Académique Documents
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SCENARIO
2 0 1 4
Department of Fertilizers
Ministry of Chemicals and Fertilizers
Government of India
Officers associated with Indian Fertilizer Scenario-2014"
SH. K. M. GUPTA
Economic Adviser
SH. D. P. SRIVASTAVA
Director
SH. B. S. HEDAOO
Under Secretary
MESSAGE
(Ananth Kumar)
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Minister of State
Chemicals & Fertilizers;
Government of India,
New Delhi-110001
MESSAGE
I hope that this publication will be utilized by the policy makers and
planners for the betterment and development of fertilizer sector.
FOREWORD
India is the third largest producer and consumer of chemical fertilizers in the
world. The combined output of Nitrogenous (N) and Phosphatic (P) Chemical
fertilizers has increased from a modest level of 0.02 million tonnes in nutrient terms
in 1951-52 to around 38 million tonnes in the recent years. On the consumption
side, use of plant nutrient per hectare of gross cropped area has registered a
quantum increase from 0.49 Kg in 1951-52 to around 140 Kg.
2. Increase in the domestic production as well as consumption of chemical
fertilizers has admittedly contributed significantly towards ensuring food security in
the country. It may be recalled that India launched the 'green revolution' in the mid
60s in order to overcome the prevailing food crisis and eliminate our import
dependence. The green revolution strategy was primarily anchored on the scaling
up of the use of high yielding varieties or seeds as well as intensive use of
chemical fertilizers. As a matter of fact, many analysts have actually labelled the
'green revolution' essentially as a 'seed-fertilizer revolution'. There are some
empirical studies to indicate that around 60 percent of the enhanced food
production during 1960-77 could be attributed to fertilizers. Currently, however, the
fertilizer sector of the economy is facing quite a few challenges. On the supply
side, creation of additional capacity, particularly of urea production, has been
constrained by the availability of the primary raw material/feedstock. As such,
country's import dependence continues to be quite high (20-25% for urea, 90% for
phosphatic fertilizers and 100% for potash). On the demand side, the prevailing
relative prices have heavily tilted consumption in favour of urea thereby disturbing
the balance in nutrient use. Besides, efforts to popularise and enhance the use of
organic fertilizers have not yet been institutionalised. These policy issues need to
be addressed for ensuring balanced and sustainable growth of agricultural output
and productivity
.
3. This annual publication by the Department of Fertilizers contains a wealth of
valuable information as (both time series as well as cross section) about the
fertilizers sector in the country including various policy notifications issued from
time to time. I do hope that it would serve as a useful reference for all
stakeholders.
(J.K. Mohapatra)
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS i
CONTENTS
Page No.
BASIC FACTS
Table 16. Availability & Sales of Urea, DAP, MOP & Complex Fertilizers 23
CONSUMPTION OF FERTILIZERS
Table 27. Per Kilo Gram rates of NPKS and per Metric Tone subsidy on P&K Fertilizers 82
Table 28. Prices of imported Fertilizers 83
Table 29. International Price Trend in 2013-14 (Month-wise) 83
FERTILIZER SUBSIDY
POLICY NOTIFICTIONS
23. Notification on implementation of the Nutrient Based Subsidy (NBS) Policy for 154
(P&K) Fertilizers w.e.f. 1.4.2011- NBS Policy w.e.f. 1st April, 2011 For 2011-12
and Revised Per MT Subsidy.
24. Notification on Fixing the MRPs of Single Super Phosphate by the SSP 158
Manufacturers/Marketers From 1.4.2011 to 31.3.2012 Under Nutrient
Based Subsidy Policy.
25. Notification on Implementation of the Nutrient Based Subsidy Policy for (P&K) 159
Fertilizers w.e.f. 1.4.2011-NBS Policy w.e.f. 1st April, 2011 for 2011-12
and Revised Per MT Subsidy.
26. Notification on Implementation of the Nutrient Based Subsidy Policy for 161
(P&K) Fertilizers for the year 2012-2013 to be Implemented w.e.f. 1.4.2012.
27. Notification on Uniform Freight Subsidy for Phosphatic & Potassic (P&K) 165
Fertilizers w.e.f. 1.4.2008 to 31.3.2010
29. Notification on road Freight rates for Urea Manufacturing/Importing units 168
under the Uniform Freight Subsidy Scheme
30. Notification on Guidelines for Import of Fertilizers under the 181
Concession Scheme for decontrolled Phosphatic & Potassic (P&K) Fertilizers.
35. Notification on modification in the procedure for release of fertilizer subsidy by the 209
Department of Fertilizers with the introduction of Mobile Fertilizers Monitoring System
for all fertilizers.
36. Notification on implementation of the Nutrient Based Subsidy(NBS) Policy for 214
Phosphatic and Potassic (P&K) Fertilizers w.e.f. 1.4.2013-NBS policy for 2013-14
and per MT Subsidy.
37. Notification on implementation of the Nutrient Based Subsidy (NBS) policy for 218
Phosphatic and Potassic (P&K) Fertilizers.
38. Notification on implementation of the Nutrient Based Subsidy (NBS) policy for 220
Phosphatic and Potassic (P&K) fertilizers w.e.f. 1.4.2014-NBS Policy for 2014-15
and per MT Subsidy.
39. Notification on Modified NPS-III for existing Urea Units. 223
40. Notification on Road Freight Rates for Urea manufacturing/importing Units 227
under the Uniform freight subsidy scheme.
41. Notification on Road Freight Rates for Urea manufacturing/importing Units 240
under the Uniform freight subsidy scheme-corrigendum regarding.
PERFORMANCE OF MAJOR FERTILIZER PSUs. 253
FIGURES
Figure-1 Agro Climatic Zones of India 5
Figure-2 Production of Urea, DAP and Complexes 13
Figure-3 Foodgrain production vis--vis Fertilizers consumption 77
Location of Straight Nitrogenous Fertilizers Plants (Urea, AS, CAN & ACI) V
Location of DAP & Other complex Fertilizer Plants. VII
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS v
MAPS
LOCATION OF STRAIGHT NITROGENOUS FERTILIZER PLANTS (UREA, AS, CAN & ACI)
vi INDIAN FERTILIZER SCENARIO 2014
1. Nagarjuna Fertilizers & Chemicals Urea 19. Rashtriya Chemicals & Fertilizers Urea
Ltd. (NFCL), Kakinada Ltd. (RCFL), Trombay V
2. Rashtriya Ispat Nigam Ltd., AS 20. RCFL, Thal Vaishet (2 plants) Urea
Visakhapatnam
Assam Odisha
3. Brahmaputra Valley Fert.Coop. Urea 21. SAIL (Fertilizer Plant), Rourkela CAN
Ltd.,(BVFCL), Namrup-II
4. Brahmaputra Valley Fert.Coop. Urea 22. SAIL, Rourkela AS
Ltd.,(BVFCL), Namrup-III
Goa Punjab
5. Zuari Industries Ltd., (ZIL), Zuari Urea 23. NFL, Nangal (I & II) CAN,
Nagar Urea
24. NFL, Bhatinda Urea
Gujarat Rajasthan
6. Cyanides & Chemicals Ltd., Surat AS 25. Chambal Fertilizers & Chemicals Urea
Ltd., Gadepan, Kota
7. Gujarat Narmada Valley Fertilizers Urea, 26. Shriram Fertilizers & Chemicals Urea
Co. Ltd. (GNFC), Bharuch CAN (SFC), Kota
8. Gujarat State Fertilizers & Urea, Tamil Nadu
Chemicals Ltd (GSFC), Vadodara AS
9. GSFC-Polymer Unit, Vadodara AS 27. Madras Fertilizers Ltd., (MFL), Urea
Manali
10. Indian Farmers Fertilizer Coop. Urea 28. Southern Petrochemical Urea
Ltd. (IFFCO), Kalol Industries Corpn. Ltd. (SPIC),
Tuticorin
11. Krishak Bharati Coop. Ltd. Urea 29. Tuticorin Alkali Chemicals and AS
(KRIBHCO) (2 Plants) Hazira Fertilizers Ltd., Tuticorin
Haryana
12. National Fertilizers Ltd. (NFL), Urea Uttar Pradesh
Panipat
Jharkhand 30. Duncans Industries Ltd., Panki Urea
14. Fertilizers & Chemicals AS 33. Indo Gulf Fertilisers, Jagdispur Urea
Travancore Ltd. (FACT),
Udyogamanda
15. FACT, Cochin-1 Urea 34. KRIBHCO Shyam Fertilizers Ltd., Urea
Shahjahanpur
Karnataka 35. Tata Chemicals Ltd., Babrala Urea
16. Mangalore Chemicals & Fertilizers Urea
Ltd. (MCFL), Mangalore
Madhya Pradesh & West Bengal
Chhattisgarh
17. SAIL, Bhilai AS 36. IISCO, Burnpur-Kulti AS
MAPS
LOCATION OF DAP AND OTHER COMPLEX FERTILIZER PLANTS
viii INDIAN FERTILIZER SCENARIO 2014
Andhra Pradesh
Goa
Gujarat
4. Gujarat State Fertilizers & Chemicals Ltd. (GSFC) Sikka - DAP & NPKs
Baroda - DAP & NPK
6. Indian Farmers Fertilizers Co-operative Ltd. (IFFCO) Kandla - DAP & NPKs
Karnataka
7. Mangalore Chemicals & Fertilizers Ltd. (MCFL) Mangalore - DAP & NPKs
Kerala
Odisha
Tamil Nadu
West Bengal
16. Tata Chemicals Ltd. Fertilizer Division Haldia DAP & NPKs
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS ix
Table-1
BASIC FACTS
( Million)
Population of India (2011 Census) 1210.6
Male 623.1
Female 587.5
Rural 833.5
Urban 377.1
Agricultural Workers 263.0
(Million ha)
Total Gross Cropped Area (20 11-12) 195.2
Net sown Area (2011-12) 140.8
Gross irrigated Area (2011-12) 91.5
Net Irrigated Area (2011-12) 65.3
Table-2
DISTRIBUTION OF AREA ACCORDING TO ANNUAL RAINFALL
Dry 0 750 30
1150 2000 20
AGRO-CLIMATIC ZONES
Planning Commission has demarcated the geographical area of India into 15 agro-climatic
region. These are further divided into more homogenous 72 sub-zones. The 15 agro-climatic zones
are given in Table-3 below:
Table-3
7. Eastern Plateau and Hills Region : Maharashtra, UP, Odisha & West Bengal
10. Southern Plateau and Hills Region : AP, Karnataka, Tamil Nadu
11. East Coast Plains and Hills Region : Odisha, AP, TN,& Puducherry
12. West Coast Plains and Ghat Region : TN, Kerala, Goa, Karnataka, Maharashtra
Figure-1
AGRO- CLIMATIC ZONES OF INDIA
6
Table-4
CATEGORY OF LAND HOLDINGS, NUMBER OF HOLDINGS, AREA COVERED AND AVERAGE SIZE OF LAND HOLDINGS
INDIAN FERTILIZER SCENARIO 2014
Category of holding No. of holding (Million) Area Operated (Million ha) Average size (ha)
2000-01* 2005-06* 2010-11# 2000-01* 2005-06* 2010-11# 2000-01* 2005-06* 2010-11#
Marginal (< 1ha) 75.41 83.69 92.83 29.81 32.03 35.91 0.40 .38 .39
Small (1-2 ha) 22.70 23.93 24.78 32.14 33.10 35.24 1.42 1.38 1.42
Semi Medium (2-4 ha) 14.02 14.13 13.90 38.19 37.90 37.70 2.72 2.68 2.71
Medium (4-10 ha) 6.6 6.4 5.9 38.22 36.58 33.80 5.81 5.74 5.76
Large (> 10 ha) 1.23 1.1 1.0 21.07 18.71 16.91 17.12 17.08 17.38
All Sizes 119.93 129.2 138.8 159.43 158.32 159.59 1.33 1.23 1.15
* Excluding Jharkhand
# Based on the provisional results of Agriculture Census 2010-11.
Source: Agriculture Census Division, Department of Agriculture & Cooperation (DAC) .
THE FERTILIZER
SECTOR
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 9
Table-5
Table-6
ALL INDIA DEMAND FORECAST OF FERTILIZER PRODUCTS
(DISTRIBUTION OF AREA ACCORDING TO ANNUAL RAINFALL)
(In'000 tonnes)
Year Urea DAP NP/NPKs SSP MOP*
2014-15 32029 12002 10861 5091 4492
Table-7
INSTALLED CAPACITY OF VARIOUS FERTILIZERS
(In LMT per annum)
Product No. of Units Total installed Capacity
Urea 30 215.97
DAP 12 83.32
Complexes 21 60.71
SSP 97 101.21
PRODUCTION
Table-8
PRODUCTION OF UREA, DAP AND COMPLEXES
(In Lakh MT)
Figure-2
PRODUCTION OF UREA, DAP AND COMPLEXES
250 Urea
219.84 225.75 227.15
211.12 218.81
DAP
200
Complex
150 Fertilizers
In LMT
0
2009-10 2010-11 2011-12 2012-13 2013-14
14 INDIAN FERTILIZER SCENARIO 2014
Table-9
PLANT WISE PRODUCTION OF UREA FROM
2009-10 TO 2013-14
(In 000 MT)
Re- Production
Name of plants assessed
2009-10 2010-11 2011-12 2012-13 2013-14
capacity
NFL:Nangal-II 478.5 474.0 478.5 503.4 471.3 394.5
NFL:Bhatinda 511.5 514.8 553.0 482.9 394.4 560.4
NFL:Panipat 511.5 512.9 470.0 500.3 413.8 511.2
NFL:Vijaipur-I 864.6 878.5 916.6 902.1 966.4 1006.3
NFL:Vijaipur-II 864.6 949.6 961.5 1011.7 965.2 1162.4
Total (NFL) 3230.7 3329.8 3379.6 3400.4 3211.1 3634 .8
BVFCL:Namrup-II 240.0 79.2 86.1 102.3 109.4 70.6
BVFCL:Namrup-III 315.0 230.4 198.9 176.5 281.3 235.4
Total (BVFCL) 555.0 309.6 285.0 278.8 390.7 306.0
RCF:Trombay-V 330.0 306.8 341.1 336.0 384.1 352.6
RCF:Thal 1706.8 1782.3 1783.4 1772.5 1951.6 1993.4
Total (RCF) 2036.8 2089.1 2124.5 2108.5 2335.7 2346.0
MFL:Chennai 486.8 436.0 477.9 486.7 435.8 486.7
Total(Public Sector) 6309.3 6164.5 6267.0 6274.4 6373.3 6773.5
IFFCO:Kalol 544.5 601.4 600.1 600.0 600.3 600.4
IFFCO:Phulpur 551.1 722.6 745.1 701.3 673.1 651.8
IFFCO:Phulpur Expn. 864.6 1000.2 1026.2 1132.8 992.0 950.9
IFFCO:Aonla-I 864.6 1000.3 988.5 1065.9 1091.9 1103.0
IFFCO:Aonla-II 864.6 1000.3 1042.6 986.8 1152.8 1074.2
Total (IFFCO) 3689.4 4324.8 4402.5 4486.8 4510.1 4380.3
KRIBHCO:Hazira 1729.2 1779.6 1840.3
. 1432.4 2132.0 2209.9
Total (Cooperative) 5418.6 6104.4 6242.8 5919.2 6642.1 6590.2
Total (Public+Co-op.) 11727.9 12268.9 12509.8 12193.6 13015.4 13363.7
GSFC:Vadodara 370.6 281.4 245.5 286.6 347.7 322.1
SFC:Kota 379.0 382.1 403.4 385.9 384.8 403.2
DIL:Kanpur/KFCL 722.0 0.0 0.0 0.0 0.0 313.2
ZIL:Goa 399.3 387.3 396.8 365.4 385.6 376.2
SPIC:Tuticorin 620.0 0.0 300.9 621.7 483.4 286.2
MCF:Mangalore 380.0 379.6 379.4 379.4 379.5 379.1
GNFC:Bharuch 636.0 601.7 643.2 701.8 708.8 696.4
IGCL:Jagdishpur 864.6 1095.9 1098.5 1162.2 1084.7 1 035.5
NFCL:Kakinada-I 597.3 757.0 831.6 792.5 787.6 646.8
NFCL:Kakinada-II 597.3 723.21 824.0 769.1 777.7 780.
Total(NFCL) 1194.6 1480.2 1655.6 1561.6 1565.3 1426.9
CFCL:Gadepan-I 864.6 1019.5 1032.2 1106.5 1035.8 990.6
CFCL:Gadepan-II 864.6 1011.2 1068.0 1039.5 1056.0 950.6
Total(CFCL) 1729.2 2030.7 2100.2 2146.0 2091.8 1941.2
TCL:Babrala 864.6 1231.7 1116.7 1164.6 1119.8 1136.5
KSFL:Shahjahanpur 864.6 972.7 1030.5 1015.6 1007.9 1035.3
Total (Private Sector) 9024.5 8843.3 9370.7 9790.8 9559.3 9351.8
Total (Pub.+Coop.+Pvt.) 20752.4 21112.2 21880.5 21984.4 22574.7 22715.5
Table-10
PLANT-WISE PRODUCTION OF DAP FROM
2009-10 TO 2013-14
(In 000 MT)
Installed
Name of company/unit capacity Production
2009-10 2010-11 2011-12 2012-13 2013-14
Cooperative Sector
Private Sector
Table-11
PLANTWISE PRODUCTION OF COMPLEX FERTILIZERS FROM
2009-10 TO 2013-14
(In 000 MT)
Table-11 (CONTD....)
PLANTWISE PRODUCTION OF COMPLEX FERTILIZERS FROM
2009-10 TO 2013-14
(In 000 MT)
Table-12
PRODUCT-WISE SUMMARY OF PRODUCTION OF COMPLEX FERTILIZERS
FROM 2009 - 10 TO 2013-14
( In 000 MT)
Production
Product
2009-10 2010-11 2011-12 2012-13 2013-14
Table -13
SECTOR - WISE PRODUCTION OF COMPLEX FERTILIZERS
FROM 2009-10 to 2013-14
( In 000 MT)
Annual
Sector Ins. Cap. 2009-10 2010-11 2011-12 2012-13 2013-14
Table-14
(IMPORT OF MAJOR FERTILIZERS)
FROM 2009-10 to 2013-14
Gopalpur 0.00 0.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Haldia 0.00 1.33 0.00 0.00 1.80 0.00 0.00 0.00 1.10 0.00 0.00 0.00 0.00 0.49 0.00 0.00 0.00 1.11 0.00
Hazira 0.00 0.00 0.00 0.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.19 0.00 0.00 0.00 2.59 0.00 0.00 0.00
Jaigarh 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.00 0.00 0.00 0.05 0.00
Kakinada 5.78 5.4 2.64 5.26 6.93 5.27 2.45 7.75 4.24 7.01 6.79 4.26 6.51 1.66 0.19 7.09 3.58 4.49 0.54
Kandla 11.16 12.23 23.21 11.52 15.29 30.81 0.44 13. 56 11.57 23.38 3.04 8.88 19.04 6.93 1.37 6.29 9.36 8.61 0.00
Karaikal 0.00 0.00 0.00 2.28 0.52 0.26 0.50 2.52 0.71 1.46 4.98 5.17 0.72 0.18 0.00 2.78 0.48 0.56 0.00
Karwar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Krishnaputnam 5.31 2.15 0.77 11.33 2.50 5.53 2.40 6.84 2.01 7.93 3.51 8.26 3.55 1.69 1.27 11.25 0.66 0.63 0.78
Mbpt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Mormugao 0.00 0.00 0.00 0.00 1.95 0.00 0.00 0.00 1.18 0.00 0.00 0.00 0.00 0.71 0.00 0.00 0.00 1.54 0.00
Mumbai/npt 0.00 0.00 0.00 0.00 0.93 0.31 0.00 0.00 0.57 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.21 0.92 0.00
Mundra 7.41 2.57 12.72 14.63 0.61 14.81 1.62 23.61 1.16 15.91 2.85 25.04 12.45 0.91 0.00 18.30 9.25 1.01 0.00
New mangalore 2.28 3.38 2.35 2.42 4.60 0.67 0.00 2.51 3.83 1.10 0.62 2.39 0.68 1.52 0.33 2.42 0.22 1.76 0.00
Paradeep 0.80 1.57 0.73 1.36 2.50 0.00 0.00 2.27 1.19 0.00 0.33 1.42 0.43 1.32 0.00 1.08 0.00 1.44 0.00
Pipavav 3.96 2.07 0.81 4.99 3.17 1.71 0.00 5.63 0.99 0.36 0.00 7.87 0.00 0.00 0.00 7.13 0.00 0.00 0.00
Rozy 0.83 0.43 5.27 0.27 1.19 3.84 0.00 0.44 0.33 4.11 0.09 0.83 3.62 0.00 0.00 0.00 2.79 0.00 0.00
Tuticorin 3.37 6.78 2.45 2.19 7.23 2.61 0.31 2.12 3.00 0.74 2.66 2.53 0.00 1.67 0.00 1.55 0.00 2.28 0.26
Vizag 7.52 10.55 7.51 7.97 9.30 9.77 0.82 7.41 6.01 4.29 10.09 6.24 6.34 4.21 0.88 6.10 3.30 3.84 0.94
Grand Total 52.09 52.86 58.88 66.10 63.57 76.97 9.78 78.34 39.85 69.05 36.73 80.44 57.02 24.96 4.05 70.88 32.61 31.77 3.62
Source: Department of Fertilizers
AVAILABILITY &
SALES AND MOVEMENT
OF FERTILIZERS
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 23
Table-16
AVAILABILITY AND SALES OF UREA, DAP, MOP & COMPLEXES
FROM 2009 -10 TO 2013 -14
(Lakh MT)
Urea DAP MOP Complexes
Year Season Availability Sales Availability Sales Availability Sales Availability Sales
2009-10
Rabi 142.83 141.69 42.71 42.57 27.50 28.11 47.92 47.21
2010-11 Rabi 165.77 156.08 46.64 47.63 20.22 19.27 50.43 52.13
2011-12 Rabi 158.64 154.76 67.24 63.13 24.64 22.84 69.99 59.64
2012-13 Rabi 171.31 165.81 56.02 51.51 11.08 10.36 40.26 37.88
2013-14 Rabi 155.76 153.55 40.96 36.73 12.33 10.93 47.03 42.55
Table -17
STATE-WISE, MONTH-WISE AVAILABILITY AND SALES OF UREA DURING KHARIF, 2009
INDIAN FERTILIZER SCENARIO 2014
Table -17 (CONTD....)
STATE-WISE, MONTH-WISE AVAILABILITY AND SALES OF UREA DURING KHARIF, 2009
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS
25
26
Table -18
MOVEMENT OF FERTILIZERS
On an average 50 rakes per month are moved for making fertilizer available in different parts of the country. Out of which, 15 rakes are of imported fertilizers and 35 rakes are of
-
indigenous fertilizers. The month wise dispatches of fertilizers from various plants / ports during last three years are given in Table-18
DESPATCHES OF UREA, DAP, MOP & COMPLEX FERTILISERS
DURING 2009 TO 2013
(In MT)
Month Product 2009 2010 2011 2012 2013
Indigenous Imported Total Indigenous Impored Total Indigenous Imported Total Indigenous Imported Total Indigenous Imported Total
January Urea 1592.646 563.267 2155.91 1914.7 653.447 2568.15 1927.184 1101.563 3028.75 1935.28 1227.48 3162.76 1963.17 1374.60 3337.77
INDIAN FERTILIZER SCENARIO 2014
DAP 119.172 231.494 350.67 96.72 59.231 155.95 311.372 230.408 541.78 415.86 524.33 940.19 314.55 369.76 684.31
MOP 319.581 319.58 587.703 587.703 295.413 295.41 446.56 446.56 0.00 264.42 264.42
COMPLEX 625.449 625.45 703.007 703.007 833.999 834.00 650.69 373.41 1024.10 568.33 60.80 629.13
Total 2337.27 1114.34 3451.61 2714.43 1300.38 4014.81 3072.56 1627.38 4699.94 3001.83 2571.79 5573.61 2846.05 2069.58 4915.63
February Urea 1610.21 457.81 2068.02 1743.031 205.545 1948.58 1764.859 557.649 2322.51 1745.41 549.08 2294.49 1838.13 624.82 2462.96
DAP 62.31 198.21 260.53 207.11 50.91 258.01 233.45 208.36 441.80 445.20 815.86 1261.07 386.28 96.49 482.76
MOP 380.80 380.80 476.65 476.65 209.89 209.89 347.38 347.38 0.00 10.30 10.30
COMPLEX 305.19 305.19 801.80 801.80 772.41 772.41 514.41 503.15 1017.55 383.30 0.13 383.42
Total 1977.72 1036.83 3014.55 2751.93 733.10 3485.03 2770.72 975.89 3746.61 2705.02 2215.47 4920.49 2607.71 731.73 3339.44
March Urea 1702.96 133.77 1836.73 1767.11 172.14 1939.24 1923.88 159.28 2083.15 1824.82 419.94 2244.76 1949.05 425.53 2374.58
DAP 141.30 354.10 495.39 322.04 238.01 560.05 170.78 98.32 269.10 329.80 426.29 756.09 332.88 109.92 442.81
MOP 220.80 220.80 58.04 58.04 174.37 174.37 386.57 386.57 0.00 33.16 33.16
COMPLEX 329.21 329.21 623.71 623.71 496.317 496.32 532.02 485.00 1017.02 373.19 8.80 381.99
Total 2173.47 708.66 2882.13 2712.85 468.18 3181.04 2590.98 431.97 3022.94 2686.65 1717.79 4404.44 2655.13 577.41 3232.54
April Urea 1141.73 92.44 1234.17 1246.80 165.63 1412.43 1354.94 230.29 1585.23 1321.89 215.99 1537.88 1612.18 151.51 1763.69
DAP 386.96 339.41 726.37 423.12 268.79 691.91 225.92 20.26 246.17 305.85 148.77 454.62 147.09 23.12 170.22
MOP 205.30 205.30 54.46 54.46 7.95 7.95 55.96 55.96 0.00 64.51 64.51
COMPLEX 580.47 580.47 497.63 497.63 445.48 445.48 312.60 5.41 318.01 278.77 2.67 281.44
Total 2109.16 637.15 2746.31 2167.54 488.88 2656.42 2026.34 258.50 2284.84 1940.33 426.13 2366.46 2038.04 241.82 2279.86
May Urea 1535.81 135.09 1670.90 1637.90 230.00 1867.91 1656.52 413.42 2069.94 1812.67 164.19 1976.86 1744.58 267.65 2012.23
DAP 505.48 906.10 1411.57 315.67 479.09 794.76 404.79 90.18 494.97 147.95 173.53 321.48 178.39 93.75 272.14
MOP 246.20 246.20 211.47 211.47 210.47 210.47 80.73 80.73 0.00 108.05 108.05
COMPLEX 568.91 568.91 632.08 632.08 772.26 772.26 380.66 37.83 418.49 382.94 0.00 382.94
Total 2610.20 1287.38 3897.58 2585.65 920.57 3506.22 2833.57 714.07 3547.63 2341.28 456.28 2797.56 2305.90 469.46 2775.36
June Urea 1698.64 304.95 2003.59 1836.60 411.60 2248.20 1826.72 647.64 2474.35 1776.47 301.23 2077.71 1924.24 642.98 2567.23
DAP 600.37 765.25 1365.62 307.18 602.20 909.38 314.49 621.28 935.77 191.03 356.14 547.17 349.19 201.11 550.29
MOP 283.08 283.08 363.54 363.54 213.80 213.80 247.39 247.39 0.00 341.73 341.73
COMPLEX 533.63 533.63 855.86 855.86 1001.42 1001.42 648.55 60.61 709.17 515.66 33.57 549.24
Total 2832.63 1353.28 4185.91 2999.64 1377.34 4376.98 3142.63 1482.72 4625.35 2616.06 965.37 3581.43 2789.10 1219.39 4008.48
Table-18 (CONTD....)
DESPATCHES OF UREA, DAP, MOP & COMPLEX FERTILISERS DURING 2008 TO 2012
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
1 2 3 4 5 6 7 8 9 10 11
A Nitrogenous Fertilizers
Production 11338 11354 11578 10899.8 10870 11900 12157 12259 12194 12378
Import 411 1385 2689 3706.5 3751 3447 4493 5240 4801 3920
Consumption 11714 12723 13773 14419 15090 15580 16 558 17300 16820 16750
B Phosphatic Fertilizers
Production 4067 4221 4517 3806.7 3464 4321 4223 4104 3541 3714
Import 296 1122 1322 1391 3067 2756 3802 4427 2797 1588
Consumption 4624 5204 5543 5515 6506 7274 8050 7914 6653 5633
C Potassic Fertilizers*
Import 2045 2747 2069 2653 3403 2945 4069 3335 1559 1926
Consumption 2060 2413 2335 2636 3313 3632 3514 2576 2061 2098
D All Fertilizers
Production 15405 15575 16095 14706.5 14334 16221 16380 16363 15735 16092
Import 2752 5254 6080 7750.16 10221 9148 12364 13002 9157 7434
Consumption 18398 20340 21651 22570 24909 26486 2 8122 27790 25534 24481
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS
Table-20
CONSUMPTION OF FERTILIZERS
(STATE-WISE, NUTRIENT-WISE) DURING 2013-14
S. No. State/U.T. Per hectare Fertilizer Consumption in Kgs.
N P2O5 K2O Total
S
1. Andhra Pradesh 78.22 31.78 12.67 122.68
2. Karnataka 72.36 33.85 19.40 125.61
3. Kerala 51.34 26.57 43.79 121.71
4. Tamil Nadu 95.49 34.26 27.67 157.42
5. Puducherry 391.29 67.42 49.35 508.06
6. A & N Islands 24.21 18.42 15.26 57.89
SZ Total 104.24 40.51 21.92 166.68
7. Gujarat 94.63 25.75 7.40 127.78
8. Madhya Pradesh 54.90 28.78 2.57 86.24
9. Chhattisgarh 63.00 28.68 8.42 100.10
10. Maharashtra 65.93 32.13 17.64 115.70
11. Rajasthan 35.79 10.84 0.20 46.83
12 Goa 18.69 8.25 5.69 32.63
13. Daman & Diu 26.67 6.67 3.33 36.67
14. D & N Haveli 24.55 15.91 0.45 40.91
W.Z total 58.16 24.05 6.93 89.14
15. Haryana 146.13 30.51 2.41 179.04
16. Punjab 173.04 41.26 3.05 217.34
17. Uttar Pradesh 117.11 30.12 4.13 151.36
18. Uttarakhand 115.03 18.62 5.49 139.13
19 Himachal Pradesh 35.10 8.70 9.05 52.86
20. J&K 58.89 22.27 9.54 90.71
21. Delhi 82772.73 0.00 0.00 82772.73
N.Z. Total 212.75 31.20 3.95 247.90
22. Bihar 132.74 29.17 13.34 175.25
23 Jharkhand 66.04 13.86 2.95 82.85
24. Odisha 57.65 21.68 10.40 89.73
25. West Bengal 72.46 27.50 28.33 128.29
E.Z. Total 87.19 25.94 18.22 131.35
26. Assam 36.36 10.02 19.25 65.63
27. Tripura 30.46 22.54 12.43 65.43
28. Manipur 23.76 3.94 3.33 31.03
29. Meghalaya 10.38 3.08 0.80 14.26
30. Nagaland 2.37 1.55 0.75 4.67
31 Arunachal Pradesh 0.00 0.00 0.00 0.00
32. Mizoram 22.11 1.73 1.28 25.11
NE Total 28.61 8.52 13.91 51.04
All India 102.47 28.31 10.55 141.33
N P K N
N P K
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17)
MARGINAL (BELOW 1.0)
I 17956374 16923699 1476958163 4117582609 459914976 41330196 99809038 147183569 424648283 2268263528 900170720 424648283 4190254 8882259 26256729277
1 UI 17633259 9280532 585844115 1374656603 295973493 40961429 54875251 80095067 182199261 801107283 396939119 182199261 5866349 4944551 27757896389
T 35589633 26204231 2062802278 5492239212 755888469 82291625 154684289 227278636 606847544 3069370811 1297109839 606847544 10056603 13826810 54014625666
SMALL (1.0 - 1.99)
I 15412513 14381550 1133663523 3273559577 831511785 39907108 66611079 141022358 382497938 1784728783 795549464 382497938 3707112 6940120 20734689784
2 UI 16419126 10008756 562490138 1091217172 180348651 38900151 41846353 59794683 121841086 653067908 347395931 121841086 5964567 5198466 21658311548
T 31831639 24390306 1696153661 4364776749 1011860436 78807259 108457432 200817041 504339024 2437796691 1142945395 504339024 9671679 12138586 42393001332
SEMI-MEDIUM (2.0- 3.99)
I 16288179 14875611 1174029681 3117257678 363392608 36162781 56383151 82443898 263575545 1709096558 680640369 263575545 3869500 8404382 19909597019
3 UI 18594072 11475319 616486134 1082413094 199010771 45839255 36700560 51556857 103881698 655020974 366982202 103881698 6098889 6035645 18611733953
T 34882251 26350930 1790515815 4199670772 562403379 82002036 93083711 134000755 367457243 2364117532 1047622571 367457243 9968389 14440027 38521330972
MEDIUM (4.0 - 9.99)
I 16252785 14561170 1138471070 2907400936 308072534 19690753 79455325 48825826 176500386 1625840843 621814124 176500386 3155880 9292989 13308254636
4 UI 17875005 9834097 478235290 785239207 191029993 25442463 22551578 34486135 62423320 475085113 285039167 62423320 4804873 5399955 11823788150
T 34127790 24395267 1616706360 3692640143 499102527 45133216 102006903 83311961 238923706 2100925956 906853291 238923706 7960753 14692944 25132042786
LARGE (10 AND ABOVE)
I 6671300 5862369 419992648 1077399827 95584086 5330381 5902469 8142349 33427118 578203125 216632421 33427118 1003077 4366840 3377489292
5 UI 8854908 3153895 132924082 204162883 47276910 5630529 5640932 9606631 18949641 124642082 78316014 18949641 1976305 1981998 3074357063
T 15526208 9016264 552916730 1281562710 142860996 10960910 11543402 17748980 52376759 702845207 294948435 52376759 2979382 6348838 6451846355
ALL GROUPS
I 72581151 66604399 5343115085 14493200627 2058475989 142421219 308161062 427618001 1280649270 7966132837 321480798 1280649270 15925823 37886590 83586760008
UI 79376370 43752599 2375979759 4537688959 913639818 156773827 161614674 235539373 489295006 2708923360 1474672433 489295006 24710983 23560615 82926087103
T 151957521 110356998 7719094844 19030889586 2972115807 299195046 469775736 663157374 1769944276 10675056197 4689479531 1769944276 40636806 61447205 166512847111
4E+07
NOTE: I -IRRIGATED
UI-UNIRRIGATED
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS
Table-22
CONSUMPTION RATIO
Table-23
PRODUCTION OF BIOFERTILIZER IN INDIA
(In Tonnes)
S. Name of the State Year
No.
2009-10 2010-11 2011-12 2012-13 2013-14
South Zone
1 Andhra Pradesh 1345.28 999.60 1126.35 1335.74 2714.22
2 Karnataka 3695.50 6930.00 5760.32 7683.72 9907.34
3 Kerala 1936.45 3257.00 904.17 1045.64 3520.66
4 Pondicherry 452.79 783.00 509.45 621.00 516.98
5 Tamil Nadu 3732.59 8691.00 33 73.81 11575.70 14104.8
Total 11162.61 20660.60 11674.10 22261.80 30764.03
West Zone
6 Chhattisgarh 0.00 0.00 276.34 501.63 712.07
7 Gujarat 1309.19 6318.00 2037.35 978.48 6411.434
8 Goa 0.00 443.40 0.00 370.00 66.26
9 Madhya Pradesh 1587.68 2455.57 2309.06 1408.08 4824.194
10 Maharashtra 1861.33 2924.00 8743.69 5897.91 6218.60 7
11 Rajasthan 805.57 819.75 199.78 982.00 1315.00
Total 5563.77 12960.72 13566.22 10138.10 19547.565
North Zone
12 Delhi 1021.85 1205.00 1617.00 0.00 396.00
13 Chandigarh 0.00 0.00 0.00 0.00 1146.48
14 Haryana 6.20 6.53 914.41 5832.61 26.147
15 Himachal Pradesh 8.50 9.00 1.29 0.00 45.26
16 Punjab 301.23 2.50 692.22 2311.33 2124.85
17 Uttar Pradesh 962.64 1217.45 8695.08 1310.02 2682.27
18 Uttarakhand 32.00 45.00 263.01 2758.21 5493.85
Total 2332.42 2485.48 12183.01 12212.17 11914.86
East Zone
19 Bihar 0.00 136.26 75.00 52.40 52.40
20 Jharkhand 15.00 0.00 8.38 35.30 14.20
21 Odisha 289.87 357.66 590.12 407.10 1097.61
22 West Bengal 256.50 393.39 603.20 1110.00 1682.71
Total 561.37 887.31 1276.70 1604.80 2846.92
North East Zone
23 Arunachal Pradesh 0.00 0.00 0.00 0.00 59.00
24 Assam 121.04 130.00 68.33 89.00 149.00
25 Mizoram 2.50 2.00 0.00 0.00 4.00
26 Nagaland 18.25 21.50 13.00 7.45 7.45
27 Sikkim 0.00 0.00 0.00 9.50 10.10
28 Tripura 278.40 850.00 1542.85 514.00 225.00
Total 420.19 1003.50 1624.18 619.95 454.55
Grand Total 20040.36 37997.61 40324.21 46836.82 65527.87
Source: National Centre of Organic Farming, Department of Agriculture & Cooperation (DAC)
76
Table 24
Country Nitrogen (N) Phosphate (P2O5) Potash (K2O) Total ( N+P 2O5+K2O)
Table-25
FERTILIZER CONSUMPTION VIS-A-VIS FOODGRAIN PRODUCTION
From 2009-10 to 2013-14
Fertilizers Consumption in
Nutrients 264.86 281.12 277.90 255.36 281.21
(In LMT)
Figure-3
FOODGRAIN PRODUCTION VIS A VIS FERTILIZERS CONSUMPTION
3000
2647.7
Foodgrain Production (In
2592.9 2571.3 Lakh MT)
2500 2358.8
2181.1
Fertilizers Consumption in
2000 Nutrients (in lakhs MT)
In LMT
1500
1000
0
2009-10 2010-11 2011-12 2012-13 2013-14
scheme
Source: Department of Fertilizers
81
82 INDIAN FERTILIZER SCENARIO 2014
Table-27
Statement Showing per Kilo Gram NBS rates for nutrients Nitrogen (N), Phosphate (P),
Potash (K) and
Sulphur (S) for the year 2010-11 to 2014-15:
NBS rates (Rs. per Kg)
Nutrients 1st Apr - 31st Dec 1st Jan- 31st Mar 2011-12 2012-13 2013-14 2014-15
2010 * 2011**
N (Nitrogen) 23.227 23.227 27.153 24.000 20.875 20.875
P (Phosphate) 26.276 25.624 32.338 21.804 18.679 18.679
K (Potash) 24.487 23.987 26.756 24.000 18.833 15.500
S (Sulphur) 1.784 1.784 1.677 1.677 1.677 1.677
- per MT for secondary freight from rake point to retail points.
*Including Rs. 300/-
** Excluding the secondary freight of Rs. 300/- PMT, which was being paid separately on per ton per Km basis.
(b) Per MT subsidy on different P&K Fertilizers during 2010 -11 to2014-15
2010-11
S. Fertilizer Grades(FG)
1.4.2010 to 1.1.2011 to 2011-12 2012-13 2013-14 2014-15
No. (N P K S nutrient)
31.12.2010 31.3.2011
1. DAP (18-46-0-0) 16268 15968 19763 14350 12350 12350
2. MAP (11-52-0-0) 16219 15879 19803 13978 12009 12009
3. TSP (0-46-0-0) 12087 11787 14875 10030 8592 8592
4. MOP (0-0-60-0) 14692 14392 16054 14400 11300 9300
5. SSP (0-16-0-11) 4400 4296+200 5359 3676 3173 3173
6. 16-20-0-13 9203 9073 11030 8419 7294 7294
7. 20-20-0-13 10133 10002 12116 9379 8129 8129
8. 20-20-0-0 9901 9770 11898 9161 7911 7911
9. 28-28-0-0 13861 11678 16657 12825 11075 11075
10. 10-26-26-0 15521 15222 18080 14309 11841 10974
11. 12-32-16-0 15114 14825 17887 13697 11496 10962
12. 14-28-14-0 14037 13785 16602 12825 10789 10323
13. 14-35-14-0 15877 15578 18866 14351 12097 11630
14. 15-15-15-0 11099 10926 12937 10471 8758 8258
15. 17-17-17-0 12578 12383 14662 11867 9926 9359
16. 19-19-19-0 14058 13839 16387 13263 11094 10460
Ammonium Sulphate
17. 5195 5195 5979 5330 4686 4686
(20.6-0-0-23)
18. 16-16-16-0 (w.e.f. 1.7.2010) 11838 11654 13800 11169 9342 8809
15-15-15-9
19. 11259 11086 13088 10622 8909 8409
(w.e.f. 1.10.2010)
24-24-0-0 (from 1.10.10 to 29.5.12 and 10993 9493 9493
20. 11881 11724 14278
w.e.f. 22.6.2012)
21. DAP Lite(16-44-0-0) (w.e.f. 1.2.11) NA 14991 18573 13434 11559 11559
Table-28
PRICES OF IMPORTED FERTILZIERS
Average International prices of imported Fertilizers during 2009-10 to 2013-14
(USD/MT)
Table-29
INTERNATIONAL PRICE TREND IN 2013- 14 (MONTH - WISE)
(Price as per FMB US $ PMT)
Phos Rock
Urea DAP MOP Acid Phosphate Ammonia Sulphur
Months (FOB) (CIF) (FOB) (CIF) (CIF)
(CIF) (CIF)
April13 393.13 506.38 400.0 770.0 180.25 587.50 168.63
Table-30
SUBSIDY ON FERTILIZERS
(Rs. in Crores)
Figure-4
80000 Urea
65836 70592 71280
70000 64032 74569
60000 P & K Fertilizers
Rs. In Crores
Table-31
COMPANY- WISE SUBSIDY PAID ON INDIGENOUS UREA BY FICC
FROM 2009-- 10 TO 2013 - 14 (Rs. In crores)
S. No. Unit Subsidy paid/recovered
2009-10 2010-11 2011-12 2012-13 2013-14
(A) Public Sector
1 RCF-Thal 1227.65 705.35 708.51 954.80 1498.15
2 RCF-Trombay 66.02 313.94 232.53 219.05 287.99
3 MFL 1147.82 1290.71 1768.74 1427.26 1492.63
4 NFL-Bhatinda 983.62 923.88 1107.87 1201.50 1364.51
5 NFL-Panipat 846.27 801.39 1213.97 1193.59 1433.86
6 NFL-Vijaipur-I 255.68 289.41 408.54 413.43 677.59
7 NFL-Vijaipur-II 324.18 443.14 502.98 583.53 932.43
8 NFL-Nangal 930.77 748.96 1270.68 1123.71 13445.93
9 BVFCL-Namrup-III 26.37 114.13 59.22 104.63 109.29
10 BVFCL-Namrup-II 21.81 56.10 119.06 65.71 80.57
11 FACT 0 0.0 0.0 0.0 0.0
12 G GSFC- Vadodara 181.13 88.85 196.83 134.64 200.33
964.59 489.55 878.30 858.82 1119.54
13 GNFC-Bharuch
TOTAL 6975.91 6265.41 8467.24 8280.67 10542.82
(B) Cooperative Sector
1 KRIBHCO 649.61 460.80 591.75 660.01 1216.62
2 IFFCO-Phulpur-II 1144.54 764.96 907.11 981.90 1651.10
3 IFFCO-Phulpur-I 692.09 626.30 583.99 804.39 1004.36
4 IFFCO-Kalol 670.91 315.28 382.09 359.68 375.54
5 IFFCO-Aonla-I 593.16 376.49 439.11 539.56 953.58
6 IFFCO-Aonla-II 624.56 380.32 481.44 528.02 682.75
Total 4374.87 2924.15 3385.49 3873.56 5883.95
(C ) Private Sector
1 NFCL-Kakinada-I 208.78 260.16 397.75 307.12 527.88
2 NFCL-Kakinada-II 666.14 393.47 387.33 344.50 466.87
3 CFCL- Gadepan-I 441.77 545.59 689.51 701.45 1205.46
4 CFCL-Gadepan-II 769.33 753.72 751.38 889.10 1144.19
5 TCL Babrala 573.78 595.76 643.26 606.89 937.77
6 ZIL-Goa 1036.68 780.25 781.21 1101.68 1263.14
7 SFC-Kota 466.76 223.40 277.47 274.31 314.19
8 Indo Gulf-Jagdishpur 700.43 453.20 717.88 648.40 1388.03
9 SPIC-Tuticorin 0 637.67 2164.66 1477.96 791.90
10 OCFL-Shahjahanpur 0 0.0 0.0 0.0 0.0
11 KSFL- Shahjahanpur 448.82 410.32 452.42 614.02 609.91
12 MCFL-Mangalore 916.98 837.63 1170.02 880.34 1221.53
13 KFCL 0 0 0 0 202.36
Total 6229.47 5891.17 8432.69 7845.77 10073.23
Table 32
COMPANY-WISE SUBSIDY PAID ON INDIGENOUS DE-CONTROLLED P&K FERTILIZERS FROM
2009-10 TO 2013 -14
(Rs. In Crores)
2 Deepak Fertilizers & Petrochemicals Corp 66.81 135.28 193.16 134.06 282.29
3 Fertilizers and Chemicals Travancore Ltd 653.44 1185.37 1085.22 826.43 760.70
5 Gujrat Narmada Valley Fertilisers Co.Ltd 160.24 180.37 247.70 199.18 197.48
6 Gujrat State Fertilisers & Chemical Ltd 1185,31 1943.43 1418.86 752.76 1215.25
8 Indian Farmers Fertilizer Cooperative Ltd. 5142.21 5935.22 5968.28 4489.78 4974.80
9 Manglore Chemicals & Fertilisers Ltd 316.51 351.82 313.64 210.1 204.44
12 Rashtriya Chemicals & Fertilisers Ltd 560.38 716.59 625.07 705.89 559.55
13 Southern Petrochemical Industries Corp Ltd 97.5231 206. 403.23 0.0 0.0
Plus
Table-33
COMPANY-WISE SUBSIDY PAID ON IMPORTED P & K FERTILIZERS
FROM 2009-10 TO 2013-14
(Rs. In Crores)
S.
Company name 2009-10 2010-11 2011-12 2012-13 2013-14
No.
1 CFCL 411.57 834.84 780.68 854.94 1316.82
2 CIL 771.15 438.67 535.52 486.96 553.26
3 DEEPAK 247.72 103.67 65.93 112.47 154.65
4 FACT 162.36 89.91 3.33 91.12 16.88
5 FCSP 0.00 106.79 0.00 0.00 0.00
6 GNVFC 4.07 0.15 0.00 51.54 4.40
7 IPL 12722.37 9929.22 7687.62 5039.11 5319.30
8 MFL 9.23 2.91 0.00 15.10 0.0
9 MMTC 0.00 0.00 0.00 1.56 0.0
10 NFCL 109.81 382.66 813.92 809.74 875.83
11 NFL 100.77 92.00 10.94 0.00 0.00
12 PPL 471.75 462.53 353.24 669.36 826.80
13 RCF 1852.74 608.10 263.56 624.57 362.95
14 SFC 0.00 221.67 78.54 105.92 307.54
15 SPIC 0.00 0.00 0.48 0.00 0.00
16 TCL(HLL) 816.24 796.31 533.30 582.02 591.04
17 TFCL 98.89 113.82 4.11 0.00 0.00
18 ZACL 1499.83 1705.92 1396.19 1143.35 1086.09
20 GSFC 0.00 0.00 0.00 26.68 368.51
21 IFFCO 2875.03 2962.37 2104.61 1998.94 342.40
22 MIPL 682.8 903.66 733.77 338.91 625.38
23 KRIBHCO 270.2 639.70 370.78 534.36 387.47
24 KPRF 0.00 40.67 81.96 151.99 52.98
25 INDO GULF 0.00 0.00 80.59 156.72 296.76
26 DIL 0.00 0.00 1.57 0.00 0.00
27 MCFL 345.5 414.43 337.86 480.83 282.96
28 RIL 0.00 0.00 2.55 0.00 0.00
29 FOLIAGE 0.00 0.00 1.73 0.00 0.00
30 Greenstar 0.00 0.00 327.66 272.72 41.01
31 Toepfer Pvt. Ltd. 0.00 0.00 1.48 0.00 0.00
32 HPM 0.00 0.00 0.00 17.63 1.40
33 SUNFERT 0.00 0.00 0.00 5.32 87.73
34 Trans Agro 0.00 0.00 0.00 5.32 0.67
34 Agrigold organic Pvt. Ltd. 0.0 00.0 0.0 0.0 4.90
35 Instt. On SBA 0.0 0.0 0.0 0.0 19.13
Total 23452.06 20850.00 16571.92 14576.10 13926.86
Table-34
ENERGY CONSUMPTION PER MT UREA DURINGYEAR 2009 -10 TO 2012-13
(Energy figures are in
Gcal/MT urea (plant)
Subject : Policy for Stage-III of New Pricing Scheme for urea manufacturing units.
Sir,
I am directed to refer to this Departments letter No. 12019/5/98-FPP dated 30th January 2003 and No.
12019/19/2003-FPP, Dated 29-7-2003 vide which the salient features of Stage- I & II of New Pricing Scheme
(NPS) introduced w.e.f 1.4.2003, were communicated. It was, inter alia, communicated that the modalities of
Stage-III would be decided by the Department of Fertilizers (DOF) after review of the implementation of Stage-
I and Stage-II. It has been decided to implement Stage-III of NPS with certain modifications as contained in the
succeeding paragraphs.
(A) DURATION.
2. The Policy for NPS Stage-III will be effective from 1.10.2006 to 31.3.2010. Stage-II Policy has been
extended upto 30.9.2006. The policy for incentivizing additional production of urea during Stage-III of
NPS will be applicable from the date of notification and till then the additional production of urea by
units beyond 100% of their capacity will be governed by the existing policy of sharing of the net gain
between the Government and the unit in the ratio of 65:35.
3. During Stage-III of NPS, the following measures will be taken to calculate concession rates of urea units :-
(i) Existing six group classification will continue as given in Annexure. I-A.
(ii) Group averaging will be done after updation of all costs upto 31.3.2003.
(iii) Capacity utilization levels of 93% for pre-92 Naphtha and FO/LSHS based plants and 98%
for pre-92 gas, post-92 gas, post-92 Naphtha and mixed energy based plants will be
considered for calculating the base concession rates of urea units as on 31.3.2003.
(iv) Transportation cost of gas will be computed and paid separately.
(v) The updated notional concession rates of all urea units as on 1.4.2003 so determined on
the pattern followed during Stage-I of NPS will form the basis to calculate the concession
rate payable to each urea unit during Stage-III of NPS commencing from 1.10.2006. No
outlier benefit will be admissible to any unit in Stage-III of NPS.
(vi) On the base concession rate so determined for each unit, only escalation and de- escalation on
components of variable cost on actual basis subject to pre-set energy norms given in Stage III.
96 INDIAN FERTILIZER SCENARIO 2014
(vii) A deduction of Rs 50/MT from the concession rates of pre-92 Naphtha and FO/LSHS based and
Rs. 75/MT from the other units for the reduced capital related charges (CRC) will be made.
(viii) The respective pre-set energy consumption norm of each urea unit during Stage-II of NPS or
the actual energy consumption achieved during the year 2002-03, whichever is lower, will be
recognized as the norm for Stage-III of NPS.
(ix) Saving on energy over the pre-set norms will be paid as per the basic rate of the weighted
average of feed/fuel used during Stage-III of NPS.
(C) RESUMPTION OF UREA PRODUCTION BY UNITS UNDER SHUTDOWN.
4. Resumption of production by urea units currently not in production, viz, RCF-Trombay-V, FACT-Cochin
and Duncans Industries Limited (DIL)-Kanpur is allowed based on natural gas/LNG/CBM/Coal gas. Upon
resumption, the base concession rate of these units will be the Stage-III concession rate of the group to
which they belonged, or their own concession rate updated till 31.3.2003 for all costs and thereafter
adjusted for the feedstock changeover, whichever is lower.
(D) CONVERSION OF NON-GAS BASED UNITS TO NG/LNG.
5. (i) All functional Naphtha and FO/LSHS based units should get converted within a period of 3 years (of
these, Shriram Fertilizers & Chemicals Ltd (SFC) Kota is expected to convert by the end of the
current financial year). On the expiry of the aforementioned period, the Government will not
subsidize the high cost urea produced by the non-gas based urea units and rate of concession of
such units will be restricted to the lower of the prevalent import parity price (IPP) or their own
rate. Units not able to tie up gas will have t o e xplore alt ernative feedstock li ke Coal Be d
Methane(CBM) and coal gas.
(II) In order to provide incentives for conversion to gas, since there is no recognition of investment
made by units for conversion, there will be no mopping up of energy efficiency for a fixed period of
5 years for Naphtha based as well as for FO/LSHS based units. Capital subsidy will be considered
for FO/LSHS based units for which DOF wi ll notify a separate scheme in c onsultation with
Department of Expenditure(DOE) Ministry of Finance.
(iii) For conversion of the non-gas based Urea Plants to Natural Gas (NG) / Liquefied Natural Gas (LNG),
a Committee headed by Petroleum Secretary, comprising of Secretaries of Planning Commission,
Department of Fertilizers and Department of Expenditure has been constituted for facilitating the
connectivity and supply of gas to non-gas based units converting to gas and to develop appropriate
mechanism for fixing the price of gas in a transparent manner.
(v) The cost of feedstock/fuel allowed will be in the ratio of gas/LNG/Naphtha etc. with reference to
actual ratio of consumption of annual actual production of urea up to that portion of the incremental
production of urea required by the Government for sale to agriculturalists. Energy/inputs for non-
agricultural sale/exports and surplus ammonia shall be allocated on costlier feed/fuel basis.
(vi) To the extent that the Government does not require any quantities of additional production for
direct sale to agriculturalists, the concerned units would be free to dispose of the remaining
quantities by way of exports, sale to complex manufacturers etc. without seeking prior permission
of DOF.
(vii) Government will not subsidize the additional production, if not required by it for agricultural
consumption.
(i) The Government will continue to retain the authority to direct movement of urea stock up to 50%
of production depending upon the exigencies of the situation.
(ii) States would be required to allocate the entire quantity of planned urea arrivals i.e., both regulated
and de-regulated urea in a District-wise, month-wise and supplier wise format.
(iii) Each unit will maintain a district level stock point in the districts where it is required to supply urea.
These district level stock points will be the primary Godowns.
(iv) Subsidy to individual units will be reimbursed based on conformity to planned movement up to
district level for both controlled and de-controlled urea. The monitoring of the movement and
distribution of urea throughout the country will be done by an On-line computer-based monitoring
system. The time limit of existing payment system i.e., 45 days will be adhered to. It will be ensured
that no certification by State Governments is required for release of subsidy to urea Units. Subsidy
will be paid only when the urea reaches the district.
(v) The Department will operate a buffer stock through the State Institutional Agencies /Fertilizer
Companies in States up to a limit of 5% of their seasonal requirement.
(vi) The Department will work through the agricultural department of the states to realize the objective
of adequate and timely availability of urea at the Block level.
8. The freight reimbursement to urea units under NPS-III will be done as follows:-
(i) Primary Freight will be reimbursed on the basis of actual leads for rail movement;
(ii) Reimbursement of railway freight will be as per the actual expenditure;
(iii) For the road component of the primary freight, road leads will be as per actual distance to the
primary godown and per tonne Km. rates will be escalated by the composite road transport index
{ weighted average of the Wholesale Price Indices (WPIs) of HSD oil, Motor Tyres, Truck Chassis
and All Commodities};
(iv) One time enhancement of 33% will be granted on the road component of primary freight to offset
the impact of Supreme Court directed maximum truckload limit of 9 MT on road vehicles;
(v) Tariff Commission will be requested to fix average leads and per tonne km base rates for road
transportation in the case of secondary movement. These rates will be escalated by WPI (composite
road transport index) every year;
(vi) Pending finalization of leads and rates by the Tariff Commission, secondary freight which was frozen
at 2002-03 rates during Stages I & II of NPS will be escalated by the increase/decrease in WPI
(composite index) since 2002-03;
98 INDIAN FERTILIZER SCENARIO 2014
(vii) The Freight computed and paid as per the policy shall not exceed the actual freight expenditure
incurred by the units.
(viii) The existing scheme for special freight subsidy will continue for supplies to the North Eastern
States and Jammu & Kashmir.
(G) POLICY IN RESPECT OF HIGH COST UNITS (PRODUCING AT HIGHER THAN IPP):
9. In order to disincentivise high cost production of 8 Naphtha and FO/LSHS based units whose cost of
production is higher than the prevalent IPP, to facilitate their early conversion to gas, these units are
allowed to produce 100% of capacity should they adhere to an agreed timetable for conversion to gas
and tie up of gas/LNG/CBM/Coal gas. If they do not, they will be given only 75% of the difference
between the rate of concession and variable cost component (i.e., 75% of the balance fixed costs beyond
93% of capacity utilization) in the 1st year (1.4.2007) and 50% of the fixed cost beyond 93% capacity
utilization from 2nd year (1.4.2008) onwards.
Sd/-
(Deepak Singhal)
Joint Secretary to the Government of India
Tel No. 23381294
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 99
NBS per Kg
Sl.No. Nutrients of
nutrient (Rs.)
1. P 26.276
2. S 1.784
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 111
112 INDIAN FERTILIZER SCENARIO 2014
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 113
114 INDIAN FERTILIZER SCENARIO 2014
No.12012/2/2008-FPP
Government of India
Ministry of Chemicals & Fertilizers
(Department of Fertilizers)
******
To
CMD/MDs
RCF/MFL/BVFCL/NFL/KRIBHCO/IFFCO/GSFC/GNVFC/SFC/NFCL/
CFCL/TCL/ZIL/INDO-GULF/SPIC/KSFL/MCFL/FACT/FCIL/HFCL/IPL
SSP Manufacturers as per List annexed.
Subject: Policy for uniform freight subsidy on all fertilizers under the fertilizer subsidy regime.
Sir,
I am directed to convey the approval of the Government for a separate uniform freight subsidy
policy on all subsidised fertilizers covered under the New Pricing Scheme Stage-III (NPS-III) for
indigenous urea and the Concession Scheme on P&K fertilizers being administered by the Department.
The policy will also be applicable on imported Urea subject to contractual obligations, if any. The salient
features of the policy are as below:
a) The rail freight expenditure for transportation of fertilizers will be paid as per the actual
expenditure based on actual lead.
b) The road freight towards transportation of fertilizers from nearest railway rake point to block, or
from manufacturing unit /port directly by road to block, consists of two elements lead distance and per
KM rate. This element of subsidy will be paid as below:
i) The lead distance for each block in the district will be based on the average district lead (average
of leads from nearest rail rake point to block headquarters).
ii) The per KM road freight will be paid on the basis of average of existing per KM rate for each
State in the country, being adopted by FICC for reimbursement of freight subsidy for indigenous
urea, under NPS-III.
c) The normative per KM rate will be annually escalated/de-escalated based on a composite road
transport index (weighted average of the WPIs of HSD oil, Motor Tyres, Truck Chassis and All
Commodities) as already being done under NPS-III.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 115
d) The manufacturing units (especially the SSP units) not having railway siding facilities, will also be
reimbursed the road transportation costs from their unit to the nearest rail rake point based on actual
leads and the per tonne per KM rate, as computed in paras above.
e) The freight subsidy will be paid on actual movement of fertilizers up to the block level based on
monthly district-wise/block movement plans. The subsidy will be released only after the fertilizer reaches
the District/Block as per the monthly plan. Any additional supply beyond 10% of the monthly plan will be
eligible for subsidy only after 120 days of its receipt in the district, provided it is accounted for in the
subsequent month s plan.
f) The State Governments will be responsible for confirming the receipts of fertilizers as indicated in
the movement plan in the FMS. They are required to either confirm or deny the receipts of fertilizers
within 30 days, whereafter the final freight subsidy will be released to the manufacturers/importers.
However, in case of any report of any non-receipt/shortfall, the difference in freight subsidy will be
suitably recovered.
g) The policy is proposed to be implemented from 1st April, 2008. Where the concession price of a
fertilizer includes a fixed freight subsidy, payments so made from 1st April, 2008 till the date of
Notification will be adjusted against the freight subsidy to be paid under this policy. For SSP, the first
stage is proposed to be implemented from 1 st October, 2008.
h) The special freight re-imbursement scheme for J&K and North Eastern States stands withdrawn
as the freight will be now based on actual leads.
2. The manufacturers/importers will make separate claims for freight subsidy on monthly basis in
the prescribed proformas which will be separately circulated along with guidelines for the same. A freight
module under FMS, for generation of freight claims are being separately worked out and will be put in
place shortly. In the interim, it is proposed to pay the freight on the basis of average pe r tone rates
indicated below.
i) Indigenous Urea - Rs.616 per MT
ii) Imported Urea - Rs.850 per MT
iii) Indigenous DAP/MAP - Rs.770 per MT
iv) Imported DAP/MAP/TSP - Rs.850 per MT
v) MOP - Rs.623 per MT
vi) Complex Fertilizers - Rs.616 per MT
vii) SSP (w.e.f. 1.10.08) - Rs.616 per MT
3. The base concession rates and final concession rates for P&K fertilizers will be devoid of freight
element from 1st April, 2008 onwards and for SSP, from 1 st October, 2008 onwards. The provisions of
New Pricing Scheme Stage-III for freight subsidy on indigenous urea will stand amended w.e.f. 1 st April,
2008.
4. The manufacturers/importers will have to ensure provision of details of movement and receipts of
fertilizers in various districts/blocks in the country, on the Fertilizer Monitoring System (FMS), in order to
be eligible for freight subsidy.
Yours faithfully,
Sd/
(Deepak Singhal)
Joint Secretary to the Government of India
Tel No. 23381294
116 INDIAN FERTILIZER SCENARIO 2014
Copy
Smt. Vini Mahajan, Joint Secretary, Prime Minister s Office, South Block, New Delhi.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 117
To
1. Chief Secretaries/ Agriculture Production Commissioners/ Secretaries
(Agriculture) of all the State/ Union Territory Governments.
Madam/Sir,
3. Government will provide an ad hoc concession of Rs. 2000 per MT for Powdered,
Granulated and Boronated SSP w.e.f 1 st October 2009.
118 INDIAN FERTILIZER SCENARIO 2014
4. On !ccount Payment of 85% for sales w.e.f 1 st October 2009 will be made on the
basis of the claim submitted by the eligible manufactures/marketers of SSP in Proforma
A & C certified by their statutory auditor on sale of Powdered, Granulated and
Boronated SSP in the district of the State. The On !ccount payment is contingent on the
manufacturers / marketers certifying that Quality Certified stamp (quality as per FC O)
has been put on each bag of SSP released in the market and also certification of quality
of SSP as per the FCO at the point of production by the State in which the production
unit is located. The balance payment will be made after certification of sales of SSP is
received from the State Government concerned (State in which sales has taken place)
certifying quantity of SSP sold w.e.f 1 st October 2009 as well as its quality as per FCO as
per Proforma B. The State Governments are also required to mention that the bags of
SSP sold in the State contained the stamp Quality Certified.
5. The responsibility of regulation and maintaining quality of SSP produced and sold
in the States as per the specifications of the FCO is of the State Governments. The Sta te
in which the SSP units are located is required to inspect and certify the quality of SSP at
the point of production in their States for enabling the manufacturers/marketers of SSP
to claim On Account subsidy. The manufacturers/ marketers are also requir ed to certify
to the Department that bags of SSP have been released in the market with stamp
Quality Certified. The State Government concerned, in which sale of SSP has taken
place, is required to certify quantity of sales of SSP as well as its quality a s per FCO for
final settlement of the claim for subsidy. The Department would continue to monitor the
quality and other details as at present through the inspection conducted by the Project
Development India Ltd (PDIL, a PSU under the Department of Fertili zers).
6. Ad hoc concession for SSP w.e.f 1 st October 2009 will be provided to those eligible
SSP units only, which have either annual capacity utilization of at least 50% or annual
production of 40,000 MT of SSP. For the purpose of recognizing capacity ut ilization /
production, capacity as on 31 st March 2009 will be taken into account. The SSP units are
required to inform the Department their installed capacity as on 31 st March 2009
certified by the statutory auditor with a copy to the PDIL. PDIL will also be required to
submit a separate report on the installed capacity of the units as on 31 st March 2009.
Capacity utilization/ production for three months from the date of this notification on
pro-rata basis will be taken into account for the capacity utiliz ation/ production
benchmark as above for ad hoc subsidy for sales of SSP w.e.f. 1 st October 2009.
8. This issues with concurrence of the Internal Finance Division of the Department of
Fertilizers vide their dairy no. 1495/IFD/2009 dated 12 August 2009.
Yours faithfully,
Sd/-
(H. Abbas)
Deputy Secretary to the Government of India
Tel. No. + 11 - 2338 3814
Copy to:
PS to Minister (C & F)/ Sr. PPS to Secretary (Fertilizers)/ AS & FA/ JS (P&P)/ JS (F & P)/ JS
(A&M)/ Economic Advisor/ Dir (M)/ Dir (Fin)/Dir (F)/ US (CW)/ AD (FA Wing), AD (CW)/
P!O/RO(F)/ NIC, DoF for uploading on the Departments website/ DD, OL for Hindi
translation/ US (MPR-Guard File).
(H. Abbas)
To,
CMD/MDs
RCF/MFL/BVFCL/NFL/KRIBHCO/IFFCO/GSFC/GNVFC/SFC/NFCL/
CFCL/TCL/ZIL/INDO -GULF/SPIC/KSFL/MCFL/FACT/FCIL/HFCL/IPL
All Urea manufacturing units
Subject: Policy for new investments in urea sector and long-term offtake of urea from joint
ventures abroad.
Sir,
I am directed to convey the approval of the Government on policy for New Investments in Urea
Sector both indigenous and abroad, in supersession of the existing policy for investment made in new
and expansion projects of Urea issued vide letter No.12019/11/2003 -FPP(I) dated 29th January,2004.
The salient features of the New Investment policy are as under:
1. Import parity price: Import Parity Price for a month would be derived based on the prevailing
prices in three months preceding the month under consideration as indicated below.
Import Parity Price (IPP): The import parity price (IPP) for a particular month will be the lower of the
actual average CIF price of urea imported in India during preceding three months and the IPP reported
in the fertilizer magazines for the same preceding three months, as detailed below:
Where,
FOB Arabian Gulf = Average FOB reported price of urea for AG in the three magazines as listed
below, during preceding three month (x - 1) to (x - 3).
Freight = Average freight for AG in the three magazines listed below, during preceding three
month (x - 1) to (x - 3).
The exchange rate will be taken as the average of preceding three months for arriving at the
price in INR. The three fertilizer magazines to be used for arriving at IPP prices will be as below:
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 121
2. Floor & Ceiling price: The floor for urea price be kept at USD 250 per MT. The ceiling for urea
price is fixed at USD 425 per MT. The floor and ceiling prices are based on the feedstock price of USD
4.88 per MMBTU, which is the price of RIL gas plus estimated taxes. In case of any sharp increase
(more than double the current price) in price of feedstock in future, the floor and ceiling will be adjusted
to take care of increased cost of production. Further, the above will be reviewed after five years keeping
in view the prevailing gas prices and the investment costs. In the event that Government guarantees an
assured price (subsidized price) of gas to the fertilizer sector/unit, then for the period for which that the
assured price prevails, the floor and ceiling will be accordingly recalculated.
3. Revamp projects: Any improvement in capacity of existing plants through investments upto
Rs.1000 crore, in the existing train of ammonia-urea production will be treated as revamp of existing
units. The additional urea from the revamp of existing units will be recognised at 85% of Import Parity
Price with the floor and ceiling price as indicated in para-2 above. The urea produced from existing units
beyond, their reassessed capacity under NPS or the maximum achieved capacity by a unit for 330 days
in last four years (2003-07), whichever is higher ( cut off quantity ), will be recognised as the production
under revamp of the existing unit. However, the urea produced under revamp quantity will only be
eligible for the above dispensation once the total production of the unit crosses 105% of the cut off
quantity or 110% of the reassessed capacity, whichever is higher. The cut off quantities for various units
can be seen at Annexure-I.
5. Revival/Brownfield projects: The Urea from the revived units of HFCL and FCIL will be
recognised at 95% of IPP, with floor and ceiling as indicated in para-2 above, if the revival of closed
units takes place in public sector.
6. Greenfield projects: The price of Urea from the Greenfield projects will be determined through a
bidding route. The following will be followed in case of Greenfield projects.
i) The Department will identify the location (deficit States) for setting up of Greenfield projects, or in
coastal areas, encourage the urea units to add DAP/Complex fertilizers to their product lines.
ii) The Greenfield projects will be offered for bidding with a minimum floor price {of USD 250 per
MT} and an appropriate ceiling price {of USD 425 / MT}, which will be decided at the time of
bidding based on domestic gas prices and the IPP. A commitment to offtake a minimum of 50%
of production of the unit in case of IPP falling below the floor price will be provided by the
Government.
iii) The bidder will have to indicate the price as a percentage discount below the prevailing IPP for
urea. The feedstock linkage and price has to be entirely on the account of the bidder.
7. Gas transportation charges: An additional gas transportation cost will be paid to units
undertaking expansion and revival on the basis of actual (upto 5.2 Gcal per MT of urea) as decided by
the Regulator (Gas) subject to a maximum ceiling of USD 25 per MT of Urea. The cap will be subject to
Composite Road Transport Index as applied in case of road transportation costs under the freight policy.
However, in case of each revival project, the DPR should justify the higher gas transportation costs, if
any, in terms of other savings accruing as a result of the location choice.
8. Allocation of gas: No APM gas will be allocated towards production from the new investments
as discussed above. All APM gas will be allocated towards production in existing plants u nder the
currently approved New Pricing Scheme Stage-III and its subsequent modifications. The actual mix
excluding APM gas will be provided towards production under revamp.
9. Coal Gasification based Urea Projects: The same will be treated on par with a brownfield or a
Greenfield project as the case may be. In addition, any other incentives or tax benefits as provided by
Government for encouraging coal gasification technology will also be extended to these projects.
10. Joint Ventures abroad: The joint venture projects abroad in gas rich countries will be
encouraged through firm off take contracts with pricing decided on the basis of prevailing market
conditions and in mutual consultation with the joint venture company. However, the principle for decidin g
upon the maximum price will be the price achieved under Greenfield projects or 95% of IPP as
applicable to brownfield projects (in absence of any Greenfield project) with a cap of USD 405 CIF India
per MT and a floor of USD 225 CIF India per MT (inclusive of handling and bagging costs). The off take
commitments from new JV projects abroad would be limited to a maximum of 5 million tonnes. However
this ceiling can be reviewed, and additional committed off take and any deviation of price principle
thereof can be decided upon by Department of Fertilizers in consultation with the Department of
Expenditure keeping in view that this does not constrain setting up of Greenfield projects in the country.
11. Time period for proposed investment policy: It is proposed that only those revamp projects
which start production of additional capacities within four years of Notification of the new policy would
qualify for the dispensation recommended above. Similarly, only production from expansion and revival
(brownfield) units that comes about within five years of Notification of the new policy would qualify for
dispensation provided in the policy. If the production does not come through within the stipulated time
period, such brownfield projects will be treated similar to a Greenfield project wherein price will be
decided through limited bidding options. The time period for setting up of new JVs would also be five
years under the new policy. Once the production under various pr ojects start within the given time
period, the pricing dispensation will be available till the continuance of the fertilizer subsidy regime and
sale of urea under the same.
12. The policy will be effective from the date of notification. However, the ad ditional production under
revamp beyond cut-off quantities will be computed on an annual basis.
Yours faithfully,
Sd/-
(Rajesh Agrawal)
Deputy Secretary to the Government of India
Tel No. 23381294
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 123
Copy to:
Smt. Vini Mahajan, Joint Secretary, Prime Minister s Office, South Block, New Delhi.
124 INDIAN FERTILIZER SCENARIO 2014
Annexure-I
No. 12014/1/2008-FPP
Government of India
Ministry of Chemicals & Fertilizers
(Department of Fertilizers)
******
Shastri Bhawan, New Delhi.
Dated the 6th March, 2009.
To,
CMD/MD
NFL, GNVFC
Sir,
a. Only FO/LSHS units viz. NFL- Nangal, NFL- Bathinda, NFL Panipat and GNVFC-Bharuch
would be covered under this policy.
b. Such units would not be allowed to use FO/LSHS as feedstock after conversion.
c. PDIL will evaluate the project report by conducting techno- economic feasibility study. The
actual project cost for conversion would be admitted after scrutiny by a team comprising of
representatives of PDIL, DOF, FICC and respective units and will be in accordance with the
final PIB approval along with exchange rate variation and variation in statutory levies.
d. The pre-set energy would be allowed for 5 years and savings in energy with respect to the
same would be considered on designed/guaranteed basis and then same would be available
to the unit for partially meeting the project cost. Keeping in view the above, the percentage of
project cost to be considered for determining special fixed cost will be decided by the PIB
while approving the project cost.
e. The Special Fixed Cost Component shall include:
i. Percentage of the Project Cost as decided by PIB
ii. Interest on Borrowed Capital
iii. Return on own funds
(iv) Income tax on Special Fixed Cost (after netting off with respect to allowable
project depreciation under Income Tax, Revenue from special additional fixed
cost and interest charge allowed)
f. 12% post tax return (pre tax 18.18% after 30% CT + 10% SC + 3% EC) would be considered
for own funds deployed for the conversion project.
g. The units may fund the project with a combination of borrowed and own funds. Borrowing for
project cost would be considered at the actual rate of interest subject to maximum of SBI PLR.
126 INDIAN FERTILIZER SCENARIO 2014
h. The special additional fixed cost so determined would be fixed for 5 years period and would be
paid from the date of commercial production post conversion upto the end of 5 years and shall
be withdrawn at the end of 5 years. The special fixed cost will be paid only for production till
100% of the re-assessed capacity.
i. The project cost considered for special additional fixed cost would not be considered /
recognized as capital addition for the purposes of NFA as well as deprecia tion during current
pricing and future pricing if any.
j. The principal repayment would be considered on half yearly/ quarterly basis for interest
computation as per loan agreement/ practice of lending Institution.
2. The above scheme would be applicable to all projects undertaken in compliance to the
provisions of NPS-III for conversion of FO/LSHS units to gas based.
Yours faithfully
Sd/-,
(B.N. Tiwari)
Director Tel No. 23381294
Copy to:
3. Director General, Fertilizer Association of India, 10, Shaheed Jit Singh Marg, New
Delhi.110067.
Smt. Vini Mahajan, Joint Secretary, Prime Minister s Office, South Block, New Delhi.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 127
No. 12014/1/2008-FPP
Government of India
Ministry of Chemicals & Fertilizers
Department of Fertilizers
Shastri Bhawan,New Delhi
Dated the 8th February 2010
To
CMD/MD
NFL, GNVFC
Sir
I am directed to refer to Department of Fertilizers letter No. 12014/1/ 2008-FPP dated 6th
March 2009 regarding Policy for Conversion of FO/LSHS urea units. The above policy
provides for reimbursement for the project cost through special fixed cost and energy savings
to be linked with the production and to be paid in the span of five years post commissioning
of the plant.
2. It is clarified that the amount of energy savings and special fixed cost component to be
paid based on production in a span of five years post commissioning is towards
reimbursement of capital cost of the project and is a capital subsidy in the nature covered
under explanation 10 to Section 43(1) of Income Tax Act 1961 . Thus, no income tax is liable
on the above reimbursement.
3. The Special fixed component shall therefore not include Income tax on Special Fixed Cost
(after netting off with respect to allowable project depreciation under Income Tax, Revenue
from special additional fixed cost and interest charge allowed).
4. The provision of the policy for Conversion of FO/LSHS Urea units dated 6 th March 2009
stand amended as above.
5. This issue is with the concurrence of the Internal Finance Division of this Department
conveyed vide their Dy. No. 275/SS&FA/10, dated 5-02-2010.
Yours faithfully,
Sd/-
( Deepak Singhal )
Joint Secretary(F&P)
Tele : 23381294
128 INDIAN FERTILIZER SCENARIO 2014
Copy to:
2. Director General, Fertilizer Association of India, 10, Shaheed Jit Singh Marg,
New Delhi. 110067.
(I) Smt. Vini Mahajan, Joint Secretary, Prime Ministers Office, South Block, New Delhi.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 129
No. 12014/1/2008-FPP
Government of India
Ministry of Chemicals & Fertilizers
(Department of Fertilizers)
******
Shastri Bhawan, New Delhi.
Dated the 6th March, 2009.
To,
CMD/MD
RCF-Trombay
Sir,
3. The unit will be required to communicate its participation under NPS III in the
proforma prescribed by FICC.
Yours faithfully,
Sd/-
(B.N. Tiwari)
Director
Tel No. 23381294
130 INDIAN FERTILIZER SCENARIO 2014
Copy to:
2. Director General, Fertilizer Association of India, 10, Shaheed Jit Singh Marg,
New Delhi. 110067.
4. All Officers/Sections in the Dep artment of Fertil izers and office of FICC.
I) Smt. Vini Mahajan, Joint Secretary, Prime Ministers Office, South Block, New Delhi.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 131
No. 12014/1/2008-FPP
Government of India
Ministry of Chemicals & Fertilizers
(Department of Fertilizers)
******
Shastri Bhawan, New Delhi.
Dated the 6th March, 2009.
To,
1. CMD/MD
DIL-Kanpur, FACT-Cochin, RCF - Trombay.
2. E.D., FICC
Sir,
In partial supersession of provisions under New Pricing Scheme Stage - III (NPS III)
notified vide this office letter no. 12012/3/2006-FPP dtd 8th March 2007, I am directed to convey
the approval of Government on policy to allow resumption of production from the shut down units
based on existing fuel/feedstock with the provision that the non-gas units will have to convert to
gas by March, 2010, in accordance with the policy applicable for all other operational non-gas /
naphtha based units in the country.
2. The above scheme is applicable to the shut down urea units viz. RCF Trombay, DIL-
Kanpur and FACT-Cochin resuming production on the existing feedstock / fuel and subsequently
getting converted to gas based. All other provisions relating to restart of shutdown units as provided
for under NPS III will remain.
3. The unit will be required to communicate its participation under NPS III in the proforma
prescribed by FICC.
Yours faithfully,
Sd/-
(B.N. Tiwaril)
Director
132 INDIAN FERTILIZER SCENARIO 2014
Copy to:
2. Director General, Fertilizer Association of India, 10, Shaheed Jit Singh Marg,
New Delhi. 110067.
I) Smt. Vini Mahajan, Joint Secretary, Prime Ministers Office, South Block, New Delhi.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 133
To
CMD/MDs
RCF/MFL/BVFCL/NFL/KRIBHCO/IFFCO/GSFC/GNVFC/SFC/NFCL/
CFCL/TCL/ZIL/INDO-GULF/SPIC/KSFL/MCFL/FACT/FCIL/HFCL/IPL
SSP Manufacturers as per list annexed.
Subject: Policy for uniform freight subsidy on all fertilizers under the fertilizer
subsidy regime.
Sir,
In continuation of this Departments letters of even dated 17th July 2008 and 4th February
2009, on the above mentioned subject, the undersigned is directed to say that the ad hoc per
tonne per KM rates for road transportation of fertilizers in respect of all the districts of North
Eastern, Orissa and Jammu & Kashmir states will be as follows :-
Yours faithfully,
Sd/-
( B.N. Tiwari )
Director
Tel No. 23386398
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 137
Copy to:
3. Director General, Fertilizer Association of India, 10, Shaheed Jit Singh Marg, New Delhi-
110067
4. Director(M)/Direcgtor(FA)-UB/Director(Input)-FICC/Director(Fin.)
Smt. Vini Mahajan, Joint Secretary, Prime Ministers Office, South Block, New Delhi.
138 INDIAN FERTILIZER SCENARIO 2014
To
CMD/MDs
RCF/MFL/BVFCL/NFL/KRIBHCO/IFFCO/GSFC/GNVFC/SFC/NFCL/
CFCL/TCL/ZIL/INDO-GULF/SPIC/KSFL/MCFL/FACT/FCIL/HFCL/IPL
SSP Manufacturers as per list annexed.
Subject: Policy for uniform freight subsidy on all fertilizers under the fertilizer subsidy
regime.
Sir,
In continuation of this Departments letters of even dated 17th July 2008, 4th February 2009
and dated 15th April 2009, on the above mentioned subject, the undersigned is directed to say that
it has been decided that the distance for direct dispatch by road has been restricted to 500 km
and any dispatches to distance more than 500 km has to be approved/regularised by the
Director(Mov), DOF
Yours faithfully,
Sd/
( Rajesh Agrawal )
Director(F)
Tel No. 23386398
Copy to:
Subject: Policy for Stage-III of New Pricing Scheme for Urea Manufacture Units - Amendments thereof
1m am directed to refer to this Department's letter No. 12012/3/2006-FPP dated 8th March, 2007, vide which the salient
features of Stage-III of New Princing Scheme introduced with effect from 10.1.2006 were communicated. It has been furtehr
paragraphs.
(i) The capacity utilization of post-1992 Naphtha based Group Averagewill beconsidered as 95% insted of 98% for
calculating the base concession rates of urea units, provided no cost towards conversion is recognized under
NPS-1I1
(ii) The reduction is fixed cst of each urea unit strictly due to Group Averaging principle under NPS -1I1 will ve
restricted to10% of the Normated Fixed Cost computed under the base concession rates. The above
amendment will ve effective with effect from I" April, 2009 only
(iii) The detailed pararnenters for Buffer-Stocking Scheme of urea will be as per the provisions detailed at Annexure-I
Yours faithfully,
Sd/-
( Deepak Singhal) Joint
Secretary (Fertilizers) Tel:
23381294
End: as above
140 INDIAN FERTILIZER SCENARIO 2014
Annexure-I
BUFFER STOCKING SCHEME FOR UREA
INOTODUCTUIN
1. The CCEA in its meeting held on 1" February, 2007 while approving NPS Stage-III for urea has authorized the
Department of Fertilizers to operate a buffer stock of urea corresponding to 5% of the seasonal requirement.
OBJECTIVE
2. The Buffer StodUl1g .ofdlfea is required keeping in view the following objectives:
(i) To maintain stocks of Urea in case there is either a shortfall in production due to disruption in supplies of
feedstock or delay/disruption in imports.
(ii) To tide -over the suddeen spurt in demand/shortages in any part of the country.
3. Buffer stock would be positioned in the major agricultural states with the minimum stock being operated at 50,000
tonnes in each state. Major agriculture states requiring buffer stock will be identified at the beginning of each cropping
season.
4. The buffer stocks would beoperated through the lead Fertilizer Suppliers (LFS) for These States as decided by the
Department. The following states will have buffer stock of Urea -
State
Punjab
Haryana
Rajsthan
UP
MP
AP
Maharashtra
Gujrat
Bihar
West Bengal
Karnataka
Tamil Nadu
Orissa
5 Urea for buffer stocking purposes will be allocated by the Department of Fertilizers under the Essential Commodities
ACT. TheLFS will hold quantities of Urea under the buffer stockin their warehouses at designated locations as approved
by OOF from time to time. Urea will be released from the buffer stock for sale by the LFS as per the directions of the
OOF in consultation with the State Government. The locations of buffer stocking warehousesand the quantities could be
changed as per the instructions of DOF.
6. For the purposes of payment of subsidy, the buffer stock warehouse wil! be treated as primary stock points and subsidy
will be paid on the urea stocked as buffer once it reaches the burffer sotck warhouse at the designated location.
7 The company operating the buffer stock will be entitled to Inventory Carrying Costat a rate 1 percentage point
less than the Prime Landing Rate (PLR) of the State Bank of India as notified from time to time. This rate would
be applicable at Rs. 4650 per MT (MRP less than the dealer's margin i.e. Rs. 4830 Rs. 180) for the quantity and
the duration for which the stock is carried as buffer. In case of cooperative. it will be at Rs. 4630. per MT as
dealers' margin in this case is Rs. 200 per MT.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 141
8. The Company will also be paid ware housing and insurance charges at the rate of Rs. 23 per tonne per month on
the quantity carried as buffer.
9. Since the material will be moved in two stages i.e. from the plant to the buffer stocking point and then on to
consumption points. additional handling charges at the rate of RS. 30 per MT will be apid tothe Fertiliaer
Company on the quantity sold from the buffer stock.
10. In addition, freight from the buffer stocking warehouse th the block in case of movement outside t he district in
which buffer stocking god own is located, will also be paid to the company, in accordance with the provisions
under the Uniform Policy for freight subsidy announced by the Government with effect from 1" April, 2008.
11. The Fertilizer companies will be required to submit fortnightly reports to the Department of fertilizers indicating the
quantites of the buffer stock available at each location. The same will also be monitored through the on line
'Fertilizer Monitoring System'. Appropriate entries will also be made in the Fertilizer Monitoring System by the
company operating the buffer.
12. No Inventory Carrying Cost or warehousing and insurance charges would be payable tothe LFS on stocks held in
excess ofthe quantities agree upon for different period and zones.
13. No other charges other than the above will be paid to the company for operating the buffer stock. The company
will be responsible for safe storage of the Urea as well as for ensuring its quality standards as per FCO norms.
Company will be permitted to rotate the stock in the buffer stocking point by simultaneously drawing down the
stock for normal sale and replenishing the stock by equl quantity. However, it will ve the responsibility of the
company to ensure that at no point the stock in the buffer is less than the stipulated level.
14. The LFS will maintain separate accounts of stock, purchases ans sales for the quantities held under buffer
stocking scheme.
15 Buffer stock will be operated in each State by the LFS concerned at the level prescribed by the DOF. This stock
will be scaled down in the lean months of February-April as decided by the DOF and built-up and maintained at
peak levels in the remaining months of each year.
16. Lead fertilizer Suppliers will drawn from the buffer stock as per requirement on the direction of the Department of
Fertilizers in consultation with the State Government. Quantity sold from the buffer stock will be reoccupied not
later than the 7th of the month subsequent to the month in which such sale is made.
142 INDIAN FERTILIZER SCENARIO 2014
No.14016/2/2007-FPP(Vol.II)(1)
Government of India
Ministry of Chemicals and Fertilizers
Department of Fertilizers
To
The Chairman & Managing Director,
National Fertilizers Limited,
A-11, Sector 24,
NOIDA.
Subject: Proposal for Conversion of Fuel Oil/ Low Sulphur Heavy Stock (FO/
LSHS) based Urea unit at Bathinda unit of NFL to Natural Gas (NG)
Sir
(a) The unit shall not be allowed to use FO/LSHS as feedstock after conversion.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 143
(b) The actual project cost shall be admitted after scrutiny by a team comprising
representatives of PDIL, DOF, FICC and NFL and will be in accordance with the
CCEA approval along with exchange rate variation and variation in statutory levies.
(c) The NPS-III pre-set energy norm would be allowed for 5 years and savings in energy
with respect to the same would be considered on designed/guaranteed basis and
the same would be available to the Unit for partially meeting the project cost.
(d) The balance project cost shall be paid through Special Fixed Cost component
and it will be covering the following items
i. Interest on Borrowed Capital
(e) 12% post tax return (pre-tax 18.18% after 30%CT + 10% SC +3% EC) be
considered for own funds deployed for the project as at (d) above.
(f) Borrowings for project cost would be considered at the actual rate of interest subject
to the maximum of SBI PLR.
(g) The Special Fixed Cost would be fixed for 5 years period and would be paid from
the date of commercial production after conversion up to the end of 5 years and
shall be withdrawn at the end of 5 years. The Special Fixed Cost shall be paid only
for production till 100% of the re-assessed capacity.
(h) The project cost considered as special additional fixed cost would not be considered/
recognized as capital addition for the purpose of Net Fixed Asset as well as for
depreciation during current pricing and future pricing, if any.
(i) Special Fixed Cost Component and the Energy Savings (as per c above) to be
paid for first five years post conversion based on the production upto 100% of the
reassessed capacity is towards reimbursement of capital cost of the project and is
a subsidy in the nature covered under Explanation 10 to section 43(1) of Income
Tax Act 1961.
(j) The cost adjustment to the extent of old plant is not used for urea production will
also be made in the final project cost. Suitable valuation methodology will be adopted
by the Department of Fertilizers in this regard. The team constituted as at (b) above
shall assist the Department in assessing the valuation of the old plant.
4. This issue is with the concurrence of the Internal Finance Division of this Department
conveyed vide their Dy. No. 275/SS&FA/10, dated 5-02-2010.
Yours faithfully,
Sd/-
( Deepak Singhal )
Joint Secretary(F&P)
Tele : 23381294
Copy to:-
No.14016/2/2007-FP (Vol.II)(2)
Government of India
Ministry of Chemicals and Fertilizers
Department of Fertilizers
To
The Chairman & Managing Director,
National Fertilizers Limited,
A-11, Sector 24,
NOIDA.
Subject: Proposal for Conversion of Fuel Oil/ Low Sulphur Heavy Stock (FO/LSHS)
based Urea unit at Panipat unit of NFL to Natural Gas (NG).
Sir
2. The project cost shall be reimbursed subject to a ceiling of Rs.1292.84 crore (subject
to exchange rate variation, changes in statutory levies and escalation/de-escalation on
account of nickel price till the issuance of letter of intent on the quoted quantity of nickel).
The project cost shall be adjusted after completion of conversion project for any savings
during execution, lower interest rate on loans with reference to SBIs PLR and sales
realization of redundant front end of existing plant after conversion. The reimbursement
of project cost shall be based on the following parameters:
(a) The unit shall not be allowed to use FO/LSHS as feedstock after conversion.
146 INDIAN FERTILIZER SCENARIO 2014
(b) The actual project cost shall be admitted after scrutiny by a team comprising
representatives of PDIL, DOF, FICC and NFL and will be in accordance with the
CCEA approval along with exchange rate variation and variation in statutory levies.
(c) The NPS-III pre-set energy norm would be allowed for 5 years and savings in energy
with respect to the same would be considered on designed/guaranteed basis and
the same would be available to the Unit for partially meeting the project cost.
(d) The balance project cost shall be paid through Special Fixed Cost component and
it will be covering the following items:
2. Own funds
(e) 12% post tax return (pre-tax 18.18% after 30%CT + 10% SC +3% EC) be considered
for own funds deployed for the project as at (d) above
(f) Borrowings for project cost would be considered at the actual rate of interest subject
to the maximum of SBI PLR.
(g) The Special Fixed Cost would be fixed for 5 years period and would be paid from
the date of commercial production after conversion up to the end of 5 years and
shall be withdrawn at the end of 5 years. The Special Fixed Cost shall be paid
only for production till 100% of the re-assessed capacity.
(h) The project cost considered as special additional fixed cost would not be
considered/recognized as capital addition for the purpose of Net Fixed Asset as
well as for depreciation during current pricing and future pricing, if any.
(i) Special Fixed Cost Component and the Energy Savings (as per c above) to be
paid for first five years post conversion based on the production upto 100% of the
reassessed capacity is towards reimbursement of capital cost of the project and is
a subsidy in the nature covered under Explanation 10 to section 43(1) of Income
Tax Act 1961.
(j) The cost adjustment to the extent of old plant is not used for urea production will
also be made in the final project cost. Suitable valuation methodology will be adopted
by the Department of Fertilizers in this regard. The team constituted as at (b) above
shall assist the Department in assessing the valuation of the old plant.
3. Monthly progress/ flash reports of the project in the prescribed formats should be
submitted to this Department.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 147
4. This issue is with the concurrence of the Internal Finance Division of this Department
conveyed vide their Dy. No. 275/SS&FA/10, dated 5-02-2010.
Thanking you,
Yours faithfully
Sd/- ,
( Deepak Singhal )
Joint Secretary(F&P)
Tele : 23381294
Copy to:-
No.14016/2/2007-FP (Vol.II)(3)
Government of India
Ministry of Chemicals and Fertilizers
Department of Fertilizers
To
The Chairman & Managing Director,
National Fertilizers Limited,
A-11, Sector 24,
NOIDA.
Subject: Proposal for Conversion of Fuel Oil/ Low Sulphur Heavy Stock (FO/LSHS)
based Urea unit at Nangal unit of NFL to Natural Gas (NG)
Sir
2. The project cost shall be reimbursed subject to a ceiling of Rs.1346.20 crore for
Urea (subject to exchange rate variation and changes in statutory levies. The project cost
shall be adjusted after completion of conversion project for any savings during execution,
lower interest rate on loans with reference to SBIs PLR and sales realization of redundant
front end of existing plant after conversion. The reimbursement of project cost shall be
based on the following parameters:
(a) The unit shall not be allowed to use FO/LSHS as feedstock after conversion. Portion
of the project cost for industrial products be excluded from total project cost for
consideration of special fixed cost. The ceiling of project cost of Rs. 1478.63 crores
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 149
would stand reduced by Rs. 132.43 crores on account of industrial products for
the purpose of urea related project cost.
(b) The actual project cost shall be admitted after scrutiny by a team comprising
representatives of PDIL, DOF, FICC and NFL and will be in accordance with the
CCEA approval along with exchange rate variation and variation in statutory levies.
(c) The NPS-III pre-set energy norm would be allowed for 5 years and savings in
energy with respect to the same would be considered on designed/guaranteed
basis and the same would be available to the Unit for partially meeting the project
cost.
(d) The balance project cost shall be paid through Special Fixed Cost component
and it will be covering the following items:
i. Interest on Borrowed Capital
ii. Own funds
iii. Return on own funds as a part of balance project cost.
(e) 12% post tax return (pre-tax 18.18% after 30%CT + 10% SC +3% EC) be
considered for own funds deployed for the project as at (d) above.
(f) Borrowings for project cost would be considered at the actual rate of interest
subject to the maximum of SBI PLR.
(g) The Special Fixed Cost would be fixed for 5 years period and would be paid
from the date of commercial production after conversion up to the end of 5 years
and shall be withdrawn at the end of 5 years. The Special Fixed Cost shall be paid
only for production till 100% of the re-assessed capacity.
(h) The project cost considered as special additional fixed cost would not
be considered/recognized as capital addition for the purpose of Net Fixed Asset
as well as for depreciation during current pricing and future pricing, if any.
(i) Special Fixed Cost Component and the Energy Savings (as per c above) to be
paid for first five years post conversion based on the production upto 100% of the
reassessed capacity is towards reimbursement of capital cost of the project and is a
subsidy in the nature covered under Explanation 10 to section 43(1) of Income Tax
Act 1961.
(j) The cost adjustment to the extent of old plant is not used for urea production will
also be made in the final project cost. Suitable valuation methodology will be
adopted by the Department of Fertilizers in this regard. The team constituted as at
(b) above shall assist the Department in assessing the valuation of the old plant.
3. Monthly progress/ flash reports of the project in the prescribed formats should
be submitted to this Department.
150 INDIAN FERTILIZER SCENARIO 2014
4. This issue is with the concurrence of the Internal Finance Division of this Department
conveyed vide their Dy. No. 275/SS&FA/10, dated 5-02-2010.
Yours faithfully,
Sd/-
( Deepak Singhal )
Joint Secretary(F&P)
Tele : 23381294
Copy to:-
No. 12012/9/2009-FPP
Government of India
Ministry of Chemicals & Fertilizers
Department of Fertilizers
To,
The Executive Director,
Fertilizer Industry Coordination Committee,
8th Floor, Seva Bhawan,
R.K. Puram,
New Delhi.
Subject: Policy for Stage-III of New Pricing Scheme for urea manufacturing units
Extension of provisions of policy from 1.4.2010 on provisional basis reg.
Sir
As you are aware, the formulation of a pricing policy for Stage-IV of New Pricing
Scheme for urea units commencing from 1.4.2010 is under consideration of the
Government. As it may take some more time before the policy for Stage-IV of NPS is
communicated, the provisions of NPS Stage-III policy dated 8-3-2007 including conversion
of Naphtha, FO/LSHS based units to gas, the payment of subsidy to urea units, w.e.f from
1.4.2010 at the present rates of concession based upon Stage-III of NPS has been extended
till further orders on provisional basis. This may kindly be communicated to urea units.
Yours faithfully,
Sd/-
( B.N. Tiwari )
DDG(E&S)
152 INDIAN FERTILIZER SCENARIO 2014
No. 12012/14/2011-FPP
Government of India
Ministry of Chemicals & Fertilizers
Department of Fertilizers
OFFICE MEMORANDUM
Subject: Notification of Import Parity Price (IPP) 2010-11 under New Investment
Policy.
4. It may also be noted that the indigenous units producing beyond the cut off quantity
are eligible for payment of at 85% IPP subject to floor and ceiling price only if the total
production of the unit crosses 105% of the cut off quantity or 110% reassessed capacity,
whichever is higher. Moreover , the APM gas should not be considered for production
beyond the cut off quantities notified for each urea unit and should be necessarily taken
for production of urea below the cut off quantity.
5. This issues with the concurrence of IFD vide their I.D Note No. 255/AS&FA)/2011
dated 24.5.2011.
Sd/-
(Manish Tripathi)
Deputy Secretary(Fertilizers)
Tele :23386398
The Executive Director
The Fertilizer Industry Coordination Committee
8th Floor, Sewa Bhavan,
R.K. Puram,
New Delhi.
Copy to:
The Director General, Fertilizer Association of India, 10 Shaheed Jit Singh Marg, New
Delhi-110067
Director(Mov)/DOF
Director(FA)/DOF
Director(Fin.)/DOF
154 INDIAN FERTILIZER SCENARIO 2014
Annexure
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 171
172 INDIAN FERTILIZER SCENARIO 2014
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 173
174 INDIAN FERTILIZER SCENARIO 2014
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 175
176 INDIAN FERTILIZER SCENARIO 2014
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 177
178 INDIAN FERTILIZER SCENARIO 2014
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 179
180 INDIAN FERTILIZER SCENARIO 2014
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 181
(i)
(ii)
(iii)
(i)
(ii)
(iii)
(iv)
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 187
(ii)
(iii)
(i)
(ii)
(iv)
(iii)
(iii)
188 INDIAN FERTILIZER SCENARIO 2014
(i)
(ii)
(iii)
(iv)
(v)
(vi)
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 189
190 INDIAN FERTILIZER SCENARIO 2014
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 191
192 INDIAN FERTILIZER SCENARIO 2014
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 193
Annexure-II
List of companies/units eligible for Nutrient Based Subsidy for decontrolled
P & K fertilizers
Manufacturers: eligible for concession on the indigenous fertilizers shown against the
name as also imported quantities of DAP,MOP, MAP,TSP, NPKS Complexes
Corporation Limited)
13. Tata Chemicals Ltd (Erstwhile Hind Lever Chemicals DAP, Complex Limited
merged into TCL w.e.f. 1.6.04), W.B
IMPORTERS:
15. Chambal Fertilizers & Chemicals Ltd
19. Mosaic India (Private) Ltd. {Earlier Cargill India (P) Ltd.}(for DAP only)
22. Tungabhadra Fertilizers & Chemicals Limited (TFCL). (A manufacturer of SSP also).
194 INDIAN FERTILIZER SCENARIO 2014
25. Karnataka State Cooperative Marketing Federation Ltd., Bangalore Eligible for claiming "On
account" payment against submission of Bank Guarantee (BG) for amount equivalent to 100%
claims (w.e.f.27.1.2009).
st
26. Madhu Fertilizers Ltd., 22, Durga College Complex, 1 Floor, K.K. Road, Raipur,
Chhattisgarh(Eligible for claiming "On account" payment against submission of Bank Guarantee
(BG) for amount equivalent to 100% claims).
27. KPR Fertilizers Ltd., Door No.8-256, Tata Nagar, Balabhadrapuram, Biccavole Mandal, E.G. Distt.,
Andhra Pradesh (Eligible for claiming "On account" payment against submission of Bank Guarantee
(BG) for amount equivalent to 100% claims w.e.f.4.5.2009).
28. Trans Agro (I) Pvt. Ltd., 410, Great Eastern Galleria, Plot No. 20, Sector-4, Nerul, Navi Mumbai
400706 (Eligible for claiming "On account" payment against submission of Bank Guarantee (BG) for
amount equivalent to 100% claims w.e.f.4.5.2009).
30. M/s. Maruti Fertochem Ltd., Siddharth Arcade, Opp. MTDC, Railway Station Road, Aurangabad
431005, Maharashtra vide letter No. 19011/13/2009-MPR dated 15.12.2009 (Eligible for claiming
"On account" payment against submission of Bank Guarantee (BG) for amount equivalent to 100%
claims w.e.f 15.12.2009)
31. The Phosphate Company Ltd, 14,Netaji Subhas Road, Kolkata-700001 (Eligible for claiming "On
account" payment against submission of Bank Guarantee (BG) for amount equivalent to 100%
claims w.e.f 27.1.2010)
32. M/s Agri Green Fertilizers & Chemicals Pvt. Ltd., D.No.5/157-1,Ravindra Nagar, Kadapa-516003,
Andhra Pradesh (Eligible for claiming "On account" payment against submission of Bank Guarantee
(BG) for amount equivalent to 100% claims w.e.f 4.2.2010)
33. M/S Jubilant Organosys Ltd., NOIDA,U.P. (Eligible for claiming "On account" payment against
submission of Bank Guarantee (BG) for amount equivalent to 100% claims w.e.f 3.5.2010).
34. M/S SUPERFINE SYNTEX LIMITED, 311, Ratan Chambers Salabatpura, Surat-395002, Gujarat,
(Eligible for claiming "On account" payment against submission of Bank Guarantee (BG) for amount
equivalent to 100% claims w.e.f 3.5.2010)
rd
35. M/s Foliage Crop Solutions Private Limited, No.5, 3 Floor, Sun Plaza # 19, G. N. Chetty Road,
Chennai 600006 (Eligible for claiming "On account" payment against submission of Bank
Guarantee (BG) for amount equivalent to 100% claims w.e.f 6.5.2010)
36. M/s Indo Gulf Fertilizers, 312-A, World Trade Centre, Barakhamba Lane, New Delhi.
37. M/s. BEC Fertilizers, Sector-A, Sirgitti Industrial Area, Bilaspur, Chhattisgarh (Eligible for claiming
"On account" payment against submission of Bank Guarantee (BG) for amount equivalent to 100%
claims w.e.f 22.9.2010)
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 195
38. Rama Phosphates, Mumbai (Eligible for claiming "On account" payment against submission of Bank
Guarantee (BG) for amount equivalent to 100% claims w.e.f 18.10.2010)
39. Basant Agrotech India Ltd., Sea Lord, A-1/3, Cuffe Parade, Mumbai 400005 (Eligible for claiming
On account" payment against submission of Bank Guarantee (BG) for amount equivalent to 100%
claims w.e.f. 3.2.2011)
rd
40. Greenstar Fertilizers Pvt. Ltd., No.5, 3 Floor, Sun Plaza, 19, G.N. Chetty Road, Chennai. (Eligible for
claiming "On account" payment against submission of Bank Guarantee (BG) for amount equivalent to
100% claims w.e.f 16.3.2011)
41. Khaitan Chemicals and Fertilizers Ltd., Indore, Madhya Pradesh (Eligible for claiming "On account
payment against submission of Bank Guarantee (BG) for amount equivalent to 100% claims w.e.f
24.3.2011)
42. Agrigold Organics Pvt. Ltd., 40-1-21/3, 1st Floor, Surya Towers, M.G. Road, Vijaywada 520010.
(Eligible for claiming "On account" payment against submission of Bank Guarantee (BG) for amount
equivalent to 100% claims w.e.f 8.4.2011)
43. M/s SRK Chemicals Ltd., Neelkanth House, BBZ S-60, Zanda Chowk, Gandhidham 370201
(Eligible for claiming "On account" payment against submission of Bank Guarantee (BG) for amount
equivalent to 100% claims w.e.f 12.7.2011)
44. M/s HPM Chemicals & Fertilizers Ltd., 209-210, Anupam Bhawan, Azadpur Commercial Complex,
Azadpur, Delhi 110033. (Dated 26.8.2011)
45. M/s Haritha Fertilisers Ltd., 8-2-293/82/C/122, Near Venkatagiri Bus Stop & Park, Road No. 7D,
Jubilee Hills, Hyderabad 500 033, Andhra Pradesh. (Dated 26.9.11)
46. M/s Vidya Ram Associates Pvt. Ltd, Novelty Road, Karnal-132001(Haryana) (File No.
19011/11/2011-MPR dated 2.11.2011)
47. M/s Vigyan Chemicals Pvt. Ltd., 404, Padma Tower I, 5, Rajendra place, New Delhi
48. M/s SWAL Corporation Limited, 167, Ready Money Terrace , Dr.A.B. Raod, Worli,Mumbai.
th
49. M/s Sunfert International (P) Limited, 7 floor Le-Meridien Commercial Tower, New Delhi.
50. M/s GSFC, Baroda for import of MOP fertilizers
51. M/s Shivashakti Bio Technologies Limited, 7-1-621/98/, S.R. Nagar Main Road, Hyderabad-500038.
52. M/s BGH Axim Limited, Ghandhidham (Gujarat)
53. M/s Mahindra & Mahindra Limited, Gate No. 2, Akurli Road, Kandivali(E), Mumbai.
54. M/s Kanpur Fertlizers & Chemical Limited, Kanpur
Note:
1. M/s. Godavari Fertilizers and Chemicals Ltd., Secunderabad amalgamated with M/s.
Coromandel Fertilizers Ltd. w.e.f. 1.2.2008 vide o.m. No.19011/5/2008-MPR dated
10.3.2008 which was informed to the states on 7.8.2008.
2. M/s. Mosaic India Pvt. Ltd. has been inducted as an importer of MAP (11:52:0) w.e.f.
1.4.2008 vide letter No. 19011/17/2008-MPR dated 16.9.2008.
3. M/s. Tungabhadra Fertilizers and Chemicals Co. Ltd. has been inducted as an
importer of TSP (0:46:0) w.e.f. 1.4.2008 vide letter No. 19011/18/2008-MPR dated
16.9.2008.
4. M/S Jubilant Organosys Ltd., NOIDA, U.P. has been inducted into the Nutrient Based
Subsidy Policy vide Office Memorandum No. 19011/5/2010 dated 3.5.2010
196 INDIAN FERTILIZER SCENARIO 2014
Sir,
2. This issues with the concurrence of Internal Finance Division vide their ID
No.237/SS&FA/2012 dated 14 th May, 2012.
Yours sincerely
Sd/-
(Neeraj Singhal)
Director (PSU+Fertilizers)
Tele: 23383814
198 INDIAN FERTILIZER SCENARIO 2014
No.12012/3/2012-FPP
Government of India
Ministry of Chemicals & Fertilizers
Department of Fertilizers
Shastri Bhavan, New Delhi
Dated the 9th July, 2012
OFFICE MEMORANDUM
Subject:- Notification of Import Parity Price (IPP) 2011-12 under New Investment
Policy.
4. It may also be noted that the indigenous units producing beyond the cut off quantity
are eligible for payment at 85% IPP subject to floor and ceiling price only if the total
production of the unit crosses 105% of the cut off quantity or 110% reassessed capacity,
whichever is higher. Moreover, the APM gas should not be considered for production
beyond the cut off quantities notified for each urea unit and should be necessarily taken for
production of urea below the cut off quantity.
5. This issues with the concurrence of IFD vide their ID Note No.481/SS&FA/2012 dated the
3rd July, 2012.
Sd/-
(Vijay Ranjan Singh)
Director(F)
Tele: 23386398
The Executive Director-FICC & JS(F&M)
The Fertilizer Industry Coordination Committee
Sewa Bhavan
R.K. Puram
New Delhi
Copy to: The Director General, Fertilizer Association of India, FAI House, 10 Shaheed
Jit Singh Marg, New Delhi.
Director(Mov)/ DOF
Director(FA) / DOF
Deputy Secretary(Budget)/ DOF
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 201
Sir
I am directed to convey the approval of Government of India for New
Investment Policy2012 (NIP-2012) in order to facilitate fresh investments in urea
sector. The salient features of the NIP-2012 are as under:-
1 It 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-1). The IPP defined for urea under the investment policy of 2008 is
the average C&F price without any applicable custom duties and handling and
bagging charges at the port. If the computed IPP (payable) is between the floor and
the ceiling price for that gas cost, it is the IPP (payable) which will be used. If the IPP
(payable) is above or below the ceiling or the floor respectively, it is the ceiling or
floor price that will be acceptable as the case may be.
2 The criteria according to which plants will qualify under different categories
namely Revamp, Expansion, Revival and Greenfield shall be as below:
2.1 Revamp projects: Any improvement or incremental increase in capacity of
existing plants by way of capital investment in the existing train of ammonia-urea
production will be treated as revamp of existing units.
2.3 Revival of closed urea units: The three closed urea units of Hindustan
Fertilizer Corporation Ltd. (HFCL) at Barauni, Durgapur and Haldia, and five closed
urea units of Fertilizer Corporation of India Ltd. (FCIL) at Sindri, Talcher,
Ramagundam, Gorakhpur and Korba being proposed for revival shall fall under
Revival of closed urea units .
2.4 Greenfield Projects: Any urea unit which shall be set-up at the project site
where no previous similar manufacturing facilities existed i.e. acquisition of land
followed by construction of an ammonia-urea plant with storage facilities,
transportation facilities, water and sewage treatment etc. shall be treated as a
Greenfield project.
(i) At a delivered gas price of up to USD 6.5 per mmbtu for Greenfield/Revival
Urea units
(a) the Floor price is fixed at USD 305 per MT of Urea
(b) the Ceiling price is fixed at USD 335 per MT of Urea
(ii) For each 0.1 USD per mmbtu revision in delivered gas price, it will
correspondingly change the
(a) Floor and Ceiling price by USD 2 per MT up to a delivered gas price of
USD 14 per mmbtu.
(b) Floor by USD 2 per MT for delivered gas price exceeding USD 14 per
mmbtu.
(iii) The urea from Greenfield/Revival of closed urea units of HFCL and FCIL 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.
(i) At a delivered gas price of upto USD 6.5 per mmbtu for Expansion/Brownfield
Urea units
(a) the Floor price is fixed at USD 285 per MT of Urea
(b) the Ceiling price is fixed at USD 310 per MT of Urea
(ii) For each 0.1 USD per mmbtu revision in delivered gas price, it will
correspondingly change the
(a) Floor and Ceiling price by USD 2 per MT up to a delivered gas price of
USD 14 per mmbtu.
(b) Floor by USD 2 per MT for delivered gas price exceeding USD 14 per
mmbtu
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 203
(iii) The urea from Expansion / Brownfield Urea units will be recognized at a
uniform rate of 90% of IPP (C&F) subject to floating floor and ceiling
prices mentioned at 4 (i) and 4 (ii) above.
5 Revamp Projects
(i) At a delivered gas price of upto USD 7.5 per mmbtu for new Revamp Urea
units
(a) the Floor price is fixed at USD 245 per MT of Urea
(b) the Ceiling price is fixed at USD 255 per MT of Urea
(ii) For each 0.1 USD per mmbtu revision in delivered gas price, it will
correspondingly change the
(a) Floor and Ceiling price by USD 2.2 per MT up to a delivered gas price of
USD 14 per mmbtu.
(b) Floor by USD 2.2 per MT for delivered gas price exceeding USD 14 per
mmbtu.
(iii) The urea from Revamp Urea units will be recognised at a uniform rate of 85%
of IPP (C&F) subject to floating floor and ceiling prices mentioned at 5 (i) and
6 (ii) above. These will be applicable for all output above the cut-off point.
(iii-a) Cut-Off Quantity - The urea produced from existing units beyond their
reassessed capacity under NPS or the maximum achieved capacity by a unit
for 330 days in last four years (2003-07), whichever is higher (cut off quantity),
is recognised as the production under revamp of the existing unit. However,
the urea produced under revamp quantity will only be eligible for the above
dispensation once the total production of the unit crosses 105 per cent of the
cut off quantity or 110 per cent of the reassessed capacity, whichever is
higher.
(v) The Urea units, which have undertaken revamp and are already availing the
provisions of the Investment Policy of 2008, will remain under the Investment
Policy of 2008. In the event of doubling of gas price from USD 4.88 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.
the original revamp. In case a unit under the policy of 2008 undertakes further
revamp and the additional quantity is more than 10% of the present
production (maximum production in any continuous one year period of the last
three years, which should not be less than the quantity produced in similar
period of previous years after implementation of NIP-2008 policy), the Urea
unit may opt for the dispensation as mentioned at 5 (i, ii and iii). Once new
investment policy gets applied on the unit for the extra production beyond
10% of existing production as discussed above, the entire revamp production
from the unit (existing & new combined) will be recognised as per NIP-2012.
The option will have to be exercised by the unit within three months of start of
new increased production.
6 Non-operation of ceiling price and IPP if delivered gas price exceed USD
14 per mmbtu.
In the event the delivered gas price crosses USD 14 per mmbtu, the units
(whether revamp, expansion, brownfield, greenfield or revival) shall be paid
only the floor price based on the delivered gas price as mentioned at 3(ii)(b),
4(ii)(b) and 5(ii)(b). All other conditions like ceiling price and recognition of
urea w.r.t IPP shall become non -operational.
7 Operational Principles- The following is adopted for operating the policy:
7.1 The increase/decrease of the floor and ceiling price will be calculated at the
end of each quarter, on the basis of average gas price of previous three
months. Accordingly, IPP shall also be calculated for each quarter for each
plant.
7.2 The price of the delivered gas will be calculated based on delivered gas price
as certified by MoPNG/Central PSU/State PSU.
7.3 The policy shall be applicable to urea units to be based on gas i.e. natural gas
(domestic/RLNG) and CBM. In case of CBM, price of NG equivalent of CBM
as given by Public agency will be considered. For revival of closed urea units
based on coal gasification and Greenfield projects based on coal gasification,
a dispensation that is the same as that of CBM will be extended after arriving
at equivalent NG price.
7.4 While fixing the floor and ceiling price of Greenfield, Revival, Brownfield and
Expansion urea units, It has been presumed that the delivered cost of
CBM/Actual mix of gas to the urea unit shall not be less than USD 6.5/mmbtu.
8 Time period for the investment policy
8.1 It is proposed that only those units whose production starts within five years
from the date of notification of the policy would be covered under the policy.
The dispensation of guaranteed buy -back under this policy will be available to
the units for a period of eight years from the date of start of production.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 205
Thereafter, the units will be governed by the Urea policy prevalent at that
time.
9.2 As part of the present policy, an additional 5% / 10% additional MRP may be
allowed in case of Neem coated / Zincated Urea.
10 Joint Venture Units
10.1 Decision regarding Urea off-take agreement for Joint Venture units set up
abroad shall be taken on case-to-case basis, based on the prevalent IPP of
Urea, price and availability of indigenous gas, cost of gas being offered to the
JV and demand supply gap of Urea in the country. The guiding principle shall,
however, be that the offered supply on C&F basis from the JV shoul d 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 corresponding to a gas
price of USD 6.5 per mmbtu to the JV s abroad will actually mean getting
imported gas at a delivered 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.
11 Dispensation for Units in North East
11.1 For units coming up in the North Eastern States, the special dispensation
regarding pricing of gas that is being extended by the Central Government/
State Government will also be available to any new Investments in the region
as well. Suitable adjustments will be made to the applicable floor and ceiling
prices in case the delivered price (after allowing for the special dispensation)
falls below USD 6.5 per mmbtu, subject to approval of Ministry of Finance.
12. As per the budget provisions announced for 2012-13, capital investment in
fertiliser sector has been made eligible for Viability Gap Funding (VGF) under
the Scheme for Support to PPP in infrastructure sector. However no VGF
shall be allowed to Urea units in Public or Private sector. In case incentives
under VGF are required to be extended to Fertilizer units being set up in
remote areas/difficult terrains like north east or units which are based on coal
gasification, where the capex involved is substantially higher, the same will be
examined by DOF in consultation with DoE on case to case basis.
13 The broad stages for setting up a urea project are given at Annexure2.
Since the policy envisages payment of subsidy/ incentives to the urea units by
206 INDIAN FERTILIZER SCENARIO 2014
the Government, all the urea units who plan to set-up urea units in the country
should mandatorily provide information at beginning and completion of each
stage of the project as given at Annexure2. 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.
Yours sincerely
Sd/-
( Satish Chandra )
Joint Secretary to the Government of India
Tele : 23386800
Copy to:
Copy also to :-
Smt. Anu Garg, Joint Secretary, Prime Minister s Office, South Block,
New Delhi.
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 207
Annexure-1
Import parity price: Import Parity Price for a month would be derived based
on the prevailing prices in three months preceding the month under consideration as
indicated below.
Import Parity Price (IPP): The import parity price (IPP) for a particular month will be
the lower of the actual average CIF price of urea imported in India during preceding
three months and the IPP reported in the fertilizer magazines for the same preceding
three months, as detailed below:
Where,
FOB Arabian Gulf = Average FOB reported price of urea for AG in the three
magazines as listed below, during preceding three month (x - 1) to (x - 3).
Freight = Average freight for AG in the three magazines listed below, during
preceding three month (x - 1) to (x - 3).
The exchange rate will be taken as the average of preceding three months for
arriving at the price in INR. The three fertilizer magazines to be used for
arriving at IPP prices will be as below:
Annexure-2
a) Pre-feasibility Report
b) Techno Economic Feasibility Report & its approval from the company s Board
of Director.
c) Finalization of Project site.
d) 1st Stage Environment Clearance from MoEF
e) Technology Evaluation and Sele ction 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.
***
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 209
No. 12012/3/2010-FPP
Government of India
Ministry of Chemicals & Fertilizers
Department of Fertilizers
***
New Delhi, the 2nd April, 2014
To
The Executive Director,
Fertilizer Industry Coordination Committee(FICC),
8th Floor, Sewa Bhawan,
New Delhi.
Subject: Modified NPS-III for existing urea units.
Sir,
I am directed to convey the approval of Government of India for Modified
NPS-III for existing urea units as under:
(a) The maximum additional fixed cost (towards increase in the four components, viz.,
salaries & wages, contract labour, selling expensesand repair & maintenance) of Rs.
350/MT to existing urea units or actual increase inabove four components of fixed cost
during the year 2012-13 compared to the year 2002-03, whichever is lower will be paid.
This will be based on the certified cost data for above four components for the year
2012-13 to be provided by all urea Units.
(b) In respect of KFCL and BVFCL-II units, for which cost data of four components is not
available either for the year 2002-03 or 2012-13, the actual increase in these four
components as per the certified cost data for the latest year over and above Rs.
521/MT(weighted industry average during 2002-03) subject to maximum of Rs. 350/MT
will be allowed.
224 INDIAN FERTILIZER SCENARIO 2014
The minimum fixed cost of Rs. 2300/MT or actual fixed cost prevailing during 2012-13,
whichever is lower, after taking into account the compensation at 3.1 (a) and (b)
above, will be paid. This will be based on certified fixed cost data for the year 2012-13,
to be provided by all urea units.
3.3 Special compensation to Urea Plants which have Completed 30 Years and
Converted to Gas
The special compensation of Rs. 150/MT will be paid to gas based urea plants which
have converted to gas and are more than 30 years old.. This is in addition to para 3.1
and 3.2 above.
3.4 It has been decided to phase out old and inefficient units in due course of time after
addition of new capacity.
The production of the high cost naphtha based urea units namely SPIC Tuticorin, MFL
Manali and MCFL Mangalore will continue under modified NPS-III till the gas availability
and connectivity is provided to these units or June , 2014 whichever is earlier, beyond
which subsidy for naphtha based plants will not be paid However, no new naphtha
based plants will be permitted in Greenfield investments.
The data of investment for conversion from Naphtha as feedstock to gas and
actual energy consumption achieved after conversion from each unit will be obtained
and based on this data, the Department of Fertilizers, in consultation with Department of
Expenditure, shall work out the period for which existing pre set norms will be allowed,
which shall not be more than five years from the date of conversion so that each unit
may be in position to recover the investment with interest thereon from energy savings.
No. 12012/9/2007-FPP
Government of India
Ministry of Chemicals & Fertilizers
Department of Fertilizers
Subject : - Road freight rates for UREA manufacturing/ importing units under the
Uniform Freight Subsidy scheme.
Sir,
6. The revised freight rates in respect of North Eastern and hilly areas will be
notified in due course and therefore, the rates as notified earlier vide this Departments
Notification dated 1st September, 2011 will continue till the revised rates are notified.
7. This issue with the concurrence of Internal Finance Division vide
Dy.No.3934/AS&FA/2013 dated 02.12.2013.
Yours sincerely
Sd/-
(Vijay Ranjan Singh)
Director (Fertilizers)
Tele : 23386398
Copy to:
1. Principal Director of Audit, Economic & Service Ministry, AGCR Building,
IP Estates, New Delhi.
2. Controller of Accounts, Department of Fertilizers, Janpath Bhawan, New
Delhi.
3. Director General, The Fertilizers Association of India, FAI House, 10-
Shahidjit Singh Marg, New Delhi-110067.
4. Joint Secretary-cum-Central Registrar of Cooperative Societies.
5. Department of Agriculture & Cooperative, Krishi Bhawan.,New Delhi.
6. Secretary (TC), Ministry of Commerce and Industry, Tarrif
Commission, 7th Floor, Lok Nayak Bhawan, New Delhi-110003.
7. Ministry of Finance/Department of Expenditure PF-II, North Block, New
Delhi.
Jashpur 2.84 3
Kabirdham 3.44 3.63
Kanker 2.84 3
Kawardha 2.84 3
Korba 4.42 4.66
Koriya 3.59 3.79
Mahasamund 3.38 3.57
Narayanpur 3.7 3.91
Palamu 4.48 4.73
Raigarh 3.38 3.57
Raipur 4.48 4.73
Rajnandgaon 4.48 4.73
Surguja 2.87 3.03
Dadra & Nagar Haveli D&N 3.01 3.18
Goa North Goa 2.84 3
South Goa 2.2 2.32
Gujarat Ahmedabad 2.96 3.12
Amreli 2.65 2.8
Anand 4.48 4.73
Banas Kantha 2.83 2.99
Baroda 2.32 2.45
Bharuch 4.2 4.44
Bhavnagar 2.88 3.04
Dahod 3.21 3.39
Dangs 2.84 3
Gandhinagar 3.88 4.1
Jamnagar 3.11 3.29
Junagadh 2.8 2.96
Kheda 4.48 4.73
Kutch 1.88 1.99
Mahesana 3.8 4.02
Narmada 3.46 3.65
Navsari 3.78 3.99
Panch Mahals 3.77 3.98
Patan 2.97 3.13
Porbandar 2.78 2.93
Rajkot 3.88 4.1
Sabar Kantha 3.59 3.79
Surat 4.48 4.73
Surendranagar 3.11 3.29
Tapi 3.35 3.53
Vadodara 3.5 3.7
Valsad 3.64 3.84
Haryana Ambala 4.34 4.58
Bhiwani 4.48 4.73
Faridabad 3.93 4.15
232 INDIAN FERTILIZER SCENARIO 2014
CORRIGENDUM
Subject :- Road freight rates for UREA manufacturing/importing units under the
Uniform Freight Subsidy scheme.
Sir,
Sd/-
(Vijay Ranjan Singh)
Director (Fertilizers)
Encl : As above Tele : 23386398
1. Principal Director of Audit, Economic & Service Ministry, AGCR Building,
IP Estates, New Delhi.
2. Controller of Accounts, Department of Fertilizers, Janpath Bhawan, New
Delhi.
3. Director General, The Fertilizers Association of India, FAI House, 10-
Shahidjit Singh Marg, New Delhi-110067.
4. Joint Secretary-cum-Central Registrar of Cooperative Societies.
5. Department of Agriculture & Cooperative, Krishi Bhawan.,New Delhi.
6. Secretary (TC), Ministry of Commerce and Industry, Tarrif
Commission, 7th Floor, Lok Nayak Bhawan, New Delhi-110003.
7. Ministry of Finance/Department of Expenditure PF-II, North Block, New
Delhi.
Copy also to:
JS(SC), JS(SG) & JS(SLG)
Director ((Movement)/Director (FA){UB}/Director |( PPF)/ Director(Finance) /Joint
Director (I&A)(FICC)
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 241
Kawardha 2.84 3
Korba 4.42 4.66
Koriya 3.59 3.79
Mahasamund 3.38 3.57
Narayanpur 3.7 3.91
Palamu 4.48 4.73
Raigarh 3.38 3.57
Raipur 4.48 4.73
Rajnandgaon 4.48 4.73
Surguja 2.87 3.03
Dadra & Nagar Haveli D&N 3.01 3.18
Goa North Goa 2.84 3
South Goa 2.2 2.32
Gujarat Ahmedabad 2.96 3.12
Amreli 2.65 2.8
Anand 4.48 4.73
Banas Kantha 2.83 2.99
Baroda 2.32 2.45
Bharuch 4.2 4.44
Bhavnagar 2.88 3.04
Dahod 3.21 3.39
Dangs 2.84 3
Gandhinagar 3.88 4.1
Jamnagar 3.11 3.29
Junagadh 2.8 2.96
Kheda 4.48 4.73
Kutch 1.88 1.99
Mahesana 3.8 4.02
Narmada 3.46 3.65
Navsari 3.78 3.99
Panch Mahals 3.77 3.98
Patan 2.97 3.13
Porbandar 2.78 2.93
Rajkot 3.88 4.1
Sabar Kantha 3.59 3.79
Surat 4.48 4.73
Surendranagar 3.11 3.29
Tapi 3.35 3.53
Vadodara 3.5 3.7
Valsad 3.64 3.84
Haryana Ambala 4.34 4.58
Bhiwani 4.48 4.73
Faridabad 3.93 4.15
Fatehabad 4.64 4.9
Gurgaon 3.37 3.56
Hisar 3.64 3.84
Jhajjar 4.48 4.73
Jind 4.28 4.52
244 INDIAN FERTILIZER SCENARIO 2014
Total 35.676
Target Actual Target Actual Target Actual Target Actual Target Actual
Nangal 4.79 4.74 4.79 4.79 4.79 5.04 4.34 4.71 4.78 3.95
Bathinda 5.12 5.13 5.12 4.70 5.12 5.00 4.26 4.14 5.12 5.12
Panipat 5.12 5.15 5.12 5.53 5.12 4.83 3.95 3.94 5.12 5.60
Vijaipur
8.65 8.78 8.85 9.17 8.70 9.02 10.15 9.67 10.00 10.06
(M.P.)-I
Vijaipur 9.34 9.50 9.15 9.62 9.27 10.12 10.35 9.65 10.66 11.63
(M.P.)-II
Total 33.00 33.30 33.01 33.80 33.00 34.01 33.05 32.11 35.68 36.36
256 INDIAN FERTILIZER SCENARIO 2014
IV. Profit/Loss
(Rs. in crore)
2009-10 2010-11 2011-12 2012-13 2013-14
Net Profit 172 139 127 -171 -90
after tax
Reserves 1956.70
I. Production Capacity
Thal
Urea : 20.00 lakh MT
Industrial Products : 0.29 lakh MT
Trombay
Urea : 3.30 lakh MT
Complex Fertilizers : 5.70 lakh MT
Industrial products : 1.35 lakh MT
Urea 20.27 20.98 20.37 21.25 20.75 21.09 22.80 23.35 24.18 23.47
Complexes 5.50 5.07 6.25 6.05 6.05 6.50 6.00 6.10 5.00 5.17
Fertilizers
Industrial 1.35 1.19 1.35 1.51 1.52 1.67 1.57 1.62 1.61 1.54
Products
(Rs. in crore)
Authorized Share Capital 365.00
Paid-up Share capital 161.10
GOI - 59.50%
NIOC - 25.77%
Public - 14.73%
Reserves & Surplus (Share Premium) 13.43
(As on 31.03.2014)
Loan Funds
GOI 554.24
Total 554.24
Current Liabilities
Banks 235.66
Suppliers 690.06
Interest Accrued and Due 329.75
Others 132.04
Total 1387.51
IV Profit/Loss
(Rs. in crore)
Year 2009-10 2010-11 2011-12 2012-13 2013-14
Profit/(Loss) 6.88 169.86 111.99 24.44 100.04
DEPARTMENT OF FERTILIZERS, MINISTRY OF CHEMICALS & FERTILIZERS 259
I Capital Structure
(Rs. in crore)
31.03.2014
Authorized Capital 1000
Paid-up Capital 647.07 (90% GOI
share)
Liability towards Bank
Cash/Credit -A 734.10
LC Limit Limit- 395.06
Outstanding - 367.06
Bank Guarantee Limit- 52.06
Outstanding 47.34
**MMTC/BPCL/IOC/OCP/Others - B 529.58
## KSEB, CSIF and Others -C 1075.08
Total Liability (A+B+C) 2338.76
Reserves and Surplus (As on 31.03.2014) (1103.81)
Profit/(loss) 2013-14 (264.96)
** Trade Payable
## Include Non current liabilities, long term provisions, current liabilities and short term
Provisions
IV. Profit/Loss
(Rs. in crore)
Year 2009-10 2010-11 2011-12 2012-13 2013-14
Profit/(Loss) -103.84 -49.33 19.80 -353.96 -264.96
260 INDIAN FERTILIZER SCENARIO 2014
(Rs.in crore)
Authorized Capital 510.00
Oeserves Nil
IV. :
Production performance
V Profit/Loss
(Rs. in crore)
2009-10 2010-11 2011-12 2012-13 2013-14
(Rs. in Crores)
Authorized Capital 10.00
Paid up share capital 7.33
Reserves 143.31
Bank Borrowings (Short Term) Nil
Particulars Targets Actual Targets Actual Targets Actual Targets Actual Targets Actual
Gypsum 7.65 7.43 9.65 8.24 9.05 9.05 9.65 9.52 9.50 8.03
IV Profit/Loss
( Rs. In Crore)
Particulars 2009-10 2010-11 2011-12 2012-13 2013-14
Profit before 15.88 19.89 29.07 38.51* 52.11*
Tax
* Profit reported is profit before exceptional items & tax.
262 INDIAN FERTILIZER SCENARIO 2014
(Rs. in crore)
Borrowing as on 31.3.2014
( In MT.)
Year 2009-10 2010-11 2011-12 2012-13 2013-14
Catalyst Targets Actual Targets Actual Targets Actual Targets Actual Targets Actual
165 59 185 436 185 74 167 185 154 212
IV. Profit/Loss
(Rs in crores)
Year 2009-10 2010-11 2011-12 2012-13 2013-14
Profit Before 21.21 31.78 38.27 15.33 1.94
Tax