MRP is exclusive of Local taxes
(iv) Blank space/NA means not under subsidy scheme or not available in market
(v) MRP for 2009-10 is fixed by the Government under the Concession Scheme.
(vi) MRP from 1.4.2010 is fixed by fertilizer company under NBS Policy.
There are nine Public Sector Enterprises
and one multi-state cooperative society
under the administrative control of the
Department. A statement indicating
profitability of these organizations has
been given at Annexure-XIII.
7.1.1 Brahmaputra Valley Fertilizer Corpo-
ration Limited (BVFCL) was incor-porated
on 1st April 2002 after segregation of the
Namrup Units in Assam from Hindustan
Fertilizer Corporation Ltd. It has two
operating Units at Namrup Assam. Its
Corporate Office is also situated at
Namrup. The other establishments of the
company are Liaison Offices at Noida &
Kol kat a and Market i ng Off i ces at
Guwahat i , Si l i gur i & Pat na. The
authorized share capital and paid up
capital of the company as on 31.03.2012
are Rs. 510 Crore and Rs. 365.83 Crore
respectively.
BRAHMAPUTRA VALLEY FERTI LI ZER
CORPORATION LIMITED (BVFCL)
7.1.2 Dur i ng t he year 2011- 12, ur ea
product i on was 1, 76, 622 MT and
ammonia production was 93,926 MT
respectively in Namrup-III plant. Its
urea-III plant is operating at 100% load
on sustained basis. However, ammonia
plant could be operated at 90-92% load
only. The load is restricted due to
decrease in activity of catalyst and tube
failure of RG Boilers. Replacement of
Catalyst and RG Boiler tubes will be
taken up duri ng annual shutdown
scheduled in April 2013. Namrup-II
Plant achieved highest urea production
of 1,02,267 MT and lowest energy
consumption (15.57 MKCal/MT of urea)
since revamp of the unit. In the current
year, 2012-13(upto December), com-
pany has produced 2,87,894 MT of
urea against the target of 2,54,020 MT.
7.1.3 The financial performance for the Year
2011- 12 and f or t he year 2012-
13(estimated) as follows:
Description

Actual for year
2011-12

Actual upto
Nov 2012

For the year
2012-13

(Provisional)

Estimated
for the
year

2012-13
as per RE

Realization

407.12

349.52

538.02

Operating Profit/Loss(+/-)

38.60

58.86

73.78

Net Profit/Loss (+/-)

(-) 128.81

(-) 29.89

(-)71.78

Chapter - 7
Public Sector Undertakings
(In Rs./Crores)
59
7.1.4 There is an Employees Grievance
Redressal Committee in BVFCL Namrup
chaired by an officer of the level of Dy.
General Manager, with the represe-
ntatives of both the recognized unions
and Joint Council of Officers in the
committee as members. Grievances as
received are examined and put up to
the Chairman of the Committee for
redressal of the grievances.
7.1.5 The matter of employment of persons
belonging to SC/ST, Ex-Servicemen,
Physi cal l y Handi capped & ot her
backward classes are taken care at the
Employment of SC/ST, Ex-Servicemen,
Physically Handicapped (PHP) & Other
Backward Classes (OBC) persons
time of recruitment and promotions.
Reservation policy has been followed
as per Government guidelines. Out of
the total strength of 1022, there are 83
SCs, 153 STs, 323 OBCs, 3 Ex-
servicemen and 2 PHPs on the rolls of
the Company.
7.1.6 Welfare of minorities are well looked
after by the company. In the reservation
of dealership, the policy laid down by
the Government of Indi a i s bei ng
followed at the time of appointment.
Category-wise details of SC/ST are as
follows:
ST Category: 49
SC Category: 17
Total Dealers: 586
Ammonia and Uria Plant Namrup II & Namrup III
60
Efforts and initiatives taken for Welfare,
Development and Empowerment of Women
and handling of gender issues:
THE FERTI LI ZERS AND CHEMI CALS
TRAVANCORE LIMITED (FACT).
7.1.7 BVFCL lays emphasis in development of
employees without any gender discri-
mination. There is no discrimination
against Women employees. Adequate
healthcare is provided for the welfare of
the Women. Emphasis is given at the
time of recruitment and many women
candidates have been recruited in the
recent past. As per the guidelines
circulated by the National Commission for
Women, a committee headed by a Lady
Officer has been constituted to address
any pr obl em r el at ed t o s ex ual
harassment. Till date, no such complaint
has been received by the committee.
There is discrimination against any
woman at any point of time.
7.2.1 The Fertilizers And Chemicals Travan-
core Limited (FACT) was incorporated
in the year 1943 and the first large
scale fertilizer plant in India located at
Udyogamandal, Kochi, Kerala started
production in 1947. Initially in the
pr i vat e sect or pr omot ed by t he
Seshasayee Brothers, FACT became a
PSU in the year 1960 and towards the
end of 1962, Government of India
became the major shareholder of FACT.
From a modest beginning, FACT has
grown and diversified into a multi-
division/multifunction Organization with
core acti vi ti es i n manufacture and
marketing of Fertilizers and Petro-
chemi cal s, Desi gn, Engi neeri ng &
Consul tancy and i n Fabri cati on &
Erection of Industrial Equipment.
7.2.2 The performance of the company during
the year 2011-12 was satisfactory. The
company was able to maintain the
production and sales at a reasonable
l evel and earn a margi nal prof i t .
Financial results of the company for the
year 2011- 12 shows a Pr of i t of
Rs.19.80 crore as against the loss of
Rs.49.32 crore during the year 2010-11.
Production, Sales and profitability of the
c ompany f or t he y ear 2011- 12
compared to 2010-11 is given below:
2011-12 2010- 11
1 Production / in Tonnes
Factamfos 20:20 6,22,256 6,44,454
Ammonium Sulphate 1,63,468 2,00,311
Caprolactam 37,854 44,345

61
2 Sales / in Tonnes
Fertilisers 8,34,580 9,32,670
Caprolactam 40,963 44,136

3 Financial / Rs. Crore
Turnover 3021.05 2563.20
Profit / Loss (-) before tax 19.79 (-) 49.32
Profit/Loss after tax 19.79 (-) 49.32

Performance of the Company in the
field of Production and Sales for the
period April 2012 to November 2012
and projection / outlook for the year
2012-2013 is given below:-
Visit of Honble Minister for Chemicals & Fertilizers, Shri M.K. Alagiri at FACT, Udyog Mandal, Addressing the gathering
62
April Nov.
Actual
2012
Dec- March
Projected
2012-13

Total

1 Production / In Tonnes
Factamfos 20:20 4,02,850 2,70,000 6,72,850
Ammonium Sulphate 99,982 73,000 1,73,282
Caprolactam 15,544 13,456 29,000
2 Sales / In Tonnes
Fertilisers * 5,10,775 3,43,000 8,53,775
Caprolactam 17,693 11,307 29,000
* including traded products

Financial performance of the company
for the current year upto 30th Nove-
mber 2012 as compared to corres-
ponding period last year is given below:

Description

For the year 2012-13

For the year 2011-12

From April 2012-

November 2012)

(Provisional)

From April 2011

November 2011

Turnover

1735

1848

Operating Profit / Loss (-)

-147

12

Depreciation

29

29

Profit / Loss (-) before tax

-176

-17

(in Rs. Crore)
63
7.2.3 During the current year up to November
2012, the company produced 4,02,850
MT of NP which is 92% of the target.
Producti on of Ammoni um Sul phate
during the period was 99,982 MT which
is 87 % of the target. During the
financial year up to November 2012,
the total sale of Fertilizers is 5.17 lakh
MT compared to 5.96 lakh MT for the
corresponding period last year. Com-
pany sold 31,189 MT of imported MOP
during the financial year 2011-12 and
up to November 2012. Sale of Gypsum
reached 3.55 Lakh MT till November
2012. New fertilizer products, Zinc
fortified Gypsum, FACT Organic, and
Zincated factamfos are also being sold
in the market. Caprolactam sales for
the period April-November 2012 is
14,650 MT of which 3043 MT was
exported.
7.2.4 FACT has developed a proprietary
formulation brand known as FACTMIX.
This formulation has been found very
successful for important crops of Kerala
such as Rubber, Banana, Tapioca,
Vegetables, Cardamom, Coconut etc.
as proved in research experiments and
in field trials conducted at FACT (R&D)
and Keral a Agri cul tural Uni versi ty,
respectively.
7.2.5 After successfully launch of crop specific
fertilizer mixtures for Rubber, Coconut,
Cardamom and Banana under the brand
name of FACTMIX, FACT has launched
crop specific fertilizer mixture for Paddy
under the same brand name, FACTMIX.
This highly beneficial fertilizer mixture has
been developed after intensive in-house
Research and Development study and
f i el d st udy by Keral a Agri cul t ural
University.
7.2.6 To take advantage of the immense
facilities unleashed by the e-world,
Companies web site www.fact.co.in
has been reinvented to give it a new
feel and look. With the revamp done
by M/s.NIC, Kakkanad, the site gives a
panoramic view of the company, various
divisions, products, services and lot
more.
7.2.7 Shri. M.K. Alagiri, Hon'ble Minister for
Chemicals & Fertilizers, Government of
India, paid a visit to FACT on 25th
August, 2012. In his address to the
officers and employees of the Company,
the Hon'ble Minister promised all possible
assistance from the Government for the
revival and expansion programs of FACT.
7.2.8 FACT has formulated a Vision Plan for
its expansion and diversification. The
status of the various projects under the
vision plan is given below :-
(i)
The first Joint Venture
company f ormed by FACT i n
association with RCF has started
commercial production with effect
from 1st June 2012. Consignment
of Load bearing Gypsum panel
was flagged off from FRBL factory,
Ambalamedu on 03.08.2012 by
Shri R.G.Rajan, CMD-RCF.
(ii)
FACT has a proposal
Long Term Plan and Projects
FACT-RCF Building Products
Limited.
New Ur ea Pl ant at Udyog-
amandal-
64
for setting up a new Urea plant of
1500 MT per day capaci ty at
Udyogamandal utilising the CO2
being vented from the Ammonia
Plant at a Project Cost of Rs.940
Crore. A DPR has been prepared
by FACT Engineering And Design
Organisation (FEDO). Expression
of Interest has been invited for
Joint Venture participation in this
project.
(iii)
Deta-
iled project report for Capacity
expansion project of NP plant by
addi ng 1000 TPD st r eam at
Cochin Division is revised based
on the present NBS rates effective
from 1.4.2012. In parallel, the
process of obtaining environmental
clearances for the project is progr-
essing. Draft report on Enviro-
nmental Impact Assessment is
ready and will be finalized after
discussions. Meanwhile Expression
of interest has been invited from
Public sector and Private entities
for equi ty parti ci pati on i n thi s
project. Discussions are progr-
essing with the parties who have
shown interest in the venture.
(iv)
It is required to meet the
requirements of the Phosphoric
acid plant and NP production.
FEDO has prepared the Detailed
Project Report for the project.
Expression of interest was invited
from Public sector and Private
Capacity enhancement of NP
plant at Cochin Division -
Setting up a new 2000 TPD
Sulphuric acid plant at Cochin
Division.
entities for equity participation in
t hi s proj ect . Di scussi ons are
progressing with the parties who
have shown i nt er est i n t he
venture.
(v)
The company
proposes to set up an Ammonia-
Urea complex at Cochin division to
replace the old plant which is in
t he process of di sposal . The
capacity of the Ammonia plant will
meet the Ammonia requirements of
the NP plants at Cochin Division
and also the new Ammonia-Urea
complex. Expression of interest
was invited from Public sector and
Pr i v a t e e n t i t i e s f o r e q u i t y
par t i ci pat i on i n t hi s pr oj ect .
Discussions are progressing with
t he part i es who have shown
interest in the venture. FACT plans
to approach the Government of
India for inclusion of the Ammonia-
Ur ea pl ant at FACT Cochi n
Division in the list of other closed
Urea plants of FCI and HFCL for
revival through a consortium of
PSUs/ or bi ddi ng f rom pri vat e
sector companies.
(vi)
Improvement in
t h e e f f i c i e n c y o f e x i s t i n g
equipments and enhancement of
port facilities in Willingdon island
are the essential requirements for
enabling handling of the increased
raw material movement essential
S e t t i n g u p a 2 8 0 0 T P D
Ammonia-3500 TPD Urea project
at Cochin division.
Augme nt a t i on of t he r a w
material handling facilities at
Willingdon Island
for the above expansion schemes.
Schemes pertaining to this are
included in the 12th plan proposals
and will be executed in phases
over a period of 2 to 3 years.
(vii)
Company plans to revamp the
Phosphoric acid plant at Cochin
Division to increase the capacity
from 360 TPD to 500TPD. It is
proposed to carry out the revamp
using the services of the original
process l i censor. Expert team
visited the plant for collection of
data.
7.2.9 In order to improve the operational
efficiency and profitability, FACT intends
to implement the following Short-term
Projects.
(i)
LNG is expected to be available at
Kochi by the end of 2012. Modi-
fications in the Ammonia Plant are
being done for using LNG as feed
st ock and f uel f or Ammoni a
manufacture process as soon as it
is available. The Project will bring
an energy saving in the Ammonia
Plant to the tune of 0.3 Gcal / MT
Ammonia. The total cost of the
project is estimated as Rs.31.57
Crore.
(ii)
It is also proposed to carry out
modification in the 5 boilers at
Udyogamandal Complex to use
LNG as fuel in place of Furnace
Revamp of Phosphori c aci d
plant at CD:
Feed Stock conversion of Amm-
onia Plant to LNG
Conversi on of f uel f or t he
boilers to LNG

Oil. The total cost of the venture
is expected to Rs.12 crore to be
implemented in 2 phases. Pr i ce
of imported LNG available at Kochi
is very high compared to lower
cost of NG available for other
fertilizer companies. Request has
been put up to DoF for assurance
for compensation commensurate
with the higher input cost.
(iii)
Movement by rail wagons forms a
major mode of transportation of
Factamfos to the various destin-
ations in all four southern States of
India. It was decided to implement a
scheme f or Enhancement of
Wagon Loading at Cochin Division.
The Scheme envisages modification
with conveyor system for stacking of
sufficient quantities of bagged
Factamfos along side the length of
the platform to augment the loading
rate along with the online bagging/
loading operations. The project cost
is estimated at Rs.13.77 crore.
(iv)
In order to produce 2000 TPD of
Factamfos at Cochin Division, 500
TPD of ammonia is required. As
there is no ammonia production at
Cochin Division, 600 MT to 700 MT
of ammoni a wi l l have t o be
transported daily to meet this
requirement as well as to ensure
sufficient buffer stock. At present, a
maximum of 450 MT of ammonia is
being transported by road. To
Wagon Loading and Stacking
System
Ammonia Transportation by own
Barge
ensure sustained production of
Fact-amfos at Cochin Division, it
was decided to construct own
barge to transport ammonia from
Udyogamandal to Cochin Divi-
sion. FACT's fabrication division,
FEW, has the infrastructure to
enter into the marine vessel field.
This is expected to have a vast
potential especially looking at the
thrust given on water transport
from all sides including the Kerala
Government. By manufacturing a
barge to meet the i n-house
requirement, FEW envisages to
achieve a landmark shift in its
capaci t y t her eby becomi ng
competitive in a field of barge
making and other related areas.
7.2.10 A Public Grievance Cell is functioning
in the Company, as per norms laid
down by Government of India. A
machinery for redressal of employee
grievances exists in the Company.
Generally the grievances are related to
Redressal of Public Grievances and
Welfare Measures
work, work place, shift arrangement,
grant of increment, promotion, salary
fixation, transfer, etc. An aggrieved
employee may submit a complaint /
request for settling the grievance in the
Division and if still aggrieved with the
decision of the Division Head, it may be
submi t t ed bef ore t he appropri at e
Grievance Committee. Separate griev-
ance committees exist for examining and
redressal of grievances of managerial
and non-managerial employees The
i ndi vi dual concerned i s gi ven an
opportunity to present his grievance in
person before the committee, if required.
The respective Committee will deliberate
on the grievance and give their recom-
mendations to the management for
appropriate action. In addition, there is an
SC/ST Grievance Cell that looks into
compl ai nt s r ecei ved f r om SC/ ST
Employees.
7.2.11 The details of various categories of
employees in different Group post in
FACT as on 3011.2012 is as under :-

.
Employment of SC/ST, Ex-servicemen,
Persons with Disability (PWD) and Other
Backward Classes (OBCs) as on 30.11.2012

Group

Total
Employees

Number of employees belonging to

SC

ST

EX-
SERVICE

PH

OBC

A

445

67

9

0

4

67

B 1529 184 56 13 27 441
C

560

70

17

14

6

220

D

550

84

16

3

30

237

TOTAL

3084

405

98

30

67

965

67
Welfare of Minorities
Welfare, Development and Empowerment of
Women
7.2.12 The Company had provided the follo-
wing facilities for the Welfare of Minority
Communities.
a) Land for Mosque near FACT Jun-
ction, Udyogamandal
b) Land for Christian Cemetery in
Udyogamandal
c) Pathway to St:Joseph's Church
near JNM Hospital, Udyogamandal.
d) Land for CSI Church, Ambalamedu
25.51 cents
e) Land for Catholic Church, Ambal-
amedu 44.73 cents
f) Land for Marthoma Church, Amba-
lamedu 45.01 cents
g) Land for Jacobite Syrian Church,
Ambalamedu 40 Cents
h) Land for Mosque, Ambalamedu 40
cents
I) 4 separate cemeteries to above 4
Christian Churches in Ambalamedu.
j) Burial ground for Muslims (Khaba-
ristan) in Ambalamedu
k) Burial ground for Muslims in Udyo-
gamandal
The premises and facilities such as
Electricity, water etc. are extended free
of cost.
7.2.13
Equal opportunity has been provided to
women in recruitment to posts both in
Employment of women employees in
FACT and their profile
technical and administrative disciplines.
Exception has been made only for jobs
involving shift-work round the clock.
Equal remuneration is paid to empl-
oyees of both genders doing the same
type of work. There is no discrimination
on grounds of gender. This has enabled
some of our women officers to excel in
their respective field of activities leading
to their being chosen for the coveted
Meri t Award gi ven for outstandi ng
performance and achievements.
Women executives occupy key positions
in the Management cadre as Deputy
General Managers Chief Managers/ Chief
Engineers & Dy. Chief Managers/ Dy.
Chief Engineers in various Engin-eering
disciplines like Chemical, Electrical, Civil,
Computer, Industrial Engineering etc. and
administrative disciplines like Finance,
Human Resources, Materials, Marketing
etc.
7.2.14 Under the Maternity Benefit Act, women
employees are entitled for maternity
leave of 90 days and medical benefits
associated with pregnancy, delivery,
miscarriage etc. Under the provisions of
the Factories Act, the working hours of
women employees covered under the
Act is restricted between 6 am and 7
pm. Nursing mothers are given two
intervals of 15 minutes each as feeding
time, or alternatively as a working
arrangement of 30 minutes at a stretch,
for feedi ng thei r i nfants, up to a
maximum of fifteen months after confin-
ement. As per GOI Orders, women
employees undergoing family planning
Statutory Welfare Measures implemented
for Women employees
Total
Employees
SC ST OBC GEN Ex-Serviceman PH Women
61* 7 3 19 31 0 1 4
* 1 out of the total 61 recruitments was on contract basis against permanent vacancy.
7.2.18 In-service training to Company emplo-
yees is arranged through FACT Training
Department. Maximum representation is
ensured for SC/ST employees to attend
in-house training programmes. 93 SC
employees and 12 ST employees had
undergone training during April 2012 to
November 2012.
For engagement of Apprentices under the
Apprentices Act, representation as per
rules is provided. The representation for
SC/ST in apprentices as on 30.11.2012
is as follows:
Total number SC ST
193 28 4

7.2.19 A SC/ST Grievance Cell is functioning in
the Company to redress the grievances
of SC/ST employees. The grievances
received are examined in detail by the
Cell and appropriately redressed. The
employee concerned is informed of the
decision / action taken on the grievances
by the Grievance Cell. Further there are
Associ at i ons r epr esent i ng SC/ ST
employees and these Associations also
take up individual grievances of SC/ST
employees with the management for
direct redressal.
7.2.20 Due consideration is given for allotment
of r esi dent i al quar t er s t o SC/ ST
operation are given special leave up to
2 weeks. A crche is also provided for
the welfare of women employees.
7.2.15 The Company sponsors a Ladies Club
for the recreational activities of women
employees and wives of male empl-
oyees. There is also an association of
women employees, by the name FACT
Women' Welfare Association, whose
activities are welfare oriented.
7.2.16 Based on the GoI Orders, there is a full
fledged and active complaints Comm-
ittee to look into complaints of atrocities
/harassment meted out to women
employees at work place. Not less than
half the members are women including
an external member who is a lady
Professor of a reputed Social Work
College.
Welfare of SCs & STs
7.2.17 The Company has taken all measures for
maintaining reservation of SCs/STs in
employment in accordance with the
Presidential directives. Though a ban on
recruitment exists in the company, in
view of the specific directions issued by
the Government of India to fill the
backlog vacancies in recruitment rese-
rved for SC/ST, a special recruitment
drive was launched for filling 56 such
vacancies (31 SC & 25 ST). Out of this,
30 SC and 19 ST candidates have
already been appointed. For filling the
remaining 1 SC vacancy and 6 ST
vacancies, action is in progress.
Details of appointment made during the
year 2012-13 up to November 2012 are
given below:
69
soil and crop specific nutrients as per the
respective State Agricultural University
recommendations in the form of a
proprietary fertilizer mixture developed by
FACT are given to the farmers. In
addition, micronutrients specified by the
University are supplied free of cost.
FACT has conducted 8 such Village
Adoption Programmes (VAP) in Kerala,
Tami l Nadu, Andhra Pradesh and
Karnataka.
7.2.25 The Farmer Training Programme is
intended to impart training to limited
group of 20-25 farmers on balanced
use of fertilizers based on soil test
results. The objectives of this progra-
mme are to create awareness on soil
sampl i ng methodol ogy and use of
balanced fertilizer based on soil test
results. FACT has conducted 10 Farmer
Educati on Semi nar i n al l the four
Southern States.
7.2.26 The Field Demonstration Programme
aims to demonstrate the effectiveness
of correct fertilizer application at farmer
level. For this one acre of plot of the
farmer is divided into 2 equal 50 cents
plots, control plot and treatment plot. In
cont r ol pl ot , f ar mer ' s pr act i ce i s
followed. In treated plot, Agricultural
University recommended FACTMIX is
given based on soil test results. The
yield difference between treated plot
and control plot are compared. FACT
has conducted 13 Field demonstrations
during the year 2011-12.
7.2.27 FACT is supplying drinking water for
Drinking Water supply to residents of Eloor
Municipality
employees. The present allotment of
quarters to SC/ST is given below:
Total No. of employees
Occupying quarters

SC ST
676 163 37

7.2.21 FACT has always followed a policy of
encouraging SC/ST Candidates to take
up dealership. Details of dealership
allotted to SC/ST are given below:
Category of Dealership As on 30.11.2012
Total Dealership

7763

SC / ST

624

7.2.22 Wide publicity is given for appointment of
Dealers during October/November 2012.
SC/ST candidates are encouraged to
apply for Dealership. Dealer appointment
is open for SC/ST candidates always
where as it is restricted to general
categories to specific periods only.
SC/ST applicants are exempted from
paying Security Deposit.
7.2.23 FACT is giving prime importance for
fulfilling its Corporate Social Respo-
nsibility. As part of Corporate Social
Responsibility, FACT has undertaken
the following activities.
7.2.24 Under the Village Adoption Programme,
10 progressive farmers having at least
one acre of land, in a village are
identified. The soils of the plots are
analyzed for major, secondary and micro
nutrients. Based on the soil test results,
Corporate Social Responsibility
70
more than 3000 households of Eloor
Municipality.
During the period from April 2012 to
November 2012, FACT has also contri-
buted to the following as part of its
Corporate Social Responsibility.
1. Contributed study materials worth
Rs. 5000/ - t o Ker al a Pul ayar
Mahasabha, Muppathadam unit for
di st ri but i on among Schedul ed
category students.
2. Contributed Rs.25,000/- to Gover-
nment UP School, Kuttikkattukara,
for maintenance of the school
bus.
3. Contributed Rs.40,000/- for the
conduct of Payippad Boat Race,
Payippad.
4. Contributed Rs.30,000/- for the
conduct of Ashtamudi Lake Boat
Race, Kollam.
5. Contributed Rs.4950/- towards free
noon meal scheme for Gover-
nment hospital patients undertaken
by Ambedkar Indi a Chari tabl e
Society, Tripunithura.
6. Contributed Rs.14,000/- towards
the inaugural function of perm-
anent regulator cum bridge on
Peri yar ri ver at Pat hal am by
Hon'ble Chief Minister of Kerala.
7. Contributed Rs.5,000/- towards
Kolenchery sub-District School
Festival.
FCI ARAVALI GYPSUM & MINERALS INDIA
LIMITED (FAGMIL)
7.3.1 The FCI Aravali Gypsum and Minerals
India Limited was incorporated under the
Companies Act, 1956 as a Public Sector
Undertaking on 14.02.2003 after being
hived off the Jodhpur Mining Organisation
(JMO) of Fertilizer Corporation of India
Ltd. (FCIL). The authorized share capital
of the Company is Rs.10 crore and the
paid up capital is Rs. 7, 32, 98, 000/- as
on 31-03-2012.
7.3.2 During the current year 2011-12, the
Company has produced 9.05 lakh MT
Gypsum as against the target of 9.05
lakh MT. The revised production/sale
revised target for the year 2012-13 is
9.65 lakh MT.
7.3.3 The Company has earned a net profit of
Rs. 27.07 crore (after deferred tax
charge) during the year 2011-12 and paid
a Dividend of Rs.5.42 crore @ Rs. 7.40
per share of Rs.10/- each. In the current
year till December 2012, company has
earned a profit of Rs. 12.14 crore.
7.3.4 Grievance Cell is functioning to redress
the public and staff grievances and no
grievance is pending as on date.
7.3.5 Head Office at Jodhpur receives the
public grievances, which are redressed
by the Grievance Cell. At present, no
grievance is pending.
7.3.6 The employees who are working in
various Mines are advised to submit
their grievances through the respective
Area Managers to General Manager.
The employees working at Head Office,
Jodhpur, route their grievances through
Sectional Heads to General Manager.
At present, no grievance is pending.
7.3.7 The total man-power of the Company is
74 as on 31.3.2012, out of which 12
persons belong to scheduled castes, 3
persons belong to scheduled tribes and
6 persons belong to OBCs categories.
7.3.8 The company undertakes socio eco-
nomic and community development
Backward Classes (OBC) persons.
Corporate Social Responsibility (CSR)
programs to promote education and for
improvement of living conditions by Self
Help Group(SHG) in villages located in
the vicinity of the mines. For this, the
company developed a CSR scheme
and makes provision every year. This
year Rs. 95 lakh was allocated to CSR
as against Rs. 39.79 Lakhs in the
previous year. Out of Rs. 95 lakh,
Rs. 47.96 lakh was spent on promoting
education, medical aids, aforestation,
construction of Old age homes/night
shel t ers and bus sheds et c. The
company also installed a mobile soil
testi ng van for testi ng the soi l of
villages near its mines to make the
farmers aware about the quality of
soils.
Presenting the dividend cheque for the year 2011-12 to the Honble Minister (Chemicals & Fertilizers) Shri M. K. Alagiri by Dr. S. K.
Dass CMD, FAGMIL, Shri Sudhir Mital, Secretary (Fertilizers), Shri S. C. Gupta, Joint Secretary, Department of Fertilizers, Shri A.
K. Parashar, Economics Advisor (Fertilizers) Shri V. Rajagopalan, Former Special Secretary & Financial Advisor (Fertilizers), DOF
are also presents with others.
72
THE FERTILIZER CORPORATION OF INDIA
LIMITED (FCIL)
7.4.1 The Fertilizer Corporation of India Limited
(FCIL) has its units located at Sindri
(Jharkhand), Gorakhpur (Uttar Pradesh),
Ramagundam (Andhra Pradesh) and
Talcher (Orissa). It also has an un-com-
missioned project at Korba (Chha-
ttisgarh). Against the authorized share
capital of the Company of Rs.800 crore,
the paid up share capital was Rs. 750.92
crore as on 31.3.2012.
7.4.2 The Corporation was declared sick in
November, 1992 by the Board for
Industrial and Financial Reconstruction
(BIFR).
7.4.3 In view of the continuing losses of the
Company, stemming from technical and
financial in viability of operations, the
Government decided to close down FCI
plants in September 2002. Conse-
quently, a Voluntary Separation Scheme
(VSS) was offered to all its 5712
employees. All the employees, who
opted for VSS have since been released,
except 22 employees who are engaged
in discharging statutory obligations,
including safety & security of properties/
assets of the various units of the
Company. BIFR in their meeting held on
2.4.2004 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 i n t he Hi gh Cour t .
Pursuant to the prayer of the Department
of Fertilizers and the Company, the High
Court in its hearing held on 30.8.2010
has remitted the matter back to BIFR for
revival of the fertilizer units of the
Company.
7.4.4 Considering the shortage is domestic
production of urea for meeting the
growing demand in the country and
availability of well-developed infras-
tructure in the various closed units of the
Company, the Cabinet decided in April
2007 to consider the feasibility of reviving
the fertilizer units of Fertilizer Corporation
of India Limited. Subsequently, Cabinet
constituted an Empowered Committee of
Secretaries (ECOS) on 30.10.2008 to
consider various options of revival and
further approved 'in principle' to consider
waiver of GOI Loan & Interest, in case of
availability of viable fully tied up revival
proposal . After detai l ed study and
recommendations for a revival option,
ECOS on 24.8.2009 selected a suitable
Revival Model and recommended the
same for seeking the approval of GoI.
Following PSUs have shown interest in
t he revi val of some Uni t s of t he
Company:
a) RCF-Coal India Limited for Talcher
Unit
b) Engineers India Limited-NFL for
Ramagundam Unit
c) SAIL-NFL for Sindri Unit
Considering the above, ECOS in their
4th meeting held on 4.3.2011 recom-
mended permitting revival by these
PSUs on nomination basis on offering
11% equity participation to FCIL against
Revival of the Company
the usage of the assets and land of
FCIL, subject to approval of CCEA. The
remaining two units at Gorakhpur and
Korba have been recommended to be
revived through bidding.
The process of revival and the Draft
Rehabi l i t at i on Scheme (DRS), as
recommended by ECOS, has been
approved by CCEA on 4.8.2011.
7.4.5 During the last one year, BIFR hearing
were held on 10.1.2012., 29.3.2012,
13.7.2012, 3010.125.11.2012, 22.11.2012
and 19.12.2012. The salient directives
given by BIFR are as under:-
i) In the hearing held on 30.10.2012,
BIFR advised the Operating Agency
(State Bank of India) to get the
updated Assets Valuation Reports
prepared by M/s. Projects & Devel-
opment India Limited (PDIL) in
respect of FCIL Units verified by the
enl i sted Val uers of Operati ng
Agency.
ii) Though BIFR had earlier in their
hearing held on 13.7.2012 given
Fi rst Stage Cl earance for the
revival of Sindri, Ramagundam &
Tal cher Uni ts of FCIL by the
nominated PSUs, but in its hearing
held on 5.11.2012, the Hon'ble
Bench of BIFR opined that BIFR
process does not allow the revival
t hr ough nomi nat i on and had
advised that CMDs or concerned
Directors of the PSUs, which are
interested for the revival of the
plants, to appear before BIFR in
person on 22.11.2012.
Progress of proceedings before BIFR
iii) In the hearing held on 22.11.2012,
BIFR held detailed discussion with
the individual PSUs and noted the
progress made by each of the
PSUs in the revival of the conc-
erned Units. The Hon'ble Bench
appreciated the efforts being made
by the profit making PSUs for the
revival of FCIL units and felt that
the complex process to be followed
by each of the PSU in the creating
SPVs, tendering for selection of
technology vendors, design, erection
of the plant, etc. is a time consu-
ming process and in case all these
activities are done while FCIL is
before BIFR, each & every activity
being carried out by these PSUs,
would further need to be done with
the consent and approval of BIFR,
following a very stringent legal
process. Since BIFR is bound by
certain legal processes and any
minor deviation may get challenged
in any Court of Law and the total
process would come to knot.
iv) Considering the above long drawn
process in the revival of the closed
FCIL units, the Hon'ble BIFR sugg-
ested that let the Ministry and FCIL
obt ai n wai ver of GOI l oan &
interest, as already agreed by GOI
and let these reviving PSUs make
available of around Rs. 100 crore to
enable FCIL to clear its liabilities to
make its Networth positive, so that
FCIL can be released from the
purview of BIFR and the Gover-
nment & the PSUs can go ahead in
the revival of the Units as planned
by them. The loan extended to FCIL
could be adjusted against the
74
Name of the Unit Year of stoppage
Gorakhpur 1990
Ramagundam 1999
Talcher 1999
Sindri 2002
Korba (*): The unit was never
commissioned
Financial Results
7.4.7 During the year 2011-12, the Company
incurred a net loss of Rs. 552.76 Crore,
which includes Rs.553.14 Crore as
interest on GOI Loan and Rs. 0.27 Crore
towards depreciation. The Company is
estimated to incur a loss of Rs. 554.10
crore (Approx.) and interest amounting to
Rs. 555.00 crore (Approx.) and Rs. 0.28
crore towards depreciation during the
whole year (2012-13).
HINDUSTAN FERTILIZER CORPORATION
LIMITED
7.5.1 Hindustan Fertilizers Corporation Limited
(HFCL) has its units located at Barauni
(Bihar) Durgapur (West Bengal) and
an un-commissioned project at Haldia
(West Bengal). The Company has an
authorised share capital of Rs. 1200
crore whereas the paid up capital is Rs.
686.54 crore.
7.5.2 The Company was referred to BIFR in
the year 1992 and since then it is under
BIFR. The Govt. of India had decided to
close down Barauni and Durgapur Units
and Haldia Division along with other
offices and Establi-shments of the
Company in the year 2002. In the hear-
ing held on 01.03.2012, the BIFR dire-
cted that;
(a) The Company t o provi de f or
payment of about Rs. 6.19 crore to
KoPT in DRS on regular basis and
seek waiver of penalty, damages/
compensation for unauthorized
occupation etc.
(b) Department of Fertilizers to take
up the issue of renewal of lease
of KoPT l and at Hal di a wi t h
Ministry of Shipping and arrive at
a sol ut i on accept abl e t o t he
Company and to KoPT within the
earliest possible time.
(c) ADDA to crystallize its dues till
date and communicate to the SBI
(OA) with copy to the Board within
a period of four weeks and also
intimate the amount which can be
waived off in terms of State Govt.
policy.
receivables/sale proceeds of unu-
sable assets of the Company by the
concerned PSUs.
v) Based on the above, a meeting of
ECOS was held on 23.1.2013.
Meanwhile, Principal Secretary to
PM has t aken a meet i ng on
28.1.2013 on revival of closed fert-
ilizer urea units. Based on the
direction of BIFR, ECOS and PMO,
a proposal is being placed before
Cabinet Committee on Economic
Affairs for their approval.
7.4.6 In view of the earlier decision to close
the FCIL units and release all its
employees on VSS, the operations
have remai ned suspended as per
details given below:
Production/Sales Performance:
75
(d) SBI (OA) to revise Company's DRS
in view of above observation/
directions and submit to the Board
a tied up DRS in the prescribed
format within next two weeks. The
Board's office to examine Com-
pany's DRS after its revision by the
OA, as directed, for its early circul-
ation and if required the officers
concerned of SBI, Company and
Department of Fertilizers may be
called for consultation.
7.5.3 The Company appointed M/s. Deloitte
Touche Tomahatshu Pvt. Limited as
Project Adviser for implementation of the
revival of its plants. A Misc. Application
No. 242/BC/2012 was submitted to BIFR
Bench for giving first stage clearance
and necessary directions for obtaining
Expression of Interest (EOI) for revival of
Barauni, Durgapur and Haldia Units in
line with the revival proposal approved
by the Govt. and allowing HFCL to
submit revised proposal, after completion
of these actions. In the hearing held on
25.7.2012, BIFR directed the company to
carry out valuation of 3 Units of HFCL
separately from the Govt. approved
Valuer and submit report to the Board
with a copy to SBI (OA).
(a) In view of above observations/
directions, the Bench allowed the
prayers in M.A.No.242/BC/2012 and
directed that the process as prayed
should be initiated imme-diately.
Accor di ngl y, PDI L has been
requested to carry out the valu-ation
of assets of all Units of HFCL.
Revival of Units/Divisions of HFCL status
thereof
(b) M/s. Deloitte provided Draft Eol
documents which, after exam-
ination, would be processed for
further action in respect of Barauni
and Durgapur Units of HFCL.
(c) As regards Haldia Division, issues
with KoPT with respect to land
lease would be sorted out and
action would be taken for revival
of Haldia Division, possibly through
HFCL itself.
Subsequently in a meeting held in
OMO on 28.1.2013, it was decided that
proposal/action plan on revival of HFCL
could be taken up once revival of FCIL
is on track.
7.5.4 Due to shut-down of the Plants, there
was no production during the year
under review.
7.5.5 During the year 2011-12, Company
incurred a net loss of Rs. 380.89 crore
after considering prior period adjustment
and tax as compared to previous year's
net loss of Rs. 382.28 crore. The loss
is mainly attributable to interest liability
on Govt. of India loans.
7.5.6 The manpower as on 31.01.2013 was
12. Due to the decision taken by the
Govt. of Indi a to cl ose down the
Company, there was no activity on
promotion, recruitment, etc. during the
year. Hence, the question of implem-
entation of Govt. directives with regard to
Production
Financial performance
Manpower:
7.6.4 Though the Company has an authorised
share capital of Rs.365 Cr comprising of
Rs.175 Cr as equity and Rs. 190 Cr as
preference share capital, the preference
share capital is yet to be issued and
subscribed. As on 30.11.2012, the paid
up equity is Rs.161.10 Cr.
7.6.5 MFL commenced commercial production
in 1971, with an annual installed capa-
ci t y of 2, 47, 500 MT of Ammoni a,
2,92,050 MT of Urea and 5,40,000 MT
of NPK. A major revamp/ expansion
was carried out in 1998 at a cost of
Rs. 601 Cr, enhancing the annual
installed capacity to 3,46,500 MT of
Ammonia, 4,86,750 MT of Urea and
8,40,000 MT of NPK. GOI introduced a
New Pricing Scheme-I from 01.4.2003
and also adopted Tariff Committee
Recommendations for the Complex
fertilizers. In the year 2003-04, the
accumulated losses eroded the total net
worth and therefore the Company was
referred to BIFR. However with the
implementation of Amendment to NPS
III w.e.f 01.04.2009 and also with
improvement in plant performance,
Company's operations became viable
from 2009-10 onwards at it registered a
profit of Rs 111.99 Cr in the year 2011-
12. This is the highest ever operating
profit since its inception (if extraordinary
Shareholder

Paid-up
Capital ( Rs.
in Cr)

% Shareholding
GOI

95.85

59.50
NIOC

41.52

25.77
Public 23.73 14.73
Total 161.10 100.00
reservat i on of Schedul ed Cast es/
Scheduled Tribes/OBCs/Ex-servicemen
and physically handicapped categories
does not arise.
7.5.7 Since the closure of the Corporation,
employees were being released under
VSS. As on 31.03.2012, 4665 number of
employees have been released against a
payment of Rs. 283.96 crore towards
and terminal benefits.
7.6.1 Madras Fertilizers Limited (MFL) was
incorporated in the year 1966 as a Joint
Venture between GOI and AMOCO India
Incorporation of AMOCO (USA) with GOI
holding 51% of the equity share capital.
In the year 1972, NIOC acquired 50% of
the AMOCO's share and the share-
holding pattern became 51% GOI and
24.5% each of AMOCO and NIOC.
7.6.2 In 1985, AMOCO disinvested their
shares, which were purchased by GOI
and NIOC in the proportions of their
respective holding as on 22.07.1985.
The revi sed share hol di ng pattern
became GOI 67. 55% and NI OC
32.45%. Subsequent to the Issue of
Rights shares in 1994 for part financing
of the Project, the share holding of GOI
& NIOC stands at 69.78% and 30.22%.
7.6.3 During 1997, MFL had gone for Public
Issue of 2, 86, 30,000 shares with face
value of Rs.10 and a premium of Rs. 5
per share. Total 2, 58, 09,700 shares
were subscribed. The present Paid up
Voluntary Separation Scheme
MADRAS FERTILIZERS LIMITED (MFL)
share capital and the shareholding
pattern are as follows:
77
items (OTS benefit) are not taken into
account) earned by the company.
7.6.6 The Company was referred to Board for
Industrial and Financial Reconstruction
(BIFR) on total erosion of net worth.
The BIFR registered the Company as
Case No.501/2007. BIFR declared the
Company as Sick under Section 15 of
SICA in its hearing held on April 2,
2009 and appointed State Bank of India
(Commercial Branch, Chennai) as the
Operating Agency (OA) to prepare a
Draft Rehabilitation Scheme (DRS).
7.6.7 The earlier proposal submitted by OA
with an option of write-off of outstanding
GOI loan and interest thereon, was not
agreed by the Planning Commission as
well as Department of Public Expe-
nditure. BIFR in its hearing on May
7, 2012, directed OA to submit a fully
tied-up DRS with various options with
the consent of the stakeholders along
with the approvals from the Ministries
concerned.
7.6.8 Accordingly, DOF organized a joint
meeting with the various Ministries in
Reference to BIFR
June 2012 and arrived at the option of
the total waiver of interest and penal
interest and 40% waiver of GOI loan as
of 31.3.2012. Accordingly, The Company
prepared a draft DRS considering of total
waiver of interest & penal interest and
40% waiver of GOI loan and submitted to
BIFR. While BIFR in its hearing held on
August 27, 2012, directed the OA to
submit DRS after obtaining consent from
M/s. Naftiran Intertrade Co Ltd (NICO,
Co- Promoter) and various Ministries and
posted next hearing on December 5,
2012.
7.6.9 Acting on BIFR's direction, a meeting
was held on Sep 25, 2012 involving
officials from the various Ministries
concerned. Subsequently a BRPSE Note
was circulated for inter-ministerial consu-
ltations. NICO has given its acceptance
to the proposal subject to certain cond-
itions. The comments of stake-holder
ministries have been received and after
examining the same, a proposal will be
placed before BRPSE.
7.6.10 The capacity and production details of
MFL are as follows:
Production Performance

Annual Capacity (MT)

Production Details (MT)

Pre-Revamp

Post-Revamp

2011-12

2012-13 @

Ammonia

2,47,500

3,46,500

2,83,205

1,80,565

Urea

2,92,050

4,86,750

4,86,750

2,99,075

NPK 5,40,000 8,40,000 35,905 * 78,195
@ up to November 2012
* NPK includes 28340 MT of 20-20-0-13 and 7565 MT of 17-17-17
78
7.6.11 The Company so far produced 2,99,075
MT of Urea with the capacity utilization of
92.2% during 2011-12 and is hopeful of
producing 4,86,750 MT and achieving
100% capacity utilization during the
year 2012-13 also. The Company has
produced 78,195 MT of NPK 17-17-17 as
of Nov 30, 2012 and is hopeful of
producing another 82,000 MT of NPK 17-
17-17 till March 2013 and 50,000 MT of

Product

2011-12
Actuals

2011-12
Actuals
Apr-
Nov12
Projections
Dec12-
Mar13
Anticipated sales
for 2012-13
Vijay Urea(MT) 4,99,518 2,90,779 1,95,221 4,86,000
Vijay
Biofertilizers(MT)
481 269 131 400
Vijay Neem(KL) 116.61 54.30 62 116.3
Vijay Organic(MT) 3630 3255 1045 4300
Vijay Complex (MT) 33,755 68,200 1,42,000 2,10,000
Financial Performance
7.6.13 Financial performance upto Nov 2012
and projected for the year 2012-13 are
furnished below:
During the year 2011-12, the Company
ended up with a profit of Rs.111.99 Cr
and the total accumulated losses as on
2012-13 (Actual for the period Apr

Nov 2012)

?
?

2012-13 (Estimated)

Net Profit/Loss

(Rs. Cr)
- 71.38
- (17.52)

Mar 31, 2012 was Rs. 505.20 Cr. During
the period Apr Nov 2012, the Company
has incurred a loss of Rs. 17.52 Cr out
of the total turnover of Rs. 1557.91 Cr
due to showdown of plant from March
05, 2012 to May 07,2012 for the Annual
turn around.
7.6.14 The Company has provided budget for
the following activities during the year
towards Corporate Social Responsibility.
NPK 20-20-0-13 during February and
March 2013.During Apr-Nov 2012, the
Company has also produced 305 MT of
Bio-fertilizer.
7.6.12 The details of the sales performance of
the various products produced by MFL
is as under :-
Sales Performance

Program Plan fo r
2012-13
(Nos.)
Actuals
Upto
Nov12
(Nos.)
Plan for
Dec12 to
Mar13
(Nos.)
Annual
Budget
(in Rs.)
Actuals
Upto Nov12
(in Rs.)
Soil Sample Collection
- Macro Nutrient(NPK)
5500 5330 170
55,000

31,212
Micro Nutrient 550 769 -
Bio Demo 72 38 34 43,800 9374
Bio Special Campaign - - - - -
Farmers Contacted 32500 25612 6888 NA NA
Exhibitions 11 1 10 33,000 2990

7.6.15 MFL does not have any pendi ng
problem related with gender issues. A
wing of Women in Public Sector (WIPS)
i s functi oni ng i n MFL and women
employees are nominated for programs
organized by WIPS.
Backward Classes (OBC) persons in Public
Sector Undertakings
7.6.16 The details of employees belonging to
different categories group-wise is as
under :-
Group Employees
as of
30.11.2012
Number of Employees belonging to
SC ST Ex-
Servicemen
Physically
Handicapped
(PHP)
OBC
A 190 22 2 - 1 1
B 219 50 3 - 1 8
C 361 108 1 10 3 52
D - - - - - -
TOTAL 770 180 6 10 5 61
80
NATIONAL FERTILIZERS LIMITED (NFL)
7.7.1 NFL, a Schedule 'A' Mini Ratna (Cate-
gory-1) Company having its registered
Office at New Delhi, was incorporated on
23rd August 1974. NFL is under the
administrative control of Ministry of
Chemicals & fertilizers, Department of
Fertilizers. It has an authorized capital of
Rs. 1000 crore and a paid up capital of
Rs. 490.58 crore out of which Govern-
ment of India's share is 97.64% and
2.36% is held by financial institutions &
others.
7.7.2 NFL has three Fuel oil based Urea
plants, one each at Panipat (Haryana),
Bathinda & Nangal (Punjab) and two
gas based Urea plants at Vijaipur
(Madhya Pradesh). The annual installed
capacity of Nangal plant is 4.78 LMT &
that of Panipat & Bathinda plants is
5.11 LMT each. The Fuel Oil based
Units are being revamped for change-
over of Ammonia feedstock from Fuel
oil to Natural Gas in terms of GoI
policy and are in advanced stage of
completion.
7.7.3 Both Gas based plants of NFL at
Vijaipur have been revamped for energy
saving & capacity enhancement during
2012-13. After revamping of Vijaipur
plants, total Urea installed capacity of
the Company has been enhanced from
32.31 LMT to 35.68 LMT, per year.
Installation of solar lights in village Baglehar, districtSolan, HP
7.7.4 NFL is engaged in manufacturing and
marketing of Urea, Neem Coated Urea,
Bio-Fertilizers (solid & liquid) and other
allied Industrial products like Nitric Acid,
Ammonium Nitrate, Sodium Nitrite,
Sodium Nitrate, Argon, Liquid Oxygen,
Liquid Nitrogen, Carbon Di-Oxide etc.
The Company has also taken initiative
towards balanced fertilization by making
available DAP/ NPK/ SSP, Mycorrhiza,
agro-inputs like certified quality seeds,
compost/Vermi compost manure, agro-
chemicals like Insecticides/ Herbicides,
Bentonite Sulphur etc., through trading
activities. The Company also provides
specialized services mainly for Project
commissioning and Plant operation and
maintenance to various Chemicals and
Petrochemical Industries in India and
abroad.
7.7.5 During the year 2011-12, the Company
achieved a turnover of Rs. 7341 crore
(including subsidy of Rs. 5363 crore) as
compared to Rs. 5804 crore (including
subsidy of Rs. 3918 crore) in 2010-11,
registering an increase of 26%. The
increase in turnover is due to higher
sales of urea of industrial products and
increase in subsidy due to escalation in
prices of inputs i.e. petroleum products
and natural gas. The earnings before
interest, depreciation and tax (EBIDTA) at
Rs.342 crore during 2011-12 was higher
than Rs. 302 crore achieved 2010-11
inspite of higher salaries & wages,
repairs & maintenance, etc., mainly due
to higher production/sale of Urea and
Industrial products. The profit before tax
during 2011-12 was Rs.184.20 crore
(previous year Rs. 203.92 crore) and
profit after tax was Rs.126.73 crore
(previous year Rs.138.50 crore). The
reduction in net profit was due to higher
incidence of interest expenditure of
Rs 66.24 crore (previous year Rs. 9.15
crore) mainly attributed to higher utili-
zation of working capital and short term
loans arising out of delay in receipt of
subsidy and increase in input prices and
interest rates. Interest amounting to
Rs. 75.09 crore was capitalized during
the year.
7.7.6 Company's prime business is production
and sale of urea. During 2011-12 it sold
33.89 lakh tonnes of Urea (including 6.4
lakh tonnes of Neem coated Urea)
against 33.59 lakh tonnes (including
Neem Coated Urea of 1.21 lakh tonnes)
in the previous year. The warehouse
stocks were liquidated fully as on 31-03-
2012.
7.7.7 Sales performance in the Industrial
Products segment, which include Nitric
Acid, Ammonium Nitrate (Lumps & Melt)
has been significant at Rs. 171 crore in
2011-12 vis--vis Rs.122 crore in the
previous year, registering a growth of
40%. This included, sales worth Rs. 38
crore of Ammonium Nitrate (Melt), a
new product marketed this year. During
the year 2011-12 Bio-fertilizers (powder
and liquid) sales recorded a growth of
about 200% over the previous year.
7.7.8 The Company has made foray into
diverse agri-based business viz. Seeds,
Compost, Mycorrhiza and Bentonite
Sulphur etc, through trading. During the
year, 2011-12 turnover of Rs. 22.72
crore was achieved against Rs. 10.28
crore in the previous year.
7.7.9 NFL has a strategic alliance with BSNL
to promote and sell BSNL products like
mobile connections, recharge vouchers
& SIM cards etc. BSNL products of Rs.
231.97 lakh were sold during 2011-12
against Rs. 122.75 lakh in the previous
year.
7.7.10 During the last three decades, the
Company has been working closely with
farming community by ensuring supply of
quality fertilizers and other agri-inputs.
Company believes in marketing its
products and services through extensive
field demonstrations coupled with an
effort to build relationship with the end
users, the farmers. To promote Comp-
any's "Kisan Urea" as a household
name, various promotional activities inc-
luding 100 farmers education programs,
40 dealers/retailers orientation programs,
415 field days, 120 block and front line
demonstrations were organized during
the year. Company participated in 44
kisan melas in its marketing territory
spread across 18 states.
7.7.11 Company has four Mobile Soil Testing
units attached to Nangal & Vijaipur
Units and Lucknow & Bhopal Zonal
Offices. It also has five static Soil
Test i ng Laborat ori es one each at
Nangal, Panipat, Vijaipur, Bhopal and
Barabanki. One more static Soil Testing
Laboratory is being set up at Balasore
in Odisha. Micro Nutrient's Labs are
also being set up at Nangal, Vijaipur
and Panipat Units. During the year
2011-12, 48276 samples for macro
nutrients and 766 samples for micro
nutrients were analyzed. 15 Trials on
non-pressure Urea Ammonium Nitrate
solution have been laid out at Punjab
Agriculture University, Ludhiana. 33
Trials on use of Liquid Bio-Fertilizers
were conducted at Kisan Vikas Kendras
in marketing territory of the Company.
7.7.12 With a view to consolidate its position
as a market leader in Urea, projects of
about Rs. 4700 crore are at various
stages of implementation in Company's
various plants. The major ongoing
schemes are:
7.7.13 The Company has undertaken capital
schemes for changeover of feedstock
from Fuel-oil to Natural Gas at Panipat,
Bathinda and Nangal involving a total
investment of Rs. 4066 crore with a
completion period of 36 months from
the Zero date i.e. 29th January 2010.
The commissioning of the project at
Nangal is scheduled by the end of
February 2013 and that of Panipat and
Bathinda by January, 2013. Capital
expendi t ure of Rs. 1546. 17 crore
t owards t hese proj ect s has been
incurred up to 31st March, 2012.
7.7.14 These Projects are being implemented
on Lump sum Turnkey (LSTK) basis.
Panipat and Bathinda projects are being
implemented by M/s. Larsen & Toubro
(L&T) with process license from M/s.
HTAS, Denmark. Nangal Project is being
implemented by consortium of M/s.
Technimont SPA Italy and M/s. Tech-
ni mont ICB, Mumbai wi th process
licensee from M/s. KBR. M/s. Projects &
Development India Limited (PDIL) has
been engaged as Project Management
Consultant for all three projects.
7.7.15 The Company has undertaken capacity
augmentation of Ammonia & Urea plants
at its Vijaipur-I & II units, incl-uding
installation of Carbon Dioxide Recovery
(CDR) plant at an investment of around
Rs.650 crore. Commissioning of capacity
augmentation of Ammonia and Urea
Plants was earlier planned for November
2011, however, due to delay in supply of
certain equipment, the same has been
undertaken in April/July, 2012. Ammonia
and Urea Revamp Projects of Vijaipur-I
have been commissioned on 24th April,
2012 and Carbon Dioxide Recovery
(CDR) Plant has been commissioned on
25th May, 2012. Ammonia and Urea
Revamp Projects at Vijaipur-II have also
been commissioned on 31-07-2012. The
capital expenditure of Rs.426.26 crore
has been incurred up to 31st March,
2012.
7.7.16 Gas Pipeline: Firm allocation of gas
f rom GoI i s awai t ed t o meet t he
requirement of gas after completion of
feedstock conversion projects. Company
is following up for allocation of indige-
nous gas, alternatively RLNG shall be
uti l i zed for feed. The natural gas
pipelines have already been laid and
commissioned for Nangal and Bathinda
units. Last mile connectivity to Panipat
unit is in progress.
7..17 Joint Venture with KRIBHCO & RCF :
Company has a Joint Venture Urvarak
Videsh Limited with M/s. KRIBHCO
and RCF as promoters. The main
object of the joint venture company is
to explore investment opportunities
abroad and wi t hi n t he count ry i n
nitrogenous, phosphatic and potassic
sectors and to render consultancy
services for setting up projects in India
and abroad.
Revival of closed units of FCIL
Human Resource Management
Training initiatives
7.7.18 Government of India, on nomination
basis, has allotted NFL & Engineers India
Limited (EIL) and NFL & Steel Authority
of India Limited (SAIL) for revival of
closed units of FCIL at Ramagundam
and Sindri respectively. Separate MoUs
have been entered with EIL and SAIL
and pre-project activities have been
undertaken. First Stage clearance of
BIFR for these projects is awaited.
7.7.19 Amongst the three Ms, management of
human resource is most important for
success of any organi zati on. NFL
continues to strive for development of its
human resource for realization of its full
potential. The total Manpower strength of
the company as on 31st March, 2012
was 4514 comprising of 1941 Executives
and 2573 Non Executives. The total
manpower includes 242 women emplo-
yees of which 104 are in Executive
cadre. Various HR initiatives, which have
been undertaken for benefit of emplo-
yees including implementation of Defined
Contribution Superannuation Pension
Scheme, Review of Performance Manag-
ement System and implementation of
Performance Related Pay (PRP).
7.7.20 During the year 2011-12, to hone the
ski l l s and i nst i l behavi our al and
personality development traits in all
supervisory staff and managerial cadre,
Company achieved 18,250 man-days
training for employees with the aid of
in-house and external training prog-
rams. Training programs were identified
by systemizing organizational needs
with individual needs through Perfor-
mance Management System. To give
exposure to technol ogy change i n
connection with Ammonia Feed Stock
Change over Project being undertaken
at Company's three Units, 41 personnel
were sent to Copenhagen, Denmark for
training principally on Halder Topsoe
Technology, which is being put to use
at Panipat and Bathinda Units. Onsite
training at KRIBHCO, Hazira for 50
persons was arranged to expose them
to the KBR technology being used for
Nangal Revamp. Training on Distributive
Control System/Emergency Shutdown
System at Honeywell Works, Pune was
also arranged.
7.7.21 Industrial relations in the Company
continued to be harmonious during the
year. Continuous interaction between the
Management and Em-ployees' represe-
ntatives contributed in maintaining the
harmony.
7.7.21 Company has recei ved Excel l ent
rating for the MoU 2011-12, which is
twelfth excellent rating in a row.
7.7.22 During the year 2011-12, Company and
its employees received following presti-
gious accolades and Awards:
a) First Award for excellence in 'Cost
Management' in the category of Large
Industrial relations
Memorandum of Understanding(MoU)
Awards
Public Sector Enterprises (PSEs)
for 2010 from the Institute of Cost
Accountants of India.
b) Panipat Unit was conferred the
'WINNER' for the year 2009 &
'RUNNER-UP' for the year 2008 by
the Government of Haryana for
Lowest Accident Frequency rate
for Panipat Unit.
c) Ms Neeru Abrol, Director (Finance)
was awarded Best Busi ness
Achiever Award in Woman Cate-
gory by the Institute of Chartered
Accountants of India.
d) Scope Excellence Award 2009-10
was awarded to Ms Neeru Abrol,
Director (Finance), for Outsta-
nding Woman Manager among all
the CPSEs, which was presented
by Hon'ble Prime Minister of India
at Vigyan Bhawan, New Delhi.
7.7.23 Company accords highest priority to
Industrial Safety, Ecology & Pollution
Control. The safety and occu-
pational health of its employees and
external stake-holders are of para-
mount importance and all these
attributes are embedded within the
core values of the organization.
Safety/Environment Audit is carried
out at production units from time to
time.
Silos for collecting fly ash from
ESP hoppers using dense phase
pneumatic Conveying System have
been installed at Panipat, Bathinda
Environment Management
and Nangal Units for evacuation of ash
from the plants. All the units are ISO
9001- 2008 cer t i f i ed f or Qual i t y
Management Syst em, I SO- 14001
certified for Environment Management
System and have received OHSAS-
18001 certification for occupational
health and safety management system.
Recogni zi ng t he need t o bal ance
human economic development with
environment protection, Company has
adopted the concept of sustainable
development.
7.7.24 Corporate Social Responsibility (CSR)
is an evolving concept and has moved
away from being just philanthropic to
becom an integral part of strategy of
t he c ompany. The Company i s
committed towards upliftment of under
privileged section of the society and
has supported vari ous soci al and
community initiatives touching the lives
of a large number of people. Under the
umbrella of CSR, Company is engaged
in undertaking farmer friendly social
activities that have helped in improving
soci o economi c st at us of f armi ng
community. The major focus of these
programs is on creating awareness
about health and hygiene, children
education, women empowerment, skill
development for self-employment, water
conservation, rain-water harvesting and
ground water recharging.
During the year 2010-11 and 2011-12,
Company earmarked Rs. 3 crore & Rs.
3. 25 cr or e r espect i vel y f or CSR
activities, against which till 31st March,
2012, an expenditure of Rs.1.90 crore
has been incurred and Rs.3.19 crore
stands committed towards activities
under execution. The unspent amount
has been carried over to 2012-13.
Public/Staff Grievance Redress Machinery
7.7.25 Based on t he model gr i evance
redressal procedure notified by DPE,
company has framed a ' Grievance
Redressal Procedure' for employees of
NFL. The objective of the Procedure is
to provide easily accessible machinery
for settlement of grievances and to
adopt measures as woul d ensure
expeditious settlement of grievances of
employees leading to increased to job
sati sfacti on, resul ti ng i n i mproved
product i vi t y and eff i ci ency of t he
organization.
For s y s t emat i c moni t or i ng and
supervision of Public Grievances, Head
of Corporate HR Department has been
nominated as Director (Grievance). In
addition to this, a Public Grievances
Cell has been set up at each Unit
which is headed by a senior official.
Apart from this on the Company' s
website "www.nationalfertilizers.com, a
feedback form has been created for
posting of query / grievances by the
public.
Employment of SC/ST, Ex-Servicemen,
Physi cal l y Handi capped & Ot her
Backward Classes (OBCs) Persons in
Public Sector Undertakings (As on 30-
11-2012).
86
7.7.26 The detail of category-wise employees
Group
Total number
of employees
Number of SC/ST/OBC/EXSM/PH
SC ST OBC *EXSM **PH

A 1630 344 84 96 3 9
B 1892 508 151 110 30 21
C 732 186 36 105 22 12
D 130 104 3 6 1 2
Total 4384 1142 274 317 56 44
in various grades is as under :-
* EXSM Ex- Servicemen** - PH Physically Handicapped
Implementation of the National Policy
for persons with Disabilities. Financial
allocation for various programmes and
progress achieved in the programmes.
7.7.27 As per Presidential Directives, 3%
reservation (1% each to Orthopedically
Handicapped, Visually Handicapped and
Hearing Impaired persons) is given to
Persons with Disabilities.
An Impl ementati on Cel l i s al ready
functional in all Units / Offices of the
Company which looks after the matters
rel at i ng t o t he i mpl ement at i on of
reservation orders for SC/ST/OBC/
PH/ Ex- Ser vi cemen. An of f i cer of
appropriate level has been appointed as
Liaison Officer in each Unit / Office to
monitor the progress of implementation
of reservat i on orders f or vari ous
categories including reservation for
Persons with Disabilities.
Arrangements have been made to
make t he work pl ace f ri endl y f or
disabled persons so that they do not
face any problem in discharging their
duti es. Proper heal th and safety
measures are also undertaken as per
requirement.
7.7.28 All the employees at Units & Offices
cel ebrat e t he f est i val s of vari ous
communities with a sense of broth-
erhood. The organization believes in
equality of all communities and follows all
Government regulations on empower-
ment of minorities such as representation
of the minority communities on interview
boards. As on 30-11-2012, the perce-
ntage share in NFL dealership under
SC/ST category is 25.9%.
Efforts and initiatives taken by the
individual PSUs / Cooperative for the
Welfare, Development and Empowe-
rment of Women and for mainstreaming
gender issues.
7.7.29 Female employees comprise 5.41% of
the total workforce of the Company.
The Company has adopted adequate
Information relating to welfare of Minorities
and reservation in dealership
87
measures to facilitate a congenial work
atmosphere for its women employees.
There is no instance of any Gender
inequality and both men and women
employees are enjoying equal rights.
The working atmosphere is very cordial
and harmonious.
7.8.1 Projects & Development India Ltd. (PDIL)
is a Mini Ratna, Category-1 and an ISO
9001:2008 Certified premier Consultancy
and Engineering CPSE. PDIL has been
playing a pivotal role in the growth of
Indian Fertilizer Industry. It has over six
decades of experience and expertise in
providing Design, Engineering and
related project execution services from
concept to commissioning of various
Projects. Apart from fertilizers, PDIL also
provides services in other sectors like Oil
& Gas, Refinery, Chemicals, Infras-
tructure, Offsite and Utilities. In addition,
PDIL is an approved Third Party Inspe-
ction agency & undertakes works of Third
Party Inspection and Non-Destructive
Testing. The authorized share capital of
the company is Rs. 60 crores and paid
capital is Rs. 17.30 corers as on
31.03.2012.
7.8.2 PDIL has a design engineering and
consultancy service unit which is assis-
ting the fertilizer companies in the field
of design engineering, technical procu-
rement, supervision, construction and
commissioning etc. The company is
also engaged in the manufacturing of
catalysts for the fertilizer and refinery
industries.
PROJECTS & DEVELOPMENT INDIA LIMI-
TED (PDIL)
PDIL has earned Profit Before Tax
(PBT) of Rs 38.27 crore for the year
2011-12 out of the total turnover of Rs.
112.90 crore. During the period from
April to December, 2012, a PBT of
Rs.11.18 crore has been earned out of
the total turnover of Rs. 59.81 crore.
The estimated PBT for the year 2012-
13 is Rs. 16.45 crore.
7.8.3 Dividend is being paid continuously
since 2007-08. A dividend of 22% of
the paid up capital of the company
amounting to Rs. 3.81 crore has been
paid for the year 2011-12.
7.8.4 The following services are offered by
the PDIL:-
Market Demand Study Reports, Techno-
Economic Feasibility Studies, Detailed
Project Reports, Site Selection, Risk
Analysis, EIA Studies, etc.
a) Proj ect Impl ementati on Servi ces -
Engineering, Procurement & Construction
Management (EPCM) Services - Design,
Detailed Engineering, Procurement Assis-
tance, Warehouse Management, Inspe-
ction & Expediting, Project Management,
Construction Supervision, Commissioning
and Performance Guarantee Tests.
b) Project Management Consultancy (PMC)
Services
c) Lumpsum Turnkey (LSTK) Projects
Pre-Project Services
Project Services
Other Specialized Services
Projects Executed / Under Execution
Fertilizer Sector
Revamp/ Retrofi t/ De-bottl enecki ng
Studies, Health Study & End-to-End
Survey, Environmental Engineering,
Energy Audit/ Safety Audit, PDS3 D
Piping Model, Process Simulation and
Opt i mi zat i on, Hazop St udy, Due
Diligence Assignments, etc.
7.8.5 PDIL is the prime mover of most of the
fertilizer projects, especially Ammonia,
Urea and Offsites & Utilities established
in India during last four decades. It has
so far engineered and successfully
executed 25 Ammonia Units (Grass Root
/ Expansions) and 38 Urea Units (Grass
Root / Expansions) in India & abroad.
Our esteemed clients include almost all
the major Fertilizer Manufacturers in
India in Public, Co-operative and Private
Sectors. Apart from the projects in India,
PDIL has provided Detailed Engineering
and other associ ated Consul tancy
Services for the then world's largest
single stream gas-based 2200 MTPD
Ammonia Plant of M/s Burrup Fertilizer
Pvt. Ltd., Australia. The Project was
commissioned successfully in 2006. PDIL
tied up with M/s MHI, Japan for associa-
ting its engineers for their ammonia
projects in Russia. PDIL is also providing
PMC Services for Ammonia-Urea Project
at Gabon to M/s Gabon Ferti l i zer
Company and for Algeria Oman Fertilizer
Project at Arzew, Algeria to M/s AoA SpA
EPCM Services for Offsites & Utilities of
Ammonia-Urea Plant at Port Harcourt,
Nigeria to M/s Indorama Eleme Petro-
Celebration of Vigilance Awareness Week at PDIL
89
chemicals Limited and Engineering Con-
sultancy Services for several assign-
ments of M/s Jordan India Fertilizer
Company (JIFCO) in Eshidiya, Jordan.
PDI L i s provi di ng / has provi ded
engineering services for many Revamp /
Modernization / Energy Saving Schemes
to its clients viz. KRIBHCO at Surat, NFL
at Vijaipur, RCF at Thal, GSFC at
Vadodara, etc. PDIL is working on a
prestigious order from M/s Matix Ferti-
lizers & Chemicals Ltd. for providing
Det ai l ed Engi neeri ng Consul t ancy
Services for a 2200 MTPD Ammonia
Plant at Panagarh, West Bengal, which
is the first plant in India, based on Coal
Bed Methane (CBM) feedstock. Besides,
PDIL is rendering PMC services for
Feedstock Changeover Proj ects at
Panipat, Bathinda & Nangal to NFL and
at Chennai to MFL. In addition, PDIL has
successfully rendered PMC Services
(during early work phase) for selection of
LSTK Contractor for Ammonia-Urea Plant
at Port Harcourt , Ni geri a t o M/ s
Indorama Eleme Petrochemicals Limited.
7.8.6 PDIL has provided services for Projects
in Oil, Gas & Refinery Sector owned by
the all major organizations in India. The
facilities include LPG Import Terminals,
POL Terminals / Depots / Storages,
Crude / Gas / Petroleum Products
Pipelines, Gas Gathering Stations,
Mounded Storages for LPG, Atmosph-
eric Cryogenic Storages for Petroleum
Products, LPG Bottling Plants, City Gas
Distribution including CNG Stations,
Skid Mounted/ Re-locatable Refinery.
PDIL has undertaken Revamp Jobs for
Refineries covering Atmospheric Distill-
Oil & Gas and Refinery Sector
ation Unit, Sulphur Recovery Unit, Lube
Oil Complex, Crude Distillation Unit,
Crude Topping Unit etc. PDIL provided
detailed engineering services for three
l arge Hydrogen Pl ant s t o ESSAR
Engineering Centre for their Refinery
expansion Project at Vadinar, PMC
services for installation of Hydrogen unit
of IOCL at Barauni & CPCL at Chennai
and Sulphur Recovery Unit of IOCL at
Mathura. The assignments pertaining to
providing PMC services for Debott-
lenecking of FCCU-I & GCU for HPCL
Vizag Refinery, installation of H2 & N2
unit on BOO basis at Paradeep for
I OCL, Fl ue Gas Desul phuri zat i on
System & Purge Gas treatment unit at
Vi zag f or HPCL, et c. ar e under
progress.
7.8.7 PDIL has undertaken many projects in
Chemical sector such as Methanol Plant,
Hydr ogen Pl ant , Met hyl Ami nes,
Sulphuric Acid, Phosphoric Acid, Nitric
Acid, Sodium Nitrite/Nitrate, Ammonium
Nitrate and Ammonium Bi-Carbonate.
PDIL is currently providing consultancy
services to GAIL for GSU & GPU
modification job at their Pata Petroche-
mical Plant and Detailed Engineering
Services to GSFC, Baroda for Methanol
Plant. M/s Shriram EPC has associated
PDIL for providing Basic Design Engin-
eering for Ammonium Sulphate Plant and
Ammonia Liquor Treatment Plant of
Rourkela Steel Plant at Rourkela.
7.8.8 PDIL has established credentials in
infrastructure sector also and has been
Chemical Sector
Infrastructure sector
providing PMC Services/Review Con-
sultancy services for Housing projects
of the Ministry of Defence.
7.8.9 PDIL has designed, engineered, ten-
dered and procured many Offsites and
Utilities packages for a large number of
clients. These include DM Water Plants,
Effl uent Treatment Pl ants, Capti ve
Power Plants, Material handling Plants,
and Atmospheric Ammonia Storage and
Handling facilities.
7.8.10 PDIL has made a successful break-
through in securing assignments from
abroad. PDIL is providing PMC Services
for Ammonia-Urea Project at Gabon to
M/s Gabon Fertilizer Company and for
Al geri a Oman Ferti l i zer Proj ect at
Arzew, Algeria to M/s AOA SpA, EPCM
Services for Offsites & Utilities of
Ammonia-Urea Plant at Port Harcourt,
Nigeria to M/s Indorama Eleme Petro-
chemicals Limited and Engineering
Consultancy Services for several assig-
nments to M/s JIFCO in Eshidiya,
Jordan. PDIL has successfully rendered
PMC Services during early work phase
for Ammonia-Urea Plant at Nigeria to
M/s Indorama Eleme Petrochemicals
Limited (awarded in the current year).
7.8.11 PDIL is a recognized Third Party Inspe-
ction Agency for Inspection & Qua-lity
Assurance Services and undertakes TPI
Services for many projects of organi-
zations like IOCL, RINL/VSP, BHEL,
Offsites and Utilities
Assignments Abroad
Third Party Inspection (TPI) & Non Destr-
uctive Testing (NDT) Services
BPCL, HPCL, NLC, NDMC, PWD, State
PHEDs, ONGC, DTL etc. It provides
services for Shop & Field Inspection of
Equipment & Machinery, Electricals,
Instruments, Electrical Safety Audit
Inspections, Terminal Automation System
of Oil Terminals, Depots & Retail outlets
and Work Assessment & Evaluation of
Vendors. It provides NDT services for
plants in various sectors like Fertilizer,
Chemical, Refineries, Oil & Gas, Cross
Country pipeline etc. PDIL specialized
NDT ser vi ces i ncl ude Aut omat i c
Ultrasonic scanning, Infra-Red Thermo-
Vision/imaging, Eddy current testing,
Vibration signature analysis etc. PDIL
undertakes Inspection, statutory testing &
safety Certification of storage tanks for
petroleum products as well as ammonia.
7.8.12 Department of Fertilizers (DoF) conti-
nued to engage PDIL for Techno-
commercial Audit of SSP Plants loca-
ted throughout India. The Audits were
undertaken and the reports with TAC
obser vat i on and comment s have
already been submitted to DoF.
7.8.13 PDIL's Catalysts Division located at
Sindri (Jharkhand) manufactures and
supplies a wide range of commercially
proven catalysts used in Ammonia
Plants and other Industries. Catalysts
manufactured by PDIL are Primary Gas
Reforming, Secondary Reforming, Iron-
Chromia, High Temperature CO Shift,
Copper Promoted High Temperature
Shift, Conventional Low Temperature
Shift, High Copper Low Temperature
Shift, Methanation & Super Metha-
nation, De-Sulphurization, and Vana-
dium Pentoxide.
Manufacturing of Catalysts
PDIL's Catalysts are used in almost all
the old and new generation Ammonia
Plants in India in the Public, Coopera-
tive and Private Sector. Besides Ferti-
lizer Plants, PDIL's Catalysts are used
in Refineries also. PDIL's Vanadium
Pentoxide Catalysts have been supplied
to many Sulphuric Acid Plants in India
as well as abroad.
7.8.14 The in-house strength of PDIL is as
under :-
PDIL has two ful l fl edged Desi gn
Engineering Centres situated at Noida
and Baroda. Both design engineering
centres are equipped with State-of-the-Art
computer and software facilities such as
AutoCAD 2012, Microstation, Plant
Design System (PDS), Smart Plant
Electrical, Smart Plant Instrumentation,
Smart Plant P&ID, Frame Work Plus,
Smart Plant Review, CAESAR II, PV
Elite, Microprotal, STAAD Pro, Aspen
Plus, Syner GEE Gas, ASD Pipe Router,
ASD Pipe Support Optimizer, PHA-Pro,
Safeti Micro, Conval, ETAP, Primavera,
MS Project and work specific software for
carrying out design engineering works.
PDIL, being a member of Heat Transfer
Research INC. USA, has the right to use
Xchanger Suite of Software.
i. Enterprise Resource Planning (ERP)
Project
In house strengths of PDIL
IT & Other Infrastructure Facilities
All the offices of PDIL are connected
through VPN (Virtual Private Network).
SAP was commissioned in PDIL during
February 2011. Fi nance, Materi al s
Management, Project System, Quality
Management and Human Resources
modules are being used extensively in
PDIL. Data consol i dati on from al l
locations on single instance has helped
in closure of financial books. SAP has
significantly increased efficiency &
quality of work and is providing decision
support system.
ii. DMS Project
PDIL is implementing Documentum of
EMC as i t s El ect r oni c Document
Management System for preserving all
its documents in electronic form.
iii. Human Resources
PDIL is having highly competent and
experienced technical manpower. At
present, PDIL is having more than 500
technical employees in various disci-
plines such as Chemical Engineering,
Mechanical Engineering, Civil & Struc-
tural Engineering, Electrical Engineering,
Instrumentation Engineering, Computer
Science & Information Technology, etc.
from reputed Engineering Institutes. With
the vast experience & technical expertise
of its executives, PDIL is having suffi-
cient skilled manpower to execute the
number of mega projects simultaneously.
7.8.15 In line with Government Guidelines
issued from time to time, company
Employment to SC/ST/OBC/ PH persons
92
continues to extend required number of
facilities to SC/ST/OBC employees. The
details of employees as on 01.11.12 is
as follows:-
EMPLOYEE STRENGTH AS ON 01.11.12
(REGULAR INCLUDING MANAGEMENT TRAINEES AND CONTRACT)
Category Total MIP SC ST OBC
A 384 50 19 60
B 31 5 0 2
C 24 7 0 5
D Nil Nil Nil Nil
On contract 39 4 3 7
Total 478 66 22 74
Complaints/Grievances redressal mec-
hanism is in place. Regarding imple-
mentation of National Policy for Persons
with Disabilities, for easy/ hassle free
mobility of employees with disability, a
ramp has been constructed and in
respect of welfare, development and
empower ment of women and f or
mainstreaming gender issues, there is
complete gender equality in PDIL.
7.8.16 PDIL has been pursuing CSR activities
as per policy duly approved by its Board,
as well as directives issued by Govt. of
India. In accordance with the Govt.
Guidelines, a CSR fund has been
created. The CSR fund does not lapse
and unspent fund is carried forward to
subsequent year as non-lapsable pool.
The objective of CSR policy is to
alleviate the social imbalances and help
the community in which it operates.
Accordingly, PDIL Board has approved
the detailed CSR policy in the year 2012
on the basis of guidelines issued by
DPE. 13 CSR projects are under various
stages of implementation/ approval and
the CSR projects cover activities related
to education of children(slum)/HIV infe-
cted parents/Leprosy/victims of insur-
gency in north-east, health/medical
camps, skill development through voca-
tional training to weaker section, Support
to trained Persons having different
abilities with tools, Cloths to poor,
Support to Indian athletes participating in
London Paralympics through Paralympics
Committee of India, Health support
through medical camp to Sr. Citizen,
poor and underprivileged etc.
93
Corporate Governance
RASHTRIYA CHEMICALS AND FERTILIZERS
LIMITED (RCF)
7.8.17 PDIL has been continuously making
efforts to raise the standards of its
Corporate Governance.
i. Memorandum of Understanding (MoU)
PDIL has secured Excellent rating in
MoU since the first year of its singing
MoU in 2006-07. PDIL got 'Excellent'
MoU rating for 2011-12.
PDIL won prestigious MoU Excellence
Award for 2007-08 under the category of
Turnaround CPSE, which was conferred
by Hon'ble Prime Minister of India, Dr.
Manmohan Singh on 15.10.2009. PDIL
also won prestigious MoU Excellence
Award for 2008-09 for top performing
CPSE's in the Consultancy Sector, which
was conferred by Hon'ble Prime Minister
of Indi a, Dr. Manmohan Si ngh on
15.12.2010.
7.9.1 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 (FCIL). The company has an
authorized share capital of Rs.800
Crore and a subscribed and paid up
capital of Rs.551.69 Crore. At the time
MoU, as a Tripartite agreement with DoF
and DPE
MoU Awards
of its inception, there was only one unit
Trombay (near Mumbai ). In 1985,
another unit of RCF was established at
Thal which is about 100 KMs from
Tr ombay. RCF i s havi ng sever al
products in its portfolio starting from
Urea, Complex Fertilizers and several
Industrial chemicals
7.9.2 The annual installed capacity of all the
units of RCF is about 10.36 lakh MT of
nitrogen and 0.990 lakh MT of phos-
phate. The production of nitrogen &
phosphate (as P2O5) during 20011-12
was 10.770 lakh MT and 1.07 lakh MT
respectively. Besides fertilizers, the
company also produces a number of
industrial products such as Methanol,
Concentrated Nitric Acid, Methylamines,
Ammonium Bicarbonate, Sodium Nitrate,
Sodium Nitrite, Dimethyl Formamide,
Dimethyl Acetamide, Ammonium Nitrate,
Argon, etc. During April-November 2012,
RCF produced 7.564 lakh MT of nitrogen
as against 6.615 lakh MT during the
period of the previous year. Company
also produced 0.753 lakh MT of phos-
phate as against the production of 0.663
lakh tonnes of the previous year. During
the year 2012-13, the Company is likely
to produce 11.42 lakh MT of nitrogen and
1.07 lakh MT of phosphate.
7.9.3 The company has adopted the following
new technologies :-
Under Clean Development Mechanism
(CDM), RCF has taken up N2O abate-
Adoption of New Technology
(a) Clean Development Programme:
ment programme in its Nitric Acid plants
at Trombay unit. By reducing N2O
emission, which is a greenhouse gas
having a global warming potential of 310,
company has been awarded tradable
Certified Emission Reduction (CER). The
Nitric Acid CDM project have been
successfully registered with UNFCCC in
November 2009. In April 2012, RCF has
received Second tranche of 1,77,766
CERs from UNFCCC.
In its efforts towards conservation and
recycling, RCF has set up a highly
sophisticated Sewage Treatment Plant
which is one its kind with built up a
(b) STP Plant:
capaci ty to treat 5 mi l l i on gal l ons
(MGD) of sewage received from the
Mumbai Muni ci pal Corporat i on of
Greater Mumbai. After treating the
sewage, plant generates 3.5 (MGD) of
pure water each day, and saves the
equivalent amount of potable water for
the city. Further RCF is planning to set
up another STP plant to become totally
self sufficient in its day to day industrial
water requirement.
7.9.4 During the year 2011-12, company has
achieved a turnover of Rs. 6499.22
crore and earned a profit of Rs. 249.23
crore. In the current year 2012-13
Financial Results
Providing facilities by RCF Hospital for Public Health Care
95
(April December 2012), Company has
earned profit of Rs. 229.14 crore as
against the profit of Rs. 201.12 crore
during same period in previous year.
7.9.5 Hon'ble Shri M.K. Alagiri Union Minister
for Chemicals & Fertilizers, Govt. of
India, dedicated the ANP Granulation
Plant at Trombay unit of RCF to the
Nation on 3rd October 2012. ANP
Granulation Plant produces Suphala
20:20:0/ANP which is very popular
fertilizer carrying high brand equity and
well recognised all over the country.
7.9.6 Public/Staff grievance redressal mach-
inery and status of grievances regis-
tered in company's head office and in
its field agencies/unit/attached office:-
The Company has a good grievance
redressal system. Any citizen having
complaints in respect of the product or
services rendered may approach the
Company. Si mi l arl y any aggri eved
customer / dealer or other citizen can
approach the Company for any failure
of the quality / price charged / conduct
of any officer / employee and is dealt
as under:-
The grievances can be addressed to a
special officer of the Company not below
the rank of General Manager who will
act as the Nodal Officer for redressal.
The name, address and telephone No. of
the officers is available in public domain
on Company's website www.rcfltd.com.
Modernization/Expansion Scheme
Grievance Redressal
It is ensured that the Nodal Officer
immediately takes up the issue with the
concerned department and appropriate
action is 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.
A similar grievance redressal system
procedure is followed by the Company
in issues related to staff also.
7.9.7 The guidelines regarding reservation in
Recruitment and Promotion of SC, ST,
OBC, Ex-Servicemen and Physically
Handicapped Persons (PHP) are follo-
wed. Out of total strength of 4012, there
are 552 SCs, 258 STs, 347 OBCs, 8 Ex-
Servicemen and 35 PHPs on the rolls of
the Company.
7.9.8 RCF takes due care to implement the
policies regarding people with disa-
bilities.
7.9.9 RCF has a policy to include repres-
entative of the minorities in the recrui-
tment selection boards so as to ensure
that the minorities get an adequate share
in the services and developments.
7.9.10 RCF, as an organization, has always
been fair in treating employees without
any gender bias. Opportunities for gro-
wth, training, challenging jobs, learning
Employment of SC/ST, Ex-service Men, Phy-
sically Handicapped (PHP) & Other Back-
ward Classes (OBC)
Welfare, Development & Empowerment of
Women:
are equally available to both men and
women employees of RCF.
Al l wel f are and empl oyee benef i t
schemes are equally applicable to male
and female employees of RCF. Under
the special schemes and policies for
women employees, RCF has set up
?Special Cell for Women Employees
(as per Communication from Natio-
nal Commission on Women)
?Committee for Sexual Harassment
Cases (as per Supreme Court Guid-
elines)
?Special Medical check-ups/camps.
All benefits under legal requirements
such as Maternity leave, Nursing Breaks,
etc. are given to women employees. As a
part of regular training, RCF incorporates
awareness building for all officers (Men
and Women) on the Sexual Harassment
Guidelines and also covers gender
sensitization issues.
7.9.11 The following programmes are being
run as part of its Corporate Social
Responsibility programme:-
a. The Integrated Rural Devel opment
Programme is being implemented in
various villages of the country. Overall
development of these villages is the
focal point. Some of the activities
carried out under Integrated Rural
Development Programme (IRDP) are as
under:
Corporate Social Responsibility (CSR)
(i) Meeting Basic Needs of Rural Comm-
unity The scheme covers providing
essential amenities like drinking water
supply, school buildings, community cent-
ers, development of irrigation systems
etc.
(ii) Agricultural Development Programme-
This programme focuses on economic
upliftment of small/marginal farmers and
landless labourers through training and
education.
(iii) Subsidiary Occupation- Artisan Dev-
elopment Programme - This progr-
amme provides a platform for training
and financial facilities to rural artisans
and entrepreneurs which enable them to
revive and develop their skill for comm-
ercial use.
(iv) Social Forestry and Waste Land Deve-
lopment Programme This programme
focuses on development of sericulture,
social forestry, waste land use, dry land
farming and biogas development.
(v) Public Health & Village Sanitation
Programme This programme covers
health care, village sanitation, health
camps, and veterinary camps.
(vi) Youth and Women Skill Development
Programme under this programme
sports and cultural activities are organ-
ized in different villages to encourage
participation by youths.
b. Earn While You Learn Scheme - This
is a unique scheme that has been
developed by the Company. It seeks to
educate and train children studying in
class IX and above to participate in the
process of agricultural development.
These students are trained to understand
latest developments in agriculture and
transfer this knowledge to the farming
community. The scheme provides all
opportunities to students to earn while
they learn. The students participating are
offered token money which supports
them while studying and at the same
time imparts practical knowledge of
agriculture to them. The students are
required to do field extension work for
promoting specialty fertilizers, micro-
nutrients & bio fertilizers during vacation
and holidays.
7.10.1 KRIBHCO was incorporated as a Multi
State Cooperative Society on 17.04.1980
to implement the Ammonia / Urea
fertilizer project at Hazira, based on
natural gas from Bombay High / South
KRISHAK BHARATI COOPERATIVE LIMITED
(KRIBHCO)
Bassein. The Society commissioned its
Ammonia/Urea Plant in 1985.The Hazira
complex has two streams of Ammonia
plants and four streams of Urea plants.
The f er t i l i zer compl ex has been
revamped recently. Post revamp the Urea
and Ammonia annual production capacity
has increased to 21.95 lakh MT and
12.47 lakh MT respectively.
7.10.2 KRIBHCO also has a Bio-fertilizer unit
at Hazira of capacity 400 MTPA. Two
more Bio-fertilizer units of 150 MTPA
capaci t i es each have al so been
installed at Varanasi (U.P) and Lanja
(Maharashtra). In addition, KRIBHCO is
also making liquid bio fertilizers.
7.10.3 As on 30.09.2012 the authorized share
capital of the Society is Rs 500 crore
and the paid up share capital is Rs
390.18 crore.
7.10.4 The details of production for the years
2010-11 to 2012-13 for various products
by KRIBHCO is as under :
*Annual Capacity increased w.e.f. 11 May 2012 after Revamp
PRODUCTION -
KRIBHCO
UNIT 2012-13
(Upto Dec 12)
2011-12 2010-11
Ammonia Lakh MT 9.42 8.88 11.58
Urea Lakh MT 16.17 14.33 18.41
Bio Fertilizer MT 457 971 964
Capacity
Ammonia* Lakh MT 12.47 10.03 10.03
Urea* Lakh MT 21.94 17.29 17.29
Bio Fertilizer MT 700 700 700

98
7.10.6
?KRIBHCO, IFFCO and Oman Oil
Company with a share holding of
25%, 25% and 50% respectively
have collaborated and set up a
world-class fertilizer plant at Sur in
Oman. The annual capacity of the
fertilizer complex is 16.52 lakh MT
of granular Urea and 11.9 lakh MT
of Ammonia.
?The Urea produced in OMIFCO is
being purchased by Govt. of India
and half of the produce is being
marketed by KRIBHCO.
?During the financial year April '11 to
March '12 OMIFCO produced 21.32
Lakh MT of Granular Urea.
Joint Venture Oman India Fertilizer
Company, Oman (OMIFCO)
?During the financial year 2011-12
upto November 2012, OMIFCO has
produced 11.07 Lakh MT of Granular
Urea.
7.10.7
?KRIBHCO Shyam Fertilizers Limited
(KSFL), acquired Ammonia Urea
Fertilizer Complex of M/s. Oswal
Chemicals and Fertilizers Ltd. at
Shahjahanpur, U.P, consisting of a
single stream Ammonia plant of
annual capacity 5.02 Lakh MT and
two streams of Urea plant with a
combined annual capacity of 8.64
Lakh MT.
?KRIBHCO holds 85% of the equity,
management control and the entire
KRIBHCO Shyam Fertilizers Limited
(KSFL)
7.10.5 The highlights of the financial perfo-
rmance of KRIBHCO is as under :-
(i) During the year 2011-12, the Society
earned a net profit of Rs 192.16 crore
(pre-tax) and paid a dividend of Rs
19.50 Crore @ 20% to GOI. Since
inception KRIBHCO has paid dividend
of Rs 949.03 crore to GOI. KRIBHCO
has achieved highest turnover of Rs
3680.19 crore during the year 2011-12.
(ii) During the financial year 2012-13 upto
September 12, Society has made a
provisional profit (pre-tax) of Rs 101.72
crore and the details of the financial
performance is as under :-
Particulars 2012-13 (Upto Sep 12) 2011-12 2010-11
Turnover 2102.08 3680.19 3616.91
Profit (PBDIT) 181.50 274.69 269.63
Depreciation 40.12 33.32 30.48
Interest 39.66 49.21 8.89
Profit (PBT) 101.72 192.16 230.26
Tax 15.40 29.71
Profit After Tax (PAT) 101.72 176.76 200.55
Share Capital 390.23 390.23 390.23
Reserves & Surplus 2633.55 2532.06 2435.33
Net Worth 3023.78 2922.29 2825.56

(in Rs cr)
99
marketing rights of Urea and other
products of the company.
KSFL achieved highest urea prod-
uction of 10.19 lakh MT (118%
capacity utilization). The production of
Ammonia went to a highest level of
6.18 Lakh MT (123% capaci ty
utilization).
upto October'12, KSFL has prod-
uced 5.6 lakh MT of Urea and 3.24
Lakh MT of Ammonia
7.10.8 KRIBHCO has incorporated KRIBHCO
Infrastructure Limited (KRIL), a 100%
KRIBHCO Infrastructure Limited (KRIL)
subsidy of KRIBHCO, with authorized
share capital of Rs 500 crore. KRIL is
operating eight container trains (BLC
Flat Rakes) and 1500 containers. KRIL
is maintaining and operating Rail Linked
Inland Container Depot (ICD) / Private
Freight Terminal (PFT) at Hazira under
Leave & Li cense Agreement wi t h
KRIBHCO. ICD at Rewari has been
completed and commissioned in within
record time in the industry. ICDs / PFTs
at Modinagar (UP) and Hindaun City
are in advance stage of completion.
KRIL is also exploring possibilities to
set up Logistic Parks / ICDs / PFTs/
Container Freight Stations (CFS) / Free
Trade Warehousing Zones / Domestic
Container Terminals /Warehouses etc at
various strategic locations.
Field demonstration programme organised by KRIBHCO in Uttar Pradesh for the benefits of farmers
100
Gujarat State Energy Generation Limited
(GSEG)
Indian Commodity Exchange Ltd.(ICEX)
Projects Implemented/Under Implementation:
7.10.9 Gujarat State Energy Generation Limi-
ted (GSEG) is a joint venture with
Gujarat State Petroleum Corporation Ltd
(GSPC), other Government of Gujarat
Companies, KRIBHCO and GAIL(India)
Ltd. KRIBHCO has so far made equity
contribution of Rs 102.0 Crore (27.9%).
GSEG is operating a 156 MW Com-
bined Cycle Power Plant based on
Natural Gas at Mora, Distt. Surat,
Gujarat. During the financial year 2010-
11, Plant has achieved an overall Plant
Load factor (PLF) of 74.80%.GSEG has
implemented a Combined Cycle Gas
Based Expansion Project of capacity
350 MW at its existing Site at an
esti mated cost of Rs 1160 crore.
Commercial operation of the Expansion
Project was declared on March 22,
2012. Subsequently plant is not in
operation due to non availability of gas.
7.10.10 KRIBHCO acquired an equity of Rs 5.0
Crores (5% of total equity) at par in the
Indian Commodity Exchange Ltd (ICEX).
The exchange is a national level multi
commodity exchange and has started its
operations w.e.f. 27.11.2009.
7.10.11 Society has undertaken Revamp of its
Hazira Fertilizer Complex to augment its
annual capacity of Urea plant from
17.29 lakh MT to 21.95 lakh MT and of
Ammonia plants from 10.03 lakh MT
12.47 lakh MT. The Date of Commercial
Production was declared on 11th May
2012. Approved project cost is Rs 1301
Crore but the project was completed
with savings to the above.
7.10.12 Society is setting up a new Gas
Turbine based 72 MW Captive Power
Plant along with 190 MT/Hr high pres-
sure steam from waste heat. The
approximate cost of the project is Rs
400 crores. The project will not only
meet the additional power requirement
of Revamped Hazira Fertilizer Complex;
but also provide some surplus power
for sale.
7.10.13 Agriculture income is the main strength
of farmers. A large number of them are
members of our member cooperatives,
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.
7.10.14 During 2011-12, KRIBHCO organized
more than 3509 programmes for our
farming community such as farmers
meetings, Kisan melas, field demon-
strations, field days, cooperative confe-
rences, group discussion, special camp-
aign etc. benefiting 3.52 lakh farmers and
cooperatives across the country. To back
up the Agriculture Technology transfer,
the Society also made available 5.02
lakh technical folders on various crops to
the farmers and cooperatives.
7.10.15 KRIBHCO Krishi Pramarsh Kendra, a
high-tech centre at KRIBHCO Bhawan,
NOIDA continued free consultancy to
farm-related problems. The centre also
propagated efficient and balanced use of
fertilizer by testing 4358 soil samples
collected scientifically for micro-nutrients
and 2582 samples for macro-nutrients &
irrigation water from 15 states free of
cost. Results alongwith recommenda-
tions were forwarded through electronic
medium to farmers at their door-steps,
apart from using KRIBHCO website for
display of results. Pramarsh Kendra also
provided latest information on weather,
like rainfall, temperature, relative humidity,
monsoon movement etc. for use in
planning farm operations and mid-term
corrections in the event of crop failure
generally through Kisan helplines.
7.10.16 All State Director of Agriculture were
informed about educational programmes
conducted and soil samples tested from
their states along with district-wise
def i ci ency not i ced i n vari ous soi l
samples. KRIBHCO also joined hands
with ICAR, State Agriculture Univer-
sities, State Cooperative Federations for
free soil testing and technology transfer
which was thankfully acknowledged and
appreciated at all platforms.
7.10.17 As a step towards modernization,
KRIBHCO continued to promote Infor-
mati on Communi cati on Technol ogy
(ICT) through KRIBHCO Kisan helpline
using e-mail, phone, computer and
KRIBHCO website for informing farmers
about latest farm technology alongside
with traditional tools. Information on
monthly farm operations are also made
available on website.
7.10.18 Strengthening cooperatives and rural
development always remained a top
priority for KRIBHCO. In this direction
86 cooperative societies were adopted,
25966 cooperati ve managers were
trained through 161 cooperative confer-
ences and workshops. The society also
or gani zed 34 I ncome gener at i on
programmes and 51 health campaigns
for livestock and humans, promoted 27
water facilities including micro-irrigation
systems for crops in rainfed areas and
r ur al spor t s f or i nt egr at ed r ur al
development. Storage-cum-community
centre scheme started on Gol den
Jubi l ee cel ebr at i on of I ndi a st i l l
continuing with 162 centers sanctioned
and 147 are completed and being used
fully.
7.10.19 During the financial year 2012-13,
KRIBHCO continued its services to
farmers & cooperative. A total 2017
Nos. of programmers so far have been
organized upto November 2012 which
mai nl y i ncl ude Farmers meeti ngs,
Cooper at i ve conf er ence, Heal t h
campaigns for human and animals,
Techni cal wal l pai nti ngs, Techni cal
literature Printing & distribution and soil
testing campaign, directly benefiting
2.96 lakh farmers. Besides this 3.02
l akh t echni cal cr op f ol der s wer e
distributed and 3120 soil samples were
tested for pH, Electric conductivity,
macro and micro-nutrients from 104
districts of 13 states. KRIBHCO Kisan
helpline was used by 269 farmers for
solving their farm related problems.
Public/Staff Grievance Redressal Machinery
Employment of SC/ST, Ex-Servicemen, Phy-
sically Handicapped and other Backwaqrd
Classes persons(As on 30.11.2012)
7.10.20 A Public Grievance Redressal Mach-
inery is in operation in KRIBHCO.
Grievance/Complaint Box is kept at the
recepti on of offi ce for conveni ent
registration of complaints by member of
the public. DGM(HR), Corporate Office
is designated as Grievance Officer to
attend any public grievance/complaint. A
quarterly progress report of redressal of
Public Grievance is being sent to Deptt.
of Fertilizers, Government of India.
7.10.21 KRIBHCO is a National level Coope-
rative Society registered under the Multi
St at e Cooper at i ve Soci et i es Act .
KRIBHCO is a commercial organization
in the Cooperative Sector and not a
Publ i c Sect or Under t aki ng or a
Government Company. KRIBHCO does
not receive any grant-in-aid from the
Central or State Government. and does
not fall under DOPT circular dated
05.07.2005 forwarded vide DO letter no.
A-14011/2/2004 HR-II dated 21.12.2006.
Hence as such Government guidelines
for providing reservation to SC/ST are
ipso-facto not applicable in KRIBHCO.
However, out of a total strength of
2191, there are 101 SCs, 58 STs, 23
Ex Service Men, 7 Physically Handi-
capped and 294 OBCs are employed in
KRIBHCO.
7.10.22 KRIBHCO does not have any separate
financial allocation for persons with
disabilities. However, Society promotes
farmers belonging to SC/ST/OBC thro-
ugh various programmes and rural
activities.
7.10.23 KRIBHCO is not a Public Sector
Undertaking but a Cooperative Society
under the Multi State Co-operative
Societies Act 2002. The marketing
network i s desi gned onl y through
cooperati ves regi stered under the
Cooperative Societies Act. There is no
provision of any private dealership.
National Policy for Persons with Disabilities
Information Relating to Welfare of Minorities
103
8.1.1 Fertilizer Education Projects are admin-
istered by Department of Agriculture &
Cooperation, ICAR, State Governments
and the agriculture universities. However,
some fertilizer companies including PSUs
do undertake such projects as part of
their extension and marketing activities.
The Fertilizer PSUs/Cooperative 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. The main activities
undertaken by various fertilizer comp-
anies under the Fertilizers Education
Proj ects are agri cul tural semi nars,
dealers meetings and trainings, soil
sample analysis, demonstration, soil test
recommendations, exhibitions, orientation
programmes, R&D trials, field trials of
fortified fertilizers, bio fertilizers, distri-
bution of crop literature, organizing Krishi
Melas, media publicity etc. The Fertilizer
companies launch their fertilizer projects
for educating the farmers about the
quality/contents of the soil for crops.
Resultantly, the farmers are encouraged
by the companies to use the balanced
fertilizers based on the quality of the soil
nutri ent wi se and appl y ferti l i zers
accordingly.
8.1.2 In order to promote balanced and
integrated use of fertilizers, Department
of Agriculture & cooperation (DAC) had
introduced, a new scheme, namely,
National Project on Management of Soil
Health & Fertility during 2008-09 with an
outlay of Rs. 429.85 crore for 11th Five
Year Plan. Government is prom-oting
integrated and balanced use of chemical
fertilizers including secondary nutrients
and micro nutrients in conjunction with
bio-fertilizers and organic manures like
Farm yard manure, Compost, Vermi
Compost, Green Manures etc. to main-
tain soil health and its productivity. The
Government is also educating farmers
through training and field demonstrations
on bal anced use of ferti l i zers for
improving soil fertility and its productivity.
Up to 2010-11, 4.08 crore soil health
cards have been issued by the State
Governments for balanced and judicious
use of fertilizers. Under the scheme, the
Government sanctioned funds to esta-
blish new Soil Testing Laboratories and
Fertilizer Quality Control Laboratories
besides for strengthening of the then
existing STL and FQCL.
8.2.1 The Department of Agriculture & Coop-
eration is promoting Integrated Nutrient
Management (INM) through soil based
balanced and judicious use of chemical
fertilizers, bio-fertilizers and locally
available organic manures like Farm yard
Manure (FYM), vermin-compost and
green manure to maintain soil health and
its productivity. A centrally sponsored
scheme vi z, Nat i onal Proj ect on
Management of Soil Health & Fertility
(NPMSHF) has been intro-duced during
2008-09. The components of the new
scheme include setting up/strengthening
INTEGRATED NUTRIENT MANAGEMENT
Chapter - 8
Fertilizer Education Projects
of Soil Testing laboratories (STLs)/Mobile
STLs/Fertilizer Quality Control Labor-
atories (FQCLs), trainings, demon-
strations and promotion of organic
manure/soil amendment/micro nutrient
during 11th Plan.
During 2009-10, an account of Rs. 42.47
crore was released under NPMSHF or
66 new STLs, 62 Mobi l e STLs,
strengthening of 107 existing STLs and
11 new FQCLs & Strengthening 19
existing FQCLs for various States.
During 2010-11, an amount of Rs. 20.82
crore were released for setting up 16
new Static STLs, 10 new Mobile STLs,
strengthening of 9 existing STLs, 1 new
FQCL under PPP Mode for advisory
purpose and strengthening of 6 FQCLs.
During 2011-12, an amount of Rs. 15.02
crore were released for setting up of 2
new State STLs, strengthening of 15
exi st i ng STLs, 1 new FQCL and
strengthening of 6 FQCLs.
During 2012-13, BE of Rs. 30.00 crore
has been kept against which so far an
expenditure of Rs. 11.57 crore has
been incurred.
8.2.2 In order to promote the concept of
balanced use of fertilizers at micro
level, DAC has identified the concept of
customized fertilizer. These fertilizers
are crop specific, area specific and soil
speci f i c. So, f ar, 31 cust omi zed
fertilizers have been notified under
clause 20 B of FCO for various areas
of the country. The deficiency of micro
nutrient has been reported in many
parts of the country. In order, to
encourage the use of micro nutrients,
DAC is encouraging use of fortified
fertilizers to achieve maximum fertilizer
use efficiency. So far 11 (eleven) such
fertilizers have been included in FCO.
In order to make available large variety
of fertilizers to the farmers as per their
r equi r ement , so f ar 11 st r ai ght
ni t r ogenous f er t i l i zer, 8 st r ai ght
phosphatic fertilizers, 5 straight potassic
fertilizer, 2 sulphure fertilizers, 19 NPK
complex fertilizers and 16 NP complex
fertilizers have been specified. To
encourage use of organic and bio
fertilizers, seven bio-fertilizers namely
Rhizobium, Azotobacter, Azopirillum,
Phosphate Solubilising Bacteria, Potash
mobi l i zi ng Baact eri al (KMB), Zi nc
Sol ubi l l i si ng Bact eri a (ZnSB) and
Mycorhizae have been incorporated in
FCO, 1985. Specifications of organic
fertilizers namely; city waste compost,
Vermi compost and Phosphate rich
organic manure (PROME) have been
included in FCO, 1985. Composition of
Castor de-oiled cake has also been
specified in FCO, 1985.
FERTILIZER MONITORING SYSTEM (FMS)
9.1.1 The mandate of the Department of
Fertilizers (DOF) is to make available
fertilizers to the farmers at affordable
prices. The affordable prices part of the
mandate gets translated into subsidized
fertilizers. The subsidy portion of the
fertilizers which ranges from 30% to 70%
of the cost of the fertilizers is given to the
companies, so as to make available
subsidized fertilizers for the farmers. This
means that while the company collects a
subsidized retail price from the farmers,
the cost plus component of the fertilizer
is reimbursed to the company as fertilizer
subsidy.
9.1.2 The requirement of fertilizers is given by
the State Governments (by the State Agr-
icultural Department) to the Department
of Agri. & Cooperation, Government of
India, which in turn, coordinates with
DOF to make available the requirement
of fertilizers in the country.
9.1.3 Prior to the web enabled Fertilizer
Monitoring System (FMS), there was no
means for the Department of Fertilizers
to track the movement of fertilizers
except through fax, e-mail etc. The
manual processing of data was used by
various stakeholders and it was very
time consuming. Also, the processing
of subsidy bills was cumbersome as the
tracking of bills was not there. With
regard to State Governments also, the
State Agriculture Departments manually
consolidated their requirements and
sent it to the DOF. Therefore, in order
to have a real time, transparent and
reliable system, a path breaking initi-
ative to make available information of
the demand and supply of fertilizers
across the country and also to be used
by various stakeholders, the FMS was
initiated for development by M/s Lateral
Praxis in the year 2005. The firm was
selected through limited tendering, who
are currently managing the FMS for the
DOF. The application is owned by DOF,
although it was developed by M/s
Lateral Praxis. The FMS was developed
i n stages and today i t covers al l
aspects of fertilizer movement in both
controlled and decontrolled fertilizers, as
well as in the generation of subsidy
bills.
9.2.1 The system was developed in consu-
ltation with the industry and other
stakeholders. The development initiated
in 2005 culminated in 2007 for tracking
and subsidy claim generation for P&K
fertilizers. Thereafter, FMS was exten-
ded to freight subsidy bills and FICC
(indigenous urea claim generation as
also freight subsidy). The system is
working successfully for the past 5
years.
The development cost of the project
has been released in stages depending
on the various modules that have been
developed. Till date, approximately Rs.1
crore has been released for its devel-
Development of FMS
Chapter - 9
Information Technology
opment. In addition, AMC is paid to
M/s Lateral Praxis. The National Infor-
matics Centre (NIC) of DOF has been
consulted at every stage of the new
module development.
9.3.1 The following modules are there in the
system:-
a) Movement Module - The distribution of
fertilizers in the country is linked to the
requirement given by the States for
every season and the States also
facilitate the fine tuning of the supply
plan for each month, in consultation
with the LFS and the Department.
b) Claim Generation Module (P&K fertilizers,
indigenous urea & freight subsidy)
c) State Module for certification
9.3.2 In addition, different users have different
viewing rights. The Administrator in the
DOF is Director (FA). While the tran-
saction details are entered by the
companies on a daily basis from the
point of import of raw material/ finished
goods to custom clearance to receipt at
the plant production, despatches from the
plant & port, receipts in the districts, first
point sales in the districts and claim
generation, the DOF and the State
Governments have the latest information
on all these issues.
9.3.3 The public domain of the system is
(www.urvarak.co.in) and the availability
of different grades of fertilizers, at any
point of time, in the districts can be
viewed by the public here. The system
on an average handles 2.5 lakh transa-
ctions every month.
Modules of FMS
Advantages of FMS
MOBILE FERTILIZER MONITORING SYSTEM
(mFMS)
9.4.1 The following are the advantages of
FMS :-
a) The movement upto the district level
and the availability thereon is possible
at the click of a single button to the
MIS cell, which was earlier manually
taking information and collating it, has
been closed and the resources used for
more productive activities.
b) It is possible to track the actual supplies
against the plant supplies, which aids in
both budget management subsidy bills as
also movement of fertilizers.
c) The companies are able to use the
system for both tracking their movement
as also subsidy bill processing.
d) The State Governments use the FMS to
monitor the availability at the districts.
Fertilizer Monitoring System (FMS) therefore,
is a path breaking IT initiative undertaken by
the Department of Fertilizers.
9.5.1 The Department of Fertilizers had
undertaken an ICT enabled mobile based
Fertilizer Monitoring System (mFMS) for
achieving the long cherished goal of
directly transferring the cash subsidy to
the fertilizer buyers across the country.
mFMS aims to provide end to end
information on the movement of fertilisers
and subsidies from the manufacturer to
the last mile retail sales. A transparency
portal (www.mfms.nic.in) has also been
established for dissemination of infor-
mation on fertiliser availability on a real
time at the point of sale to the farmer on
the site. One of the major milestones in
this initiative is to create a database of
the end buyers of fertilizers or end
beneficiaries, by taking down their
personal details including biometrics. This
initiative will also leverage AADHAR UID
for authentication of beneficiary details
and transferring the subsidy directly into
the AADHAR linked bank accounts of the
farmers. The initiative has been under-
taken under the guidance of the Task
force set up under the chairmanship of
Shri Nandan Nilekani, Chairman UIDAI.
The mFMS project is planned to be
implemented in the following four phases:
1. Phase I: Information visibility till the
retailer's level where part subsidy is
disbursed to the manufacturers on the
basi s of t he i nf ormat i on of ret ai l
acknowledgements reported in mFMS.
Phase I has been rolled out on a
nation-wide as on 1st November 2012
linking part of the subsidy payment to
retail sale acknowledgements.
2. Phase II: Part subsidy payment to the
manufacturers on the basis of the
information of retailer sales of fertilizers
captured in mFMS.
3. Phase III: Subsidy payment to the retail
customer on the basis of fertilizer sales
made to him/her.
4. Phase IV: Subsidy payment to the
farmer* on the basis of details of sales
made to him/her
*Criteria for identification of a farmer can be
established in subsequent phases
9.5.2 The National Informatics Centre (NIC) is
the consultant for the software develo-
pment, and implementation of the same
is being done in consultation with all
the stakeholders, including the fertilizer
manufacturing and importing companies.
The mFMS appl i cat i on has been
developed to track the movement of
fertilizers from manufacturer sales to
retail receipt acknowledgements. This
information is being reflected on the
mFMS transparency portal regularly.
NIC is currently working on extending
the mFMS application to capture retail
sales in Phase II through Point of Sale
(POS) machines.
9.6.1The Department of Administrative Reforms
and Public Grievances Department of
Fertilizers is implementing E-office
Mission Mode Project as a part of e-
Governance Plan to modernize the
Central Govt. offices through introduction
of information and communications
technology with the following objectives:-
(i) Government e-office around a Standard
Architecture & framework.
(ii) Global Govt, directory and data storage
(Information and data repository).
(iii) Support integration and interoperation.
(iv) Avoid duplication of efforts and redundant
data storage.
(v) Inter/Intra Govt, information sharing and
movement.
(vi) Flexibility for scaling/evolving.
IMPLEMENTATION OF E-OFFICE IN THE
DEPARTMENT OF FERTILIZERS
(vii) Centralized file and work flow system.
(viii) Maintain security of the critical and
sensitive data.
9.6.2 Under the program the Department of
Administrative Reforms and Public
Grievances has identified among others
the Department of Fertilizers for implem-
entation of E-office Mission Mode Project.
The E-office project comprises modules
viz: E-file, E-leave i.e. Leave Manag-
ement of Officials, Knowledge Manag-
ement System, e-tour, Personal Inform-
ation System and Collaboration and
Management Services (CAMS).
9.6.3 The E-file, which is the most important
modul es of the proj ect, has been
implemented in the Department. The
other modules of the E-office project
namely E-Leave and KMS have also
been implemented in the Department.
With the implementation of the E-file
module, the physical movement of files
and receipts the Department will be
reduced to bare minimum level. All
issues will be dealt in electronically
through e-files. The process of switching
over to electronic mode of files/receipts
has already been commenced in the
Department gradually to achieve the
objective of making this Department a
paperless office.
10.1.1 The vigilance activities of the Department
extend to the Department as well as to 7
Public Sector Undertakings and 1 Multi
State Cooperative Society. The Vigilance
Division is headed by a Joint Secretary,
who is designated as Chief Vigilance
Officer of the Department. The CVO is
assisted by a Deputy Secretary, Under
Secretary and a Section Officer along
with other vigilance staff. Vigilance
related activities are carried out within the
framework provided by the Department of
Personnel & Training, Central Vigilance
Commission and Department of Public
Enterprises. The Department plays pro
active role in ensuring the prompt
disposal of the complaints and in framing
preventive guidelines. Efforts are made
by the Department to simplify the
procedures in the PSUs to promote
transparency in their working which
reduces the chance of corruption.
10.2.1 The number of pendi ng vi gi l ance
(Disciplinary Proceeding) cases in the
PSUs was 35 as on 31.12.2012. The
Department has been regularly monitor-
ing the pending complaints/ investig-
ations by having close interaction with
the concerned CVOs of PSUs and
constant efforts are being made to
ensure the timely disposal of discip-
linary proceedings.
Vigilance activities during 2012
Celebrations of Vigilance Awareness Week
Surveillance and detection
Punitive action
10.3.1 The Vigilance Awareness Week' was
celebrated in this Department from
29.10.2012 to 3.11.2012. During the
week banner s wer e di spl ayed at
different places in the Department to
create vigilance awareness among the
staff A pledge was administered by the
Secretary (F) to the staff and an essay
competition was held thereafter. "Vigila-
nce Awareness Week" was also cele-
brated with great gusto in PSUs and
KRIBHCO and various competitions
such as slogan writing, essay, debate,
quiz, workshops etc were held.
10.4.1 Agreed list of public servants as well as
List of Public Servants of Doubtful
Integrity for the year 2012 have been
finalized.
10.5.1 On 1st Jan 2012 there were 34 compl-
aints from various sources against the
off i ci al s of PSUs et c were under
examination in this Department. For the
ti me peri od 1st Jan 2012 to 31st
December 2012, 19 fresh complaints
had been received in this Department.
During the same period a total of 19
complaints have been disposed after
examination and investigation.
Chapter - 10
Vigilance Activities
11.1.1 The Right to Information Act, 2005
(RTI) was assented by the President of
India on 15.6.5002 and notified on
21.6.2005. Some of the/sections of the
Act, namely, Sections 4(1), 5(1) & (2),
12,13,15,16,24,27 & 28 relating to
obligations of Public Authorities for
maintenance and computerization of
record/information, designation of Public
Information Officers (CPIO), constitution
for Central Information commission and
State Information Commission, excl-
usion of certain organization etc. came
into force immediately. The remaining
provision of the RTI act came into the
force on the 120th day of its enactment
i.e. 12th October, 2005.
11.1.2 The Department scrupulously implements
the provisions of the RTI Act and various
instructions issued by Department of
personnel and trai ni ng, the Nodal
Department, and Central Information
Commission. In compliance of the RTI
Act the Department has designated
Under Secretaries as CPIOs and Deputy
Secretary/Director level officers as
Appellate Authority in the department.
The respective PSUs under the admin-
istrative control of the Department,
designated as separate Public Authority
under the RTI Act, have been directed to
ensure compliance of the RTI Act. Some
of the important steps taken by the
Department in compliance of the Act
are:-
a. Created a separate link for RTI Act on its
websi t e ht t p: / / f ert . ni c. i n pl aci ng a
handbook on RTI giving general inform-
ation about the Department required
under the Act.
b. Orders designating CPIO and Appellate
Authority are posted on the Departmental
website and are up dated from time to
time.
c. Counter opened at Public Information
Centre of DoF at Shastri Bhawan for
application as well as prescribed free
under RTI.
d. Appointment of a Nodal Officer intimated
to Department of Post enabling providing
of services by that Department a CAPIOs
across the country.
11.1.3 The Department has started registration
of applications and appeals under the
RTI Act on the Management Information
System (RTI-RAMIS) software available
on the Web-Site of CIC.
11.1.4 During the year 2011-2012, 184 appli-
cations and 14 appeals were received
out of which 163 applications and 12
appeals were disposed of, in time, during
the said year. Two applications were
rejected under Section 8(j) of the RTI Act
and 5 applications were rejected for not
being accompanied by requisite fees in
the prescribed manner, as per the RTI
Act. The remaining applications and
appeal are under process and reply
would be sent to the applicants in time.
Chapter - 11
Right to Information Act, 2005
12.1.1 Department of Fertilizers continued its
efforts towards greater use of Hindi in
official work during 2012-2013 keeping in
view the Annual Programme issued by
the Department of Official Language,
Ministry of Home Affairs for imple-
mentation of the Official language policy
of the Union. The work pertaining to the
progressive use of Hindi in the Depar-
tment is under the administrative control
of Joint Secretary (Administration),
assisted by two Deputy Director (OL).
The Hindi Section consists of two
Assistant Directors (OL), three Senior
Translators, one Junior Translator and
one Assistant.
12.1.2 All the 205 Computers (PCs) and 10
Laptops in the Department are equipped
with bilingual facility. Adequate reading
materi al i n Hi ndi has been made
available in the library of the Ministry of
Chemicals & Fertilizers. Constant efforts
are being made to promote the use of
Hindi in the correspondence. During the
year one Assistant and one Stenographer
have been trained in Hindi Typing and
Stenography respectively under the Hindi
Typing & Hindi Stenography Scheme
being conducted by the Department of
Official Language. Besides, a number of
measures have been taken for the
promotion of progressive use of Hindi in
the Department, its attached office of
FICC, PSU's and the multi state coop-
erative society namely KRIBHCO, under
its administrative control. Details of these
measures are summarized below:-
IMPLEMENTATION OF SECTION 3(3) OF
THE OFFICIAL LANGUAGE ACT.
OFFICIAL LANGUAGE IMPLEMENTATION
COMMITTEE (OLIC)
12.2.1 In pursuance of the official language
policy of the Govt. of India, all docu-
ments covered under section 3(3) of
the Official Language Act, 1963 are
being issued both in English and Hindi.
In order to ensure correspondence in
Hindi to Central Government offices
located in Region 'A', 'B' and 'C', action
plan based on the checkpoints identified
in the Department has been prepared
to ensure compliance of the official
language policy. All the letters received
in Hindi are invariably replied to in
Hindi. Efforts are also being made to
reply the letters in Hindi which are
received in English from region 'A' &
'B'. Original correspondence in Hindi
with the State Governments is also
being increased.
12.3.1 There is an Official Language Implem-
entation Committee (OLIC) under the
Chairmanship of Joint Secretary (Adm.)
in the Department. This committee
regularly reviews the progress made in
the use of Hindi in the Department, its
attached offices, FICC, PSUs and a
Cooperative Society namely KRIBHCO
on quarterly basis. It gives appropriate
suggestions and recommends measures
to be taken for the effective implemen-
tation of the official language policy.
Chapter - 12
Progressive use of Official Language Hindi
HINDI SALAHKAR SAMITI
INCENTIVE SCHEME FOR ORIGINAL NOTING
/ DRAFTING WORK IN HINDI
12.4.1 With a view to render advice for effective
implementation of the official language
policy of the Government, the Hindi
Salahkar Samiti (Advisory Committee) of
the Ministry of Chemicals and Fertilizers
(Department of Petro-chemicals, Deptt. of
Pharmaceuticals and the Department of
Fertilizer) has been constituted. Joint
Secretary (Admn) Department of Fertili-
zers, is the Member Secretary of this
Committee. The last meeting of the
Committee was held on 10th October,
2011 in Portblair under the Chairmanship
of the Minister of State for Chemical and
Fertilizers. The members of Parliament,
Non-Offi ci al Members, Government
official Members and the Heads of the
PSU' s under the Department were
present in the Meeting. The Hon'ble
Minister expressed his pleasure for the
work of Official Language Hindi being
done in all the three Departments of the
Ministery viz. Department of Chemicals
and Petro-Chemicals, Deptt. of Pharma-
ceuticals and Deptt. of Fertilizers and all
the PSUs under them. He also advised
to use simple and day-to-day used words
and take forward the work of disse-
mination of the Official language Hindi:
12.5.1 The incentive scheme for noting/drafting
in Hindi introduced by the Department
of Official Language is continued. This
scheme carries two prize of Rs.1000/-
each, three second prizes of Rs.600/-
each and five prizes of Rs.300/-each.
Hindi Day/Hindi Fortnight
Prati Din Ek Shabd
Preparation of Department of Fertilizer
Website de novo
12.6.1 In order to encourage the use of Hindi in
official work amongst officers/employees
of the Department, an appeal was made
by the Honourable Minister on 14th
September, 2012. During the Hindi
fortnight, which was organised in the
Department from 14th September, 2012
to 28th September, 2012, vari ous
competitions such as Hindi Essay writing,
Hindi typing, short extempore speech in
Hindi, noting and drafting in Hindi for
non-Hindi officials. Hindi general know-
ledge and poem recitation comp-etitions
i n Hi ndi were organi sed. On 21th
November, 2012 prizes were awarded by
Joint Secretary to those participants who
scored first, second, third prizes and
consolation prizes viz. Rs. 2500/-, Rs.
2000/-, Rs. 1500/- & Rs. 1000/- in these
competitions.
12.7.1 The Scheme named ' Prati Di n Ek
Shabd', is being run in the Department,
that continued this year also Under this
scheme, one word/phrase in Hindi and
i t s Engl i sh equi val ent was bei ng
displayed on the White Board installed
on the second floor 'A' wing Shastri
Bhavan. These words/phrases are
generally of administrative and technical
in nature which are used in day-to-day
official work.
12.8.1 The website of the Department has
been prepared de novo. The Hindi
translation of the website is under proc-
ess. As soon as the translation work of
the website is completed, it will be
uploaded on the website.
12.9.1 During the year, 3 Hindi workshops,
one f or Sect i on Off i cers, one f or
Assistants and Stenographers and one
for LDC's & UDC's were organised in
the Department to encourage the
officials to do more and more work in
Hindi and altogether 28 officers/ emplo-
yees participated in these workshops.
Hindi Workshops
Inspections regarding progressive use of
Hindi
12.10.1 In order to oversee the implementation
of the official language policy 4 PSUs
/Co-operative under the administrative
control of this Department were insp-
ected by the Deputy Director (O.L.) of the
Department during the year. Besides, first
sub-Committee of the Parliamentary
Committee on Official Language inspe-
cted 3 offices under the administrative
control of the Department.
13.1.1 Due care has been exercised during the
year under review to implement Govern-
ment's instructions regarding recruitment
and promotion of candidates belonging to
the Scheduled Castes (SCs), Scheduled
Tribe (STs), Other Backward Classes
(OBCs) and Physically Handicapped
(PHPs) categories in various groups of
services in the Department. The repres-
entation of these categories in the
Department as on date is as under:-
Group Total No. of
Officers/Staff
SC ST OBC PH
A 43 02 02 03 -
B 110 21 05 11 01
C 117 31 05 18 01
Total 270 54 12 32 02

Representation of SCs, STs, OBCs and
Physically Handicapped Persons in PSUs.
13.2.1 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),
have been implemented in all the
PSUs/Cooperative under the admini-
strative control of the Department. The
Presidential Directives regarding reser-
vation for OBCs have also been made
applicable w.e.f. 8.9.93 in the Depar-
tment. The Cooperative Society viz.
KRIBHCO has also adopted the guide-
lines relating to OBCs w.e.f. 1.10.95.
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. The representation of SCs,
STs, ex-servicemen, physical handi-
capped persons and OBCs in the PSUs
is given in the Annexure-XIV.
Besides providing employment, PSUs/
Cooperative have been advised to
prepare and implement special progra-
mmes /schemes for education of tribal
in scientific use of fertilizers, building up
of dealer/retailer network in the tribal
areas, and making fertilizers available in
small packs in the tribal predominated
area.
13.3.1 The PSUs/Co-operative under the Dep-
artment have further been advised to
provi de faci l i ty of pre-exami nati on
coaching to the candidates of minority
community, wherever feasible, and to
Welfare of Minorities
Chapter - 13
Welfare of SCs, STs, OBCs and
Physically Handicapped Persons
take steps to increase awareness of
candidates belonging to the communities
about employment opportunities. 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 develo-
pment schemes.
13.4.1 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. To ensure availability of suffi-
cient numbers of suitable SC/ST candid-
Reservation in Dealership
ates, the following concession are
generally given by the undertakings:-
(i) Exemption / relaxation from security
deposits.
(ii) Preference in supply of fast moving
materials.
(iii) Higher rate of dealership margin as
compared to that allowed to general
dealers; and
(iv) Free training for handling of fertilizers.
13.4.2 The PSUs have also been advised to
reserve 10% of fertilizer dealerships
for ex-servicemen.
14.1.1 The principle of gender equality is
enshrined in the Indian Constitution in the
Preamble, Fundamental Rights, Funda-
mental Duties and Directive Principles.
The Constitution not only grants equality
to women but also empowers the State
to adopt measures of positive discri-
mination in favour of women. The
Department Fertilizers is committed
towards giving importance to women in
different spheres. Though there is no
specific scheme, as such, for women, the
PSUs under its admin-istrative control are
involved in year-long activities to create
large scale awareness among women
with their active parti-cipation. These
programmes are aimed towards enabling
women to realize their full potential and
involve-ment in decision making process.
Department of Fertilizers has a Compla-
ints Committee to attend to grievances
of its women employees and has infact
formed a Committee under the Chair-
manship of Mrs T.C. A. Kalyaani, Director
(FA) under 'Vishakha' guidelines and
have placed complaint boxes in all
prominent places so that aggrieved
women employees could make comp-
laints. Department has also alloc-ated a
separate room for women to serve as
common room and it takes pride in
providing congenial environment to
women employees.
14.2.1 BVFCL lays emphasis in development
of empl oyees wi thout any gender
BVFCL
discrimination. There is no discrimina-
tion against Women employees. Ade-
quate healthcare is provided for the
welfare of the Women. Emphasis is
given at the time of recruitment and
many women candidates have been
recruited in recent past. As per the
guidelines circulated by the National
Commission for Women, a committee
headed by a Lady Officer has been
constituted to address any problem
related to sexual harassment. Till date
no such complaint has been received
by the committee. There is not discri-
mination against any woman at any
point of time.
14.3.1 MFL does not have any probl ems
related with gender issues. However, a
wing of Women in Public Sector (WIPS)
i s functi oni ng at MFL and women
employees are nominated for programs
organized by WIPS.
14.4.1 RCF, as an organization, has always
been fair in treating employees without
any gender bias. Opportunities for
growth, trai ni ng, chal l engi ng j obs,
learning are equally available to both
men and women employees of RCF.All
the wel fare and empl oyee benefi t
schemes are equally applicable to male
and female employees of RCF. Under
the special schemes and policies for
women employees, RCF has set up
MFL
RCF
Chapter - 14
WOMEN EMPOWERMENT
?Special Cell for Women Employees
(as per Communication from Nati-
onal Commission on Women)
?Committee for Sexual Harassment
Cases (as per Supreme Court Guide-
lines)
?Special Medical check-ups/camps.
14.4.2 All the benefits under legal requirements
such as Maternity Benefits, Nursing
Breaks, etc. are given to women emplo-
yees. As a part of regular training, RCF
incorporates awareness building for all
officers (Men and Women) on the Sexual
Harassment Guidelines and also covers
gender sensitization issues.
14.5.1 Female employees comprise 5.41% of
the total workforce of the Company.
The Company has a female Full-time
Functional Director on its Board. The
Company has adopt ed adequat e
measures to facilitate a congenial work
atmosphere for its women employees.
14.5.2 There is no instance of any Gender
inequality and both men and women
employees are enjoying equal rights.
The working atmosphere is very cordial
and harmonious.
14.6.1Equal opportunity has been provided to
women in recruitment to posts both in
technical and administrative disciplines.
Exception has been made only for jobs
involving shift-work round the clock.
Equal remuneration is paid to emplo-
yees of both genders doing the same
type of work. There is no discrimination
NFL
FACT
on grounds of gender. This has enabled
some of our women officers to excel in
their respective field of activities leading
to their being chosen for the coveted
Meri t Award gi ven for outstandi ng
performance and achievements.
14.6.2 Women executives occupy key positions
in the Management cadre as Deputy
General Managers Chief Managers/ Chief
Engineers & Dy. Chief Managers/ Dy.
Chief Engineers in various Engineering
disciplines like Chemical, Electrical, Civil,
Computer, Industrial Engineering etc. and
administrative disciplines like Finance,
Human Resources, Materials, Marketing
etc.
14.6.3 Under the Maternity Benefit Act, women
employees are entitled for maternity
leave of 90 days and medical benefits
associated with pregnancy, delivery,
miscarriage etc. Under the provisions of
the Factories Act, the working hours of
women employees covered under the Act
is restricted between 6 am and 7 pm.
Nursing mothers are given two intervals
of 15 minutes each as feeding time, or
alternatively as a working arrangement of
30 minutes at a stretch, for feeding their
infants, up to a maximum of fifteen
months after confinement. As per GOI
Orders, women employees undergoing
family planning operation are given
special leave up to 2 weeks. A crche is
also provided for the welfare of women
employees.
14.6.4 The Company sponsors a Ladies Club
for the recreational activities of women
employees and wives of male emplo-
yees. There is also an association of
women employees, by the name FACT
Women' Welfare Association, whose act-
ivities are welfare oriented.
14.6.5 Based on the GoI Orders, there is a full
fledged and active complaints Committee
to look into complaints of atrocities/ har-
assment meted out to women employees
at work place. Not less than half the
members are women i ncl udi ng an
external member who is a lady Professor
of a reputed Social Work College.
Chapter - 15
SEVOTTAM
15.1.1 The Sevot t am model has been
developed with the overarching objective
of improving the quality of public service
delivery in the country. The model has
three components viz Citizen's Charter,
Public Grievance Redressal and excell-
ence in Service Delivery with an overall
objective of keeping citizens better
informed and their empowerment in order
to be able to demand better services,
grievance redressal and continuous
improved delivery system.
15.2.1 The Department of Fertilizers is commi-
tted to the effective and responsive
administration and excellence in service
delivery and has completely implemented
the SEVOTTAM framework of Govern-
ment of India. The Department has
created a Sevottam compliant Citizen's /
Clients Charter as well as Sevottam com-
pliant Grievance Redressal mechanism
under Results Framework Document
(RFD). Citizen' s/Client' s Charter of
Department of Fertilizers has been
prepared and displayed on the Depart-
ment's website. As per the RFD the
Vision of the this department is Achie-
ving fertilizers security for the country for
sustainable agricultural growth supported
by a robust domestic fertilizer industry
and Mission is Ensuring adequate and
timely availability of fertilizers to the
farmers at affordable prices through
IMPLEMENTATION OF SEVOTTAM
planned production and imports and
distribution fertilizers in the country and
planning for self sufficiency in urea
production.
15.2.2 Till date, the Department of Fertilizers
has submitted RFDs for 2009-10, 2010-1,
2011-12 and 2012-13 which have been
duly approved by the High Power
Commi t t ee (HPC) on Government
Performance. The RFD for the year
2011-12 is at Annexure-XV and the
corresponding achievements of the
department is at Annexure-XVI. The
composite score approved by the HPC
for the department is 72.66 % which is a
Fair departmental rating given to the
department as per the RFD.
15.2.3 The Department offers services to
Citizens, Central Public Sector Enter-
prises under the Department, Fertilizer
producing companies, importers of fertili-
zers (urea, MOP, complexes) / raw
material suppliers, Department of Agricul-
ture and Cooperation etc, as per the
services standards indicated in the
Citizen's/Client's Charter which are as
under :-
?timely grant of clearance for setting up
/augmenting of fertilizer production
unit.
?timely payment of subsidy to fertilizer's
companies for indigenous/imported
urea /PNK fertilizers.
?timely fixing of production /inputs
targets for 100 per cent fertilizer's
companies.
?recommendations to customs Depar-
tment for concessional rate of custom
duty un-der Project Import Scheme in
Fertilizer sector in respect of imported
machinery and equipments for capital
goods.
?timely payment of bills to vendors.
?prompt grievance redressal.
?decision on proposals for capacity
expan-sion technical upgradation,
modernization of plants, machinery,
etc,.
15.2.4 A Grievance Redress Mechanism has
been implemented in the Department with
an objective of speedy redressal and
effective monitoring of grievances. A
Nodal Officer of the rank of Joint Secr-
etary has been designated as Director of
Public Grievances. Separate Nodal Offic-
ers have been designated for redressal of
Staff Grievances and Grievances of
Pensioners. Service recipients can either
lodge grievances on Centralized Public
Grievance Redress and Monitoring
System (CPGRAMS) at the Grievance
Portal of Department of Administrative
Reforms and Public Grievances (DARPG)
at http://pgportal.gov.in or at centralized
Pensioners Grievances Re-dress and
Monitoring System (CPENG-RAMS) at
Pensioners' Portal of Department of
Pension & Pensioners' ' Welfare at
h t t p : / / p e n s i o n e r s p o r t a l . g o v. i n /
CPENGRAMS (for grievances of pensi-
oners) or at the website of the Depar-
tment of Fertilizers or they can give it in
person or send by post or e-mail or by
fax to the Director of Grievances.
Grievances received in Department of
Fertilizer are monitored in Centralized
Public Grievance Redress and Monitoring
System (CPGRAMS). The grievances are
transferred to concerned CPSEs and the
status of disposal is monitored. As per
the DARPG website, Department of
Fertilizers, has so far (as on 26.2.2013)
received 265 public grievance cases,
directly or through other Departments, out
of which 203 cases were disposed and
62 cases are at different stages of
processing. Overall disposal rate was
77%.
126 Department of Fertilizers
Annexure - I
LIST OF ACTIVITIE BEING CARRIED OUT BY THE DEPARTMENT OF FERTILIZERS
1. Planning for fertilizer production, including
import of fertilizer through a designated
canalizing agency.
2. Al l ocati on and suppl y l i nkages for
movement and distribution of urea in
terms of assessment made by the
Department of Agriculture & Cooperation.
3. Administration of concession schemes
and management of subsidy for contro-
lled as well as decontrolled fertilizers,
including quantum of concession of de-
controlled fertilizers, costing of such
fertilizers and pricing of Phosphatic and
Potassic fertilizers.
4. Administration of the Fertilizer (movement
control) Order, 1960.
5. Policy and pricing matters relating to
urea.
6. All matters pertaining to fertilizer PSUs
including matter related to their disinve-
stment.
7. Al l matters pertai ni ng to Ferti l i zer
Projects, Joint Venture / Joint Sector
companies.
8. External assistance for new fertilizer
projects.
9. Matters relating to Fertilizer Industry
Coordination Committee (FICC), an
attached office of DoF, which is conce-
rned with cost aspects of urea production
and disbursement of subsidy on indige-
nous urea.
10. Matters connected with supply and
availability of fertilizer raw material and
marketing of fertilizers.
11. Fixation of remuneration rate for handling
imported fertilizers.
12. Work relating to planning, monitoring and
valuation of fertilizer production.
13. All matters relating to WTO in the fertili-
zers sector.
Annexure - II
LIST OF OFFICERS IN THE DEPARTMENT ( as on 31.01.2013)
Minister for Chemicals & Fertilizers : Shri M.K. Alagiri
Minister of State for C&F : Shri Srikant Kumar Jena
Secretary : Sh. Sudhir Mital

Additional Secretary & Financial Adviser : Sh S C Khuntia (Addl. Charge)
Joint Secretary : Shri Sham Lal Goyal
Shri S.C. Gupta
Shri Satish Chandra
Joint Secretary Level Officers : Shri A.K. Parashar, EA
Smt. T.C.A Kalayaani (Addl. Charge)
Directors : Shri Sanjay Kumar Sinha
Shri Neeraj Singhal
Shri Vijay Ranjan Singh
Shri D.P. Srivastava

Shri Gobinda Gopal Mitra, JD (FICC)
Deputy Secretary & equivalent Officer : Shri R. Selvam, PS to MCF
Shri Manish Tripathi, PS to MOS
Captain Rana Vikram Singh
Shri Rajiva Kumar
Shri S. Anandan
Shri H.C. Bhanot, JD (FICC)
Smt. Surinder Kaur, DS (FICC)
Shri Mukesh Bhardwaj
Shri Tapan Dutta,
Shri Anand Kumar Pal, JD(FICC)
Shri V.K. Sharma, Sr. PPS
Controller of Accounts : Shri Akhilesh Jha
Annexure - III
LIST OF PUBLIC SECTOR UNDERTAKINGS /COOPERATIVE SOCIETY
UNDER THE ADMINISTRATIVE CONTROL OF DEPARTMENT OF FERTILIZERS

PUBLIC SECTOR :

S.No. Name of the Company Headquarters Incorporated
in
1. The Fertilizers and Chemicals
Travancore Ltd (FACT)
Udyogmandal September,
1943
2. Fertilizer Corporation of India Ltd (FCIL) New Delhi January, 1961
3. National Fertilizers Ltd(NFL) Noida August, 1974
4. Rashtriya Chemicals and Fertilizers
Ltd(RCF)
Mumbai March, 1978
5. Madras Fertilizers Ltd (MFL) Chennai December,
1966
6. Projects and Development India
Ltd(PDIL)
Noida March, 1978
7. Hindustan Fertilizer Corporation Ltd
(HFCL)
New Delhi March, 1978
8. Brahmaputra Valley Fertilizer
Corporation Ltd (BVFCL)
Guwahati April, 2002
9. FCI Aravali Gypsum and Minerals India
Ltd (FAGMIL)
Jodhpur February , 2003

COOPERATIVE SECTOR:

10. Krishak Bharati Cooperative Ltd
(KRIBHCO)
Noida April, 1980

Annexure - IV
UNIT-WISE INSTALLED CAPACITY, PRODUCTION AND CAPACITY UTILIZATION
FOR THE YR 2011-12 & 2012-13
YEAR-WISE, NUTRIENTS-WISE CONSUMPTION,
PRODUCTION AND IMPORT OF FERTILIZERS
Annexure - V

(lakh M.T.)

YEAR

CONSUMPTION

PRODUCTION

IMPORTS

N

P

K

TOTAL

N

P

K

TOTAL

N P K TOTAL
1981-82

40.69

13.22

6.73

60.64

31.44

9.49

0.00

40.93

10.54 3.43 6.44 20.41
1982-83

42.24

14.37

7.27

63.88

34.24

9.80

0.00

44.04

4.25 0.63 6.44 11.32
1983-84

52.86

17.07

7.99

77.92

34.85

10.48

0.00

45.33

6.56 1.43 5.56 13.55
1984-85

54.87

18.86

8.38

82.11

39.17

12.64

0.00

51.81

20.08 7.45 8.71 36.24
1985-86

56.61

20.05

8.08

84.74

43.28

14.28

0.00

57.56

16.80 8.16 9.03 33.99
1986-87

57.16

20.79

8.50

86.45

54.10

16.60

0.00

70.70

11.03 2.55 9.52 23.10
1987-88

57.17

21.87

8.80

87.84

54.66

16.65

0.00

71.31

1.75 0.00 8.09 9.84
1988-89

72.51

27.21

10.68

110.40

67.12

22.52

0.00

89.64

2.19 4.07 9.82 16.08
1989-90

73.86

30.14

11.68

115.68

67.47

17.96

0.00

85.43

5.23 13.11 12.80 31.14
1990-91

79.97

32.21

13.28

125.46

69.93

20.52

0.00

90.45

4.14 10.16 13.28 27.58
1991-92

80.46

33.21

13.61

127.28

73.01

25.62

0.00

98.63

5.66 9.67 12.36 27.69
1992-93

84.27

28.44

8.84

121.55

74.30

23.06

0.00

97.36

11.37 6.89 10.82 29.08
1993-94

87.89

26.69

9.08

123.66

72.31

18.16

0.00

90.47

15.88 7.22 8.57 31.67
1994-95

95.07

29.31

11.25

135.63

79.45

24.93

0.00

104.38

14.76 3.80 11.09 29.65
1995-96

98.23

28.98

11.56

138.77

87.77

25.58

0.00

113.35

19.93 6.47 13.15 39.55
1996-97

103.01

29.77

10.30

143.08

85.99

25.56

0.00

111.55

11.67 2.46 6.13 20.26
1997-98

109.01

39.14

13.73

161.88

100.86

29.76

0.00

130.62

13.62 6.72 11.40 31.74
1998-99

113.54

41.12

13.32

167.98

104.80

31.41

0.00

136.21

6.35 9.68 15.42 31.45
1999-00

115.92

47.99

16.78

180.69

108.90

33.99

0.00

142.89

8.33 15.03 17.39 40.75
2000-01

109.20

42.15

15.67

167.02

109.61

37.43

0.00

147.04

1.54 3.96 15.41 20.91
2001-02

113.10

43.82

16.67

173.59

107.68

38.60

0.00

146.28

2.69 4.29 17.01 23.99
2002-03

104.74

40.19

16.01

160.94

105.64

39.10

0.00

144.74

0.66 1.70 14.38 16.74
2003-04

110.76

41.24

15.98

167.98

106.34

36.32

0.00

142.66

1.32 3.38 15.48 20.18
2004-05

117.14

46.24

20.61

183.99

113.38

40.67

0.00

154.05

4.09 2.96 20.45 27.50
2005-06

127.23

52.04

24.13

203.40

113.54

42.21

0.00

155.75

13.85 11.21 27.47 52.53
2006-07

137.74

55.43

23.34

216.51

115.78

45.17

0.00

160.95

26.88 13.23 20.69 60.80
2007-08

144.19

55.15

26.36

225.70

109.00

38.07

0.00

147.07

36.77 12.53 26.53 75.83
2008-09 150.90 65.06 33.13 249.09 108.7 34.64 0.00 143.34 38.44 29.27 33.80 101.51
2009-10 155.80 72.74 36.32 264.86 119.0 43.21 0.00 162.21 34.47 27.56 29.44 91.47
2010-11 165.58 80.50 35.14 281.22 121.56 42.22 0.00 163.78 44.92 38.02 40.69 123.63
2011-12 173.00 79.14 25.76 277.90 122.59 41.01 0.00 163.60 52.4 44.27 33.35 130.02
2012-13 * NA NA NA NA 123.99 38.76 0.00 162.75 45.74 27.21 11.90 84.85
* Actual figures have been considered from April 2012- Dec. 2012
** Provisional Import figures are reported upto 31.12.2012
Annexure - VI
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.
Annexure - VII
SECTOR-WISE CAPACITY UTILIZATION
OF NITROGENOUS AND PHOSPHATIC FERTILIZERS
(%age)
Nutrient

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13 *
Nitrogen(N)

Public Sector:

87.2

84.6

87.1

82.5

83.6

89.2

90.5

90.8

93.6
Co-operative
Sector:

102.0

93.3

94.8

95.6

98.9

107.4

109.1

105.8

113.0
Private Sector:

94.1

100.8

102.5

92.4

89.5

100.0

105.1

106.5

103.1
Total(Nitrogen):

94.0

94.1

96.0

90.4

90.2

98.8

100.9

101.8

102.9
Phosphate(P)

Public Sector:

61.6

68.2

53.8

37.3

44.3

56.6

56.5

58.9

68.5
Co-operative
Sector:

103.1

60.5

60.5

60.5

53.5

69.7

75.2

74.1

70.8
Private Sector:

66.3

82.3

89.8

76.2

67.1

82.5

77.1

72.1

67.7
Total(Phosphate): 71.9 74.6 79.8 67.3 61.2 76.8 75.0 72.9 68.9
* Estimated
Annexure - VIII
DETAILS OF HEAD-WISE ALLOCATION OF FUNDS UNDER NON-PLAN
AND PLAN FOR BE 2012-13 and RE 2012-13
Annexure - IX
IMPORT PARITY PRICE
Import Parity Price for a month would be
derived based on the prevailing prices in three
months preceding the month under consid-
eration as indicated below.
Import Parity Price (IPP): The import parity
price (IPP) for a particular month will be the
lower of the actual average CIF price of urea
imported in India during preceding three
months and the IPP reported in the fertilizer
magazines for the same preceding three
months, as detailed below:
IPP x = FOB Arabian Gulf + Freight
Where,
IPP x = Import Parity Price for month (x)
FOB Arabian Gulf = Average FOB reported
price of urea for AG in the three
magazi nes as l i sted bel ow, duri ng
preceding three month (x-1) to (x-3).
Freight = Average freight for AG in the
three magazines listed below, during
prece-ding three month (x-1) to (x-3).
The exchange rate will be taken as the
average of preceding three months for
arriving at the price in INR. The three
fertilizer magazines to be used for
arriving at IPP prices will be as below:
(a) Fertiliser Market Bulletin, UK;
(b) Fertiliser Week by British Sulphur, UK;
and
(c) Fertecon Weekly Nitrogen Fax, UK.
Annexure - X
BROAD STAGES OF A UREA PROJECT
Following are the broad stages for setting up an Ammonia-Urea Project:-
a) Pre-feasibility Report
b) Techno Economic Feasibility Report & its approval from the company's Board of Director.
c) Finalization of Project site.
st
d) 1 Stage Environment Clearance from MoEF
e) Technology Evaluation and Selection or EPC (LSTK) bid preparation & Evaluation.
f) Detailed/Bankable Project/Feasibility Report preparation and approval from the company's Board of
Director.
g) Environment Impact Assessment Report preparation and final clearance from MoEF
h) Raw Material and Utilities tie-up for the project
i) Finalization of EPCM or EPC (LSTK) Contractor.
j) Achieving Financial Closure
k) Award of job to EPCM or EPC Contractor.
l) Signing of Agreement between various agencies
m) Mobilization Advance to EPCM or EPC Contractor.
n) Physical Progress Achieved - 25%
o) Physical Progress Achieved 50%
p) Physical Progress Achieved 75%
q) Commissioning of Project & Start of commercial production.
Annexure - XI
(a) Per Kg NBS rates for nutrients NPKS for the 2010-11, 2011-12 and 2012-13:
NBS rates (Rs. per Kg)
Nutrients 1
st
Apr - 31
st
Dec
2010 *
1
st
Jan- 31
st
Mar
2011**
2011-12

2012-13
N (Nitrogen) 23.227 23.227 27.153 24.000
P (Phosphate) 26.276 25.624 32.338 21.804
K (Potash) 24.487 23.987 26.756 24.000
S (Sulphur) 1.784 1.784 1.677 1.677

*Including Rs. 300/- per MT for secondary freight from rake point to retail points.
** Excluding the secondary freight of Rs. 300/- PMT, which is being paid separately on per ton per Km basis.

NBS rates (Rs. per MT)
Sl.
No.

Fertilizer Grades(FG)

(N P K S nutrient)

2010-11

2011-12

2012-13

1.4.2010 to
31.12.2010

1.1.2011 to
31.3.2011

FG already under CS carried under NBS w.e.f. 1.4.2010

1.

DAP (18-46-0-0)

16268

15968

19763

14350

2.

MAP (11-52-0-0)

16219

15897

19803

13978

3.

TSP (0-46-0-0)

12087

11787

14875

10030

4.

MOP (0-0-60-0)

14692

14392

16054

14400

5.

SSP (0-16-0-11)

4400

4296+200

5359

3676

6.

16-20-0-13

9203

9073

11030

8419

7.

20-20-0-13

10133

10002

12116

9379

8.

20-20-0-0

9901

9770

11898

9161

9.

23-23-0-0

(upto 22.6.2012)

11386

11236

13686

10535

10.

28
-
28
-
0
-
0

13861

11678

16657

12825

(b) Per MT subsidy on different P&K fertilizers during 2010-11, 2011-12 and 2012-13:

1. 10-26-26-0 15521 15222 18080 14309
2. 12-32-16-0 15114 14825 17887 13697
3. 14-28-14-0 14037 13785 16602 12825
4. 14-35-14-0 15877 15578 18866 14351
5. 15-15-15-0 11099 10926 12937 10471
6. 17-17-17-0 12578 12383 14662 11867
7. 19-19-19-0 14058 13839 16387 13263
8.
Ammonium Sulphate
(20.6-0-0-23)
5195 5195 5979
5330

New fertilizers included under NBS after 1.4.2010
9.
16-16-16-0
(w.e.f. 1.7.2010)
11838 11654 13800
11169
10.
15-15-15-9
(w.e.f. 1.10.2010)
11259 11086 13088
10622
11.
24-24-0-0(w.e.f. 1.10.2010 to
29.5.12)
11881 11724 14278
10993
12.
DAP Lite(16-44-0-0)
(w.e.f. 1.2. 2011)
- 14991
18573
13434
13.
DAP Lite - II (14-46-0-0) (for one
year w.e.f. 30.8.2011)
- -
18677
13390
14.
MAP Lite (11-44-0-0) (for one
year w.e.f. 30.8.2011)
- - 17276
12234
15.
13-33-0-6 (for one year w.e.f.
30.8.2011)
- - 14302
10416
Annexure - XII
-
-

#

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143
Annexure - XIII
PROFITABILITY OF THE PUBLIC SECTOR UNDERTAKINGS/COOPERATIVE SOCIETY
UNDER THE ADMINISTRATIVE CONTROL OF DEPARTMENT OF FERTILIZERS
Net Profit (+)/Net Loss(-)
( in Rs crores)
Name of the Undertaking 2008-09 2009-10 2010-11 2011-12 2012-13
(provisional
upto Dec. 2012)
Fertilizer Corporation of India
Limited(FCI)
**5800.82 (-)585-86 (-)508.09 (-)552.76 closed
companies
Hindustan Fertilizer Corporation
Ltd (HFCL)
**4841.16 (-)382.47 (-)382.28 (-)380.89 closed
companies
Rashtriya Chemicals and
Fertilizers Limited (RCF)
211.58 234.87 245.12 249.23 229.14
National Fertilizers Limited
(NFL)
97.00 171.51 139.00 127.00 (-) 68.14*
Project and Development India
Limited (PDIL)
14.82 14.48 21.02 26.08 11.18
The Fertilizers and Chemicals
Travancore Limited (FACT)
42.95 (-)103.83 (-)49.33 19.80 (-)210.22
Madras Fertilizers Limited
(MFL)
(-)145.38 6.88 169.86 111.99 (-)10.72
Brahmaputra Valley Fertilizer
Corporation Limited (BVFCL)
(-)215.04 (-)27.86 (-)85.09 (-)128.81 (-)33.93
FCI-Aravali Gypsum an
Minerals India Limited
(FAGMIL)
9.04 8.67 24.05 27.07 12.14
Krishak Bharati Cooperative
Limited (KRIBHCO)
250.13 228.17 200.55 176.76 101.72*
* provisional up to Sept. 2012.
**Book profit is due to write back of interest on Government of India loan.
Annexure - XIV
EMPLOYEES OF SC/ST, EX. SERVICEMENT, PHYSICALLY HANDICAPPED &
OTHER BACKWARD CLASSES 9OBCs0 PERSONS
IN PUBLIC SECTOR UNDERTAKING/CO-OPERATIVE
S.
N
O.

NAME OF
PSU

GROUP

TOTAL NO.
OF
EMPLOYEES

NO. OF EMPLOYEES BELONGING TO

SC

ST

EX.SER

WOMEN

GEN P.Hs OBC
1.

HFCL

A

B

C

D

14

5

0

0

4

4

0

0

0

1

0

0

0

0

0

0

0

0

0

0

0
0
0
0
0
0
0
0
0
0
0
0

TOTAL

19

8

1

0

0

0 0 0
2.

FACT

A

B

C

D

445

1529

560

550

67

184

70

84

9

56

17

16

0

13

14

3

0

0

0

0

0
0
0
0
4
27
6
30
67
441
220
237

TOTAL

3084

405

98

30

0

0 67 965
3.

KRIBHCO

A

B

C

D

1537

233

341

80

43

19

34

5

16

24

16

2

2

1

1

0

0

0

0

0

0
0
0
0
2
1
4
0
157
50
63
24

TOTAL

2191

101

58

4

0

0 7 294
4.

BVFCL

A

B

C

D

306

287

472

22

26

26

28

4

26

49

86

3

2

1

0

0

0

0

0

0

0
0
0
0
0
0
3
0
80
92
164
3

TOTAL

1087

86

164

3

0

0 3 339
5.

FAGMIL

TOTAL

74

12

3

0

0

0 0 6
6.

MFL

A

B

C

D

190

219

361

0

22

50

108

0

2

3

1

0

0

0

10

0

0

0

0

0

0
0
0
0
1
1
3
0
1
8
52
0

TOTAL

770

180

6

10

0

0 5 61
7. NFL A
B
C
D
1630
1892
732
130
344
508
186
104
84
151
36
3
3
30
22
1
0
0
0
0
0
0
0
0
9
21
12
2
96
110
105
6
TOTAL 4384 1142 274 44 0 0 44 317
8. RCF A
B
C
D
1421
1220
1258
113
218
162
162
10
47
78
121
12
1
3
2
2
0
0
0
0
0
0
0
0
9
5
18
3
108
12
179
48
TOTAL 4012 552 258 8 0 0 35 347
Annexure - XV
Annexure - XVI
164
168 Department of Fertilizers

Annual Report2012 13

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