GOVERNMENT OF INDIA

MINISTRY OF CHEMICALS & FERTILIZERS

DEPARTMENT OF FERTILIZERS
 ANNUAL REPORT
2009-2010

GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS

1
2
 CONTENTS

S.No. Subjects Page No.

1. Introduction 5-11

2. Organizational Set up and Functions 12-13

3. Development & Growth of Fertilizer Industry 14-21

4. Availability of Major Fertilizers during 2009-10 22-23

5. Plan Performance 24-25

6. Measures of Support for Fertilizers 26-41

7. Public Sector Undertakings and Cooperative Societies 42-72

8. Fertilizer Education Projects 73-74

9. Information Technology (IT) 75-79

10. Vigilance Activities 80

11. Right to Information Act, 2005 81

12. Progressive Use of Official Language (Hindi) 82-83

13. Welfare of SCs, STs, OBCs and Physically Handicapped Persons 84-85

14. Women Empowerment 86-88

15. ANNEXURES I to XII 89-104

3
Shri M.K. Alagiri, Hon’ble Minister (C&F) along with Shri Srikant Kumar Jena, Hon’ble Minister of State (C&F)
receiving dividend cheque from Dr. Chandrapal Singh, Chairman, KRIBHCO

4
Chapter-1
1.1 Introduction
1.1.1 Agriculture which accounts for one fifth of
GDP, provides sustenance to two-thirds of
our population. Besides, it provides crucial
backward and forward linkages to the rest of
the economy. Successive five-year plan have
laid stress on self-sufficiency and self-reliance
in food grains production and concerted
efforts in this direction have resulted in
substantial increase in agriculture production
and productivity. This is clear from the fact
that from a very modest level of 52 million
MT in 1951-52, food grain production rose
to about 233.88 million MT in 2008-09. In
India’s success in agriculture sector, not only
in terms of meeting total requirement of food
grains but also generating exportable
surpluses the significant role played by
chemical fertilizers is well recognized and
established.
1.1.2 Keeping in view the vital role played by
chemical fertilizers in the success of India’s
green revolution and consequent self-reliance
in food-grain production, the Government of
India has been consistently pursuing policies
conducive to increased availability and
consumption of fertilizers in the country. As
a result, the annual consumption of fertilizers
in nutrient terms (N, P & K), has increased
from 0.7 lakh MT in 1951-52 to 249.09 lakh
MT 2008-09, while per hectare consumption
of fertilizers, which was less than 1 Kg in
1951-52 has risen to the level of 128.60 Kg
(estimated) in 2008-09.
1.1.3 As of now, the country has achieved near
self-sufficiency in production capacity of urea
with the result that India could substantially
manage its requirement of nitrogenous
fertilizers through the indigenous industry. In
case of phospatic fertilizers, nearly 50% of
domestic requirement is met through
indigenous production. Even for that, the raw
materials and intermediates for are largely
imported. As for potash (K) since there are
no viable sources/reserves in the country, its
entire requirement is met through imports.
1.2 Growth of Fertilizer Industry
1.2.1. The industry made a very humble beginning
in 1906, when the first manufacturing unit of
Single Super Phosphate (SSP) was set up
in Ranipet near Chennai with an annual
capacity of 6000 MT. The Fertilizer &
Chemicals Travancore of India Ltd. (FACT)
at Cochin in Kerala and the Fertilizers
Corporation of India (FCI) in Sindri in Bihar
(now Jharkhand) were the first large sized -
fertilizer plants set up in the forties and fifties
with a view to establish an industrial base to
achieve self-sufficiency in food-grains.
Subsequently, green revolution in the late
sixties gave an impetus to the growth of
fertilizer industry in India and the seventies
and eighties then witnessed a significant
addition to the fertilizer production capacity.
1.2.2 The installed capacity as on 31.03.2009 has
reached a level of 120.61 lakh MT of nitrogen
of capacity of which the non functional
capacity is estimated as 10.52 lakh MT and
56.59 lakh MT of phosphatic nutrient, making
India the 3rd largest fertilizer producer in the
world. The rapid build-up of fertilizer
production capacity in the country has been
achieved as a result of a favourable policy
environment facilitating large investments in
the public, co-operative and private sectors.
Presently, there are 56 large size fertilizer
plants in the country manufacturing a wide
range of nitrogenous, phosphatic and
complex fertilizers. Out of these, 30 (as on
date 28 are functioning) units produce urea,
21 units produce DAP and complex fertilizers,
5
 5 units produce low analysis straight
nitrogenous fertilizers and the remaining 9
manufacture ammonium sulphate as by-
product. Besides, there are about 72 medium
and small-scale units in operation producing
SSP. The sector-wise installed capacity is
given in the table below: -
SECTOR-WISE, NUTRIENT-WISE INSTALLED
CAPACITY OF FERTILIZER MANUFACTURING
UNITS AS ON 31.03.2009.
Sr. Sector Capacity Percentage
No. (lakh MT) Share
N P N P
1 Public Sector 34.98 4.33 29.0
2 Cooperative Sector 31.69 17.13 26.27
3 Private Sector 53.94 35.13 44.73
Total: 120.61 56.59 100.00
1.3 Self-sufficiency in Fertilizer Sector
1.3.1 Out of three main nutrients namely nitrogen,
phosphate and potash, (N,P&K) required for
various crops, indigenous raw materials are
available mainly for nitrogenous fertilizers.
The Government’s policy has hence aimed
at achieving the maximum possible degree
of self-sufficiency in the production of
nitrogenous fertilizers based on utilisation of
indigenous feedstock. Prior to 1980,
nitrogenous fertilizer plants were mainly
based on naphtha as feedstock. A number
of fuel oil/LSHS based ammonia-urea plants
were also set up during 1978 to 1982. In
1980, two coal-based plants were set up for
the first time in the country at Talcher,
(Orissa) and Ramagundam, (Andhra
Pradesh). These coal based plants have,
however, been closed by Government w.e.f.
1.4.2002 due to technical and financial non-
viability. However, with natural gas becoming
available from offshore Bombay High and
South Basin, a number of gas based
ammonia-urea plants have been set up since
6
1985. As the usage of gas increased and its
available supply dwindled, a number of
expansion projects came up in the last few
years with dual feed facility using both
naphtha and gas. Feasibility of making
available Liquefied Natural Gas (LNG) to
meet the demand of existing fertilizer plant
and/or for their expansion projects along with
the possibility for utilising newly discovered
gas reserves, is also being explored by
various fertilizer companies in India.
1.3.2. In case of phosphates, the paucity of
domestic raw material has been a constraint
in the attainment of self-sufficiency in the
country. Indigenous rock phosphate supplies
7.65 meet only 5-10% of the total requirement of
30.27
P2O5. A policy has therefore been adopted
which involves mix of three options, viz,
62.08 domestic production based on indigenous/
imported rock phosphate, imported sulphur
100.00
and ammonia; domestic production based
on indigenous / imported intermediates, viz.
ammonia and phosphoric acid; and third,
import of finished fertilizers. During 2008-09
roughly 65% of the requirement of phosphatic
fertilizers was met through the first two
options.
1.3.3. In the absence of commercially exploitable
potash sources in the country, the entire
demand of potassic fertilizers for direct
application as well as for production of
complex fertilizers is met through imports.
1.3.4. Given the volatility in international market for
fertilizers in general and urea market in
particular, marginal provision through imports
could be used to the country’s strategic
advantage. This is also desirable as the
international market, especially in case of
urea, is very sensitive to demand supply
scenario. Under the new pricing regime for
urea units applicable since 01.04.2003, for
securing additional indigenous supply of urea,
economically efficient units are being
permitted to produce beyond their re-
assessed capacity to substitute/ minimize
imports.
1.4 Fertilizer Subsidy
1.4.1 The subsidy on fertilizers is passed on to
the farmers in the form of subsidized MRPs.
The selling prices as notified by Government
for the subsidized fertilizers are much lower
than the normative delivered cost of these
fertilizers at farm gate level. The difference
between the normative delivered cost at farm
gate level and the notified selling prices is
paid as subsidy to manufacturers/importers
on sale of fertilizers to the farmers at the
subsidized prices.
1.4.2 The increase in rate of subsidy on fertilizers
combined with increase in consumption of
fertilizers has led to a substantial increase in
requirement of subsidy. In spite of increase
in cost of fertilizers, the Government has
completely kept the farmers insulated from
this increase in cost and have increased the
subsidy allocations to meet the consumption
needs of the farmer at subsidized level of
prices. The subsidy on fertilizers has been
increased sharply over the last few years.
The details of fertilizer subsidy over the last
few years are as below:-
1.4.3 The steady increase in fertilizer subsidies
over the years has largely been the result of
increasing production / consumption and
increases in the costs of inputs of indigenous
fertilizers and prices of imported fertilizers
from time to time. The cost of various inputs
/ utilities, such as coal, gas, naphtha, rock
phosphate, sulphur, ammonia, phosphoric
acid, electricity, etc., as also the cost of
transportation, went up significantly during
the eighties. The gas-based fertilizer units
commissioned during this period also
involved higher capital investment per tonne
of installed capacity, necessitating constant
upward revision in the retention prices. The
selling prices of fertilizers to the farmers,
however, remained almost at the same level
between July, 1981 and July 1991. The
Government effected an increase of 30% in
the issue prices of fertilizers in August, 1991
after a gap of a decade. The selling price of
urea, which was reduced by 10% in August
1992, was revised upwards by 20% in June
1994 followed by another increase by 10%
with effect from 21.2.97. The prices of urea
were again revised in February 2002 by 5%

FERTILIZER SUBSIDY
(Rs. in Crores)
Years Subsidy Released Total Liabilities Net
subsidy Carryover incidence
disbursed to next of subsidy
year
Urea Indigenous Imported Total
(P&K) (P&K) (P&K)
2002-03 7788 2488 737 3225 11013
2003-04 8509 2606 720 3326 11835 2002
2004-05 10986 3977 1165 5142 16128 3372 17498
2005-06 11749 4500 2050 6550 18299 5914 20841
2006-07 15354 6648 3950 10598 25952 8788 28826
2007-08 23204 10334 6800 17134 40338 5000 36550
2008-09 33901 32957 32598 65555 99456 17158 111614
2009-10* 25258 15447 16351 31798 57056 74214
*Estimated

7
 and by Rs. 240 PMT of urea w.e.f. 28.2.2003.
The price increase made effective from
28.2.2003 was, however, later withdrawn
w.e.f 12.3.2003. The current price is Rs. 4830
per tonne exclusive of local levies. However,
the hikes in prices of urea have not materially
altered the position in terms of the absolute
outgo in the form of subsidy, because of the
steady growth in production to meet the
growing demand and rise in the costs of
inputs.
1.5 Fertilizer Pricing Policy
1.5.1 Given the importance of fertilizer pricing and
subsidization in the overall policy
environment, which has direct implications
with reference to the growth and development
of agriculture and sustainability of the fertilizer
industry, the need for streamlining the
subsidy scheme in respect of urea producing
units had been felt for a long time. A High
Powered Fertilizer Pricing Policy Review
Committee (HPC) was constituted, under the
chairmanship of Prof. C.H. Hanumantha Rao,
to review the existing system of subsidization
of urea, suggest an alternative broad-based,
scientific and transparent methodology, and
recommend measures for greater
cohesiveness in the policies applicable to
different segments of the industry. The HPC,
in its report submitted to the Government on
3rd April 1998, inter-alia, recommended that
unit-wise RPS for urea may be discontinued
and, instead, a uniform Normative Referral
Price be fixed for existing gas based urea
units and also for DAP and a Feedstock
Differential Cost Reimbursement (FDCR) be
given for a period of five years for non-gas
based urea units.
1.5.2. The Expenditure Reforms Commission
(ERC), headed by Shri K.P. Geethakrishnan,
had also examined the issue of rationalizing
fertilizer subsidies. In its report submitted on
20 th September 2000, the ERC
recommended, inter-alia, dismantling of
existing RPS and in its place the introduction
of a Concession Scheme for urea units based
on feedstock used and the vintage of plants.
8
1.5.3. The recommendations of ERC were
examined in consultation with the concerned
Ministries/Departments. The views of the
fertilizer industry and the State Governments/
Union territories, and economists/research
institutes were also obtained. After due
examination of all these views, a New Pricing
Scheme (NPS) for urea units for replacing
the RPS was formulated and notified on
30.1.2003. The new scheme took effect from
1.4.2003. It aims at inducing the urea units
to achieve internationally competitive levels
of efficiency, besides bringing in greater
transparency and simplification in subsidy
administration.
1.5.4. New Pricing Scheme (NPS) for urea was
introduced w.e.f. 1st April, 2003. The Stage-
I of NPS was of one year duration from 1st
April, 2003 to 31st March, 2004 and Stage-
II was of two year duration from 1st April to
31st March, 2006. With the Stage-III of NPS
being implemented w.e.f. 1st October, 2006,
the Stage-II of NPS stands extended upto
31st September, 2006.
1.5.5. Under NPS, the existing urea units have been
divided into six groups based on vintage and
feedstock for determining the group based
concession. These groups are : Pre-1992
gas based units, post-1992 gas based units,
pre-1992 naphtha based units, post-1992
naphtha based units, fuel oil/low sulphur
heavy stock (FO/LSHS) based units and
mixed energy based units. The mixed energy
based group shall include such gas based
units that use alternative feedstock/fuel to
the extent of more than 25% as admissible
on 1.4.2002.
1.5.6. Under NPS, escalation/de-escalation is given
in respect of variable cost related to changes
in the price of feedstock, fuel, purchased
power and water. Under the scheme, no
reimbursement is allowed in respect of
investment made by a unit for improvement
in its operations nor are the gains as a result
of operational efficiencies to be mopped up.
1.5.7. It has also been provided under the scheme
that the concession rates during Stage-II shall
Shri M.K. Alagiri, Hon’ble Minister (C&F) giving awards at Fertilizer Association of India Seminar held at Hyderabad.
be adjusted for reduction in capital related
charges and enforcement of efficient energy
norms. Pre-set energy norms for urea units
during Stage-II of NPS have already been
notified and intimated to urea units. Reduction
in rates of concession during Stage-II of NPS
for urea units on account of reduction in
capital related charges have also been
notified and intimated to urea units.
1.6 Amendments to New Pricing Scheme
Stage - III for Urea Units.
Following amendments in NPS III have been made
1.6.1 It has been decided that the reduction in the
fixed cost of each Urea units strictly due to
Group Averaging principle under the New
Pricing Scheme III will be restricted to 10%
of the Normated Fixed Cost computed under
the base concession rates. The limitation on
reduction of fixed cost will be applicable w.e.f
1st April, 2009.
1.6.2 Capacity utilization of Post – 1992 Naptha
based Group Average will be considered as
95% instead of 98% for calculating the base
concession rates of urea units provided no
cost towards conversion is recognized under
NPS III. The approved amendments will help
the indigenous urea units reduce their losses
due to the group averaging under New
Pricing Scheme Stage - III and help them to
generate resources for reinvestment in their
plants towards modernization and increased
efficiency.
1.6.3 To maintain stocks of urea in case there is
either a shortfall in production due to
disruption in supplies of feedstocks or delay/
disruption in imports and to tide over the
sudden spurt in demand/shortages, a buffer
9
 stocking scheme for urea is under MAXIMUM RETAIL PRICE OF FERTILIZERS
implementation in major States. The
(Rupees per MT)
companies are reimbursed buffer stocking
expenses on following parameters. Product From From
12.3.2003 18.06.08
(i) The company operating the buffer stock to
will be entitled to Inventory Carrying Cost 17.6.2008
(ICC) at a rate 1 percentage point less than
Urea 4830 4830
the PLR of SBI as notified from time to time.
This rate would be applicable at Rs 4650 Di Ammonium 9350 9350
per MT (MRP less than the dealer’s margin Phosphate (DAP)
i.e. Rs 4830- Rs 180) for the quantity and Muriate of Potash (MOP) 4455 4455
the duration for which the stock is carried as Mono-Ammonium 9350 9350
buffer. In case of cooperatives, it will be at Phosphate (MAP)
Rs 4630 per MT as dealers margin in this (w.e.f. 1.4.2007)
case is Rs 200 per MT. Triple Super Phosphate 7460 7460
(ii) The company will be paid warehousing (TSP) (w.e.f. 1.4.2008)
and insurance charges at the rate of Rs 23 Single Super Phosphate 3400 3400
per tonne per month on the quantity carried (SSP) (w.e.f. 1.5.2008 to
as buffer. 30.6.2009) all India MRP
Ammonium Sulphate (AS) 10350
(iii) Since the material will be moved in two
(w.e.f. 1.7.2008)
stages i.e. from the plant to the buffer
stocking point and then on to consumption Grades of Complex
points, additional handling charges at the rate Fertilizers - N:P:K:S
of Rs 30 per MT will be paid to the Fertilizer 16:20:00:13 7100 5875
Company on the quantity sold from the buffer (earlier 16:20:00)
stock. 20:20:00:00 7280 5343
(iv) In addition, freight from the buffer stocking 20:20:00:13 7280 6295
warehouse to the block in case of movement 23:23:00:00 8000 6145
outside the district in which buffer stocking
28:28:00:00 9080 7481
godown is located, will also be paid to the
company, in accordance with the provisions 10:26:26:00 8360 7197
under the Uniform policy for freight subsidy 12:32:16:00 8480 7637
announced by the Government with effect 14:28:14:00 8300 7050
from 1st April, 2008.
14:35:14:00 8660 8185
1.7 MRP of Decontrolled P & K Fertilizers 15:15:15:00 6980 5121

1.7.1 The MRP of the DAP/NPK/MOP has been 17:17:17:00 8100 5804
constant from February 2003 to 17.6.2008. 19:19:19:00 8300 6487
Then Department of Fertilizers introduced
nutrient based subsidy in June 2008 and
accordingly, revised the MRP of NPK 1.8 Global Scenario
Complex Fertilizers downwards w.e.f.
18.6.2008. However, the MRP of the other Prices of Major fertilizers, such as Urea, DAP
fertilizers remained the same. The MRP of and MOP and fertilizer inputs such as
fertilizers is shown in the table below:- Ammonia, Sulphur, Rock Phosphate and
Phosphoric acid increased manifold during

10
 2008-09. This resulted in steep increase in
prices of both finished fertilizers as well as
intermediates and consequently led to
substantial increase in subsidy outgo of the
Government. Urea Price, which was US$
280.75 fob per MT in January 2007 increased
to US$ 403.75 fob per MT in January 2008
and US $ 815 fob per MT in August 2008.
Price of DAP, which was US $ 320.5 cfr per
MT in January 2007 increased to US$ 802
cfr per MT in January 2008 and US $ 1331
cfr pt in May 2008. MOP price, which
prevailed at US $ 170 fob per MT in January
2007 went up to US $ 328 fob per MT in
January 2008 and US$ 945 fob per MT in
October 2008.
Raw material prices also showed exponential
jumps during the last one year. Ammonia
price, which, on an average, was $ 301.5 cfr
(India) per in January 2007, went upto US $
389 cfr (India) per MT in January 2008 and
US $ 834 cfr (India) in September 2008. Price
of Phosphoric Acid witnessed a sharp
increase during the year. Price of Phosphoric
acid which was US $ 566.25 cft pt (annual
contract price) for 2007-2008, went up to
1985 cfr pt in April-June 2008 and to US $
2310 cft pt in July-September 2008. Sulphur
price increased from US $ 78.75 cfr per MT
in January 2007 to US $ 561 cfr per MT in
January 2008 and to US $ 846 cfr pt in July
2008. Price of Rock Phosphate which was
US $ 79.5 cfr pt in January 2007 went up to
US $ 245 cfr pt in January 2008 and to US
$ 460 cfr pt in June 2008.
The spurt in international prices have
impacted prices of imported finished fertilizers
as well as raw material in India. As a result,
subsidy outgo for 2008-09 was about one
lakh crore.
From July 2008 to January 2010, the prices
of the raw materials/intermediates/finished
fertilizers have shown a declining trend. The
prices in January 2010 in comparison to that
of and July 2008 and March 2009 are as
follows :

(US $ pmt)
Raw material/Intermediate/Fertilizers July 2008 March 2009 January 2010
DAP 1291.90 414.00 499.13
MOP 725.00 767.50 381.25
Urea FOB 783.00 305.63 306.88
Phos Acid, India (C&F) 2200-2310 650.760 610-627.50
Ammonia (C&F) 571.10 261.00 327.88
Sulphur (C&F) 846.00 57.00 139.50
Rock (C&F) 384.00 301.00 (in Jan,09) 142.50
Sulphuric Acid (C&F) Brazil 360.00 0.00-50.0 35.38



11
Chapter-2
2.1 Organizational set up and functions
2.1.1 The main activities of Department of
Fertilizers (DOF) include planning,
promotion and development of the Fertilizer
Industry, planning and monitoring of
production, import and distribution of
fertilizers and management of financial
assistance by way of subsidy/concession
for indigenous and imported fertilizers. List
of subjects allocated to the Department of
Fertilizers as per Government of India
(Allocation of Business) Rules, 1961
amended from time to time has been given
at Annexure-I.
2.1.2 The work of these divisions is handled by
three Joint Secretaries, one Economic
Adviser & one Additional Secretary cum
Financial Adviser. The Department is
broadly divided into 4 Divisions dealing
with (i) Fertilizers Projects and Planning
(ii) Fertilizer Imports, Movement and
Distribution (iii) Administration and
Vigilance and (iv) Finance and Accounts.
2.1.3 The Joint Secretary in-charge of (P&P) looks
after the work relating to Policy Coordination,
Phosphatic Fertilizer Policy, P & K Subsidy
payments and import on government account
payments, Joint Venture Projects of P & K
Fertilizers (domestic and overseas), and
WTO related issues.
2.1.4 Joint Secretary (F&P) & ED FICC (Ex
officio) is entrusted with the work pertaining
to Urea Policy, PSUs matters except
vigilance Special Purpose Vehicle for
exploring Joint Ventures abroad, revival of
closed Urea units including FCIL and
HFCL, Urea Fertilizers Joint Ventures
Projects (domestic and overseas), over all
project coordination including JVs and
long-term off-take policy.
12
2.1.5 Joint Secretary (A&M) looks after the work
relating to the movement of fertilizers and
related policies and coordination with
States, shipping and import of Urea 0n
Government account, Parliamentary work
and coordination, branch administration
and vigilance, FMS, OMIFCO related
matters including off-take of Urea,
implementation of finalized long term
offtake arrangements.
2.1.6 The Economic Adviser, an officer of Joint
Secretary level advises the Department on
various economic issues which have
economic implications, S&T projects,
matters relating to agriculture Ministry such
as Bio fertilizers, balanced fertilizers, soil
health cards, nutrient absorption issues,
micro-nutrients, organic fertilizers based on
urban solid waste, subjects related to
renewable and non-renewable energy,
clean technology and general
environmental issues, supply, demand,
availability and price movement forecasting
of various fertilizers, intermediates and raw
materials and economic analysis of specific
importance assisting in firming up policy
issues.
2.1.7 The list containing the names of Minister-
in-charge and the officers of the level of
Deputy Secretary and who have worked in
the Department during 2009-2010 is given
in Annexure-II.
2.2 Fertilizer Industry Coordination
Committee (FICC)
2.2.1 The office of Fertilizer Industry
Coordination Committee is an attached
office under the Department of Fertilizers
headed by Executive Director. The FICC
comprises of the Secretaries to the GOI in
the Department of Fertilizers, Industrial
Shri Srikant Kumar Jena, Hon’ble Minister of State (C&F) inaugurating Health Mela organized by IFFCO at
Betnoti (Orissa).
Policy and Promotion, Agriculture and
Cooperation, Expenditure, Ministry of
Petroleum & Natural Gas, Chairman, Tariff
Commission and two representatives of the
urea industry, FICC, which was initially
constituted w.e.f. 1.12.1977 to administer
and operate the erstwhile Retention Price
cum subsidy Scheme (RPS), has been
replaced vide Resolution dated 13.3.2003

to administer and operate the New Pricing
Scheme (NPS), which has come into
existence w.e.f. 1.4.2003.
2.2.2 The Department has under its
administrative control nine (9) Public Sector
Undertakings (PSUs), one multi-state co-
operative society. The list is given at
Annexure-III.
13
Chapter-3

3.1 Development & Growth of Fertilizer the year 2008-09 was less than the target
Industry mainly due to constraints in suppply and
quality of natural gas, equipment breakdowns
3.1.1 Capacity Build-up
and RCF Trombay-V & DIL Kanpur remained
At present, there are 56 large size fertilizer under unscheduled shutdown. In case of
units in the country manufacturing a wide phosphate, production in DAP plants was low
range of nitrogenous, phosphatic and on account of shortage of imported
complex fertilizers. Of these, 30 units (as on phosphoric acid and ammonia. Production
date 28 units are fucntioning) produce urea, of complexes was higher than the
21 units produce DAP and complex fertilizers, coresponding period of last year.
5 units produce low analysis straight
3.2.3. The installed capacity of urea units in the
nitrogenous fertilizers and 9 manufacture
country as follows:-
ammonium sulphate as by-product. Besides,
there are about 72 small and medium scale UREA UNITS SET UP BETWEEN: 1967-2009 WITH INSTALLED
CAPACITY
units in operation producing single super
Year of Unit Feedstock Installed
phosphate (SSP). The total installed capacity Comm. and Sector Capacity
of fertilizer production which was 119.60 lakh (lakh/MT)
MT of nitrogen and 53.60 lakh MT of 1967 GSFC-Baroda Gas-Private 3.706
phosphate as on 31.03.2004, has margnally 1969 SFC-Kota Naphtha-Private 3.790
1970 DIL-Kanpur Naphtha-Private 7.220
incresed to120.61 lakh MT of nitrogen and
1971 MFL-Madras Naphtha-Public 4.868 @
56.59 lakh MT of phosphate as on 1973 ZIL -Goa Naphtha-Private 3.993
01.04.2009. 1975 SPIC-Tuticorin Naphtha-Private 6.200
1976 MCFL-Mangalore Naphtha-Private 3.800
3.2 Production Capacity And Capacity 1978 NFL-Nangal FO/LSHS-Public 4.785
Utilisation 1978 IFFCO-Kalol Gas-Coop. 5.445 @
1979 NFL-Bhatinda FO/LSHS-Public 5.115
3.2.1. The production of fertilizers during 2008-09 1979 NFL-Panipat FO/LSHS-Public 5.115
was 108.70 lakh MT of nitrogen and 34.65 1981 IFFCO-Phulpur Gas—Coop. 5.511
lakh MT of phosphate. The production target 1982 RCF-Trombay-V Gas-Public 3.30
for 2009-10 was 120.85 Lakh MT of nitrogen 1982 GNFC-Bharuch FO/LSHS-Private 6.360
1985 RCF-Thal Gas-Public 17.068
and 41.31 Lakh MT of Phosphate,
1986 KRIBHCO-Hazira Gas-Coop. 17.292
representing a growth rate of 11.1% in 1987 BVFCL-Namrup-III Gas-Public 3.150
nitrogen and 19.2% in Phosphate as (Formerly HFC)
compared to production in 2008-09. 1988 NFL-Vijaipur Gas-Public 8.646
Production target for nitrogenous fertilizer is 1988 IFFCO-Aonla Gas-Coop. 8.646
1988 Indogulf-Jagdishpur Gas-Private 8.646
more than the installed capacity. The
1992 NFCL-Kakinada Gas-Private 5.970
production target for phospahtic fertilizer is 1993 CFCL-Gadepan Gas-Private 8.646
less than installed capacity due to constraints 1994 TCL-Babrala Gas-Private 8.646
in availability of raw materials/ intermediates 1995 KRIBHCO SHYAM-Shahja- Gas-Private 8.646
which are substantially imported. However, hanpur (Formerly OCFL)
1996 IFFCO-Aonla expansion Gas-Cooperative 8.646
taken together, the production of ‘N’ and ‘P’
1997 NFL-Vijaipur expansion Gas-Public 8.646
during the year is higher than that in the 1997 IFFCO-Phulpur expansion Gas—Cooperative 8.646
corresponding period of last year. 1998 NFCL-Kakinada expansion Naphtha-Private 5.970
1999 CFCL-Gadepan expansion Naphtha/Gas-Private 8.646
3.2.2. The production performance of both 2005 BVFCL:Namrup-II Gas-Public 2.400 @
nitrogenous and phosphatic fertilizers during Note: @ After revamp

14
3.2.4 The following 9 urea plants of the companies 3.3 Strategy for Growth
are presently closed/under shutdown due to
various reasons, inter-alia, on account of 3.3.1 The following strategy has been adopted
technological obsolescence, feedstock to increase fertilizer production:
limitation, non-viability of unit/company and
• Expansion and capacity addition/
heavy financial losses.
efficiency enhancement through
Sl. Name of the Date of Annual Installed retrofitting / revamping of existing
No. Company/Unit closures Capacity fertilizer plants.
(In Lakh MT)
1. FCI: Gorakhpur 10.6.1990 2.85 • Setting up joint venture projects in
2. FCI: Ramagundam 1.4.1999 4.95
countries having abundant and
cheaper raw material resources.
3. FCI: Talcher 1.4.1999 4.95
4. FCI: Sindri 16.3.2002 3.30 • Working out the possibility of using
5. HFC: Durgapur 1.7.1997 3.30 alternative sources like liquefied
6. HFC: Barauni 1.1.1999 3.30 natural gas, coal gasification, etc., to
7. RCF: Trombay-I 1.5.1995 0.98 overcome the constraints in the
8. NLC: Neyveli 31.3.2002 1.53 domestic availability of cheap and
9. FACT: Cochin-I 15.5.2001 3.30 clean feedstock, particularly for the
Total 28.46
production of urea.
Note: Production by DIL-Kanpur (7.22 LMT) was suspended due • Looking at possibilities of revival of
to financial constraints. some of the closed units by setting
up brownfield units subject to available
3.2.5. The domestic fertilizer industry has by and of gas.
large attained the levels of capacity utilisation
comparable with others in the world. The 3.4 Feedstock Policy
capacity utilisation during 2008-09 was 90.1%
for nitrogen and 61.2% for phosphate. The 3.4.1 At present, natural gas based plants
estimated capacity utilisation during 2009- account for more than 66% of urea
10 is 99.2% of nitrogen and 76.9% of capacity, naphtha is used for less than 30%
phosphate. Within this gross capacity urea production and the balance capacity
utilization, the capacity utilisation in terms of is based on fuel oil and LSHS as feedstock.
the urea plants was 101.1% in 2008-09 and The two coal based plants at Ramagundam
106.3% in 2009.10. As for phosphate and Talcher were closed down due to
fertilizers, apart from the constraints technological obsolescence and non-
mentioned earlier, the actual production viability.
capacity utilisation has also been influenced
3.4.2. Natural gas has been the preferred
by the demand trends.
feedstock for the manufacture of urea over
3.2.6. The capacity utilisation of the fertilizer other feedstocks viz. naphtha and FO/
industry, particularly in respect of urea, is LSHS, firstly, because it is clean and
expected to improve further through efficient source of energy and secondly, it
revamping/ modernisation of the existing is considerably cheaper and more cost
plants. effective in terms of manufacturing cost of
urea which also has a direct impact on the
3.2.7. The unit-wise details of installed capacity, quantum of subsidy on urea.
production and capacity utilisation during
2008-09 and 2009-10 are given in 3.4.3. Accordingly, the pricing policy, announced
Annexure-IV. in January 2004, provides that new urea

15
 projects, expansion of existing urea units
and capacity increase through de-
bottlenecking/revamp/modernization will be
also allowed/recognized if the production
comes from using natural gas/LNG as
feedstock. For the same reasons, a policy
for conversion of the existing naphtha/FO/
LSHS based urea units to natural gas/LNG
as feedstock has also been formulated in
January 2004, which encourages early
conversion to natural gas/LNG. Pursuant
to formulation of policy for conversion of
non-gas urea units to gas, three naphtha
based plants namely, Chambal Fertilizers
& Chemicals Limited (CFCL), Gadepan-II
and IFFCO-Phulpur-I & II have already
converted to NG/LNG. Shriram Fertilizers
& Chemicals Limited (SFC-Kota) has also
started using gas w.e.f. 22nd September
2007.
3.5 Requirement and Availability of Gas to
Fertilizer Sector
3.5.1 The projected requirement of gas during
the 11th Plan period for fertilizer sector is
as below:
2007-08 2008-09 2009-10 2010-11 2011-12
Gas Demand 41.02 42.45 55.20 72.76 95.52
At NCV 8200
Kcal/SM)
3.5.2. Six companies viz IFFCO, KRIBHCO,
Rashtriya Chemicals and Fertilizers
Limited, INDO-Gulf Fertilizers Limited,
TATA Chemicals Limited and Chambal
Fertilizers and Chemicals Limited have
requested for firm availability of gas for
taking final investment decision to under-
take expansion of their existing units. The
issue has been taken up with the Ministry
of Petroleum and Natural Gas. The
Empowered Group of Ministers (EGOM)
in its 65 th meeting held on 27-10-2009
considered the demand of natural gas for
expansion and revamp of fertilizer plants
and decided that they would be supplied
natural gas as and when they are ready to
utilize the gas. It is expected that with the
16
above availability of gas, the production
capacities in existing units will increase,
closed fertilizer units will be revived new
Greenfield/Brown field projects will be set
up and non gas based fertilizer plants will
be converted to gas, taking the overall
production capacity of urea in the country
to more than 31 million tonnes. Likewise,
the projected requirement of urea by the
end of 11th Plan is expected to be around
31 million tones including the required
quantities for maintaining the supply chain
and buffer stocks. It is expected that with
above availability of gas at reasonable
prices, the country will become self-
sufficient in urea requirement by the end
of 11th Plan. The above availability of gas
will also help our country to become an
export surplus nation in urea sector.
3.5.3. The above requirement of gas is based on
the desired need to make the country self-
sufficient in urea production. This is
necessary in light of the fact that our
agricultural sector needs to be insulated
from the volatile international prices of
fertilizers and at the same time the fertilizer
subsidy bill need to be reduced. Urea is
the only fertilizer, in which the country can
become self-sufficient with the projected
availability of gas in future. In phosphatic
and potassic sector, we are largely import
dependent and are subject to large-scale
volatility in world prices of these fertilizers.
3.5.4 The indigenous production capacities can
come up in future with the above gas
availability provided the gas is available at
reasonable price. World over the price of
gas is showing an upward trend but the
countries rich in gas resources are having
special assured price for fertilizer sector.
The fertilizer sector in Middle East and
North East Africa is based on gas prices
of approximately 50 cents per MMBTU to
$ 1.5 – 2 per MMBTU. This has led to a
lower cost of production in these countries,
which are also the major exporters of urea
in the world.
3.5.5 Though enhancement of indigenous
production capacity, the country not only
becomes self-sufficient in urea production
and immune from demand driven
escalation in international prices, but it also
leads to increase in economic activity
within the country, increase in employment,
industrial development, etc. At the same
level of gas prices, the country will save
approximately USD 60 per MT of urea by
producing within the country as compared
to importing from Middle East countries on
price equivalent to cost of production. The
savings will be on account of lower capital
cost (USD 20 per MT approx), shipping
freight (USD 20 per MT) and port handling
charges (USD 20 per MT). In addition,
there will be savings on account of internal
transportation of urea depending upon the
location of the plant.
3.5.6. In addition to the issue of availability in
pricing of gas, the other major important
issue in this sector is provision of gas
pipeline connectivity to the existing urea
units in the country and proposed urea
units in future. At present 8 operational
units are not on the gas grid and their
connectivity with the gas grid is critical for
their conversion to gas. Further 8 closed
units of FCIL and HFCL are presently away
from the gas grid and their connectivity
with gas pipeline is prerequisite for revival
of these closed units. Ministry of Petroleum
and Natural Gas has projected that the
following pipeline connectivity of gas to
existing and closed units in the country
will be provided by 2012-13

PIPELINE CONNECTIVITY PLAN (As provided by GAIL and MOP&NG

S.No. Proposed pipeline Agency for Fertilizer unit Expected

connecting proposed to be year of
plants connected connectivity

Naphtha based plants

1. Dhabol, Bangalore GAIL ZIL, Goa 2011-12

2. Kochi-Mangalore-Bangalore GAIL MFCL, Mangalore 2012-13

3. Kochi-Mangalore-Bangalore GAIL FACT, Cochin 2011-12

(also from Kochi LNG Terminal)

Fuel Oil/LSHS based plants

4. Dadri-Bawana-Nangal GAIL NFL-Nangal, 2011-12

Panipat, Bhatinda

Closed Units

5. Spur from the following pipeline: GAIL FCI, Sindri 2012-13

Jagdishpur-Haldia FCI, Gorakhpur
HFC, Barauni
HFC, Durgapur
HFC, Haldia

17
3.6 Joint Ventures abroad
3.6.1 Due to constraints in the availability of gas
in the country, which is the preferred feed
stock for production of nitrogenous fertilizers,
and a near total dependence of the country
on imported raw materials for production of
Phosphatic fertilizers and full import
dependence for MOP, the Government has
been encouraging Indian companies to
establish Joint ventures production facilities
with buy back arrangement in other countries,
which are rich in fertilizer resources.
3.6.2 Existing joint ventures, namely Oman India
Fertilizer Company (OMIFCO), Oman in
Urea ad Industries Chimiques du Senegal
(ICS), Senegal and Indo- Maroc Phosphore
(MACID), Morocco in phosphate have
given the country assured sources of
supply of urea and phosphoric acid, a
critical input for production of Phosphatic
fertilizers. Further, two more projects,
namely, Jordan India Fertilizer Company
(JIFCO) in Jordan and Tunisia India
Fertilizer Company (TIFERT) in Tunisia are
about to be commissioned in the year
2010. The details of the existing joint
venture in the fertilizer sector are:
3.6.2.1 OMIFCO Oman:
Krishak Bharati Cooperative Ltd. (KRIBHCO),
Indian Farmers Fertilizer Cooperatives Ltd.
(IFFCO) and Oman Oil Company with
respective share holding of 25%, 25% and
50% have collaborated and set up a world
class urea-ammonia fertilizer plant ‘Oman
India Fertilizer Company ‘ (OMIFCO) in
Oman at a cost of US $ 892 million. It
consists of 5060 MTPD granular urea and
3500 MTPD Ammonia plants along with
utilities in the coastal town of Sur in Oman.
The annual capacity of the fertilizer complex
is 16.52 lakh MT of granular Urea. The entire
quantity of urea is off taken by the
Government of India as per Urea Off-Take
Agreement (UOTA) at pre determined prices.
Government of India also off takes surplus
18
quantity of Urea, if any, as per price agreed
for the additional quantity. In addition, 2.5
lakh MT of surplus Ammonia per year is also
produced by the plant for which IFFCO has
Ammonia Off-Take Agreement (AOTA).
OMIFCO is examining possibility of
expansion and increase in production of Urea
and Ammonia.
3.6.2.2 ICS Senegal
The Government of India (GoI), Indian
Farmers Fertilizer Cooperative Ltd. (IFFCO)
and Southern Petrochemicals Industries
Corporation Ltd. (SPIC) formed a joint
venture company in Senegal named
Industries Chimiques du Senegal (ICS). Later
on SPIC withdrew from the project. In recent
past, the company suffered financial losses.
However, ICS Senegal has been restructured
in 2008 with Government of India, IFFCO
and other Indian consortium partners having
85% and Government of Senegal having
15% share. The restructuring plan after
having been approved by the Regional High
Court of Dakar (Senegal) on 27th March 2008
has come into effect and ICS Senegal, as
restructured, is in operation.
ICS Senegal has a capacity to produce 6.60
lakh tones of phosphoric acid per annum
and also finished phosphate fertilizer such
as DAP and Complex fertilizers. A major
portion of the phosphoric acid, about 5.5 LMT
produced in the ICS plant is off-taken by
IFFCO as per a long term buy back
arrangement and utilized for production of
phosphate fertilizers in India. The finished
fertilizers, DAP and complex fertilizers,
produced by ICS Senegal is for domestic
consumption in Senegal.
3.6.2.3 IJC Jordan
SPIC, Jordan Phosphates Mines Company
Ltd. (JPMC) and Arab Investment Company
(AIC) set up a joint venture project, Indo-
Jordan Chemicals Company Limited (IJC) in
Jordan in May 1997 with a capacity of 2.24
Shri S. Krishnan, Secretary (Fertilizers) inaugurating PDIL Bhawan at Vadodara.
lakh tonnes of phosphoric acid production
per annum. 52.17% of the equity of the joint
venture is held by SPIC, 34.86% by JPMC
and 12.97% by AIC. Phosphoric Acid
produced by IJC is off-taken by SPIC and
other fertilizer units in India.
3.6.2.4 IMACID Morocco
IMACID, a joint venture between Office
Cherifien des Phosphates (OCP), Morocco,
and Chambal Fertilizers & Chemicals Ltd.
(CFCL), India to produce 3.60 lakh MT of
phosphoric acid per annum was
commissioned in Morocco in October 1999.
After subsequent joining of Tata Chemicals
Limited (TCL), capacity of the plant has been
increased to 4.30 LMT per annum. Initially,
equity of US$ 65 million in the venture was
held by OCP & CFCL equally. Subsequently
in May 2005, both OCP & CFCL have sold
one-third of their equity stake in IMACID to
TATA Chemicals Limited.
3.7 Overseas Joint Ventures Under
Implementation / Consideration:
3.7.1 JIFCO Jordan
Indian farmers Fertilizers Cooperative Ltd
(IFFCO) and Jordan Phosphate Mining
Company (JPMC) have agreed for setting
up of a joint-venture Phosphoric Acid
production plant, Jordan India Fertilizer
Company (JIFCO) in Jordan with an installed
capacity of 1500 MT of phosphoric acid per
day (MTPD). Equity hodling in the project is
52:48 between IFFCO and JPMC,
respectively. The plant is expected to be
commissioned in 2010.
19
3.7.2. JV in Tunisia
Gujarat State Fertilizers & Chemicals Ltd
(GSFC) and Coromandel International Ltd
(CIL), formerly Coromandel Fertilizers
Ltd.(CFL) both Indian entities alongwith
Groupe Chimique Tunisien (GCT) &
Compagnie Des Phosphates De Gafsa
(CPG), both Tunisian entities are setting
up a joint venture project, Tunisian Indian
Fertilisers S.A. (TIFERT) at Skhira in
Tunisian for production of 3.6 lakh MT of
Phosphoric Acid per annum. The entire
production of phosphoric acid would be for
off take by GSFC and CIL. An MOU to this
effect was signed in October, 2005
between parties. Estimated cost of the
project is approx. US $ 165 million + 5%
with equity of US$66 million and
borrowings of US $99 million. The project
is expected to be commissioned in
2010.
3.7.3. Cooperation in Syria
The India-Syrian Joint Commission in its
meeting held in January 2008 took note of
the mutual interest of both countries in the
field of Phosphatic raw-materials and
products. It was agreed that both countries
would work for cooperation in the fertilizer
sector in Syria. Accordingly, a consortium
of Indian entities including MECON, RITES
and PDIL (All central Government PSUs),
having expertise in the fields of mining,
beneficiation, processing, setting-up and
running the phosphatic plants and logistic
aspects are undertaking capacity
enhancement consultancy study with
GECOPHAM in Syria. Government of India
is funding the study. In May 2009, MOU
has been signed between the Indian
Consortium and GECOPHAM and the
former has started the studies, which is
expected to be finalized soon. Government
of India and Government of Syria are in
dialogue to formalize a Government level
MOU spelling out broad framework of
cooperation in phosphate sector.
20
3.7.4. JV in Australia:
Indian Farmers Fertilizer Cooperative Ltd
(IFFCO) has entered into a ‘Principles of Off-
take Agreement’ with Legend International
Holdings of Australia to undertake joint mining
of rock phosphate in Lady Annie mines
(Georgina Basins in Queens land) along with
an assured three million MT annual off-take.
A total of US $800 million investment has
been envisaged for undertaking rock
phosphate mining in Australia. IFFCO will
receive 30 million options in Legend
International Holdings. IFFCO would provide
both technical and financial facilitation to
Legend International Holdings in the
development of its phosphate mining and
shipment of its product to India.
In Ammonia-Urea sector, KRIBHCO and
NWCF, a private company in Australia are in
the process of setting up of a coal bases
ammonia-urea plant in Australia. The project
cost is approx. US $ 2.6 billion and
KRIBHCO’s equity will be approx. US $ 165
million. The Australian company proposed to
enter into a 20 year agreement for supply of
urea. Agreement on mutual Terms &
Conditions including the price on which the
urea will be made, are yet to be finalized.
3.7.5 Cooperation in Ghana
Given its gas reserves, Ghana is considered
a rich source of nitrogenous feedstock.
Chairman of Ghana National Petroleum
Corporation (GNPC), Ghana during his visit
to India met the Prime Minister of India and
possibility of cooperation in fertilizer sector
was discussed. Subsequently, a fertilizer
delegation including representative of the
Department and RCF and GAIL has visited
Ghana. Possibility of setting up of a joint
venture Urea-Ammonia plant in Ghana is
being explored. Memorandum of Intent (MOI)
at the Government level for the purpose is
being finalized. Which would also include
framework of gas allocation by the GNPC
for the project. After finalization and signing
 of the MOI, both would sides would designate
their respective entities for preparing Detailed
Pre-Feasibility Report (DPFR).
3.7.6 Discussions for cooperation in fertilizer
sector.
Discussion are on with the fertilizer and
mining entities in following resource rich
countries for long term cooperation for setting
up of projects for production and off take of
fertilizers:
(i) Discussion at Government level is
underway with the Government of
Senegal for development of Matam
phosphate mines.
ii) Two separate consortia of Indian entities
comprising IPL & IFFCO and MMTC &
RCF are in discussion with M/s
PotashOne and M/s Athabasca Inc
respectively of Saskatchewan province
for setting up Joint Venture projects in
mining of Potash and off take to India.
Consortium of RCF and MMTC which
is pursuing with Athabasca, have signed
an MOU for JV project with Athabasca
for evaluation and assessment in
technical, marketing and financial
aspect. They have also signed a
confidentiality Agreement for sharing
related information. Consortium of

IFFCO and IPL have requested
PotashOne for providing detailed costing
and other economic parameters
involved in the project.
iii) RCF and IDC/FOSKOR of South Africa
are exploring the possibilities to set up
a Phosphoric Acid and Ammonia-Urea
fertilizer project near Maputo Port, the
capital city of Mozambique. The project
proposes to source Rock from the new
mines of Foskor in Phalaborwa, South
Africa. An MOU has been signed
between RCF and IDC/FOSKOR.
Department of Fertilizers has been
pursuing with M/s SASOL, for allocation
of gas in Mozambique for setting up a
JV ammonia-urea project.
iv) M/s SPIC and Chambal Fertilizers are
in the process of setting-up a gas based
nitrogenous fertilizer plant at Dubai in
UAE to produce 4.00 LMT of urea per
annum.
v) Discussion are also going on for
exploring possibilities for a Ammonia-
Urea project Qatar with buy back by
India. IFFCO and QUAFCO (Public
sector entity of Qatar) have signed
‘Agreement of Intention’ on 24.2.2009
for the same.
21
Chapter-4
4.1 Availability of Major Fertilizers During
2009-10
Controlled Fertilizer – Urea
4.1.1 The availability of urea, which is the only
fertilizer under price and partial movement
control of Government, remained satisfactory
throughout the Kharif 2009 season as well
as during the current Rabi 2009-10(Up to
December, 2009).
Kharif 2009
4.1.2 The field opening stock of 4.35 LMT as on
1.4.2009 coupled with indigenous production
of 101.09 LMT and imports of 25.34 LMT
helped in progressively ensuring adequate
availability to the States throughout the
season. The cumulative availability of urea
at the end of the season was nearly 123.11
LMT against the assessed requirement of
136.36 LMT. The sales have been 120.03
LMT during Kharif 2009.
Rabi 2009-10
4.1.3 The requirement of urea for Rabi 2009-10
has been assessed at 145.53 LMT
envisaging a growth of about 5.03% over
the sales of 134.18 LMT in Rabi 2008-09.
The requirement is being met from the
opening stocks taken together with estimated
production of 111.61 LMT and imports of
about 25.04 LMT during the season. Thus
the cumulative availability of urea for Rabi
2009-10 has been estimated to be about
142.93 LMT by the end of 31st March, 2010.
4.1.4. Allocation of urea under ECA was restricted
to 50% of production of installed capacity of
each manufacturer during Kharif 2009 and
Rabi 2009-10. The manufacturers are free
to sell the remaining quantity of urea to the
22
farmers anywhere in the country at notified
maximum retail price.
4.2 Decontrolled Fertilizers – DAP & MOP
Kharif 2009
4.2.1 In case of fertilizers other than the urea,
which are decontrolled, no allocation is made
under Essential Commodities Act (ECA) by
the Central Government. Assessment of
requirement of Urea, DAP and MOP is being
made by the Department of Agriculture &
Cooperation to enable better monitoring of
availability at the national level.
4.2.2 DAP and MOP are the two major decontrolled
and decanalised fertilizers, which may be
imported freely.
DAP
4.2.3 The imports of 37.55 LMT of DAP coupled
with indigenous production of 26.04 LMT and
the opening stock of 1.60 LMT of DAP as on
1 st April, 2009 resulted in satisfactory
availability of about 65.19 LMT DAP during
Kharif 2009 season. Sales of DAP in Kharif
2009 were about 61.34 LMT.
MOP
4.2.4 The imports of 17.12 LMT of MOP taken
together with opening stock as on 1st April,
2009 resulted in availability of about 22.51
LMT. The sales of MOP were reported as
about 18.51 LMT.
Rabi 2009-10
DAP
4.2.5. The production of DAP during Rabi 2009-10
is estimated to be about 17.79 LMT. Stocks
as on 1.10.2009 coupled with estimated
imports will be adequate in meeting the
 country’s requirement of DAP assessed at 4.3 Movement of Fertilizers
57.77 LMT during Rabi 2009-10, considering
that about 14.54 MT of MOP was extra 4.3.1 Under the Allocation of Business Rules,
supplied during Kharif 2009 towards the the Department of Fertilizers has been
requirement of Rabi 2009-10. entrusted with the responsibility of ensuring
movement, distribution and allocation of
MOP controlled fertilizer, i.e. urea, from various
fertilizer plants and ports in accordance
4.2.6 Stocks of MOP as on 1.10.2009 coupled with with the State-wise requirement assessed
adequate imports till March 2010 will ensure by the Department of Agriculture & Co-
that the country’s requirement of MOP during operation (DAC). The distribution of
Rabi 2009-10 is fully met. imported urea is made keeping in view the
4.2.7 Following table summarizes the season-wise requirements of each of the States.
position in respect of the availability and sales 4.3.2 The major share in transportation of
of the major fertilizer i.e. Urea, DAP & MOP fertilizers is of the Railways. During 2008-
during the last three seasons: 09, Railways had moved about 41.35
milion tonnes of the fertilizers produced
Crop season Demand Cumulative Cumulative %age of
Assessment Availability Sales availability indigenously imported in the country.
to assessed During the current year, about 37.73 million
demand
tonnes of fertilizer produced and imported
Kharif 2008 in the country has been moved during the
Urea 137.11 134.66 127.92 -1.7 period April-January, 2010.
DAP 42.75 53.19 52.85 24.42
MOP 17.19 22.79 21.55 32.57
NPK 48.98 37.00 36.13 -24.46 4.3.3 Judicious management of the demand-
supply balance has helped in maintaining
Rabi 2008-09 the average lead of fertilizer movement by
Urea 144.22 142.95 138.58 -0.88
DAP 52.07 46.90 46.18 -9.92 rail. During 2008-09 the average lead was
MOP 20.66 21.72 19.33 5.13 801 KMs. During the current year the
NPK 43.34 35.95 34.90 -17.05
average lead for the period April-
Kharif 2009 November, 2009 would also be almost
Urea 136.36 130.78 120.02 -4.09 same.
DAP 49.20 65.19 61.34 32.5
MOP 21.61 22.51 18.52 4.16
NPK 47.52 36.39 34.81 -23.42



23
Chapter-5

5.1 Plan Performance 120.61 lakh MT and 29.05 LMT to 56.59

5.1.1 The installed capacity and production of
fertilizers in the country at the end of eighth
five year plan, in the terminal year of the
ninth plan and at the beginning of 5th year of
tenth plan (2006-07) are indicated below:
LMT respectively during the same period.
5.1.3 Year-wise consumption, production and
imports of fertilizers in nutrients terms are
given in Annexure-V.

INSTALLED CAPACITY AND PRODUCTON OF NITROGENOUS AND PHOSPHATIC FERTILIZERS

IN EIGHTH, NINTH AND TENTH FIVE YEAR PLANS.

(In lakh MT)

Sr. Particulars At the end of At the end of At the beginning

No. Eighth Five Year Ninth Plan of 5th year of Tenth
Plan (1996-97) (2001-02) Plan (2006-07)
1 Capacity
i) Nitrogen 97.77 120.58 120.61
ii) Phosphates 29.05 52.31 56.59
2 Production
i) Nitrogen 85.99 107.68 115.78
ii) Phosphates 25.56 38.60 45.17

5.1.2 The installed capacity of nitrogen and
phosphate in the terminal year (1996-97) of
the eighth plan was 97.77 lakh MT and 29.05
lakh MT, respectively. Three major phosphatic
fertilizer plants were commissioned during
the ninth five year plan period, namely, Oswal
Chemicals & Fertilizers Ltd.-Paradeep, (since
taken over by IFFCO), Indo-Gulf Corporation-
Dahej and Gujarat State Fertilizers Company
Ltd.-Sikka-II. Consequent upon reassessment
of urea capacity on the basis of Dr. Y.K. Alagh
Committee and DAP capacity by Tariff
Commission, despite phasing out of 10 urea
units due to closure, the installed capacity of
nitrogen and phosphate has increased from
97.77 lakh MT at the end of eighth plan to
5.1.4 The production of fertilizers in nutrient terms
during 2008-09 was 108.70 lakh MT of
nitrogen and 34.64 lakh MT of phosphate.
The estimated production for 2009-10 is
119.68 lakh MT of nitrogen and 43.52 lakh
MT of phosphate. Sector-wise targets and
achievements in respect of production and
capacity utilization from 2001-02 onwards are
given in Annexures-VI & VII.
5.2 Plan Outlays
5.2.1 For the Eleventh Five Year (2007-12),
Planning Commission has approved an
outlay of Rs. 20627.87 crore consisting of
Rs. 1492.00 crore as Domestic Budgetary
Support and Rs. 19135.87 as Internal & Extra

24
 Budgetary Resources (IEBR).
5.2.2 For the year 2009-10, a plan outlay of Rs.
1024.16 crore was approved by the Planning
Commission, with Rs. 824.16 crore to be
met out of IEBR and balance amount of Rs.
200.00 crore as budgetary support. The
details of Plan outlays are given in
Annexure-VIII.
5.2.3 The outlays for 2010-11 is Rs. 2914.00 crore,
of which an amount of Rs. 2699.96 crore
will be met from the internal and extra
budgetary resources and the blance amount
of Rs. 215.00 crore will be provided by way
of budgetary support. The gross outlay of
Rs. 2914.00 crore is for FCI-FAGMIL (Rs.
11.29 crore), Fertilizers and Chemicals
Tranvancore Ltd. (Rs.89.99 crore),
Brahamaputra Valley Fertilizer Corporation
Ltd. (Rs. 45.00 crore), Madras Fertilizers Ltd.
(Rs. 74.5 crore), National Fertilizers Ltd., (Rs.
900.5 crore), Project and Development of
India Ltd. (Rs. 5.38 crore), Rastriya
Chemicals & Fertilizers Ltd. (Rs. 622.82
crore), Krishak Bharti Cooperative Ltd. (Rs.
1160.00 crore), and other Mis. Departmental
Schemes such as (MIS/IT and R&D) 5.50.
Department of Fertilizers is exploring

possibilities of Joint Ventures abroad. Since
there is no firm proposal in hand right now
only a token provision of Rs.0.10 crore has
been provided.
5.2.4 Of the total outlay, the budgetary support of
Rs.215.00 crore is for Fertilizers & Chemicals
Travancore Limited (Rs.89.99 crore), Madras
Fertilizers Limited, (Rs. 74.50 crore),
Brahmaputra Valley Fertilizers Corporation
Limited (Rs.45.00 crore) and other
Departmental Schemes (Rs.5.5 crore). Under
the other Departmental Schemes, there is a
provision of Rs. 2.00 crore for S&T
Programme: Rs. 3.5 crore for information
Technology. Rs.0.001 crore has been for
investment for Joint Ventures abroad.
5.2.5 For the year 2009-10, there was net
budgetary provision of Rs. 50,200.00 crore,
Rs. 200.00 crore under Plan and Rs.
50000.00 crore under Non-Plan. In the
Revised Estimate (RE) for 2009-10, the net
provision is Rs. 53200.00 crore, Rs.200.00
crore under Plan and Rs. 53000.00 crore
under Non-Plan. The details of Non-Plan and
Plan Provision in 2009-10 (BE), 2008-10 (RE)
and 2010-11 (BE) are given in Annexure-IX.
25
Chapter-6
6.1 Measures of support for fertilizers
6.1.1 For sustained agricultural growth and to
promote balanced nutrient application, it is
imperative that fertilizers are made available
to farmers at affordable prices. With this
objective, urea being the only controlled
fertilizer, is sold at statutorily notified uniform
sale price, and decontrolled phosphatic and
potassic fertilizers are sold at indicative
maximum retail prices (MRPs). The problems
faced by the manufacturers in earning a
reasonable return on their investment with
reference to controlled prices, are mitigated
by providing support under the New Pricing
Scheme for urea units and the Concession
Scheme for decontrolled phosphatic and
potassic fertilizers. The statutorily notified sale
price and indicative MRP is generally less
than the cost of production of the respective
manufacturing unit. The difference between
the cost of production and the selling price/
MRP is paid as subsidy/concession to
manufacturers. As the consumer prices of
both indigenous and imported fertilizers are
fixed uniformly, financial support is also given
on imported urea and decontrolled
phosphatic and potassic fertilizers.
6.2 Measures of Support for Urea
6.2.1 Until 31.3.2003, the subsidy to urea
manufacturers was being regulated in terms
of the provisions of the erstwhile Retention
Price Scheme (RPS). Under RPS, the
difference between retention price (cost of
production as assessed by the Government
plus 12% post tax return on networth) and
the statutorily notified sale price was paid as
subsidy to each urea unit. Retention price
used to be determined unit wise, which
differed from unit to unit, depending upon
the technology, feedstock used, the level of
26
capacity utilization, energy consumption,
distance from the source of feedstock/raw
materials, etc. Though the RPS did achieve
its objective of increasing investment in the
fertilizer industry, and thereby creating new
capacities and enhanced fertilizer production
along with increasing use of chemical
fertilizers, the scheme had been criticized
for being cost plus in nature and not providing
incentives for encouraging efficiency.
6.2.2. Given the importance of fertilizer pricing and
subsidization in the overall policy
environment, which has direct implications
with reference to the growth and development
of agriculture and sustainability of the fertilizer
industry, the need for streamlining the
subsidy scheme in respect of urea producing
units had been felt for a long time. A High
Powered Fertilizer Pricing Policy Review
Committee (HPC) was constituted, under the
chairmanship of Prof. C.H. Hanumantha Rao,
to review the existing system of subsidization
of urea, suggest an alternative broad-based,
scientific and transparent methodology, and
recommend measures for greater
cohesiveness in the policies applicable to
different segments of the industry. The HPC,
in its report submitted to the Government on
3rd April 1998, inter-alia, recommended that
unit-wise RPS for urea may be discontinued
and, instead, a uniform Normative Referral
Price be fixed for existing gas based urea
units and also for DAP and a Feedstock
Differential Cost Reimbursement (FDCR) be
given for a period of five years for non-gas
based urea units.
6.2.3. The Expenditure Reforms Commission
(ERC), headed by Shri K.P. Geethakrishnan,
had also examined the issue of rationalizing
fertilizer subsidies. In its report submitted on
20 th September 2000, the ERC
 recommended, inter-alia, dismantling of
existing RPS and in its place the introduction
of a Concession Scheme for urea units based
on feedstock used and the vintage of plants.
6.2.4. The recommendations of ERC were
examined in consultation with the concerned
Ministries/Departments. The views of the
fertilizer industry and the State Governments/
Union territories, and economists/research
institutes were also obtained. After due
examination of all these views, a New Pricing
Scheme (NPS) for urea units for replacing
the RPS was formulated and notified on
30.1.2003. The new scheme took effect from
1.4.2003. It aims at inducing the urea units
to achieve internationally competitive levels
of efficiency, besides bringing in greater
transparency and simplification in subsidy
administration.
6.2.5. New Pricing Scheme (NPS) for urea was
introduced w.e.f. 1st April, 2003. The Stage-
I of NPS was of one year duration from 1st
April, 2003 to 31st March, 2004 and Stage-
II was of two year duration from 1st April to
31st March, 2006. With the Stage-III of NPS
being implemented w.e.f. 1st October, 2006,
the Stage-II of NPS stands extended upto
31st September, 2006.
6.2.6 Under NPS, the existing urea units have been
divided into six groups based on vintage and
feedstock for determining the group based
concession. These groups are : Pre-1992
gas based units, post-1992 gas based units,
pre-1992 naphtha based units, post-1992
naphtha based units, fuel oil/low sulphur
heavy stock (FO/LSHS) based units and
mixed energy based units. The mixed energy
based group shall include such gas based
units that use alternative feedstock/fuel to
the extent of more than 25% as admissible
on 1.4.2002.
6.2.7. Under NPS, escalation/de-escalation is given
in respect of variable cost related to changes
in the price of feedstock, fuel, purchased
power and water. Under the scheme, no
reimbursement is allowed in respect of
investment made by a unit for improvement
in its operations nor are the gains as a result
of operational efficiencies to be mopped up.
6.2.8. It has also been provided under the scheme
that the concession rates during Stage-II shall
be adjusted for reduction in capital related
charges and enforcement of efficient energy
norms. Pre-set energy norms for urea units
during Stage-II of NPS have already been
notified and intimated to urea units. Reduction
in rates of concession during Stage-II of NPS
for urea units on account of reduction in
capital related charges have also been
notified and intimated to urea units.
6.3 Amendments to New Pricing Scheme
Stage - III for Urea Units.
Following amendments in NPS III have been
made
6.3.1 It has been decided that the reduction in the
fixed cost of each Urea units strictly due to
Group Averaging principle under the New
Pricing Scheme III will be restricted to 10%
of the Normated Fixed Cost computed under
the base concession rates. The limitation on
reduction of fixed cost will be applicable w.e.f
1st April, 2009.
6.3.2 Capacity utilization of Post – 1992 Naptha
based Group Average will be considered as
95% instead of 98% for calculating the base
concession rates of urea units provided no
cost towards conversion is recognized under
NPS III. The approved amendments will help
the indigenous urea units reduce their losses
due to the group averaging under New
Pricing Scheme Stage - III and help them to
generate resources for reinvestment in their
plants towards modernization and increased
efficiency.
6.3.3 To maintain stocks of urea in case there is
either a shortfall in production due to
disruption in supplies of feedstocks or delay/
disruption in imports and to tide over the
sudden spurt in demand/shortages, a buffer
stocking scheme for urea is under
implementation in major States. The
27
 companies are reimbursed buffer stocking
expenses on following parameters.
The company operating the buffer stock will
be entitled to Inventory Carrying Cost (ICC)
at a rate 1 percentage point less than the
PLR of SBI as notified from time to time.
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 cooperatives, it will be at
Rs 4630 per MT as dealers margin in this
case is Rs 200 per MT.
I. The company will be paid warehousing
and insurance charges at the rate of
Rs 23 per tonne per month on the
quantity carried as buffer.
II. 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 paid to the Fertilizer Company on
the quantity sold from the buffer stock.
III. In addition, freight from the buffer
stocking warehouse to the block in case
of movement outside the district in which
buffer stocking godown is located, will
also be paid to the company, in
accordance with the provisions under
the Uniform policy for freight subsidy
announced by the Government with
effect from 1st April, 2008.
6.4. Phased Decontrol of Urea Distribution
6.4.1 As per the New Pricing Scheme for urea
units, it was also envisaged that decontrol of
urea distribution/movement will be carried out
in a phased manner. During Stage-I, i.e. from
1.4.2003 to 31.3.2004, the allocation of urea
under the Essential Commodities Act 1955
(ECA) was restricted up to 75% and 50% of
installed capacity (as reassessed) of each
unit in Kharif 2003 and Rabi 2003-04,
respectively. It was further envisaged that
during Stage-II commencing from 1.4.2004,
28
urea distribution will be totally decontrolled
after evaluation of Stage-I and with the
concurrence of the Ministry of Agriculture.
6.4.2 The total decontrol of urea distribution was
deferred initially for a period of six months
w.e.f. 1.4.2004 i.e., up to Kharif 2004, which
has been subsequently deferred up to Rabi
2005-06 i.e., up to 31.3.2006. The existing
system of 50% ECA allocation and 50%
outside ECA allocation has been extended
upto 31-3-2010.
6.4.3 The pricing policy for urea units for Stage-III
of New Pricing Schemes (NPS) which is
effective from 1.10.2006 to 31.3.2010 has
been formulated keeping in view the
recommendations of the Working Group set
up under the Chairmanship of Dr. Y.K. Alagh.
The salient features of the proposed Stage-
III Policy which is aimed at promoting further
investment in the urea sector, are to
maximize urea production from the Urea units
including through conversion of non-gas
based Units to gas, incentivising additional
urea production and encourage investment
in Joint Venture (JV) projects abroad. It is
also aimed at establishing a more efficient
urea distribution and movement system in
order to ensure availability of urea in the
remotest corners of the country.
6.4.4 The Stage-III policy seeks to promote usage
of most efficient and comparatively cheaper
feed stock natural gas/LNG for production of
urea in the country. The policy lays down a
definite plan for conversion of all non-gas
based urea units to gas. At present, there
are 8 urea units (MFL,SPIC, ZIL, MCFL,
GNFC, NFL-Nangal, NFL-Bhatinda, NFL-
Panipat) in the country which are based on
naphtha or FO/LSHS as feed stock. All these
8 units are required to switch over to natural
gas/LNG within a period of next three years.
Beyond this time limit, the high cost urea
produced by these non-gas based units will
not be entitled to subsidy at the existing levels
and it will be restricted to import parity price
of urea. The units, which are unable to tie
up gas will have to explore alternative
 feedstocks like Coal Bed Methane (CBM)
and coal gas. SFC has started using gas
w.e.f. 22.9.2007.
6.4.5. The availability of gas is critical to the growth
of urea industry in the country. Presently,
the indigenous availability is not sufficient to
meet the demand of existing gas based urea
units in the country. To this end, the
Department of Fertilizers constituted a
Committee under the chairmanship of
Secretary(P&NG) with Secretary(Fertilizers),
Secretary(Expenditure), Secretary(Planning
Commission) as its members to deliberate
upon various issues relating to connectivity
and assured supply of gas to the fertilizer
sector. The Committee will also develop an
appropriate mechanism for fixing the price
of the gas in a transparent manner.
6.4.6 In order to incentivise conversion of non gas
based units to gas, the policy provides for a
regime where there will be no mopping up of
energy efficiency for a fixed period of five
years for naphtha based as well as FO/LSHS
based units. The policy also recognizes the
comparative higher cost of conversion of FO/
LSHS based units to gas and provides for
one time capital investment assistance to
these units for conversion to gas during the
next three years. A specific policy to this
effect has been announced by the
Government on 6th March 2009.
6.4.7 The policy also lays down a formulation to
dis-incentivise high cost production from the
non-gas based units and to facilitate their
early conversion to gas. It is proposed that
these units may be allowed to produce 100%
of capacity should they adhere to an agreed
timetable for conversion to Gas and tie up
requisite Gas/CBM/Coal gas. If they do not,
they will be given only 75% of the fixed costs
beyond 93% of capacity utilization in the 1st
year (1.4.2007) and 50% of the fixed cost
beyond 93% capacity utilization from 2nd year
(1.4.2008) onwards.
6.4.8 Considering the likely growth in consumption
of urea in the years to come, the policy seeks
to encourage the existing urea units to
produce beyond 100% of their installed
capacities by introducing a system of
incentives for additional urea production
subject to merit order procurement. The
policy of requiring prior Government
permission for additional urea production has
been dispensed with. All production between
100% and 110% of the existing reassessed
capacity will be incentivised on the existing
net gain sharing formula between the
Government and the unit in the ratio of 65:35
respectively with the proviso that the total
amount paid to the units after including the
component of variable cost will be capped
at the units own concession rate. The units
increasing production beyond 110% will be
compensated at their concession rate subject
to the over all cap of Import Parity Price
(IPP). To the extent Government does not
require any quantities of additional
production, the urea companies would be
free to dispose of the remaining quantities
by way of export or sale to complex
manufacturers without any permission. The
policy also encourages setting up of Joint
Venture projects abroad where gas is readily
available at reasonable prices. It recognizes
our heavy dependence on imported raw
materials/intermediates and feedstock in the
fertilizer sector and to properly leverage this
position, the policy seeks to create
specialized agency to coordinate investments
abroad in fertilizer sector.
6.4.9 The policy seeks to rationalize distribution
and movement of urea and the system of
freight reimbursement with the objective of
ensuring availability of urea in all parts of
the country. The Government will continue
to regulate movement of urea up to 50% of
production depending upon the exigency of
the situation. The State Governments will be
required to allocate the entire quantity of
planned urea arrivals including both regulated
and de-regulated urea in districtwise,
monthwise and supplierwise format. The units
will be required to maintain a district level
stock point and the subsidy will be paid only
29
 when the urea reaches the district. The
monitoring of movement and distribution of
urea throughout the country up to the district
level will be done by an On line Web based
monitoring system. To facilitate movement
of fertilizers to far flung area, the
reimbursement of freight will be based on
actual leads for rail and road movement. The
rail freight will be reimbursed as per the
actual expenditure and the road freight will
be escalated as per composite road transport
index every year. One time enhancement of
33% will be granted on the road component
of primary freight to offset the impact of
Supreme Court directive regarding maximum
truck load limit of 9 MT on road vehicles.
The existing special freight subsidy scheme
will continue for supply of urea to the North
Eastern States except Assam and Jammu &
Kashmir. In addition, the Department will
operate a buffer stock through the state
institutional agencies/fertilizer companies in
major urea consuming States up to a limit of
5% of the seasonal requirement.
6.4.10 The Stage-III of NPS seeks to carry on the
existing 6 group classification of urea
manufacturing units in the country with
updation of all costs upto 31st March, 2003.
The respective pre-set energy consumption
norm of each urea units during Stage-II of
NPS or the actual energy consumption
achieved during the year 2003, whichever is
lower, will be recognized as the norm for
Stage-III of NPS. The policy also provides
for updation of costs on account of cost of
bags through 3 year moving weighted
average cost of bags to compensate for the
rise in prices for the last three years. It also
provides for payment of sales tax on input
and other taxes recognized under erstwhile
Retention Price Scheme, on actual basis.
6.4.11 NPS Stage-III seeks to take forward the
principles of uniformity and efficiency in urea
production as enunciated during Stage I and
II of NPS and also aims at bringing in more
transparency in distribution of fertilizers
across the country. It is expected that the
30
policy will encourage increase in indigenous
production from the existing urea units in the
country and facilitate early conversion of non-
gas based units to gas leading to substantial
savings in subsidy. It is also expected that
with the launch of Fertilizer Monitoring
System (FMS) to monitor movement of
fertilizers upto district level and the freight
rationalization proposed in the new policy,
the distribution of fertilizers in remote corners
of the country will improve considerably
without any complaints of shortages in future.
The Department of Fertilizers will continue
its endeavour to promote the growth of
fertilizer industry in the country and ensure
adequate availability of fertilizers to the
farmers.
6.5 Pricing policy for investment in Fertilizer
sector.
Urea
6.5.1 A pricing policy was announced on 29.1.2004
for setting up new urea projects and
expansion of existing urea projects for
augmenting the domestic production capacity
of urea to meet the growing demand for
enhancing the agricultural production in the
country. The new policy aimed at enabling
the entrepreneurs to decide about their
investment plans in the fertilizer sector. The
new policy was expected to encourage
setting up of plants with international
efficiency standards for fresh investment in
new projects and expansion of existing units.
The policy was based on the principle of
Long Run Average Cost (LRAC).
6.5.2 The above policy was not successful in
attracting investment in this sector. The non-
availability of natural gas, which is the critical
feedstock for production of urea, has also
been one of the major constraints in further
addition of indigenous capacity for production
of urea. However with the projected improved
availability of gas from 2009 onwards, it is
expected that investment in fertilizer sector
will also take place. The Government has
recently announced on 4th September 2008,
 a new investment policy for urea sector to
attract the much required investment in this
sector. The policy is based on IPP benchmark
and has been finalized in consultation with
the industry.
6.5.3 The policy is expected to lead to savings to
the Government in the form of availability of
Urea at a price below IPP and will also lead
to indirect savings by bringing down the
import price due to reduction in imports. The
New Investment Policy aims at revamp,
expansion, revival of existing urea units and
setting up of Greenfield/ Brownfield projects.
The policy is likely to substantially bridge the
gap in next five years between the
consumption and domestic production
subject to confirmed and adequate availability
of gas at reasonable prices. The salient
features of the new investment policy are as
under :-
1. The policy is based on Import Parity
Price (IPP) benchmarked with suitable
floor and ceiling prices of USD 250/MT
and USD 425/MT respectively.
2. Revamp project: Any improvement in
capacity of existing plants through
investment 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
recognized at 85% of IPP with the floor
and ceiling price as indicated above.
3. Expansion projects: Setting up of a new
ammonia-urea plant (a separate new
ammonia-urea train) in the premises of
the existing fertilizer plants, utilizing
some of the common utilities will qualify
for being treated as expansion project.
The investment should exceed a
minimum limit of Rs.3000 crore. The
urea from the expansion of existing units
will be recognized at 90% of IPP, with
the floor and ceiling price as indicated
above.
4. Revival/Brownfield projects: T h e
urea from the revived units of Hindustan
Fertilizer Corporation Limited(HFCL)
and Fertilizer Corporation of India
Limited (FCIL) will be recognized at 95%
of IPP with prescribed floor & ceiling
price, if the revival of closed units takes
placed in public sector.
5. Greenfield projects: The pricing of
Greenfield projects will be decided
based on a bidding process which will
be for a discount over IPP, after firming
up of the location (States) of the
proposed new plants.
6. Gas transportation charges: An
additional gas transportation cost will be
paid to units undertaking expansion and
revival on the basis of actuals (upto 5.2
Gcal per MT of urea) as decided by the
Regulator(Gas) subject to a maximum
ceiling of USD 25 per MT of urea.
7. Allocation of Gas: Only non-APM gas
will be considered for the new
investment in urea sector.
8. Coal gasification based Urea Projects:
The Coal gasification based urea
projects will also be treated on par with
a revival or a Greenfield project as the
case may be. In addition, any other
incentives or tax benefits as provided
by Government for encouraging coal
gasification technology will also be
extended to these projects.
9. Joint Ventures abroad: The Joint
Venture projects abroad in gas rich
countries are also proposed to be
encouraged through firm offtake
contracts with pricing decided on the
basis of prevailing market conditions
and in mutual consultation with the joint
venture company. However, the principle
for deciding upon the maximum price
will be the price achieved under
Greenfield projects or 95% of IPP as
proposed for revival projects (in absence
31
 of any Greenfield projects) with a cap
of USD 405 CIF India per MT and a
floor of USD 225 CIF India per MT
(inclusive of handling and bagging costs)
10. Time period for proposed investment
policy: Only those revamp projects
which start production of additional
capacities within four years of
notification of the new policy would
qualify for the dispensation
recommended above. Similarly
production from expansion and revival
(brownfield) units that come about within
five years of notification of the new
policy would qualify for dispensation
provided in the policy. If the production
does not come through within the
stipulated time period, such brownfield
projects will be treated similar to a
Greenfield projects wherein price will be
decided through limited bidding options.
The time period for setting up of new
Joint Ventures would also be five years
under the new investment policy.
6.6. Nutrient based pricing regime for all
subsidized fertilizers.
6.6.1 The Government intends to move towards a
nutrient based subsidy regime in order to
ensure balanced application of fertilizers and
increase in agriculture productivity. The
Nutrient Based Subsidy regime is under
consideration of Group of Ministers
constituted to examine the nutrient based
subsidy policy and measures for
rationalization of fertilizer subsidy
disbursement.
Keeping in view the interests of the farmers
and to promote balanced use of fertilizers,
the Department of Fertilizers has notified on
17 th June 2008 a nutrient based pricing
regime for all subsidized fertilizers. It has
been further decided to fix the farmgate price
of nutrients at the level of their existing price
in straight fertilizers viz. Urea, DAP, MOP
and SSP. This will lead to significant reduction
in existing Maximum Retail Prices (MRPs)
32
of complex fertilizers. Under this regime, the
farm gate price of each nutrient will be
uniform across all subsidized fertilizers. The
selling price of subsidized fertilizers will be
determined on the basis of the nutrients
contained therein
6.6.2 Under existing pricing regime, the price of
nutrients in complex fertilizers were higher
than the price of same nutrients in other
straight fertilizers like Urea, DAP, MOP and
SSP. This led to comparatively higher usage
of straight fertilizers vis-à-vis complex
fertilizers, which are agronomically better
fertilizer products. The nutrient based pricing
will lead to parity in price of complex fertilizers
with other straight fertilizers and, thus, is
expected to promote balanced fertilization by
encouraging usage of complex fertilizers.
Policy for encouraging production and
availability of fortified and coated
fertilizers in the country.
Department of Fertilizers has notified on 2nd
June 2008 a policy for encouraging
production and availability of fortified and
coated fertilizers in the country. In terms of
this policy, the indigenous manufacturers/
producers of the subsidized fertilizers are
allowed to produce fortified/coated subsidized
fertilizers up to a maximum of 20% of their
total production of respective subsidized
fertilizers. The manufacturers/producers are
allowed to sell all the FCO approved fortified/
coated subsidized fertilizers, except for
Zincated Urea and Boronated SSP at a price
up to 5% above the MRP of the subsidized
fertilizer as indicated in the table above. For
Zincated Urea and Boronated SSP, the
manufacturers are allowed to charge up to
10% above MRP of Urea and SSP
respectively.
6.7 Policy for uniform freight subsidy on all
fertilizers under the fertilizer subsidy
regime.
6.7.1 To ensure easy availability of fertilizers in all
parts of the country, the Department of
 Fertilizers has notified on 17th July 2008 a
uniform freight subsidy regime for all
subsidized fertilizers, wherein freight subsidy
will be paid separately on receipt of all
subsidized fertilizers in the districts/blocks.
The freight subsidy will constitute of two
components, namely, rail freight and road
freight. The rail freight will be paid on actual,
and the road freight will be paid on a
normative average district lead (average of
the actual leads of block headquarters from
the nearest rail rake point) and a normative
per KM rate.
6.7.2 The uniform freight subsidy regime will
facilitate availability of fertilizers in all parts
of the country, especially in areas which are
far from the production facilities and ports by
reimbursing freight on actual.
6.8 Policy for Conversion of existing non-gas
based Urea units to Natural gas/LNG for
feedstock/fuel
6.8.1 At present there are 8 units in this country
which is based on Naphtha (4) and FOLHS
(4) as feedstock/fuel. Under New Pricing
Policy Stage-III, specific time schedule of
three years has been laid down for
conversion of the non gas based units to
gas.
6.8.2 The policy for New Pricing Scheme (Stage –
III) notified on 8th March 2007 committed
Capital Subsidy for FO/LSHS based units
through a separate Scheme to be notified in
consultation with Department of Expenditure
(DOE) and completion of conversion within
three years. The issue of notification of a
scheme for Capital Assistance towards FO/
LSHS conversion was considered by the
Department in consultation with DOE and it
was decided to finalise a scheme based on
the deferred payment of project cost linked
to production of urea post conversion.
Accordingly, a separate scheme for
conversion of FO/LSHS units to gas was
finalized and notified on 6th March 2009. The
policy for conversion subsidy towards
conversion of FO/LSHS projects provides for
reimbursement of project cost as approved
by Public Investment Board (PIB) through a
special fixed cost component and retention
of energy savings for five years after
conversion to Natural Gas.
6.8.3 The 4 FO/LHS based units have already
started work on conversion of units to gas.
The proposals for conversion of FO/LSHS
plants of NFL and GNVFC were submitted
to PIB for their consideration. PIB agreed to
the above proposals for conversion in the
meetings held on 5th and 13th November,
2009. Proposal of NFL has been submitted
to CCEA for clearing the investment for the
projects while GNVFC is initiating actions for
their conversion project.
6.8.4 Assured availability of gas is main constraint
for expediting conversion process. The units
are in regular touch with gas suppliers for
confirm commitment towards supply of gas,
after which conversion process will be
expedited.
6.9 Concession Scheme for decontrolled P&K
Fertilizers
Background
6.9.1. Government of India decontrolled Phosphatic
and Potassic (P&K) fertilizers with effect from
25th August 1992 on the recommendations
of Joint Parliamentary Committee.
Afterwards, the prices of these fertilizers
registered a sharp increase compared to
Urea. This exercised an adverse impact on
the demand and consumption of the P&K
fertilizers. It, in turn, led to fear of imbalance
in the usage of Nitrogen (N), Phosphate (P)
and Potash (K) nutrients in the soil and
adverse effect on agricultural productivity. In
order to cushion the impact of increase in
prices of the decontrolled P & K fertilizers
and promote balanced usage of NPK
nutrients, Department of Agriculture & Co-
operation (DAC) introduced a scheme of
concession on decontrolled P & K fertilizers
in 1992-93 on adhoc basis. The Concession
Scheme initially covered Di-ammonium
33
 Phosphate (DAP), Muriate of Potash (MOP)
and 11 grades of NPK complex fertilizers.
Then, it was extended to SSP in 1993-94.
Scheme of concession for P&K fertilizers has
been allowed to continue till date with further
amendments therein from time to time.
Department of Agriculture & Cooperation
administered the Concession Scheme from
1992 to September 2000. Subsequently, the
scheme was transferred to Department of
Fertilizers w.e.f. 1.10.2000. The basic
purpose of this Scheme has been to provide
fertilizers to the farmers at the subsidized
rates and also to ensure reasonable rate of
return on the investments made by the
entrepreneurs in the Fertilizer Sector. During
1992-93 and 1993-94, the State
Governments released payment of
concession to the manufacturers/importers
of P&K fertilizers based on the grants
provided by Department of Agriculture &
Cooperation. Department of Agriculture &
Cooperation started releasing payment of
concession to the manufacturers/importers
from 1994-95 based on the certification of
sales carried out by the State Governments.
The manufacturers/importers were given
payment of concession on 100% basis based
on certification of sales up to 1996-97.
6.9.2. Major Changes in Concession Scheme
during 1997-98
During 1997-98, some major changes took
place in the Concession Scheme.
Accordingly, the Department of Agriculture &
Cooperation, started indicating an all India
uniform Maximum Retail Price (MRP) for
DAP/NPK/MOP. The responsibility of
indicating MRP in respect of SSP rested with
the State Governments. During 1997-98 itself,
the Department of Agriculture & Cooperation
also introduced the system of releasing 80%
‘On Account’ payment of concession to the
manufacturers/importers on the sale of
decontrolled P & K fertilizers w.e.f. 1.4.1997.
The balance 20% payment of concession
was released to the manufacturers/importers
after the certification of sales by the State
34
Governments. The Special Freight Subsidy
Reimbursement Scheme was also introduced
in 1997 for supply of fertilizers in the difficult
areas of J&K and North-eastern States. The
Scheme was further extended to certain
areas of Himachal Pradesh subsequently.
Freight for movement of Fertilizers in other
areas was included in the concession
amount.
6.9.3. Cost Price Study of DAP and MOP
Based on the cost price study of DAP and
MOP conducted by Bureau of Industrial Costs
& Prices (BICP - now called Tariff
Commission), Department of Agriculture &
Cooperation started announcing rates of
concession based on the cost plus approach
on quarterly basis w.e.f. 1.4.1999. The total
delivered cost of fertilizers being higher than
the MRP indicated by the Government, the
difference in the delivered price of fertilizers
at the farm gate and the MRP is
compensated by the Government as subsidy
to the manufacturers/importers for selling the
fertilizers at the MRP indicated by the
Government. The Government introduced a
new methodology for working out subsidy to
complex fertilizers w.e.f. 1.4.2002 based on
the recommendations of the Tariff
Commission. Accordingly, the complex
manufacturers were divided into two groups
based on feedstock for sourcing Nitrogen. In
the meantime, the administration of the
Concession Scheme was transferred from
Department of Agriculture & Cooperation to
Department of Fertilizers w.e.f. October 2000.
With the passage of time, the structure of
DAP industry changed as some of the new
DAP manufacturing plants like M/s. Oswal
Chemicals & Fertilizers Ltd. and M/s Indo
Gulf Fertilizers Corporation Ltd. were
established using the Rock Phosphate for
manufacturing indigenous Phosphoric acid/
DAP. Accordingly, the Tariff Commission
made a fresh Cost Price Study and submitted
its report in February 2003. Payment of
concession to the DAP manufacturing units
from 2003-04 to 2007-08 was made as per
 two groups depending upon the source of
the raw materials (Rock Phosphate/
Phosphoric acid).
6.9.4. Expert Group
6.9.5. MRP of decontrolled P&K Fertilizers
CCEA while approving price of Phosphoric
acid for the year 2004-05, directed
Department of Fertilizers to evolve a
methodology for working out concession of
P&K fertilizers based on the international
price of DAP to be adopted as a bench mark.
The Department of Fertilizers accordingly
framed a proposal suggesting methodology
to link phosphoric acid price with international
DAP price. Subsequently, the matter was
referred to the Expert Group. The Expert
Group submitted its report in October 2005.
The recommendations of the Expert Group
were considered by the IMG.
The MRP of the DAP/NPK/MOP has been
constant from February 2003 to 17.6.2008.
Then Department of Fertilizers introduced
nutrient based subsidy in June 2008 and
accordingly, revised the MRP of NPK
Complex Fertilizers downwards w.e.f.
18.6.2008. However, the MRP of the other
fertilizers remained the same. The MRP of
fertilizers is as below as on date

MAXIMUM RETAIL PRICE OF FERTILIZERS

(Rupees per MT)

Product From 12.3.2003 to From 18.06.08

17.6.2008
Urea 4830 4830
Di Ammonium Phosphate (DAP) 9350 9350
Muriate of Potash (MOP) 4455 4455
Mono-Ammonium Phosphate (MAP) (w.e.f. 1.4.2007) 9350 9350
Triple Super Phosphate (TSP) (w.e.f. 1.4.2008) 7460 7460
Single Super Phosphate (SSP) 3400 3400
(w.e.f. 1.5.2008 to 30.6.2009) all India MRP
Ammonium Sulphate (AS) (w.e.f. 1.7.2008) 10350
Grades of Complex Fertilizers - N:P:K:S
16:20:00:13 (earlier 16:20:00) 7100 5875
20:20:00:00 7280 5343
20:20:00:13 7280 6295
23:23:00:00 8000 6145
28:28:00:00 9080 7481
10:26:26:00 8360 7197
12:32:16:00 8480 7637
14:28:14:00 8300 7050
14:35:14:00 8660 8185
15:15:15:00 6980 5121
17:17:17:00 8100 5804
19:19:19:00 8300 6487

35
6.9.6 Recent Changes in the Concession
Scheme
Policy For Uniform Freight Subsidy :
Department of Fertilizers also announced a
policy for uniform freight subsidy on
17.7.2008 on all fertilizers under the fertilizer
subsidy regime w.e.f. 1.4.2008 (except SSP).
Accordingly, the payment of freight subsidy
is made to the manufacturers/importers
based on the actual lead based on the actual
expenditure on the basis of actual lead for
supplying the fertilizers in the states/districts.
As per this policy, the special freight
reimbursement scheme for J & K and North
Eastern States has been withdrawn
retrospectively w.e.f. 1.4.2008. Department
of Fertilizers has assigned Tariff Commission
to undertake study for finalizing the freight
per kilometer per tonne for road
transportation of fertilizers.
6.9.7 Concession Scheme for Decontrolled P
& K Fertilizers
Tariff Commission conducted fresh cost price
study of DAP/MOP and NPK complexes and
submitted its report in December 2007.
Based on the examination of the Tariff
Commission Report and the long-term
approach suggested by the Expert Group
under the Chairmanship of Prof. Abhijit Sen,
the Concession Scheme was examined. The
Government approved the Concession
Scheme with effect from 1.4.2008 for DAP/
MOP/NPK Complexes/MAP. MRP of the
decontrolled P & K fertilizers is as mentioned
above. The final rates of concession is
worked out on monthly basis. Concession
for indigenous DAP is the same as that of
imported DAP (on the basis of import parity
price). Concession on complex fertilizers is
based on the methodology recommended by
Tariff Commission with certain modifications.
The NPK complex industry has been divided
into 4 groups depending upon the source of
Nitrogen. A separate cost of ‘S’ for Sulphur
containing complex fertilizers has also been
recognized w.e.f. 1.4.2008. Triple Super
36
Phosphate (TSP) has been included in the
Concession Scheme from 1.4.2008 and
Ammonium Sulphate has been included in
the Concession Scheme w.e.f. 1.7.2008 for
GSFC, Baroda and FACT, Udyogmandal.
Accordingly, as on date, the P & K fertilizers
covered under the Concession Scheme are
DAP/MOP/NPK Complexes/MAP (introduced
w.e.f. 1.4.2007)/Ammonium Sulphate, TSP
(with effect from 1.4.2008) and SSP. The
input/fertilizer prices for Concession Scheme
are derived on the basis of an outlier
methodology. The Buffer Stocking Scheme
has also been allowed to continue with 3.5
Lakh MTs for DAP and 1 Lakh MTs for MOP
as buffer. Modifications in certain elements
of the Concession Scheme were also carried
out with effect from 1.4.2009 to adjust
parameters of concession scheme to
International pricing dynamics and rationalize
‘N’ grouping as well as payment system.
Accordingly, the following changes have been
effected in the existing policy for P &K
Fertilizers.
(i) Final rates of concession is worked out
on monthly basis taking into account
the average international price of the
month preceding the last month or the
actual weighted average C&F landed
price at the Indian ports for the current
month, whichever is lower w.e.f. 1st April,
2009 with respect to DAP and MOP
w.e.f. 1st April, 2009. In case of raw
materials/inputs for complex fertilizers,
there is a lag of one month.
(ii) From 1.12.2008, payment of concession
is made to the manufacturers/importers
of the Decontrolled fertilizers (except
SSP) on the basis of arrival/receipt of
fertilizers and certificate of receipt by
the State Government/statutory auditor
of the company subject to final
settlement on the basis of sale of the
quantity.
(iii) Instead of product-wise, group-wise ‘N’
has been adopted w.e.f. 1st April, 2009
for computation of concession for
complex fertilizers w.e.f. 1st April, 2009.
6.9.8 Cost Price study of Ammonium Sulphate The manufacturers of SSP are allowed to
claim 85% (90% with Bank Guarantee) ‘On
Department of Fertilizers have assigned the Account’ payment of concession. The
Tariff Commission to conduct cost price study balance payment of concession is settled
of Ammonium Sulphate (AS) by GSFC/FACT based on the certificates of sales issued
included under the Concession Scheme. by the State Governments in prescribed
6.9.9 Concession Scheme for single super Proforma ‘B’.
phosphate (SSP) 6.9.10 Revised policy for ad-hoc concession
At present 77 SSP manufacturing units all for single super phosphate(SSP) with
over India are covered under the Concession effect from 1.10.2009.
Scheme. Department of Fertilizers revised Government have decided to implement a
the Concession Scheme on SSP on revised policy for ad-hoc subsidy for SSP
25.8.2008 w.e.f. 1.5.2008, which remained w.e.f. 1st October, 2009, which includes
in operation from 1.5.2008 to 30.9.2009. open selling price of SSP w.e.f. 1.10.2009
Accordingly, the manufacturers were required in place of all India MRP of Rs. 3400/-
to sell SSP at all India uniform MRP of Rs. PMT prevailed earlier. Government
3400/- per MT. Separate rate of concession provides an ad-hoc concession of Rs.
for SSP were announced month-wise based 2000/- PMT for Powdered, Granulated and
on the indigenous and imported Rock Boronated SSP. The manufactures/
Phosphate depending upon the rise/fall of marketers of SSP are eligible to claim 85%
the cost of raw materials (Rock Phosphate ‘On Account’ payment of concession
and Sulphur) as well as exchange rate. The month-wise w.e.f. 1.10.2009 in the
month-wise rates of concession announced prescribed Proforma ‘A’ & ‘C’ duly certified
during May 2008 to July 2009 for SSP have by the Statutory Auditor of the Company.
been as follows: While claiming ‘On Account’ payment of
Month/year Rates of Rates of
concession, the manufacturers are required
Concession Concession to produce a certificate issued by the State
based on based on Government of the State in which the unit
Imported Rock Indigenous
Phosphate Rock Phosphate
is located about the certification of the
(Rs. PMT) (Rs. PMT) quality. The manufacturers are required to
May, 2008 6406 4587 put stamp/print “Quality Certified” on each
June, 2008 8942 5383
bag of SSP released in the market. The
manufacturers must have the well
July, 2008 9160 5674
equipped laboratory to test the samples of
August, 2008 10391 6776
the SSP. The balance payment of
September, 2008 11661 6990 concession shall be released by the
October, 2008 13003 5823 Department of Fertilizers based on the sale
November,2008 7914 3070 certificates issued by the State
December, 2008 8965 2012 Governments in prescribed Proforma ‘B’.
January, 2009 8075 1967
Ad-hoc concession for SSP w.e.f. 1 st
October, 2009 will be provided to those
February, 2009 7503 1961
eligible SSP units only, which have either
March, 2009 5870 1944 annual capacity utilization of at least 50%
April, 2009 2927 1873 or annual production of 40,000 MT of SSP.
May, 2009 2709 2006 For the purpose of recognizing capacity
June, 2009 2453 1982 utilization/production, capacity as on 31st
July, 2009 2510 1986
March, 2009 will be taken into account.

37
6.9.11 Rationalizing and Streamlining of
Concession Scheme
To ensure standard and quality of SSP, a
Technical Audit & Inspection Cell (TAC), by
Projects & Development India Ltd., (PDIL),
was constituted. Accordingly, the TAC is
assigned the task of examining various
grades of Rock Phosphate (both indigenous
and imported) and recommending the grades
of Rock Phosphate with source of origin,
along with technical parameters, such as
consumption norms of each grade for
manufacture of SSP as per FCO
specifications. The TAC is also mandated to
conduct six monthly techno-commercial
audits of SSP plants and to confirm to
whether the SSP units are using the
specified/notified grades of Rock Phosphate.
The objective behind the constitution of TAC
is to put a curb on the sale of non-standard
SSP to the farmers and to cross check the
concession claimed by the industry.
6.9.12 In order to be eligible for concession under
the Concession Scheme, the manufacturers
of SSP are required to use only those grades
of Rock Phosphate as raw material for SSP,
which are notified by Department of
Fertilizers from time to time. The grades/
sources of Rock Phosphate notified by the
Department are as below:

Notification No.M-19011/33/2001-MPR dated 19th September, 2001

S.No. Primary Grade of rock phosphate Specification of blending rock Source of origin

A Mined rock chips with 31.5% and – Rajasthan State

above P2O5 content by wt. Mines & Minerals
On an average Limited (RSMML)

B Jordan Rock with 30.0% and above – Rock imported

P2O5 content by wt. On an average from Jordan.

C Beneficiated rock phosphate – RSMML

(BRP with 33.55% and above P2O5
content by wt. On an average.

D Syrian rock with 29.36% and above – Rock imported

P2O5 content by wt. On an average. from Syria

E Beneficiated rock phosphate Jhabua A or B grade rock with BRP from

(BRP with 33.55% and above P2O5 23% P2O5 content by wt. To get RSMML and
content by wt. On an average. a mixture having 31.6% and blending rock
above P2O5 content by wt. from Madhya
On an average. Pradesh State
Mining Corpn.Ltd.
(MPSMC)

F Jordan rock with 31.6% and Jhabua rock with 25% P2O5 Rock imported
above P2O5 content by wt. content by wt to get a mixture from Jordan and
On an average. having 30% and above P2O5 blending rock
content by wt. On an average. from MPSMC.

38
Notification No.M-19011/33/2001-MPR dated 8th October, 2001
G Egyptian rock with 32% and above
P2O5 content by wt. On an average.
H Beneficiated rock phosphate (BRP)
with 33.55% and above P2O5
content by wt. On an average.
Notification No. M-19011/33/2001-MPR dated 31st January, 2002
I Beneficiated rock phosphate (BRP)
with 33.55% and above P2O5 content
by wt. on an average.
J Jordan rock with 32% and above
P2O5 content by wt. On an average.
Notification No. 19011/33/2001-MPR dated 13th May, 2002
K Israeli Rock phosphate with 32%
P2O5 content and above by wt.
On an average.
– Rock imported
from Egypt.
Lower grade rocks with 25% BRP from
P2O5 content by wt. From mines RSMML.
of Madhya Pradesh State Mining Blending rock
Coproration Ltd., RSMML, from MPSMC,
Rajasthan State Mineral RSMDC, RSMML
Development Corpn. (RSMDC) or and Hindustan
27-31% P2O5 content by wt. Zinc. Ltd. (HZL).
of Matton mines to get a mixture
having 31.4% and above P2O5
content by wt. On an average.
(i) Lower grade rocks with +22% BRP from
but less than 25% P2O5 content RSMML.
by wt. Of RSMDC to get a Blending rock
mixture having 31.7% and above from RSMDC
P2O5 content by wt. On an and RSMML.
average.
(ii) Rocks with 25% and above to
27% P2O5 content by wt. from
mines of RSMDC to get a mixture
having 31.4% and above P2O5
content by wt on an average.
(iii) Rocks with +30% P2O5
content by wt. From mines of
RSMDC to get a mixture having
31.5% P2O5 content by wt. on
an average.
(iv) Rock with 23% P2O5 content
by wt. From mines of RSMML to
get a mixture having 31.4% P2O5
content by wt. On an average.
Lower grade rock with 25% P2O5 Rock imported
content by wt. From mines of from Egypt and
RSMML to get a mixture having blending rock
30.66% P2O5 content by wt. from RSMML.
On an average.
Not applicable Rock phosphate
imported from
Israel.
39
 Notification No. M-19011/33/2001-MPR (Vol.II) dated 23rd April 2003
L Beneficiated rock phosphate with Lower grade rock with P2O5 BRP from
33.5% P2O5 content by wt content 29% by wt and above RSMML.
on an average. with 2.78% average iron oxide Blending rock
content of MPSMC to get a from Hirapur
mixture of 31.4% on an average. Mines of
MPSMC.
M Notification NO.19011/33/2001-MPR dated 14.12.2005
Beneficiated Rock Phosphate with 30.2% P2O5 produced by M/s. Krishana Phoschem Ltd.,
115-118, AKVN Industrial Area, P.O. Meghnagar, Jhabua, Madhya Pradesh
19011/33/2001-MPR dated 19.9.2006 (Notified on 19.9.2006)
N Beneficiated rock phosphate (BRP – RSMML
with 33.55% and above P2O5
content by wt. On an average.
O 19011/33/2001-MPR (Vol-II) dt. 8.5.2007
Primary grade of Rock Phosphate of Vietnam with 34% P205 content
by weight on an average.
P 19011/33/2001-MPR (Vol-II) dt. 30.10.2007
Primary grade of Rock Phosphate of Algeria with 31.2% P205 content
by weight on an average.
Q 19011/33/2001-MPR (Vol-II) dt. 19.11.2007
Primary grade of Rock Phosphate of Egypt with 31.02% P205 content
by weight on an average.
R Notification No. 19011/33/2001-MPR (Vol.II) dt. 15.6.2009
Beneficiated Rock Phosphate with 31% P2O5 produced by
M/s. BEC fertilizers Ltd., Bilaspur Chhattisgarh

6.9.13 In the wake of shortage of Rock Phosphate
of the specified/notified grades, Department
of Fertilizers modified the existing guidelines
pertaining to the use of Rock Phosphate and
issued fresh guidelines on 10 August 2005,
whereby the scope of grades/sources of
Rock Phosphate were expanded. As per the
modified guidelines, the manufacturers of
SSP can procure the Rock Phosphate from
the sources other than the notified ones.
Keeping in view the worldwide scarcity of
Rock Phosphate and its rising prices in the
international market, Department of Fertilizers
is taking steps to explore the Rock Phosphate
indigenously. For this purpose, the Geological
Survey of India, Indian Bureau of Mines,
M/s. Rajasthan State Mines & Minerals Ltd.,
M/s. Madhya Pradesh State Mining Corpn.
Ltd. have been involved in the process.
Department has also allowed to produce
Beneficiated Rock Phosphate in the private
sector by M/s. Krishna Phoschem Ltd.,
Meghnagar, Madhya Pradesh. A few more
such units propose to install Beneficiated
Rock Plant (BRP) units in the country. The
State Governments endowed with the natural
resources of Rock Phosphate e.g. Madhya
Pradesh and Rajasthan have been requested
to consider the possibility of de-reserving
mines (so far reserved only for State mining
entities) for collaboration with mining entities
of other States and also private for financial

40
 and technical support. Department of Department of Fertilizers aims at providing
Fertilizers also proposes to explore the the Phosphatic & Potassic fertilizers to the
possibility of mining Potash from the farmers at the subsidized rates. Presently,
indigenous sources. Steps are being taken Di Ammonium Phosphate (DAP), Muriate of
in this regard. Potash (MOP), 12 grades of NPK complex
fertilizers, Mono Ammonium Phosphate
6.10 Subsidy Amount (MAP), Triple Super Phosphate (TSP),
The following amounts of subsidy have been Ammonium Sulphate (AS) and SSP are
released on P&K Fertilizers including SSP. covered under the Concession Scheme. The
objective of the Concession Scheme is to
Years Subsidy release on make the above mentioned decontrolled
P & K Fertilizers Phosphatic & Potassic fertilizers available to
(Rs. In Crore) the farmers at the affordable prices and also
2002-03 3225 to ensure reasonable rate of return on the
investments made by the entrepreneurs in
2003-04 3326 the Phosphatic & Potassic fertilizers sector.
2004-05 5142 The total delivered cost of fertilizers under
2005-06 6550 the Concession Scheme at the farm gate is
higher than the MRP payable by the farmers.
2006-07 10598 The difference between the total delivered
2007-08 17134 cost of the fertilizers at the farm gate and
2008-09 65555 the MRP payable by the farmer is given by
the Government of India, Department of
Fertilizers as concession/subsidy to the
6.11 Fulfillment of Social Responsibility by farmers and reimbursed to the fertilizer
virtue of Concession Scheme. manufacturers/importers.
The Concession Scheme for decontrolled P
& K fertilizers being administered by



41
Chapter-7
7.1 Public Sector Undertaking and Co-
operative Societies
There are nine public enterprises and one
multi-state co-operative society namely
Krishak Bharati Cooperative Limited
(KRIBHCO) under the administrative control
of the Department. A statement indicating
profitability of these organizations has been
given at Annexure–X.
7.2. The Fertilizer Corporation of India Limited
(FCIL)
7.2.1 Introduction
Incorporated on 1st January, 1961, FCI was
re-organized along with National Fertilizers
Ltd. (NFL) with effect from 1.4.1978 into five
companies namely, FCI, NFL, Hindustan
Fertilizer Corporation Ltd.(HFC), Rashtriya
Chemicals & Fertilizers Ltd. (RCF) and
Projects & Development India Ltd. (PDIL).
Following re-organisation, FCI comprised four
units located at Sindri (Jharkhand),
Gorakhpur (Uttar Pradesh), Ramagundam
(Andhra Pradesh) and Talcher (Orissa), with
a total annual capacity of 5.87 lakh MT of
nitrogen besides an abandoned project at
Korba (Chhattisgarh). As on 31.3.2009, FCI
had an authorized share capital of Rs.800
crore and paid up share capital of Rs.750.92
crore. The accumulated losses as on
31.3.2009 were Rs.9878.36 crore.
7.2.2 Reference to BIFR
The Corporation was declared sick in
November, 1992 by the Board for Industrial
and Financial Reconstruction (BIFR), and on
2.11.2001, the BIFR ordered winding up the
FCI in terms of Section 20(1) of the Sick
Industrial Companies (Special Provisions)
Act, 1985. The Appellate Authority for
Industrial and Financial Reconstruction
42
(AAIFR) on 9.4.2002 upheld BIFR’s order
dated 2.11.2001.
However, on appeals filed by the Government
and the Company against the orders of
AAIFR and BIFR for winding up of FCI, the
High Court of Delhi on 26.11.2002 directed
the BIFR to reconsider their order dated
2.11.2001 to the extent of hiving off the
Jodhpur Mining Organisation for forming a
new company and revival of other units if
any proposals are received within a
reasonable time. BIFR in their meeting held
on 2.4.2004 sanctioned the scheme of
arrangement of de-merger between FCI and
FAGMIL with effect from 1.4.2003 and
confirmed their prima facie opinion regarding
winding up of the company. BIFR vide their
orders dated 17.5.2004 conveyed their
opinion to High Court of Delhi. This reference
was registered as Company Petition (C.P.)
No.183/2004 in the High Court. Pursuant to
the prayer of the Department of Fertilizers,
the High Court has, inter-alia, granted further
time to the company and the Department for
submission of a viable proposal for revival
of the FCIL. The matter is pending before
the High Court. The matter last came up for
hearing in the Delhi High court on 21.12.2009
and on the request of FCIL for referring the
matter back to BIFR, the Hon’ble Court
desired the opinion of the official liquidator
of Delhi High Court. The matter is fixed for
hearing on 15.2.2010.
7.2.3 Closure of the Company
In view of the continuing losses of the
Company, stemming from technical and
financial non-viability of operations, the
Government decided to close down FCI in
September 2002. Consequently, a Voluntary
Separation Scheme (VSS) was offered to all
 its 5712 employees. All the employees, who
opted for VSS have since been released,
except 46 employees who are engaged in
discharging statutory obligations including
safety and security of properties/assets of
the various units of the Company.
7.2.4 Production / Sales Performance
In view of the closure of the Company, the
operations have remained suspended as per
details given below:
Name of Unit Year of stoppage
Gorakhpur 1990
Ramagundam 1999
Talcher 1999
Sindri 2002
Korba (*) : The project was
never commissioned.
7.2.5 Financial Results
During the year 2008-09, the Company
earned a net profit of Rs. 5800.22 crore, as
against a loss of Rs. 1504.83 crore during
2007-08. The profit has been arrived at after
withdrawal of normal and penal interest on
GOI loan amounting to Rs. 6541.56 crore,
as confirmed by Pay and Accounts Office
after reconciliation. During the year 2009-10
(Up to December 2009), the Company has
incurred a loss of Rs.524.21 crore (Prov.)
7.3. Hindustan Fertilizer Corporation Limited
(HFCL)
7.3.1 Introduction
The Hindustan Fertilizer Corporation Limited
(HFC) was incorporated on 14th March, 1978
as a result of the reorganization of the
erstwhile Fertilizer Corporation of India
Limited (FCIL), and NFL Group of
Companies. The HFCL comprised Barauni
unit (Bihar), Durgapur unit and Haldia Project
(West Bengal) and Namrup Unit (Assam).
The Namrup Unit was hived off with effect
from 1.4.2002 to form a separate entity with
the name of Brahmaputra Valley Fertilizer
Corporation Ltd.(BVFCL). As on 31st March
2009, HFC had an authorized capital of Rs.
1200 crore and a paid up capital of Rs.
686.54 crores.
7.3.2 Closure of the Company/ Reference to
BIFR
The Company was declared sick by B.I.F.R.
in November 1992. During the course of
proceedings before BIFR, the AAIFR through
its order dated 26.4.2002 permitted hiving
off the Namrup units of HFC into a new
company under the name of “Brahmaputra
Valley Fertilizer Corporation Limited” w.e.f.
1.4.2002 and remitted back the matter to
BIFR for reconsideration of its decision
regarding revival of Durgapur, Barauni units
and the Research Division. Thereafter,
Namrup units of the Company were de-
merged with effect from 1.4.2002 and the
residual Company comprising three units at
Barauni, Durgapur and Haldia and the
Fertilizer Promotion & Agricultural Research
Division (FP&ARD) was ordered to be closed
on account of techno-economic non-viability.
Almost all employees had opted for Voluntary
Separation Scheme (VSS) and as on
31.12.2009, only 31 employees are on the
rolls of the company to carry out post-closure
activities.
The case registered as Case No.516/1992
is pending before the BIFR. In the hearing
held on 19/10/2009, the BIFR had directed
the company/ Ministry of Chemicals and
Fertilizers, Government of India to file a
written submission giving details of
milestones to be achieved in revival of the
company specifying the time lines. The
Department of Fertilizers has conveyed the
intention of the Government for exploring
possibilities of revival of the HFCL to the
BIFR.
7.3.3 Operating Performance
The operational activities of the Company
were suspended due to the decision taken
43
 by the Government for closure. Due to
suspension of operations of Barauni unit
since January 1999 and of Durgapur unit
since July, 1997, the production performance
has been nil. The Haldia Project was never
commissioned.
During the year 2008-09, HFCL earned a
net profit of Rs. 4841.16 crore after
considering prior period adjustments and tax,
as compared to the previous year’s net loss
of Rs. 1101.98 crore. The profit is due to
write-back of Rs. 5357.15 crore towards
interest on Govt. of India loan as confirmed
by the Pay and Accounts Office DoF. The
provisional loss during current year upto
December 2009 is Rs. 288.35 crore.
7.4. Revival of Closed Units of FCIL and HFCL
The Government had taken a decision on
12th April, 2007 to examine the feasibility of
reviving the closed units of FCIL and HFCL
subject to the confirmed availability of gas.
The revival of the closed fertilizer units
through brown field projects subject to
confirmed availability of gas having been
found feasible, the Government on 30th
October 2008, considered the proposal of
the Department of Fertilizers for revival of
Barauni Unit of Hindustan Fertilizer
Corporation through a Special Purpose
Vehicle (SPV) viz. Urvarak Videsh Limited
(UVL) which is promoted by National
Fertilizers Limited (NFL), Rashtriya
Chemicals & Fertilizers Limited (RCF) and
Krishak Bharti Cooperative Limited
(KRIBHCO). The SPV would submit a fully
tied-up revival scheme for the closed fertilizer
unit at Barauni.
2. The Government also accorded
approval for constitution of an Empowered
Committee of Secretaries (ECOS) under the
Chairmanship of Secretary (Fert.) and
Secretaries of Department of Expenditure,
Department of Disinvestment, Planning
Commission, Department of Public
Enterprises and Ministry of Petroleum &
Natural Gas as members, to look into all the
44
financial models for revival of each of the
closed units. The Committee would also look
into various linkages including gas for
facilitating revival of the closed units. The
Committee will submit its recommendations
including the model for revival of each of the
closed units, to the Government.
3. Pursuant to the decision dated
30.10.2008, an Empowered Committee
Secretaries (ECOS) was constituted on
7.11.2008 under the Chairmanship of
Secretary (Fertilizers) and Secretaries of
Department of Expenditure, Department of
Disinvestment, Planning Commission, Deptt.
of Public Enterprises and Ministry of
Petroleum & Natural Gas as Members to
look into all the financial models for revival
of each of the closed units.
4. The Committee in its first meeting on
05.12.2008 had approved the terms of
reference (TOR) for consultants and that
FCIL and HFCL should finalize appointment
of consultants as per the TOR already
approved. The second meeting of the ECOS
was held on 24.08.2009 in which various
financial models for revival were considered
and it was decided to recommend the
Revenue Sharing Model, for approval of the
CCEA. M/s Deloitte India Pvt. Ltd. have been
selected as Project Advisers for
implementation of the selected options for
revival of the closed units of Sindri,
Ramagundam, Talcher and Gorakhpur in
respect of FCIL and Durgapur Unit of HFCL.
M/s PDIL has been appointed by HFCL as
Consultant for evaluation of existing assets
of the closed units and certification through
Registered Valuer. ECOS has advised to
obtain the approval of Government for the
recommended Revenue Sharing Model for
revival before implementation of the same.
5. Further, the SPV viz. UVL has initiated
necessary action for revival of the Barauni
Unit by establishing a brown field project at
Barauni. The foundation stone for the project
was laid on 12.11.2008. The Empowered
Committee of Secretaries (ECOS) has been
 Dr. Manmohan Singh, Hon’ble Prime Minister giving MoU Excellence Award to
Shri U S Jha, CMD, Rashtriya Chemicals and Fertilizers (RCF).
constituted on 7.11.2008 with the mandate
to evaluate all investment options for revival
of the closed units of HFCL and FCIL and to
make suitable recommendations for
considerations of the government. ECOS has
submitted their recommendation in this
regard, which is under consideration of the
Government.
7.5 Rashtriya Chemicals and Fertilizers
Limited (RCF)
7.5.1 Introduction
Rashtriya Chemicals and Fertilizers Limited
(RCF) was incorporated as a separate
company on 6th March 1978 as a result of
reorganization of the erstwhile Fertilizer
Corporation of India Limited. At the time of
its formation, the company had only one
operating unit at Trombay (near Mumbai) and
two major projects under implementation viz.;
Trombay IV and Trombay-V expansion. The
gas based Thal-Vaishet fertilizer complex
about 100 Kms from Trombay, was later
implemented by RCF and it commenced
commercial production on June 1, 1985. As
on 31st March 2009, the company had an
authorized share capital of Rs. 800 Crore
and a subscribed and paid up capital of Rs.
551.69 Crore.
7.5.2 Production Performance
The annual installed capacity of all the units
of RCF is about 10.54 lakh MT of nitrogen
and 1.17 lakh MT of phosphate. The
production during 2008-09 was 9.46 lakh
tonnes of nitrogen and 0.706 lakh tonnes of
phosphate. Production during the year was
affected due to feedstock natural gas short
supply and due to suspension of ANP
production which is under revamp.
Besides fertilizers, the company also
produces a number of industrial products
such as Methanol, Concentrated Nitric Acid,
Methylamines, Ammonium Bicarbonate,
Sodium Nitrate, Sodium Nitrite, Dimethyl
Formamide, Dimethyl Acetamide, Ammonium
Nitrate, Argon, etc.
During April-December 2009, cumulative
production of urea at Thal and Trombay
45
 together was 15.33 LMT as against 14.65
LMT last year. The production of complex
fertilizers during April-December, 2009 is 3.65
LMT as against 3.55 LMT last year.
7.5.3 Sales Performance
The sales turnover (including traded
products) during the year 2008-09 was
Rs.8455.32 Cr. During the period April-
December 2009 is Rs.4281.01 Cr.
The sales turnover of industrial products
division of the Company was Rs. 781.40
Crore for the year 2008-09. During the period
April-December, 2009 sales of industrial
production division was Rs. 428.10 Crore.
7.5.4 Financial Results
During the year 2008-09, the Company
reported a net profit (after tax) of Rs. 211.58
Crore. During the period April-December,
2009 , the Company has made a net profit
(before tax) of Rs. 240.65 Crore & net profit
after tax of Rs. 165.45 Crore.
7.5.5 Modernization/Expansion Schemes
For Thal Ammonia Revamp, a scheme has
been finalized with process designer M/s
Haldor Topsoe for reducing energy
consumption and capacity enhancement.
Project execution has been taken up at an
estimated cost of Rs 488.75 crore.
Scheme for Nitrous Oxide abatement in HP
and MP Nitric Acid plants under Clean
Development Mechanism (CDM) was taken
up and has been registered with UNFCCC
in November 2009. Generation of CERs has
started.
Methanol plant at Trombay, commissioned
in 1965, is being technologically upgraded
with an estimated cost of Rs. 135 Crore, to
reduce energy consumption.
Rapidwall plant for manufacturing of unique
building material has been set up at Trombay
using phospho-gypsum as a raw material
which is a by-product of Phosphoric Acid
46
plant. The project is estimated to cost Rs.
75 Crore. Trial runs have started and
Commercial production is expected in
January 2010.
Complex fertilizer ANP (20:20:0) has been
revamped from Prilling route to Granulation
route. The capacity of ANP Granulation plant
is 900 MTPD. The commissioning of the plant
is under progress.
RCF envisages expansion project at Thal
(Thal-III Expansion) by setting up 2200 MTPD
ammonia plant and 3500 MTPD Urea plant
at an estimated cost of Rs.4200 Crore.
Planning Commission’s in principle approval
has been obtained. Technology selection and
DFR preparation is being undertaken.
To manufacture indigenous DAP and reduce
dependence on import RCF is putting up a
plant in Joint Venture with RSMML to produce
850 MTPD “DAP” Plant at Rajasthan, Joint
Venture company has been formed and
investment decision will be taken by the JV.
7.5.6 Grievance Redressal
The Company has a good grievance address
and redressal system. Any citizen having
complaints in respect of the product or
services rendered may approach the
Company through complaints/suggestion
boxes placed at convenient locations in the
Area Offices/ Administrative Building at
Trombay and Thal. Any aggrieved customer/
dealer or other citizen can approach the
Company for any failure of the quality/price
charged/conduct of any officer/employee to
the addresses mentioned and will be dealt
as under:
The grievances can be addressed to a
special designated officer of the Company
not below the rank of General Manager who
acts as the Nodal Officer for redressal. The
name, address and telephone No. of the
officers is available on Intranet on Company’s
website www.rcfltd.com. It is assured that
the Nodal Officer will immediately take up
the issue with the concerned department and
 appropriate action will be taken within seven
days from the date of receipt of the complaint
or an appropriate reply is sent within seven
days as the case may warrant.
A similar grievance address and redressal
system procedure is followed by the
Company in issues related to staff also.
7.5.7 Employment of SC/ST, Ex-Servicemen,
Physically Handicapped & other Backward
Classes as on 1.11.2009
The guidelines regarding reservation in
Recruitment and Promotion for SC, ST, OBC,
Ex-Servicemen and Physically Handicapped
Persons are followed details are given
below:-
7.5.9 Corporate Social Responsibility
The company continued with its Fertilizer
Promotion Programmes to educate the
farmers in the scientific and balanced use of
fertilizers. RCF has two Farmer Training
Institutes, one at Nagpur and other at Thal
to impart training to farmers and farm
labourers in integrated development and new
farming techniques etc.
The Integrated Rural Development
Programme is implemented in various
villages of the country. Overall development
of these villages is the focal point. Some of
the programmes carried out under Integrated
Rural Development Programme (IRDP) are
as under:

Group Total Number of Employees belonging to

No. of
Employees SC ST Ex- Minority Physically OBC
servicemen Handicapped
A 1452 2202 44 3 81 7 90
B 1408 185 76 4 72 6 08
C 1215 147 127 0 86 10 140
D 145 31 12 2 15 4 48
Total 4220 583 259 9 254 27 286

7.5.8 Welfare of Minorities & Reservation in

Fertilizer Dealership
RCF as a policy includes representative of
the minorities in the recruitment selection
boards to ensure that the minorities get an
adequate share in the services and benefit
of developments. The total number of SC/
ST dealers as on date is 1601 (24.8% of
active dealers). Some of the concessions
given to these dealers are 50% concession
in dealership deposit (Rajya Sabha .5,000/-
as against Rs.10, 000/- for other categories).
Preference in supply of material for first three
years of operation. Efforts to provide training
to them so that they can acquire necessary
knowledge of business.
Meeting Basic Needs of Rural Community:
The scheme covers providing essential
amenities like drinking water supply, school
buildings, community centers, development
of irrigation systems etc.
Agricultural Development Programme:
This focuses on economic upliftment of small/
marginal farmers and landless labourers
through training and education.
Subsidiary Occupational Artisan
Development Programme: This provides a
platform for training and making available
financial facilities to rural artisan and
entrepreneurs which enable them to revive
and develop their skill for commercial use.

47
 Social Forestry and Waste Land
Development Programme: This focuses on
development of sericulture, social forestry,
waste land use, dry land farming and biogas
development.
Public Health & Village Sanitation
Programme: This covers health care,
village sanitation, health camps, and
veterinary camps.
Youth and Women Skill Development
Programme: Rural sports and cultural
activities are organized in different villages
to encourage participation by youths.
Soil Testing: The Company places
tremendous importance on empowering
farmer to increase his yield. Soil diagnostics
find a major part of determining which
fertilizer needs to be used for each soil and
crop. The Company has 5 static and 3 mobile
soil testing laboratories across its major
marketing territories which undertakes soil
sample analysis. About 90000 soil samples
are analyzed every year.
Micronutrient Analysis: To increase crop
yield the presence of micronutrients in
adequate proportion is necessary.
Micronutrients analysis identifies the
deficiency in the soil and prescribes doses
of micronutrients that need to be applied to
ensure optimum yield. About 1000 samples
are analysed every year.
Earn While You Learn Scheme: This unique
scheme that has been developed by the
Company. It seeks to educate and train
children studying in class IX and above to
participate in the process of agriculture
development. These students are trained to
understand latest developments in agriculture
and transfer this knowledge to the farming
community. The scheme provides all
opportunities to students to earn while they
learn. The students participating are offered
token money which supports them while
studying and at the same time imparts
practical knowledge of agriculture to them.
48
The students are required to do field
extension work for promoting specialty
fertilizers, micronutrients & bio fertilizers
during vacation and holidays.
7.6 National Fertilizers Limited (NFL)
7.6.1 Introduction
National Fertilizers Limited (NFL) was
incorporated on 23rd August 1974 for setting
up two nitrogenous plants, at Bathinda
(Punjab) and Panipat (Haryana) with LSHS
as feedstock, each having Urea production
capacity of 5.11 lakh MT per annum.
Consequent upon the reorganization of the
FCI, the Nangal Unit (including Nangal
Expansion Project) of FCI was also
transferred to NFL w.e.f. 1.4.1978.
A gas based ammonia and urea fertilizer
project on the HBJ pipeline at Vijaipur in
Guna District of Madhya Pradesh, with an
annual installed capacity of 7.26 lakh tonnes
Urea commenced commercial production on
1.7.1988. The urea capacity was doubled
from 7.26 lakh MT to 14.52 lakh MT per
annum on commissioning of its expansion
unit on 31.3.1997. The production capacity
of gas based plants in the country has been
re-assessed w.e.f. 1st April, 2000 resulting in
capacity revision from 7.26 lakh tones to 8.64
lakh tones for both Vijaipur-I and Vijaipur-II.
A revamp of urea plant at Nangal was
successfully completed three months ahead
of schedule and commercial production
commenced w.e.f. 1st Feb.2001. With this,
the installed capacity of urea at Nangal Unit
increased from 3.30 lakh tonnes to 4.78 lakh
tones per annum raising the company’s total
installed capacity to 32.31 lakh MT of urea
corresponding to 14.86 lakh MT of ‘N’
(Nitrogen) in terms of fertilizer nutrient.
The company also produces various
industrial products like nitric acid, ammonium
nitrate, sodium nitrite/nitrate, sulphur,
methanol, liquid nitrogen, liquid oxygen etc.
besides bio-fertilizers. The company
commissioned an Argon gas plant designed
 Shri M.K. Alagiri, Hon’ble Minister (C&F) receiving dividend cheque from Chairman and Managing
Director National Fertilizers Limited (NFL).
to produce 120 NM3/hr. of Argon gas at the
Panipat Unit in October 1997. A Methanol
Augmentation Scheme at Nangal Unit was
commissioned in October 1998 thereby
enhancing the daily production capacity of
Methanol from 50 tonnes to 67 tonnes. The
company’s bio fertilizers plant at Indore
produces three strains of bio fertilizers with
an installed capacity of 100 MT per annum.
The authorized capital of the company as on
31.3.2009 stood at Rs.500 crore and the paid
up capital at Rs.490.58 crore, comprising
Government of India’s share of Rs.479 crore
(97.64%) and the remaining Rs.11.58 crore
(2.36%) held by financial institutions and
others.
7.6.2 Production Performance
During the year 2009-10 (up to December,
2009), the company produced 25.56 lakh
Tonnes of urea in addition to 167 Tonnes of
Bio-fertilizers and 8800 tonnes of Industrial
Nitrogen (‘N’). The percentage share of NFL
in Urea production in the country has been
estimated at 16.8% for the year 2008-09.
During 2008-09 the company produced 33.44
LMT of urea.
7.6.3 Sales performance
The Company, during 2009-10 (up to
December 2009) sold 25.80 lakh tonnes of
Urea & 167 tonnes of Bio-fertilizers. NFL
recorded its ever-best sales turnover of Rs.
3768 crores which includes a record sale of
industrial products worth Rs.117 crore. During
2008-09 the company sold 33.77 LMT of
urea.
7.6.4 Financial Performance
NFL registered a Profit before tax (PBT) of
Rs.187 crore and Profit after tax (PAT) of
Rs.124 crores during 2009-10 (up to
December 2009).
49
 Shri Atul Chaturvedi, the then Secretary (Fertilizers) exchanging MoU document with
Shri V K Sharma, CMD, NFL.

The company earned PBT of Rs.150.61 Cr.
and PAT of Rs. 97.46 Cr. during 2008-09.
The company maintained its trend of paying
dividend of last 24 years and paid a total
dividend of Rs.29.43 crores for the year
2008-09. The dividend works out to 30.2%
of the Profit after tax of the company.
7.6.5 Employment of SC/ST, Ex-Servicemen,
Physically Handicapped & Other
Backward classes (OBCs) Persons in
Public Sector Undertakings (As on
30.09.09).

Group Total number Number of SC/ST/OBC/EXSM/PH

of employees
SC ST OBC *EXSM **PH
A 1710 362 79 88 7 10
B 1936 507 158 114 37 22
C 1006 251 44 124 45 20
D 147 115 3 8 2 3
Total 4799 1235 284 334 91 55

*EXSM – Ex- Service men

**PH – Physically Handicapped

50
7.6.6 Public/Staff Grievance Redressal
Machinery
Based on the model grievance procedure
notified by DPE, the company has framed
a ‘Grievance Redressal Procedure’ for staff
and officers of NFL. The objective of the
‘Grievance Redressal Procedure’ is to
provide easily accessible machinery for
expeditious settlement of grievances of
staff and officers with the aim of providing
satisfaction and in improved productivity
and job efficiency of the organization.
For systematic monitoring and supervision
of Public Grievances, Head of Corporate HR
Department has been nominated as Director
(Grievance) as per the directives of the
Government. In addition to this in-built
system, the company has also set up “Public
Grievances Centres” at the Units, whose
working is supervised by grievance officer,
who generally belongs to senior management
cadre.
7.6.7 Information relating to welfare of
Minorities and reservation in
dealership.
Company follows all Government
regulations on empowerment of minorities
such as representation of the minority
communities on interview boards in Group
C & D. The organization believes in
equality of all communities and celebrates
festivals with great fervor for all the
communities. Presently as per policy of the
Government of India, 25% of total
dealership are for SC/ST category. In order
to achieve the desired target of 25%, a
drive was initiated in 2004-05 to fill up the
gap for allotment of dealership to SC/ST
category and as a result their share
increased from 1.92% to 13.7%. Second
drive has been initiated during 2007-08 and
% share in NFL dealership under SC/ST
category has increased to 27.77% as on
30.9.2009.
7.6.8 Brief description of major expansion
projects / revamp etc.
Revamps: After notification of new investment
policy in Urea sector by GoI in September
2008, the company has undertaken the
following revamp projects:
Capacity Enhancement by 23% of Urea plant
at Vijaipur- II. Energy Saving project (ESP)
& Capacity enhancement of Urea by 16% at
Vijaipur-I. Installation of Carbon dioxide
Recovery plant (CDR) at Vijaipur Complex.
Revamp of FO Based plants at Panipat,
Bathinda & Nangal for change over of
Feedstock from LSHS/FO to NG/RLNG.
Clean Development Mechanism (CDM)
Projects to reduce GHG gas emissions to
earn carbon credits. Clean Development
Mechanism (CDM) project for revamp of
Vijaipur plants and FO Based plants. Clean
Development Mechanism (CDM) project for
Nitric Acid plant at Nangal.
7.6.9 Corporate Social Responsibility
NFL is committed to give utmost importance
to several community welfare and
development programme and the company’s
endeavor will be to intensify these activities
in future so that the benefit reaches to the
needy people of the society. The following
social welfare projects were undertaken by
the Company :
Help to poor and needy people: Sewing
machines, material for T.V. mechanics,
Barbering and Rehri for vegetable selling etc.
were distributed for self-occupation of
handicapped persons of nearby villages.
Development of Schools & help to
children: 65 ceiling fans and 20 wooden
desks were distributed to schools, education
material, sports material and 424 jerseys
were distributed among the children.
Village Development: Construction of steps
and floors, bricks road, public convenience,
tube wells and other infrastructure facilities
were provided by NFL to villagers.
51
 Other activities undertaken by the
Company: Health camps for women and
children were organised, construction of bus
stand, toilets, platform on creation ground,
installation of water tanks, Hand pumps,
Distribution of ceiling fans, tricylcles, school
books, dresses and bags, water coolers and
rural sports etc.
7.7 Projects & Development India Limited
(PDIL)
7.7.1 Introduction
Projects & Development India Limited (PDIL)
an erstwhile Division of the Fertilizers
Corporation of India (FCIL) was registered
as a separate company in March 1978. The
company has its registered office at Noida,
Uttar Pradesh. The authorized share capital
of the company was Rs. 60 crores and paid
up capital was Rs. 17.30 crores as on
31.3.2009.
7.7.2 Operating Results
The company had earned net profit of Rs.
18.75 Crores during 2008-09 on total income
of Rs.73 Cr. During the period April to
December 2009, a profit of Rs. 14.04 Crores
has been earned on income of Rs.57.89 Cr.
7.7.3 Excellent Ranking In MoU
PDIL has obtained Excellent rating in the
year 2006-07, 2007-08 and 2008-09.
Company is expecting ‘Excellent” rating for
the year 2009-10 also. PDIL has also won
prestigious MOU Excellence Award for the
year 2007-08 under the category of
“Turnaround CPSE”. This award was
conferred by Hon’ble Prime Minister of India
Dr. Manmohan Singh on 15.10.09.
PDIL has performed exceedingly well in last
five years continuously and has become
eligible for Mini Ratna – Category-II Status
under the DPE Scheme of Mini Ratna.
7.7.5
7.7.4 Engineering & Consultancy Division
The company is mainly engaged in Design,
Engineering, Procurement, Inspection, Store
52
Management and Supervision during
construction and commissioning of fertilizer
and chemical plants. It has played a pivotal
role in establishing fertilizer plants in India
from concept to commissioning, besides
providing revamping for Energy saving and
capacity augmentation, trouble shooting and
NDT services for health maintenance of
plants. It has also diversified its activities into
the field of Oil and Gas, Pipeline, Refinery
and Infrastructure Development such as
Housing project and City Gas Distribution
etc.
During 2009-10, the following major projects
/ assignments in the fertilizer sector are under
execution for various clients:-
Detailed Engineering Consultancy for 525
MTPD Methanol Plant for M/s GSFC Baroda
Detailed Engineering, procurement
assistance and other consultancy services
for the Methanol Revamp Project of Rashtriya
Chemicals & Fertilizers Ltd. Trombay.
Detailed Engineering Consultancy for Thal
Ammonia De-bottlenecking for RCF.
PMC Services for Algeria Oman Fertilizer
Project at Arzew, Algeria.
Weak Area analysis & Health assessment
for 4 streams of Urea Plant, off site & power
plant at Surat for KRIBHCO.
Detailed Engineering Consultancy for
Revamp of Ammonia and Urea plants at
Surat for KRIBHCO.
Detailed Engineering consultancy for capacity
enhancement for Vijaipur II Ammonia- Urea
for NFL.
Detailed Engineering Consultancy for
capacity enhancement of Vijaipur I Urea for
NFL.
Techno-Economic Feasibility Report
PDIL established itself as a major player in
the Industry as a Consultant for preparation
of Techno – Economic Feasibility Studies and
 Detailed Project Reports. During the year the
major jobs secured in fertilizer sector were:
Preparation of TEFR for Phosphatic Fertilizer
complex of GECOPHAM-SYRIA Project
advisory services for Revival of four units of
FCIL Units & HFCL-Durgapur, study of
uniform Urea price mechanism for
Department of Fertilizers, Setting of
Greenfield Ammonia –Urea plant in
Karnataka for ZIL and preparation of DFR
for the proposed Ammonia-Urea Plant for
MATIX. In the OIL & Gas and refinery sector,
PDIL is executing job for preparation of
Feasibility Study Report for feedstock change
of existing Hydrogen plant at Visakha refinery
of HPCL and consultancy services for
processing proposals for laying , building,
operating or expanding City Gas Distribution
(CGD) Network for PNGRB,
7.7.6 Assignments Abroad
PDIL continued its extensive efforts to secure
jobs in Projects being set up outside the
country. Opportunities for providing services
to various Joint Venture Companies with
Indian Fertilizer Companies as stake holders
setting up projects abroad and avenues for
back-up engineering support to international
EPC Contractors in Fertilizer Projects are
being pursued.
PDIL is providing PMC Services for Algeria
Oman Fertiilizer Project at Arzew, Algeria for
AOA, Algeria.
PDIL signed a General Cooperation
Agreement with M/s. Mitsubishi Heavy
Industries Ltd., Japan, who are one of the
leading international EPC Contractors in the
Fertilizer field and as a part of this contract
PDIL provides services for Tatarstan
Ammonia Urea Project.
7.7.7 Technical Audit
Department of Fertilizer (DOF) entrusted the
job of technical audit of Fertilizers plant in
India for the purpose of their benchmarking
with respect to the performance of and
Energy efficient Ammonia and Urea plant
abroad. Further DOF continued to engage
PDIL for Techno- commercial Audits of SSP
Plants located throughout India. The Audits
were undertaken and the reports with TAC
observation and comments have already
been submitted to DOF.
7.7.8 Jobs in Diversified Sector
Refinery, Oil & Gas and other Sectors
Apart from the fertilizer sector PDIL has
established its credential in Oil and gas
and Refinery sector also. Presently PDIL
is executing the job of Detailed Engineering
and procurement services for 3 nos. of
Hydrogen manufacturing units, each with
a capacity of 1,30,000 NM3/hr at the
Vadinar Refinery from Essar Engineering
Centre and detailed engineering for De-
bottlenecking of FCCU-I (Fractionators) &
GCU for HPCL Visakhpatnam. PDIL is also
providing Project Management Consultancy
Services for installation of a 20,000 MTPA
Hydrogen Plant for M/s IOCL Barauni, PMC
services for Installation of Hydrogen
generation unit of 21000 MTPA at Manali
refinery for CPCL, PMC Services for
sulphur Recovery unit for IOCL Mathura
and PMC services for C2, C3 & C4 product
pipeline for ONGC, Dahej.
7.7.9 Inspection & NDT
PDIL established its credentials for Third
Party Inspection (TPI) and Non Destructive
Testing (NDT) Services – Statutory
inspection, testing and certification of Horton
Spheres, Mounded LPG Bullets; Inspection
and recommissioning of Ammonia Storage
Tanks etc. continued to be a specialized
activity of PDIL.
On the basis of credential and satisfactory
past performance, Bharat Heavy Electricals
Limited (BHEL), again awarded the TPI rate
contract for the period 2008-2010 for third
party inspection of various equipments and
bought out items ordered by all
Manufacturing Units of BHEL through out
India. Job is being carried out to the full
53
 satisfaction of BHEL and their clients NTPC
and PGCIL.
PDIL also carry out Third Party Inspection
job for various State Government
organizations like PHED – Rajasthan & West
Bengal, Uttar Pradesh Jal Nigam, Haryana
PWD, Madhya Pradesh Laghu Udyog Nigam,
Hyderabad Metropolitan Water Supply &
Sewerage Board etc.
7.7.10 Catalyst
PDIL continued to produce catalyst for
Fertilizer Industry such as HT CO Conversion
shift catalyst (conventional), LT CO
Conversion Shift Catalyst (conventional),
Vanadium Pentoxide Catalyst, PRG Catalyst,
Iron oxide and Alumina Balls. The production
of the Catalyst was 182 MT in the year 2008-
09 as compared to 105 MT in the previous
year.
During the year, PDIL executed order of
GSFC for HT, LT and Methanation Catalyst,
RCF for SR catalyst and HPCL
Visakhaptnam for HT catalyst. PDIL also
supplied HT Catalyst to Chennai Petroleum
and V2O5 Catalyst to SAIL Rourkela.
7.7.11 Facilities to SC/ST/OBC/Employees
In line with Government Guidelines issued
from time to time, PDIL continued to extend
required number of facilities to SC/ST/OBC
employees. The details of employees as on
30.11.09 is as follows:-
EMPLOYEE STRENGTH AS ON 30.11.09
Category Total MIP SC ST OBC
A 438 44 20 58
B 38 5 0 1 LMT of NP, 1.15 LMT of Ammonium Sulphate
C 30 10 0 6
D - 0 0 0 7.8.3
7.7.12 Corporate Social Responsibility
In pursuance of fulfilling its Corporate Social
Responsibility (CSR) objectives, keeping in
mind the interest of its employees,
shareholders, government, customers and
community in which it operates, PDIL has
decided to make funds available for CSR
activities upto 1% of Net profit after tax,
towards this objective.
7.8. The Fertilizers and Chemicals Travancore
Limited (FACT)
7.8.1 Introduction
Fertilizers And Chemicals Travancore Limited
(FACT) was incorporated in 1943. In 1947
FACT started production of Ammonium
Sulphate with an installed capacity of 50,000
MT per annum at Udyogamandal, near
Cochin. In the year 1960, FACT became a
PSU and towards the end of 1962,
Government of India became the major
shareholder.
From a modest beginning, FACT has grown
and diversified into a multi-division/
multifunction Organization with basic interest
in manufacture and marketing of Fertilizers
and Petrochemicals, Engineering
Consultancy and Design and in Fabrication
& Erection of Industrial Equipments.
7.8.2 Production Performance
During the Financial Year 2008-09 FACT has
made an upsurge in sales turnover and profit.
Production of NP was 6.05 LMT, Ammonium
Sulphate was 1.28 LMT and Caprolactam
was 0.13 LMT. During the current year upto
December 2009, the company produced 4.81
and 0.29 LMT of Caprolactam.
Sales Performance

On contract 49 8 0 16 During 2008-09, total income was 2209.72

Cr. on 8.33 LMT of Fertilizers and 0.12 LMT
Total 555 67 20 81
of Caprolactam.

54
Shri Mathew C Kunnumkal, Special Secretary and Financial Advisor addressing at function for commissioning of SAP
implementation in FACT Cochin.
During the current financial year upto
December 2009, the total sale of NP
Fertilizers is 5.28 LMT, 1.10 LMT of AS and
0.27 LMT of Caprolactam.
The Company has handled a total quantity
of 83375 MT of urea at Cochin Port which is
an all time record.
During the period FACT has launched new
products like organic manure and crop
specified mixture for coconut, banana, rubber,
etc.
7.8.4 Financial Performance
In 2008-09, the company earned net profit
of Rs.42.95 Cr. (including extraordinary items
of Rs.221.16 Cr.). The company has earned
net loss of Rs.63.39 Cr. till December, 2009.
FEDO & FEW: The turnover of FEDO upto
November 2009 is Rs.292 lakh. FEDO
expects a turnover of Rs.792 lakh and a profit
of Rs.48 lakh for the year 2009-10. Total
value of external orders on hand as on
November 2009 is Rs.2168 lakh.
During the year FEW has entered into a MOU
with Cochin Shipyard Limited for joint
operations.
7.8.5 Modernization/Revamp Projects
1. Mechanization of bagging operation at
Cochin Division, expansion of existing
complex fertilizer plant at Cochin Division
from 2000 MT to 3000 MT per day, setting
up of a urea plant at Udyogamandal with a
capacity of 1500 TPD, establishment of
container freight stations in association with
55
 Central Warehousing Corporation and
Container Corporation of India, etc. are some
of the major expansion and diversification
projects on the anvil.
2. The Company has drawn up plans for
switch over of feedstock for the Ammonia
Plant and fuel for the boilers and complex
fertilizer plants to LNG as and when the LNG
terminal comes online at Kochi. The required
modifications on the plants to switch over of
the feed stock has been planned for
completion by end 2011.
3. During the year, FACT implemented a
new ERP system SAP.
4. FACT formed a joint venture company
in association with RCF for the manufacture
of value added load bearing building panels
using the huge stock of Gypsum available at
FACT. The project is expected to be
commissioned during the year 2009-10.
7.8.6 Redressal of Public Grievances and
Welfare Measures
A Public Grievance Cell is functioning in the
Company, as per norms laid down by
Government of India. At present, no
grievance received from public is pending
for redressal.
7.8.7 Employee Grievance Redressal Machinery
A machinery for redressal of employee
grievances exists in the Company.
Generally the grievances are related to
work, work place, shift arrangement, grant
of increment, promotion, salary fixation,
transfer, etc. An aggrieved employee may
submit a complaint / request for settling
the grievance in the Division and if still
aggrieved with the decision of the Division
Head, it may be submitted before the
appropriate Grievance Committee.
Separate grievance committees exist for
examining and redressal of grievances of
managerial and non-managerial
employees. The individual concerned is
given an opportunity to present his
grievance in person before the committee,
if required. The respective Committee will
deliberate on the grievance and give their
recommendations to the management for
appropriate action. In addition, there is an
SC/ST Grievance Cell that looks into
complaints received from SC/ST
Employees.
7.8.8 Employment of SC/ST, Ex-servicemen,
Physically Handicapped and Other
Backward Classes (OBCs) as on
30.12.2009

Group Total SC ST OBC GEN WOMEN EX- PH

Employees SERVICE

A 515 89 10 76 340 47 0 4

B 1418 209 51 348 810 123 14 21

C 817 82 23 334 378 59 25 14

D 782 124 21 307 330 9 11 33

D-S 37 10 0 18 9 21 0 1

TOTAL 3569 514 105 1083 1867 259 50 73

56
7.8.9 Welfare of Minorities.
The Company had provided the following
facilities for the Welfare of Minority
Communities.
a) Land for Mosque near FACT Junction,
Udyogamandal
b) Land for Christian Cemetery in
Udyogamandal
c) Pathway to St:Joseph’s Church near
JNM Hospital, Udyogamandal.
d) Land for CSI Church, Ambalamedu
25.51 cents
e) Land for Catholic Church, Ambalamedu
44.73 cents
f) Land for Marthoma Church,
Ambalamedu 45.01 cents
g) Land for Jacobite Syrian Church,
Ambalamedu 40 Cents
h) Land for Mosque, Ambalamedu 40 cents
i) 4 separate cemeteries to above 4
Christian Churches in Ambalamedu
j) Cremation ground for Muslims
(Khabaristan) in Ambalamedu
k) Cremation ground for Muslims in
Udyogamandal
The premises and facilities such as Electricity,
water etc. are extended free of cost.
7.8.10 Welfare of SCs & STs Employment.
The Company has taken all measures for
reservation of SCs/STs in accordance with
the Presidential directives. Out of the total
employees of 3569 as on 30.12.2009, 619
are SC/ST employees. An SC/ST Grievance
Cell is functioning in the Company to redress
the grievances of SC/ST employees. The
grievances received are examined in detail
by the Cell and appropriately redressed. The
employee concerned is informed of the
decision / action taken on the grievances by
the Grievance Cell. Further there are
Associations representing SC/ST employees
and these Associations also take up
individual grievances of SC/ST employees
with the management for direct redressal.
7.8.11 Reservation in Dealership
FACT has always followed a policy of
encouraging SC/ST Candidates to take up
dealership. Details of dealership allotted to
SC/ST are given below:
Category of Dealership As on 31.03.2009
Total Dealership 8066
SC / ST 657
No security deposit is collected from SC/ST
Dealers and they are encouraged to do
business by constant advice/follow up. All
efforts will be made to ensure that maximum
representation is given for SCs/STs in Dealer
appointments wherever additional
dealerships are provided.
7.8.12 Corporate Social Responsibility
As part of Corporate Social Responsibility,
FACT has undertaken the following activities.
1. Drinking Water Supply to Residents of
Eloor Panchayath
FACT processes water from the River Periyar
at their advanced drinking water facility for
their industrial/township needs. To meet the
scarcity of water in Eloor Panchayath, FACT
is providing about 1500 M3 water per day to
more than 500 residential users of the Eloor
Grama Panchayath.
2. Community Health Centre
The Community in which factories at
Udyogamandal and Cochin Divisions are
located are given free medical consultation
services on two days in a month. This has
benefited the people at large as experienced
Doctors attached to our factory Occupational
Health Centres provide the medical expert
57
 diagnosis and services. This helps the people
to avoid traveling long distances to get routine
medical care.
3. Farmer Education programme
Regular agricultural seminars, dealer training
programmes, crop campaigns, field
demonstrations etc. were conducted. This
helped the farmers to gain experience of
scientific practices to be adopted for
successful farming. Our field staff regularly
make follow up to clarify doubts if any, and
inculcate the adoption of modern technology
for integrated farming.
4. Soil Testing and Agronomy Services
During the year 2008-09, 3160 number of
soil samples were collected by our field staff
from various villages in the states of Andhra
Pradesh, Karnataka, Tamilnadu and Kerala.
The focus was on collecting samples from
remote tribal areas with limited access to
Government laboratories. Based on the soil
tests the farmers were educated on the
agronomic practices to be adopted, namely
crop variety selection, type of soil tillage to
be adopted, use of available organics in
fields, dosage of fertilizers to be used etc.
These activities have benefited the farming
community to maximise their crop yields.
5. Fire and Emergency Services
The well equipped fire services established
in FACT provide emergency services not only
to the surrounding areas but also to
Ernakulam district as well.
6. Training facilities
In addition to Employees and Apprentices
Training, FACT Training Centre has of late
emerged as a Skill Development Academy
offering the following courses, utilizing its
resources for the benefit of the public at large:
(a) One year Diploma in Fire & Safety
Engineering for ITI / Plus 2 passed
students – 1st batch started in February
2008.
58
(b) 3 months Certificate course in Heavy
Equipment Operation – 1 st batch
commenced in October 2008
(c) 3 months Certificate course in
Instrumentation & Maintenance – 1st
batch commenced in September 2008.
7. The Company has entered into a Joint
Venture agreement with Department of
Factories and Boilers, Government of Kerala
for establishment of Kerala Institute of
Welding and Research to conduct courses
for qualification as IBR approved welders to
cater the growing needs for skilled welders
both for the industries in India and abroad.
A separate Society under the Travancore
Literary, Scientific and Charitable Societies
Act, 1955 was registered for conducting the
courses relating to welding technology with
a grant of Rs.1 crore from Government of
Kerala.
Kerala Institute of Welding & Research
functioning at FACT Training Centre has
started a 3 months Certificate course in
Welding leading to award of IBR certificate
in Welding. First batch commenced in
September 2009.
7.9 Madras Fertilizers Limited (MFL)
7.9.1 Introduction
Madras Fertilizers Limited (MFL) was
incorporated in December 1966 as a Joint
Venture between GOI and AMOCO India
Incorporation of USA (AMOCO) with GOI
holding 51% of the equity share capital.
In 1985, AMOCO disinvested their shares,
which were purchased by GOI and NIOC in
their respective proportions on 22.07.1985.
The revised share holding pattern was GOI
67.55% and NIOC 32.45%. The share
holding pattern upto May 11, 1997 was GOI
69.78% and NIOC 30.22%.
On May 12, 1997, MFL made its maiden
Public Issue of 2,86,30,000 shares of face
value of Rs 10 at a premium of Rs 5 per
 Tableau of Madras Fertilizers Limited (MFL) at Republic Day celebration 2010 at Chennai.

share. Of these, 2, 58, 09,700 shares were lakh tonnes of Phosphate (P). A major
subscribed. After the Public Issue, the revamp / expansion was carried out in
shareholding pattern is as follows: 1998 at a cost of Rs 601 crore, enhancing
the annual installed capacity to 2.54 lakh
Shareholder Rs. Cr % tonnes of N and 1.42 lakh tonnes of P,
corresponding to 4,86,750 MT of urea and
GOI 95.85 59.50 8,40,000 MT of complex fertilizers.
NIOC 41.52 25.77 However, certain problems were also
experienced in the revamp process which
Public 23.73 14.73 led to frequent shut downs, low capacity
Total 161.10 100.00 utilization and resultant financial difficulties
and liquidity problems. In the wake of this,
there were also problems of adjusting to
The company has an authorized share capital
the Urea Pricing Policy with effect from
of Rs 365 Cr comprising of Rs 175 Cr as
1.4.2003 and the norms of determination
equity and Rs 190 Cr as preference share
of concession on decontrolled complex
capital. The preference share capital is yet
fertilizers, which came into effect from
to be issued and subscribed. As on
1.4.2002 and 1.4.2008. Over a period of
31.3.2009, the paid-up equity was Rs 161.10
time, despite two rounds of financial
Cr.
restructuring, financial difficulties and
problems of capacity utilization etc., have,
MFL commenced commercial production in continued and financial position started
1971, with an annual installed capacity of deteriorating.
1.7 lakh tonnes of Nitrogen (N) and 1.12

59
7.9.2 Reference to BIFR
The Company has informed the Board for
Industrial and Financial Reconstruction
(BIFR) of the total erosion of net worth and
its current negative value. The BIFR has
registered the Company as Case No. 501/
2007. In the first hearing held on 2nd April
2009, MFL was declared as a sick Company
and State Bank of India (Commercial Branch,
Chennai) was appointed as the Operating
Agency (OA) to prepare a Draft Revival
Scheme (DRS).
7.9.3 Revised Proposal for Restructuring 7.9.5
Based on the outcome of inter-ministerial
meetings, the Company had engaged M/s
Deloitte Touche Tohmatsu India (P) Ltd (DTT)
as consultants for study of MFL and Product
assistance in preparing a revival plan. MFL
have also engaged M/s Project and
Development India Ltd (PDIL) as consultants
for study of technical viability of the Plant.
Urea
The final report of M/s PDIL has been NPK
received and based on their recommendation
the Company is preparing a fresh Financial Imported MOP
Restructuring proposal along with the support Bio Fertilizers
from OA for submission to DOF/BRPSE for
their consideration.
7.9.6
The Company’s operations are viable after
implementation of NPS III amendment
restricting the reduction in fixed costs by 10%
from 01.04.2009 and therefore the Company
has been making profit on a monthly basis
from August 2009.
The Company may end up with a small cash
profit for year 2009-10.
7.9.4 Production Performance
7.9.7
During the year 2008-09, the Company
produced 4.06 LMT of Urea and “Nil” NPK-
Complex fertilizers with capacity utilisation
of 83% and “Nil” respectively. During the year
60
2009-10, the Company is expected to
produce 4.25 LMT of Urea. The Company is
planning to produce 60 thousand tonnes of
NPK-Complex fertilizers during the year
2009-10 on tolling basis through M/s Indian
Potash Limited. Actual production upto
December, 2009 has been 3.06 LMT of Urea.
Further during the year 2008-09, the
Company produced 458 tonnes of Bio-
fertilizers. The Company is expected to
produce 450 tonnes of Biofertilizers during
the year 2009-10.
Sales Performance
The sales performance of the company is
given below:
(In MT)
Actual April-
2008-09 December
2009
4,15,266 3,06000
- -
- -
463 460
Financial performance:
During 2008-09, the Company ended up with
a net loss of Rs 145.38 Cr and the total
accumulated losses as on 31.3.2009 was
Rs 793.93 Cr. During the year 2009-10 the
Company is likely to end up with a loss of
Rs 32.28 Cr and the total accumulated losses
as on 31.3.2010 would be Rs 826.21 Cr.
During the current financial year, MFL has
earned net loss of Rs.51.54 Cr. till December,
2009.
Welfare of SC/ST and reservation in
dealership.
State-wise SC/ST dealer strength is as
below:
 State SC/ST Dealers MFL organized 7 Nos. of agro based
exhibitions during the year against the Annual
Tamil Nadu 533 Plan of 10 Nos.
Pondicherry 9 To educate farmers about balanced
Andhra Pradesh 400 fertilization, MFL collected and analysed 7860
soild samples from farmers against the
Karnataka 481 annual target of 7200 number of samples.
Kerala 189 Analysis report has been distributed to the
farmers for follow up.
Total 1612
For eco-friendly environment and to improve
soil health, method demo on biofertilizer
SC/ST dealers constitute 26.69% of the total usage was planned for 20 nos. for the year
dealer strength. 2009-10. So far MFL has conducted 17
demonstrations in the marketing territory.
The following special terms are allowed for
the above category : With regard to micro-nutrient analysis, there
is a plan of 500 samples for the year 2009-
 Waiver of security deposit of Rs 5000/-.
10 and so far 400 samples have been
 Exemption from seasonal minimum collected, analysed and the reports have
sales norms. been sent to farmers.

7.9.8 Statement showing employment of SC/ST, To ensure fertilizer distribution upto rural area,
Ex-Servicemen and Physically MFL has appointed 5986 retail dealers, which
handicapped persons. includes 27% from SC/ST.

Group Employees Number of Employees belonging to

SC ST Ex- Physically BC / OBC

Servicemen Handicapped
A 241 24 3 - 1 53
B 208 46 5 - 1 80
C 329 84 1 13 3 126
D 40 28 - - - 9
Total 818 182 9 13 5 268

7.9.9 Corporate Social Responsibility 7.10 Brahmaputra Valley Fertilizer Corporation

MFL marketing personnel contacted 2,39,919
farmers during th current year against the
yearly target of more han 3,00,000 farmers
for the year 2009-10 and educated the
farmers about soil health techniques, usage
of biofertilizers & Neem products for
environment friendly atmosphere and fertilizer
recommendation (Macro & Micro) for different
crops.
Limited (BVFCL)
7.10.1 Introduction
Brahmaputra Valley Fertilizers Corporation
Limited (BVFCL) has two operating units at
Namrup Assam. Its Corporate Office is also
situated at Namrup. The other establishments
of the company are Liaison Offices at NOIDA
& Kolkata and Marketing Offices at Guwahati,

61
View of Brahmputra Valley Fertilizers Corporation Ltd (BVFCL) Plant at Namrup (Assam).
Siliguri & Patna . The authorised share capital
and paid up capital of the company as on
31.3.2009 were Rs. 510 Crores and Rs.
365.83 Crores respectively.
7.10.2 Physical Performance
The actual production from Namrup units for
April 2009 to December 2009 was 218733
MT. The targeted production for the year
2009-10 is 3,70,100 MT of Urea as per MOU
Target for 2009-10.
Performance of the Company has been
adversely affected due to frequent power
failures. In Namrup-III performance was
affected due to poor conversion in Synthesis
Converter and tube leakages in Coolers.
Performance of Namrup-II was also below
par due to repeated problems in CO2
Compressor in Urea Plant, Problems in BFW
Pumps and Synthesis Gas Compressor, Tube
62
leakages in Flue Gas Heat Recovery Section
and RG Boiler 1st compartment tube leakage.
Namrup-II Plant could be run at 50% load
only due to availability of only 1.72 MMSCMD
gas against requirement of 1.95 MMSCMD
of gas. This has increased cost of production
of Namrup-II plants.
The company manufactured 15.63 MT of Bio-
fertilizer during the period April 2009 to
December 2009 and plan to produce 20 MT
Bio-fertilizer in 2009-10. The company has
sold 177 MT Quality Seeds in Kharif season
of 2009-10 and 268 MT of Wheat seeds are
being sold during Rabi season 2009-10.
Further vegetable seeds procured from M/s
Numhens Pvt. Ltd,. Worth Rs. 12.65 lakh
have been sold to farmers to farmers through
its dealer network. The company has started
production of Vermicompost and has sold
26.76 MT of vermin-compost.
7.10.3 Financial Performance
The company earned net loss of Rs.104.40
Cr. on Sales turnover of Rs.170.48 Cr. during
current year upto December, 2009. In 2008-
09, the company earned net loss of
Rs.197.07 Cr. on turnover of Rs.150.72 Cr.
7.10.4 Public / Staff grievance redress machinery
and Status of Grievances:
An Employees Grievance Redressal
Committee headed by GM (HR) with the
representatives of both the recognized
Unions & Joint Council of Officers is in
operation to look into the individual
grievances of the employees. Aggrieved
employees submit the grievances to the Co-
ordinator of the Committee. Thereafter, all
the grievances are examined and put up to
the Chairman of the Committee for redressal.
No specific complaint has been received
about its unsatisfactory functioning. Further
to this, information is provided to the citizens
under Right to Information Act 2005 and 10
applications have already been received
during 2009-10 and 19 applications were
received during 2008-09. Requested
information has been provided as per the
Act.
7.10.5 Employment of SC/ ST, Ex- servicemen,
Physically Handicapped & other
backward classes persons :
The matter of employment of persons
belonging to SC/ST, Ex-servicemen,
Physically handicapped & other backward
classes are taken care of at the time of
recruitment/ promotions. Reservation policy
has been followed as per Government
guidelines. Information on employment under
different categories are stated as under :
Men in Position as on 31.12.2009 1205
Executive 407
Non-executive 798
SC ST OBC Ex- Physically
servicemen handicapped
91 181 365 4 4
7.10.6 Welfare of minorities and reservation in
dealership :
Welfare of minorities are looked after as per
directive of Prime Minister’s 15 Point
Programme relating to welfare of minorities,
during recruitment and promotion. At the time
of promotion and recruitment, a
representative of the minority is included in
the Selection Committee. There is no
reservation for minorities.
As per the scheme for appointment of SC/
ST candidates for dealers formulated by the
Government of India, 25% of the appointment
of dealers is to be reserved for SC/ ST
category. Category – wise details of which
are as follows.
ST 55
SC 13
Total Dealers 601
In spite of advertisement, BVFCL is getting
very limited applications from SC/ST
candidates.
7.10.7 Corporate Social Responsibility :
Since its inception, BVFCL had regularly
contributed to various corporate social
responsibility initiatives in the areas of health,
education, infrastructure and culture. As
Namrup Fertilizer Complex is located at
remote area in the Dibrugarh District of
Assam, there has been added social
responsibility for development of areas
adjoining its factory and township.
BVFCL is extending following welfare facilities
to its employees and their families and to
the neighbouring villages.
63
a) Education: BVFCL is running one Kendriya
Vidyalaya, one Higher Secondary School and
one Primary School for students of
neighbouring areas and wards/children of its
employees as well. The corporation has
extended its patronage for establishment of
Namrup College and B.Ed. for Higher
Education at Namrup.
b) Civic Amenities: The company provided
drinking water and lighting facilities to public
of Namrup, accommodation for telephone
exchange, post office etc.
c) Medical: A 60 bed hospital with modern
equipments is operated with qualified doctors
and para-medical staff. Patients from
adjoining are treated.
d) Recreation facility: There are 2 clubs, 1
stadium with play ground where regular
cultural functions/sporting even are
organised.
7.11 FCI Aravali Gypsum & Minerals India
Limited (FAGMIL)
7.11.1 Introduction
The FCI Aravali Gypsum & Minerals India
Limited was incorporated under the
Companies Act 1956 as a Public Sector
Undertaking on 14.2.2003 after being hived
off the Jodhpur Mining Organization (JMO)
of Fertilizers Corporation of India limited.
(FCIL). The authorized share capital of the
Company was Rs. 10 crore and the paid up
capital was Rs. 7, 32,98,000/- as on
31.3.2009.
7.11.2 Production Performance
The Production/Sale of gypsum in 2008-09
was 9.16 lakh MT as against the target of
9.15 lakh MT. The revised production/sale
revised target for the year 2009-10 is 7.65
lakh MT. During the current year 2009-10,
the Company has produced 4.89 LMT and
sold 5.08 LMT of Gypsum up to December
2009.
64
7.11.3 Financial Performance
The Company has earned a net profit of Rs.
903.55 lakh (after deferred tax charge) during
the year 2008-09 on sales of Rs.42.47 Cr.
Upto December 2009, FAGMIL has earned
net profit of Rs.4.93 Cr. on sales of Rs.35.40
Cr.
7.11.4 Grievance Cell
Grievance Cell is functioning to redress the
public an staff grievances and no grievances
is pending as on date.
(i) For Public Grievance
Head Office at Jodhpur receives the public
grievances, which are redressed by the
Grievance Cell. At present, no grievance is
pending.
(ii) For Staff Grievance
a. The employees who are working in
various Mines are advised to submit their
grievances through the respective Area
Managers to Chief Manager (Mining).
b. The employees working at Head Office,
Jodhpur, route their grievances through
Sectional Heads to Chief Manager (Mining).
At present, no grievance is pending.
7.11.5 Employment of SC/ST, Ex- servicemen,
Physically Handicapped & Other
Backward Classes (OBCs) persons.
Information in respect of employment of SCs/
STs, Ex- Servicemen, Physically
handicapped & OBCs as on 31st March. 2009
is as furnished below.
Total SC ST Ex- PHC OBC
employees Serviceman
109 17 5 1 NIL 8
7.11.6 Corporate Social Responsibility
Construction of separate Water Tanks at
Village Mohangarh, District Jaisalmer at the
KRIBHCO’s Hazira Plant.
cost of Rs.1 Lakh to provide drinking water
facilities for the villagers as well as for cattle.
7.11.7 Information relating to welfare of
Minorities and reservation in dealership.
The company does not have any system of
engaging dealers, thus, reservation for
minorities is not applicable.
7.12 Krishak Bharati Cooperative Limited
(KRIBHCO)
7.12.1 Introduction
KRIBHCO was incorporated as a Multi State
Cooperative Society on 17.04.1980 to
implement the Ammonia/Urea fertilizer project
at Hazira, based on natural gas from Bombay
High/South Bassein. The Society
commissioned its Ammonia/Urea Plant in
1985.
The Hazira complex has two streams of
Ammonia plants and four streams of Urea
plants. The annual capacity of Urea Plants
is 17.29 lakh MT.
KRIBHCO has also installed a Bio-fertilizer
unit at Hazira in 1995. The capacity of this
Unit was enhanced from 100 MTPA to 250
MTPA in 1998. Two more Bio-fertilizer units
of 150 MTPA capacity each have also been
installed one at Varanasi, U.P in September
2003 and another one in Lanja, Maharashtra
in March 2004.
As on 31.03.2009 the authorised share
capital of the Society is Rs.500 crore and
the paid up share capital is Rs.390.68 crore.
The total membership as on 31.03.2009 was
6523.
65
7.12.2 Production Performance
UREA & AMMONIA :
During the year 2008-09 KRIBHCO produced
17.43 lakh MT of Urea (8.02 lakh MT in terms
of nitrogen “N”) achieving capacity utilization
of 100.8 % and 10.85 lakh MT of Ammonia
achieving capacity utilization of 108.1%.
During the year 2009-10 up to November
2009, the Society has produced 13.36 LMT
of Urea (6.14 lakh MT in terms of nitrogen
“N”) achieving capacity utilisation of 103 %.
The expected production for the year 2009-
10 would be 17.82 lakh MT of Urea(8.20
lakh Mt in terms of nutrient “N”) of capacity
utilization of 103%.
ARGON GAS :
During the year 2008-09 KRIBHCO produced
4245 thousand NM3 of Argon gas.
During the year 2009-10 upto November
2009, Society has produced 1726 thousand
NM3 of Argon.
BIO-FERTILIZERS :
During the year 2008-09 KRIBHCO produced
865 MT of Bio-fertilizers.
During the year 2009-10 upto November
2009, Society has produced 679 MT of Bio-
fertilizer.
7.12.3 Sales Performance:
TOTAL UREA :
In the year 2008-09, the Society sold 37.76
lakh MT of total Urea. This is the highest
total annual sales of Urea achieved by
KRIBHCO since inception. During the year
2009-10 upto November 2009, Society sold
23.59 lakh MT of total Urea.
OWN UREA :
In the year 2008-09 the Society has sold
18.11 lakh MT of own Urea. During the year
66
2009-10 upto November 2009, Society has
sold 11.23 lakh MT of own Urea.
OMIFCO GRANULAR UREA:
During the year 2008-09 Society sold 10.77
lakh MT OMIFCO Granular Urea. During the
year 2009-10 upto November 2009, Society
has sold 6.27 lakh MT of OMIFCO Granular
Urea.
KSFL UREA:
During the year 2008-09 Society has sold
8.88 lakh MT of KSFL Urea. During the year
2009-10 upto November 2009, Society has
sold 6.09 lakh MT of KSFL Urea.
AMMONIA SALE :
During the year 2008-09 the Society has
sold 0.79 lakh MT of surplus Ammonia.
During the year 2009-10 upto November
2009, Society has sold 0.57 lakh MT of
Ammonia.
ARGON SALE :
During the year 2008-09 the Society has sold
4215 thousand NM3 of Argon. During the
year 2009-10 upto November 2009, Society
has sold 1692 thousand NM3 of Argon.
BIO-FERTILIZERS SALE :
During the year 2008-09 the sale of Bio-
fertilizer was 867MT. KRIBHCO has
conducted several promotional
programmes on use and benefits of Bio-
fertilizers. During the year 2009-10 upto
November 2009, Society has sold 655 MT
of Bio-fertilizer.
7.12.4 Financial Results :
During the year 2008-09, the Society
earned a net profit of Rs.250.13 crore
(post-tax). Since inception KRIBHCO has
paid dividend of Rs. 871.45 crore to GOI
upto 31.03.2009. KRIBHCO has achieved
highest turnover of Rs. 2559.12 crore
during the year 2008-09.
 During the financial year 2009-10 upto
November’09, Society has made a
provisional profit (pre-tax) of Rs.138.42 crore.
7.12.5 Joint Ventures
1. Joint Venture Oman India Fertilizer
Company, Oman (OMIFCO):
KRIBHCO, IFFCO and Oman Oil Company
with a share holding of 25%, 25% and 50%
respectively have collaborated and set up a
world-class fertilizer plant at Sur in Oman.
The annual capacity of the fertilizer complex
is 16.52 lakh MT of granular Urea and 11.9
lakh MT of Ammonia.
The Urea produced in OMIFCO is being
purchased by Govt. of India and half of the
produce is being marketed by KRIBHCO. In
addition, plant produces 2.5 lakh MT of
surplus Ammonia per year, which is to be
brought to India.
During the financial year April ‘08 to March
’09 OMIFCO has produced 20.08 Lakh MT
of Granular Urea.
During the financial year 2009-10 upto
November 2009, OMIFCO has produced
13.60 Lakh MT of Granular Urea.
2. KRIBHCO Shyam Fertilizers Limited
(KSFL):
KRIBHCO Shyam Fertilizers Limited (KSFL)
has acquired Ammonia –Urea Fertilizer
Complex of M/s. Oswal Chemicals and
Fertilizers Ltd. at Shahjahanpur, U.P,
consisting of a single stream Ammonia plant
of annual capacity 5.02 Lakh MT and two
streams of Urea plant with a combined
annual capacity of 8.64 Lakh MT.
KRIBHCO holds 85% of the equity,
management control and the entire marketing
rights of Urea and other products of the
company.
During the financial year 2008-09 KSFL
produced 8.65 lakh MT of Urea (100.1 %
capacity utilization) and 5.13 Lakh MT of
Ammonia (102.3 % capacity utilization).
During the financial year 2009-10 upto
November’09, KSFL has produced 6.23 lakh
MT of Urea (108.1 % capacity utilization)
and 3.68 Lakh MT of Ammonia (110.2 %
capacity utilization).
7.12.6 Equity Participation
1. Gujarat State Energy Generation Limited
(GSEG):
KRIBHCO has diversified into power sector
and has invested Rs. 72.75 crore equity (as
on 31.03.2009) in Gujarat State Energy
Generation Limited. GSEG is a Joint Venture
with Gujarat State Petroleum Corporation
Limited (GSPCL), other Gujarat Government
companies and GAIL (India). GSEG is
operating a 156 MW combined cycle power
plant based on natural gas at Mora, district
Surat.
During the Financial Year 2008-09 plant
achieved an overall Plant Load Factor (PLF)
of 71.22%. Further, GSEG has posted a
provisional post-tax profit of Rs.9.5 crore and
declared dividend of 5% on the share capital.
GSEG is implementing a Combined Cycle
gas based Power Project of capacity 350MW
expansion project at its existing site at an
estimated cost of Rs. 1160 crore. EPC
Contract has been awarded. The project is
expected to be completed in 27 months from
the Zero Date of January 28, 2008.
2. Nagarjuna Fertilizers & Chemicals Limited
(NFCL):
Society has an equity participation of Rs.
10.00 crore in NFCL, which is 2.15% of
NFCL’s paid-up share capital of Rs. 465.16
crore.
7.12.7 Projects under implementation/
consideration
1. Revamp of Ammonia and Urea Plant:
Society has initiated action to Revamp its
existing plant and enhance its annual
capacity of Urea Plant from 17.29 lakh MT
67
 to 21.95 lakh MT and of Ammonia plants
capacity from 10.03 lakh MT to 13.0 lakh
MT. Basic Engineering work for Ammonia
and Urea is completed. The detailed
Engineering work and procurement
services by M/s. PDIL are under progress.
Orders have been placed for long term
items. Bids for major items have been
received and are in advanced stage of
evaluation. Civil work at site has started.
Zero date has been achieved on 27 th
January 2009. The completion period of
the project is 32 from months zero date.
The estimated project cost is Rs 1301
Crore.
2. Urvarak Videsh Limited (UVL):
“Urvarak Videsh Limited”, a Joint Venture
company constituting KRIBHCO, NFL &
RCF has been incorporated for setting up
the Joint Ventures in India and abroad for
manufacturing, mining, long term tie ups
for nitrogenous, phosphatic and potassic
fertilizers and fertilizer raw materials
including exploring the possibility of making
investments and rendering consultancy
services in this regard in India and
abroad.
GOI has accorded approval to UVL to set up
Fertilizer Project at the existing Barauni Unit
of Hindustan Fertilizer Corporation Limited
(HFCL).
3. Logistics:
KRIBHCO has diversified into Logistic
Business and has acquired License to
operate Private Container Trains in Category-
I (entire rail network in relation to both Exim
& Domestic Traffic). KRIBHCO has signed
concession Agreement with Ministry of
Railways.
KRIBHCO Infrastructure Limited (KRIL) a
100% subsidiary of KRIBHCO has been
incorporated with authorized share capital of
Rs.500 crore and initial paid up capital of
Rs.5 crore for undertaking infrastructure
projects.
68
KRIBHCO is in the advanced stage of setting
up rail-linked terminal at Hazira. It is setting
up ICD/CFS at various places in the country
on its own and through strategic alliances.
KRIL has placed order for procurement of
four rakes and is in advanced stage for
procurement of containers. One container
train has been dispatched on trial basis from
Hazira to national capital region on 10th
December 2009.
7.12.8 Corporate Social Responsibility
KRIBHCO with its large dedicated team of
agriculture professionals continued its
significant contribution along with other
serious players in latest farm technology
transfer and other rural welfare schemes for
improving the profitability of farming
community.
During 2008-09, KRIBHCO organized more
than 2500 programmes for farming
community such as farmers meetings, kisan
melas, field demonstrations, field days,
cooperative conferences, group discussion,
special campaign etc. benefiting 11.69 lakh
farmers and cooperatives across the country.
To back up the Agriculture Technology
transfer, the Society also made available 8.35
lakh technical folders on various crops to
the farmers and cooperatives.
KRIBHCO Krishi Pramarsh Kendra, a high-
tech centre at KRIBHCO Bhawan, NOIDA
continued free consultancy to farm-related
problems. The centre also propagated
efficient and balanced use of fertilizer by
testing 4994 soil samples collected
scientifically for micro-nutrients and 1014
samples for macro-nutrients & irrigation water
from 10 states free of cost. Results alongwith
recommendations were forwarded through
electronic medium to farmers at their
doorsteps, apart from using KRIBHCO
website for display of results. Paramarsh
Kendra also provided latest information on
weather, like rainfall, temperature, relative
humidity, monsoon movement etc. for use in
planning farm operations and mid-term
corrections in the event of crop failure
generally through kisan help lines. Kisan
Helpline has been strengthened with the help
of KRIBHCO Reliance Kisan Ltd.
All State Directors of Agriculture were
informed about educational programmes
conducted and soil samples tested from their
states along with district wise deficiency
noticed in various soil samples. KRIBHCO
also joined hands with ICAR, State
Agriculture Universities, State Cooperative
Federations for free soil testing and
technology transfer which was thankfully
acknowledged and appreciated at all
platforms.
As a step towards modernization, KRIBHCO
continued to promote information
Communication Technology (ICT) through
KRIBHCO Kisan help line using e-mail,
phone, SMS, computer and KRIBHCO
website for informing farmers about latest
farm technology alongside with traditional
tools. Information on monthly farm operations
are also made available on website. An High
level delegation from Ministry of Agriculture
Medagasker visited KRIBHCO Krishi
Paramarsh Kendra and described it as one
of the best in the world.
Strengthening cooperatives and rural
development always remained a priority for
KRIBHCO. In this direction 60 cooperative
societies were adopted, 19603 cooperative
managers were trained through 210
cooperative conferences and workshops
and 17 study visits, wherein they were
educated about the use of Society’s
product for improving farm productivity and
also enhanced our corporate image. The
society also organized 46 health
campaigns for livestock and humans,
promoted 7 water facilities including micro-
irrigation systems for crops in rainfed areas
and rural sports for integrated rural
development. Krishak Parivar Sangam, a
programme dedicated to national
integration of farmers was organized at
Pusa, Delhi & KRIBHCO Krishi Pramarsh
Kendra, NOIDA werein 41 farmers from 13
states participated for about one week and
deliberated about the agriculture practices
of their respective states and this provided
an opportunity for better understanding of
the use of KRIBHCO’s products and
services. A group of Representative
General Body Members from Bihar, W.
Bengal, M.P. Chhattisgarh & Maharashtra
visited Hazira plant to apprise themselves
of the steps taken to maintain the quality
of the product. Storage-cum-community
centre scheme started on Golden Jubilee
celebration of India still continuing with 141
centers sanctioned and 130 are completed
and being used fully.
KRIBHCO continues to provide Insurance
coverage for farmers as a method of
sustaining the sales of the product, known
as “Kisan Aapda Nivaran Bima Yojna” for
any accidental death / injury. It is a
Personal Accident Insurance Scheme for
the welfare of the farmers who purchase
KRIBCHO Urea bag from any cooperative
outlets and Krishak Bharati Sewa Kendras
(KBSK). During the year, an amount of
Rs.40.63 lakh has been disbursed as
insurance claims to 61 families of the
deceased farmers.
During the financial year 2009-10,
KRIBHCO continued its services to farmers
& cooperatives. A total of 1279
programmes so far have been organized
upto November 2009 which mainly include
Farmers Meetings, Cooperative
Conferences, Group Discussions, Kisan
Melas, Block Demonstrations, Dealers’
Conferences, Health Campaigns for human
and animals, Technical Wall Paintings,
Technical Literature Printing & Distribution
and Soil Testing Campaign, directly
benefiting 8.34 lakh farmers. Besides this
3.5 lakh Technical Crop Folders were
distributed and 3719 Soil Samples were
tested for pH, EC, macro and micro-
nutrients from 83 districts of 11 states.
KRIBHCO Kisan Helpline was used by 584
69
 farmers for solving their farm related
problems.
7.12.9 Seed Multiplication Programme
KRIBHCO also initiated Seed Production
Programme in 1990-91 to provide quality/
certified seeds of main crops to the farmers
which has had a very encouraging response
from farmers and cooperative societies. The
seeds are made available to the farmers
through KBSKs, Cooperative Societies and
State Cooperative Federations in different
states. The Society stepped up production
of seeds from 2928 quintals in 1991-92 to
1.98 Lakh quintals of Seeds in 2008-09. This
is the highest ever production of seeds so
far.
7.12.11 National Policy for persons with
During the financial year 2008-09, the Society
has produced 1.98 thousand quintals and
sold 1.96 lakh quintals of seeds which is
highest since inception. During the financial
year 2009-10 upto November’09, Society has
produced 2.18 lakh quintals and sold 2.20
lakh quintals.
7.12.10 Public/Staff Grievance Redress Machinery
Based on the directives of Department of
Fertilizers, Government of India, the set up
of Public Grievance Redressal Machinery is
in operation in KRIBHCO.
Grievance/Complaint Box is kept at the
reception of office for convenient registration
of complaints by member of the public. The
Complaint Box is opened regularly.
DGM(HR), Corporate Office is designated as
Grievance Officer to attend any public
grievance/complaint. A quarterly progress
report of redressal of Public Grievance is
being sent to Deptt. of Fertilizers,
Government of India.
disabilities
KRIBHCO does not have any separate
financial allocation for persons with
disabilities. However, Society promotes
farmers belonging to SC/ST/OBC through
various programmes and rural activities.

7.12.12 Statement showing employment of

SC/ST/Ex-Servicemen/Physically
handicapped persons

(As on 31.03.2009)

Name of Group Total Number of employees belonging to

Society number of
employees SC ST Ex-service- Physically OBC
men Handicapped
(1) (2) (3) (4) (5) (6) (7) (8)
KRIBHCO A 1359 32 13 8 2 134
Hazira- B 309 19 16 4 NIL 55
Surat. C 390 44 23 3 5 66
D 26 3 0 4 NIL 14
Total 2084 98 52 19 7 269

70
GRAMIN VIKAS TRUST
7.12.13 Gramin Vikas Trust (GVT) was established
by Krishak Bharati Cooperative Ltd.
(KRIBHCO) with the support from
Government of India and Department for
International Development (DFID) U.K. GVT
is an independent legal entity implementing
various Rural Development Projects in
Rainfed areas of Western and Eastern India.
GVT has been incessantly working on issues
such as crop research, Natural Resource
Management, Water Resource Development,
Agro-forestry, Livestock etc.
The Trust is operating in Madhya Pradesh,
Rajasthan, Gujarat in the Western India and
Orissa, Jharkhand, Chattishgarh and West
Bengal in Eastern India. In the post DFID
phase GVT has collaborated and
implementing project of various ministries at
the state level as well as at the national level,
like Ministry of Rural Development, Ministry
of Panchayati Raj, Ministry of Agriculture,
Ministry of Environment and Forest, NIRD,
etc. GVT has also tied up with other
development organizations like Mott
MacDonald, The Energy and Resource
Institute (TERI), Larsen & Turbo, Asian
Development Bank etc for various projects
like Migrant Labour Support Programme
(MLSP), Skill Up-gradation, Vocational
Training & Capacity Building, Crop Research,
Impact Assessment Studies etc.
GVT has established a state-of-the art
National Livelihoods Resource Institute
(NLRI) on the picturesque locale outside the
city of Ratlam in Bhadwasa Village of Madhya
Pradesh. The Institute has become
operational since September 2007 and was
formally inaugurated on 14th May 2008. So
far 38 on campus Training Programmes
(including 2 Management Programmes for
KRIBHCO) and 183 off campus Programmes
have been organised.
In East India, GVT has established the Krishi
Vigyan Kendra (KVK), at Godda at the Sub-
divisional Agriculture farm near Rautara
Chowk funded by ICAR, New Delhi in the
year 2006. KVK is managed by GVT
Regional Head Quarter East located at
Ranchi.
GVT has undertaken various land
development programs including Soil Water
Conservation, tree plantations and Agro-
forestry works etc. GVT has carried out the
SWC work on fifty thousand acres of land
and near about thirteen thousand households
were benefited.
Tree Programme is an important component
of the GVT’s environmental programs. Under
farming system for development of natural
resources, the project not only emphasized
on plantation and creating awareness among
the participants but also on development of
skills of participants to grow nurseries in their
villages.
The Ministry of Panchayati Raj, Govt. of India
has identified Gramin Vikas Trust as Gateway
Agency for facilitation of the Rural Business
Hub(RBH) in Ranchi and Deoghar districts
of Jharkhand and Birbhum District of West
Bengal in order to identify the local products/
skills that hold good business potential and
mobilizing convergence of different schemes
and institutions that hold the key inputs for
setting up RBHs through Private –Public-
Panchayat-Partnership.
Since the survey work has been done by
GVT in Jhabua for energy plantations on
revenue waste land and contract farming
model has been completed and accepted.
Subsequently IOC has principally agreed to
involve GVT in the implementation of the
project.
GVT has been awarded with FCRA project
on Improving Livelihoods in Tribal areas of
India through sustained access to
technologies in Rainfed areas for a period of
three years to be implemented in Jhabua
MP and Dhamtari, Chattisgarh, Ranchi and
Godda in Jharkhand and Baripada in Orissa
covering four states. The Project is funded
71
 by DFID through CAZS, Bangor, UK and
being implemented in their partnership.
Skill Development Training Project on four
trades e.g. Mason, Shuttering Carpentry &
Bar Binding, Plumbing and General
Supervisor is implemented with specific target
to train 5000 construction sector workers.
After the successful implementation of MLSP
under DFID till June, 2007, GVT has
completed a MLSP Project in Ratlam district

72
from June, 2007-July 2008 with the support
of Asian Development Bank.
National Bank For Agriculture and Rural
Development (NABARD) has awarded
Integrated 7 Tribal Development Programme
to GVT under the title “WADI (Orchards)”.
NABARD has awarded a Capacity Building
Phase (CBP) Project on Watershed in
Pairachali, West Bengal in February, 2008.
Chapter-8
8.1 Fertilizer Education Projects
8.1.1 The basic purpose of the application of
fertilizer is to enhance the crop productivity
in the country. The Fertilizer companies
launch their fertilizer projects for educating
the farmers about the quality/contents of
the soil for crops. Resultantly, the farmers
are encouraged by the companies to use
the balanced fertilizers based on the quality
of the soil nutrient wise and apply fertilizers
accordingly. Department of Fertilizers does
not implement Fertilizer Education Projects.
Such projects are administered by
Department of Agriculture & Cooperation,
ICAR, State Governments and the
agriculture universities. However, some
fertilizer companies including PSUs do
undertake such projects as part of their
extension and marketing activities. The
PSUs under the Administrative control of
Department of Fertilizers are encouraged
to launch fertilizer education projects for
the benefit of farming community as per
the MOUs signed with the Department of
Fertilizers in this regard. The main activities
undertaken by various fertilizer companies
under the Fertilizers Education Projects are
agricultural seminars, dealers meetings
and trainings, soil sample analysis,
demonstration, soil test recommendations,
exhibitions, orientation programmes, R&D
trials, field trials of fortified fertilizers, bio
fertilizers, distribution of crop literature,
organizing Krishi Melas etc and media
publicity. Department of Agriculture &
Cooperation has launched National Project
on Management of Soil Health and Fertility
to promote integrated nutrient management
through judicious use of chemical
fertilizers, secondary and micro nutrients
coupled with organic and bio fertilizer for
improving the soil health and crop
productivity. It also aims at strengthening
soil testing facilities, upgrading the skill of
staff working in soil testing laboratory and
strengthening the fertilizer quality control
facilities. At present there are 651 soil
testing laboratories in the Country including
517 static and 134 mobile laboratories
having annual analyzing capacity of about
7 million soil samples. The above said
national projects proposes to set up 500
new soil testing laboratories and 250
mobile soil testing laboratories for micro
nutrient analysis. It also proposes to
strengthening of 315 existing state static
laboratory during the 11th Five Year Plan.
It further proposes to upgrade 63 existing
state fertilizer quality control laboratories
and setting up of 20 new such laboratory
plus 50 laboratories for advisory purposes.
The total outlay of the project is 429.85
crore during the five year plan. A project
sanctioning cum monitoring committee
under the Chairmanship of Additional
Secretary, Department of Agriculture &
Cooperation has been constituted, which
shall be advised by National Monitoring
Team of Experts. The implementing
agencies shall be agro-clinics, NGOs,
Cooperative Societies, Private
Entrepreneurs, State Governments. As per
the above said scheme, the following
amounts of subsidy is to be provided by
Department of Agriculture & Cooperation
for STL.
73
 Sl.No. Particulars Policy
1. For Setting up of additional Soil Testing Laboratories by @50% of project cost limited
Agri clinics/NGOs /Cooperative, entrepreneurs, etc. under to maximum of Rs. 30 lakh
Private partnership mode. as one time subsidy.
2. For Adoption of village by Soil Testing Laboratories @Rs.20000 per Frontline
through Frontline Field Demonstration. Field Demonstration.
3. For Setting up of Mobile Soil Testing Laboratories by @75%of project cost limited
Agri Laboratories by Agri clinics/NGOs/Cooperative, to maximum of Rs. 30 lakh
Private entrepreneurs, etc. under Pvt. partnership mode. as one time subsidy.

8.1.2 The following nine fertilizer companies have
submitted their proposals to Department of
Agriculture & Cooperation for setting up soil
testing laboratory:
• FCI Arawali Gypsum and Minerals India Ltd.
• Krishak Bharati Cooperative Ltd.
• Mangalore Chemicals & Fertilizers Ltd. (MCF)
• Zuari Industries Ltd. (ZIL)
• Southern Petrochemical Industries
Corporation Ltd. (SPIC)
• Gujarat Narmada Valley Fertilizers Company
Ltd.
• Indian Potash Ltd.
• Rashtriya Chemicals & Fertilizers Ltd.
• GSFC.
8.1.3 Department of Agriculture & Cooperation has
been requested by the Department to release
subsidy to the above said fertilizer companies
as per the policy.



74
Chapter-9
9.1 Information Technology (IT)
9.1.1 e-Delivery for Fertilizer Management
Fertilizer Management On-line has been
developed in Department of Fertilizers in
close collaboration with National Informatics
Centre to meet the national objective of
making fertilizers available timely, adequately
in good quality and at affordable price to the
farmers by maintaining growth of fertilizer
industry through subsidies/concessions.
Proper planning and monitoring of various
aspects like fertilizer production, imports,
quality control, distribution, movement, sales,
stocks, subsidies and concessions has been
felt essential. In order to manage these
issues effectively, the following applications
systems have been developed/ upgraded in
order to pace with the IT enhancements and
change in fertilizer policy:-
9.1.2 Web Based Fertilizer Production
Monitoring System
The application system facilitates on-line data
entry and provides information support for
planning and monitoring the fertilizer
production in the form of material as well as
nutrients. The system provides analysis in
identifying the macro and micro level factors
responsible for deviations in production on
plant to plant basis in order to take corrective
measures to enhance fertilizer production in
the country. The system covers various
aspects viz., installed capacity, production
targets, actual production, capacity utilization,
requirement and consumption of raw
materials/ intermediates for fertilizer plants.
9.1.3 Fertilizer Subsidy Payment Information
System
The system is used to compute the subsidy
amount based on the subsidy rates, equated
freight rates and sales tax rates notified by
the Government for the quantity moved by
the urea manufacturers to the consumption
centres across the country. The processing
of monthly claims through application system
helps in timely release of subsidy to the urea
manufacturers. The system helps in
monitoring various activities pertaining to the
payment of subsidy by generating various
periodic reports as well as query retrieval.
9.1.4 Application System for Monitoring Energy
Consumption Norms
The system is used to calculate the overall
energy consumption in urea production by
plants based on various inputs and their
calorific values purchased from various
sources and consumed in ammonia
production. The system provides information
support to monitor operational performance
of the plants viz., daily reassessed capacity,
average productive hours, and daily
production rate and capacity utilization of
ammonia/ urea. The system also maintains
consumption and balance of ammonia for
each quarter.
9.1.5 Application System for Revision in Urea
Concession Rates
The system facilitates in quarterly revision of
concession rates for urea manufacturing units
in each group under group concession
scheme on account of escalation/de-
escalation in the variable cost of various
inputs and utilities consumed in urea
production. The software derives energy
consumption proportions of various inputs
w.r.t the total normative energy and computes
input wise proportional costs. The total input
energy cost, normative costs of various
utilities and fixed cost are then summed to
arrive at the rate of concession. The total
75
 financial impact is exercised w.r.t the previous
rate of concession and despatched
quantities.
9.1.6 Web Based Fertilizer Distribution and
Movement Information System
The system maintains the data related to
ECA supply plan, fertilizer requirements in
states/UTs, opening stocks with state
institutional agencies & fertilizer companies,
monthly movement orders, imports,
despatches (regulated/ de-regulated/imported
by rail/road), availability and sales of different
fertilizers.
9.1.7 Web Based Fertilizer Concession Scheme
Monitoring System
The computer based application system is
the major integral process of Fertilizer
Concession Scheme for timely release of
concession payments to the fertilizer
manufacturers and importers for the sales of
indigenous/ imported phosphatic and potassic
fertilizers in States/ UTs. The monthly claims
at various stages i.e. ‘On Account’,
‘Differential’ and ‘Balance’ are processed
using the software based on base/final rates,
registration for sales, bank guarantee,
eligibility and sales certification. The
computerised notings for approval and
sanctions for payments to PAO, Expenditure
& Control Register(ECR) and various queries/
reports are generated to make and monitor
the concession payments.
9.1.8 Web Based Fertilizer Import Management
System
The system assists in monitoring the fertilizer
Import Plan based on actual imports against
targets, status of FOB and C&F import
contracts for prilled urea on Govt. account
under ECA demand and import of granular
urea from OMIFCO under UOTA. The system
also maintains details of Department of
Fertilizer’s authorization to State Trading
Enterprises (STEs)/ Handling & Marketing
Agents for import of urea during a scheduled
period.
76
9.1.9 Web Based Handling & Payments System
for Fertilizer Imports
The application system provides decision
support to the Department of Fertilizers in
selecting handling agents, fixation of handling
rates and monitoring of expenditure. The
system processes the claims from handling/
marketing agents towards making payments
of inland freight and handling charges after
adjusting the recovery of cost of cargo at
Pool Issue Price (PIP) from handling/
marketing agencies, settlement of the port
dues/ICC/other charges and demurrage/
despatch with handling/ marketing agencies.
9.1.10 Fertilizer Project Monitoring System
The system facilitates in monitoring monthly
expenditure incurred through Internal and
Extra-budgetary Resources(IEBR) and
Budgetary Support on various schemes/
projects approved by DoF during Five Year
Plans w.r.t. plan outlays and yearly outlays.
9.2 Executive Video Conferencing System
(EVCS)
NICNET Based Executive Video
Conferencing System (EVCS) has been
made operational on the desk of Secretary,
Department of Fertilizers and is being used
as an effective mode of communication for
inter-Ministerial consultations and quick
decision making. Point-to-Point Video
Conferencing can be initiated by anyone
connected to EVCS and multi-point Video
Conferencing can be organized through NIC,
Delhi.
9.3 Information & Communication Technology
(ICT) Infrastructure
DOF’s intranet consisting of 270 nodes is
operational in Department’s offices located
in Shastri Bhawan, Udyog Bhawan, Janpath
Bhawan and Sewa Bhawan. NIC’s iNOC
(Integrated Network Operation Centres) at
Shastri Bhavan, Udyog Bhavan and Sewa
Bhavan protect computer systems of DOF’s
intranet from network security attacks.
Dealers Meet at Mysore, Karnataka.
The clients systems in the Department have
been provided upto LDC level with internet
connectivity to make wider use of IT services.
For accessing the internet through RF link of
NICNET, all the computers are connected
through NIC’s proxy server where built-in
firewall capabilities are enabled.
9.4 Site Web / Web Applications Hosting
The websites of DOF and fertilizer PSUs are
hosted at Internet Data Center(IDC), NIC
Hqrs. in a secured ICT environment to bring
citizen interface and transparency in
Government functioning. The web based
applications for fertilizer production,
movement, concessions payment, imports &
handling are operational from IDC. The
remote facility through secured Virtual Private
Network (VPN) connection of NIC is being
used in DOF and Fertilizer PSUs for instant
updations in the websites.
Cabinet Secretary to the Government of India
directed all Government Ministries/
Departments to have their websites as per
the guidelines adopted by DAR&PG.
Accordingly, the website of Department of
Fertilizers has been redesigned and enriched
in order to make it compliant to the
guidelines. The website has been made more
qualitative, informative and user friendly to
bring transparency in Government functioning
and citizen interface.
9.5 E-Governance
Department of Fertilizers has taken various
measures to bring e-Governance:
Office Automation Packages : CompDDO
(Comprehensive Function Management of
Drawing & Disbursing Officer) Payroll System
for Central Government Offices, Web based
File Tracking System, Application Monitoring
77
 System under RTI Act, Leave Management
System, PGRAMS (Public Grievances
Software Package) and CPENGRAMS
(Centralized Pension Grievance Redress And
Monitoring System) developed by NIC are
operational in the Department of Fertilizers.
9.6.5
To strengthen further the Office Automation
in Department of Fertilizers, an IT based
system “Office Notifications Management
System” has been developed and
implemented to generate, store and manage
different kinds of official letters viz. Office
Memorandum, Letters, Office Orders, Orders,
D.O. Letters, Resolutions, Inter-Departmental
Notes, Press Communiqués etc in
compliance with Manual of Office Procedures
(MOP).
level. This is a major achievement for the
Department as majority of the losses occur
at the Block and Warehouse levels. Data
from FMS provides a complete and
comprehensive picture in this regard.
In order to make sure that the availability of
upto date data, same is captured as soon as
the transaction is completed on the ground.
In order to ensure this, appropriate locks are
available on the entry of date into FMS.
These locks have following time frames:
Production: Within 3 days
Dispatches: Within 24hrs after the same has
taken place
Receipts: Within 5 days
Sales: Within 5 days

The facility of word processing in Hindi is
available in all the computers in the
Department.
E-mail service is being extensively used by
the officials of Department of Fertilizers for
information exchange with fertilizer
companies and other agencies.
9.6 Fertilizer Monitoring System
Failure to do so in the stipulated time locks
the system and the same then can then be
unlocked only after approval from Director
(Mov) and Director (FA).
9.6.6 Supply Plans are being captured at both
District as well as Block levels and system
has appropriate checks to ensure that
Companies do not exceed the supply plan
as given by the Movement Division.

9.6.1. Fertilizer Monitoring System (FMS) was
formally launched on 22nd January, 2007.
9.6.2. FMS is a path breaking initiative undertaken
by Department of Fertilizers (DOF). FMS
monitors movement of different fertilizers at
various stages in their value chain. It monitors
the production, dispatches. Receipts and
sales of DAP, MOP, TSP, MAP, NPK & Urea
(Indigenous and imported) Fertilizers.
9.6.3. Prior to the FMS, availability of fertilizers was
being tracked till the State level(manually)
with the frequency of data updation once a
week. However, with FMS data is now
updated on daily basis and upto date
information on availability in the country is
available readily.
9.6.4 FMS has been developed with the facility to
monitor the distribution till warehouses. At
present this information is available at District
9.6.7 FMS facilitates to process the subsidy
payment (on basis of Receipts) of DAP, MOP,
TSP, MAP, NPK Fertilizers. This has reduced
the processing time considerably. Reports are
available in the system in order to view the
cleared as well as pending claims. Also
various stages (within the Department) at
which the claim is lying can be tracked using
the system.
9.6.8 The system is ready to capture the
movement of SSP. With this 60 more
companies will start entering the daily
transaction on the system. With this, the
entire movement of fertilizers will be viewed
using a single window.
9.6.9. Freight subsidy under the uniform Freight
Policy for both controlled and decontrolled
fertilizers is being generated and processed
using the system.

78
9.6.10 As per the policy, claims are now being
processed on the basis of receipts. Thus
system has been modified to pay the On
Account claims on the basis of receipts and
Balance Claims on the basis of Sales.
9.6.11 System enables the Department to make the
subsidy payment in Cash, Bonds or Special
Banking Arrangement according to the
availability of Budget.
9.6.12 Official are able to split the Sanction Advice
in order to make part payment as required.
9.6.13 The recoveries can now be adjusted against
any claim. System gives the officials an
option to choose the claim against which he/
she wishes to make the adjustment.
9.6.14 Expenditure Control Register (ECR) is online.
9.6.15 Submission of Proforma ‘B’ by the States is
now linked to the Supply Plan. In case the
State fails to submit the proforma, there is
an option in the system using which the
Supply plan can be with held for the State.
9.6.16 In addition to the features mentioned above,
System Requirement Specifications for the
following modules have already been
submitted and it is expected that in the
coming year these modules will go live.
Indigenous Urea Claim generation &

processing – Using this module, FICC will
start processing all the claims electronically.
Tracking of Imports of Fertilizers (Despatch/
Demurrage settlement)- This module will
facilitate the shipping wing to calculate Lay
Time Calculation online. It will also help them
to settle the disputes online.
Imported Urea Claim generation &
processing- With the introduction of Port
modules, the generation & processing of
Imported Urea Claim would enable
Department of Fertilizers to settle claim
before time. These claims are time bound
and require to be processed within stipulated
time.
P&K Fertilizer cost Evaluation- This module
will enable MPR Section to calculate subsidy
rate online which will save time and effort.
With this module the notification of Final
concession rate would be possible on time.
Indigenous Urea Fertilizer cost evaluation –
In FICC, Cost & Evaluation department does
a lot of complex calculation in order to derive
concession rate of Indigenous Urea fertilizers
for a quarter. This module will assist them to
compile the data in such fashion that without
much effort the concession rate will be
calculated in time. This will also help them
to make repository of their old records.
79
Chapter-10
10.1 Vigilance Activities
10.1.1 The vigilance activities of the Department,
extends not only to the Department but also
to that of 8 Public Sector Undertakings and
one Multi State Cooperative Society. The
departmental vigilance set up is headed by
a Joint Secretary who is designated as the
Chief Vigilance Officer of the Department.
The CVO of the Department is assisted by
a Deputy Secretary (Vigilance), Under
Secretary (Vigilance) and other vigilance
staff. The Department supervises the
vigilance activities within the framework
provided by the Central vigilance
Commissioner. The Department plays a pro-
active role in ensuring the prompt disposal
of vigilance cases and in framing preventive
guidelines. This helps in minimizing the
occurrence of vigilance cases.
10.1.2 Efforts are made by the Department to
simplify the procedures in the PSUs to make
them work in transparent manner. This
reduces the chance of corruption.
10.1.3 As per the framework provided by the CVC,
a meeting of the Chief Vigilance Officers of
the Fertilizer PSUs was convened under the
chairmanship of the Secretary (F) on
18.11.2009. The meeting was also attended
by the CVO of the Department. In the
meeting, an appraisal of the working/
functioning and achievements of the CVOs
was done. The initiatives taken by CVOs
towards pro-active vigilance environment of
the PSUs were also discussed.
10.2 Vigilance Activities during 2009
The number of pending vigilance cases, viz,
CVC advice/Departmental proceeding/

80
complaints in PSUs as on 31.03.2009 were
18. During the year 2009, 15 more complaints
were added. Most of the cases are at the
advance stages of completion. The
Department has been regularly monitoring
the pending complaints/investigations by
having close inter action with the concerned
CVOs and constant efforts are being made
to ensure the disposal of disciplinary
proceedings.
10.3 Vigilance Week Celebrations
The ‘Vigilance Week’ was celebrated during
the 3rd to 7th of November 2009. Banners
and posters were displayed in the
Department to create vigilance awareness
among the staff. A pledge was administered
to the staff by Secretary (Fertilizers) and an
essay competition was held thereafter. There
was active and enthusiastic participation from
the officers and employees of the Department
in this Essay Competition. The ‘Vigilance
week’ was also celebrated with great gusto
in the fertilizers PSUs, including KRIBHCO
and various competitions like slogan writing,
Essay, Debate, Quiz, Workshops etc. were
held.
10.4 Surveillance and detection
Agreed list of public servants as well as List
of Public Servants of Doubtful Integrity for
the year 2009 are complete. Further, with a
view to check corruption in the Department,
the ‘Rotational Transfer of Staff’ as per the
norms/guidelines issued by CVC was
implemented. Accordingly, a number of
officials/officers of the Department who were
looking after sensitive nature of work on a
particular seat for more than three years were
transferred.
Chapter-11
11.1 Right to Information Act, 2005
11.1.1 The Right to Information Act, 2005 (RTI) was
assented by the President of India on
15.6.2005 and notified on 21.6.2005. Some
of the Sections of the Act, namely, Sections
4(1), 5(1) &(2),12,13,15,16,24,27 & 28
relating to obligations of Public Authorities
for maintenance and computerization of
record/information, designation of Public
Information Officers(CPIO), Constitution of
Central Information Commission and State
information Commission, exclusion of certain
organization etc. came into force immediately.
The remaining provision of the RTI Act came
into force on the 120th day of its enactment
i.e. 12th October 2005.
11.1.2 In compliance of the RTI Act the Department
has designated CPIOs and CAPIO. The
respective PSUs under the administrative
control of the Department have been directed
to ensure compliance of the RTI Act. Some
of the important steps taken by the
Department in compliance of the Act are:-
Created a separate link for RTI Act on its
website http://fert.nic.in placing a Handbook

on RTI giving general information about the
Department required under the Act.
Orders designating PIOs, with required
details, placed on website, which are up
dated from time to time.
Counter opened at Public Information Centre
of DoF at Shastri Bhavan for applications as
well as prescribed fee under RTI.
Appointment of Nodal Officer intimated to
Department of Post enabling providing of
services by that Department as CAPIOs
across the country.
11.1.3 The Department has started registration of
Requests and Appeals under the RTI Act on
the Management Information System (RTI –
RAMIS) software available on the Web-Site
of CIC.
11.1.4 During the year 2009-2010, 115 applications
and 1 appeal were received of which 112
applications and the only appeal were
disposed of during the said year and the
remaining 3 applications are under process
for sending reply to the applicants.
81
Chapter-12
12.1 Progressive use of official language
Hindi
12.1.1 Department of Fertilizers continued its
efforts towards greater use of Hindi in official
work during 2009-2010 keeping in view the
Annual Programme issued by the
Department of Official Language, Ministry
of Home Affairs for implementation of the
Official language policy of the Union. The
work pertaining to the progressive use of
Hindi in the Department is under the
administrative control of Joint Secretary
(Administration), assisted by a Deputy
Director (OL). The Hindi Section consists
of one Assistant Director (OL), a Senior
Translator, three Junior Translators and an
Assistant.
12.1.2 All the 250 Computers (PCs) in the
Department are equipped with bilingual
facility. Adequate reading material in Hindi
has been made available in the library of
the Ministry of Chemicals & Fertilizers.
Efforts are being made to promote the use
of Hindi in the correspondence. All officers/
employees of the Department are having
working knowledge of Hindi. Two typists and
four stenographers of the Deptt., which were
yet to be trained in Hindi typing & shorthand
have been nominated for training. With the
Completion of this training all typists/
stenographers working in the Deptt., will be
competent in doing their work in Hindi.
Besides, a number of measures have been
taken for the promotion of progressive use
of Hindi in the Department, its attached
office of FICC, PSU’s and the multi-state-
cooperative society namely KRIBHCO,
under its administrative control. Details of
these measures are summarized below:-
82
12.2 Implementation of Section 3(3) of the
Official Language Act.
12.2.1 In pursuance of the official language policy
of the Govt. of India, all documents covered
under section 3(3) of the Official Language
Act, 1963 are being issued both in English
and Hindi. In order to ensure issuance of
correspondence in Hindi to Central
Government offices located in Region ‘A’,
‘B’ and ‘C’, action plan based on the
checkpoints identified in the Department has
been prepared to ensure compliance of the
official language policy.
12.3 Official Language Implementation
Committee (OLIC)
12.3.1 There is an Official Language
Implementation Committee (OLIC) under
the Chairmanship of Joint Secretary
(Adm.) in the Department. This committee
periodically reviews the progress made
in the use of Hindi in the Department, its
attached offices, FICC, PSUs and a
Cooperative Society namely KRIBHCO on
quarterly basis. It gives appropriate
suggestions and recommends measures
to be taken for the effective
implementation of the official language
policy.
12.4 Rajbhasha Shield/Trophy
12.4.1 The Department is operating a Scheme
which was drawn up in the year 2001-
2002 for the grant of awards to various
PSU’s/cooperative society/office under the
administrative control of the Department.
Under this scheme, Rajbhasha Shields
are awarded by the Hon’ble Minister for
Chemicals and Fertilizers in the Hindi
Advisory Committee Meetings. Besides
 this, a multi-states co-operative society
under this Department. Kribhco has been
awarded First Indira Gandhi Rajbhasha
award for the year 2007-.08 by the
hon’ble President of India at a function
organised by Department of Official
Langauage on 14th September, 2009 at
Vigan Bhawan, New Delhi.
12.5 Hindi Salahkar Samiti
12.5.1 With a view to render advice for effective
implementation of the official language
policy of the Government, meeting of the
Hindi Salahkar Samiti (Advisory Committee)
of the Ministry of Chemicals and Fertilizers
(The joint committee of the Department of
Chemical & Petro-Chemical and the
Department of Fertilizer) under the
chairmanship of the Minister for Chemicals
and Fertilizers was held on 10.2.2009.
12.6 Incentive Scheme for original noting/
drafting work in Hindi
12.6.1 The incentive scheme for noting/drafting in
Hindi introduced by the Department of
Official Language is continued. This scheme
carries two prizes of Rs.1000/- each, three
second prizes of Rs.600/- each and five
third prizes of Rs.300/- each.
12.7 Cash prize scheme for dictation in Hindi
12.7.1 An incentive scheme for officers for giving
dictation in Hindi is in operation in the
Department. Under this scheme, there is a
provision of two cash prizes of Rs. 1000/-
each (one for Hindi speaking and other for
Non-Hindi speaking).
12.8 Hindi Day/Hindi Fortnight
12.8.1 In order to encourage the use of Hindi in
official work amongst officers/employees of
the Department, an appeal was made by

the Honourable Minister on 14th September,
2009. During the Hindi fortnight, which was
organised in the Department from 14 th
September, 2009 to 29th September, 2009,
various competitions such as Hindi Essay
writing, Hindi shorthand, Hindi typing, Hindi-
English translation, Hindi noting and
drafting, Hindi general knowledge and
poetry recital competitions were organised
and 26 officers/employees took part in these
competitions and won prizes.
12.9 Prati Din Ek Shabd
12.9.1 The Scheme named ‘Prati Din Ek Shabd’,
which has been launched in the Department
is continued for the last six years. Under
this scheme, one word/phrase in Hindi and
its English equivalent was being displayed
on the White Board installed on the second
floor ‘A’ wing Shastri Bhavan. These words/
phrases are generally of administrative and
technical in nature which are used in day-
to-day official work.
12.10 Hindi Workshops
12.10.1 During the year, 3 Hindi workshops were
organised in the Department to encourage
the officials to undertake more work in Hindi
and altogether 25 officers/employees
participated in these workshops.
12.11 Inspections regarding progressive use
of Hindi
12.11.1 In order to oversee the implementation of
the official language policy 8 offices/units
of different PSUs were inspected by the
Deputy Director (O.L.) of the Department
during the year. In addition, the first Sub-
Committee of the Parliamentary Committee
on Official Language inspected 1 office
under the administrative control of the
Department.
83
Chapter-13

13.1 Welfare of SCs, STs, OBCs and Department. The Cooperative Society viz.
Physically Handicapped Persons KRIBHCO has also adopted the
guidelines relating to OBCs w.e.f. 1.10.95.
13.1.1 Due care has been exercised during the The implementation of these directives is
year under review to implement being monitored in the Department and
Government’s instructions regarding concerted efforts are being made to fill
recruitment and promotion of candidates up the vacancies for the reserved
belonging to the Scheduled Castes (SCs), categories. The representation of SCs,
Scheduled Tribe (STs), Other Backward STs, ex-servicemen, physically
Classes (OBCs) and Physically handicapped persons and OBCs in the
Handicapped (PHPs) categories in various PSUs is given in the Annexure-XI.
groups of services in the Department. The
representation of these categories in the Besides providing employment, PSUs/
Department as on 31.03.2010 was as Cooperative have been advised to prepare
under:- and implement special programmes/
schemes for education of tribals in scientific
Group Total SC ST OBC PH use of fertilizers, building up of dealer/
No. of retailer network in the tribal areas, and
Officers/ making fertilizers available in small packs
Staff in the tribal predominated areas.
A 38 02 01 03 - 13.3. Welfare of Minorities
B 99 15 06 06 01
13.3.1 The PSUs/Co-operative under the
C 65 13 03 06 - Department have further been advised to
provide facility of pre-examination coaching
D 59 20 02 06 01
to the candidates of minority community,
Total 261 50 12 21 02 wherever feasible, and to take steps to
increase awareness of candidates
belonging to the communities about
13.2 Representation of SCs, STs, OBCs and
employment opportunities. They have also
Physically Handicapped Persons in
been advised to include a representative of
PSUs
the minorities in the recruitment selection
13.2.1 Presidential Directives on reservation for boards to ensure that the minorities get an
the candidates belonging to the SCs and adequate share in the services and benefit
STs issued from time to time by the from development schemes.
Department of Public Enterprises (DPE),
13.4 Reservation in Dealership
have been implemented in all the PSUs/
Cooperative under the administrative 13.4.1 The Department had instructed all the PSUs
control of the Department. The under its administrative control to reserve
Presidential Directives regarding at least 25% of dealerships of fertilizers for
reservation for OBCs have also been the members belonging to SCs/STs. To
made applicable w.e.f. 8.9.93 in the ensure availability of sufficient numbers of

84
suitable SC/ST candidates, the following • higher rate of dealership margin as
concession are generally given by the compared to that allowed to general
undertakings:- dealers; and

• exemption/relaxation from security • free training for handling of fertilizers.

deposits.
13.4.2 The PSUs have also been advised to
• preference in supply of fast moving reserve 10% of fertilizer dealerships for ex-
materials. servicemen.



85
Chapter-14
14.1 Women Empowerment
14.1.1 The principle of gender equality is enshrined
in the Indian Constitution in the Preamble,
Fundamental Rights, Fundamental Duties
and Directive Principles. The Constitution
not only grants equality to women but also
empowers the State to adopt measures of
positive discrimination in favour of women.
The Department of Fertilizers is committed
towards giving importance to women in
different spheres. Though there is no
specific scheme, as such, for women, the
PSUs and Co-operative under its
administrative control are involved in year
long activities to create large scale
awareness among women with their active
participation. These programmes are aimed
towards enabling women to realize their full
potential and involvement in decision
making. Department of Fertilizers has a
“Complaints Committee” to attend to
grievances of its women employees.
Department has also allocated a separate
room for women to serve as common room.
The Department takes pride in providing
congenial environment to women
employees.
14.2 RCF
14.2.1 RCF as an organization has always been
fair in treating employees without any
gender bias. Opportunities for growth,
training, challenging jobs, learning are
equally available to both men and women
employees of RCF. Women represent in fair
numbers in the batch of apprentice trainees
in technical areas.
14.2.2 Women are working in technical / non-
technical / managerial positions and some
of them have risen to the level of top
management positions in the organization.
86
14.2.3 All the welfare and employee benefit
schemes are equally applicable to male and
female employees of RCF.
14.2.4 Under the special schemes and policies for
women employees RCF has set up –
• Special Cell for Women Employees (as
per Communication from National
Commission on Women)
• Committee for Sexual Harassment
Cases (as per Supreme Court
Guidelines)
• Special Medical check-ups/camps.
All the benefits under legal requirements
such as Maternity Benefits, Nursing Breaks,
etc. are given to women employees.
RCF is one of the pioneer members in the
Forum of Women in Public Sector (WIPS)
since its inception (1990). It is a corporate
member of this forum and has been
representing in all activities of the forum
with total support and participation in all
activities. Some RCF women officers have
been working with the forum as heads of
taskforces, members of committees and
have contributed in policy making and
development of women to a great extent.
As a part of regular training, RCF
incorporates awareness building for all
officers (Men and Women) on the Sexual
Harassment Guidelines and also covers
gender sensitization issues.
14.3 NFL
14.3.1 Female employees comprise 5.23% of the
total workforce of the NFL. (The Company
has a female Full-time Functional Director
on its Board).The Company has adopted
 adequate measures to facilitate a congenial
work atmosphere for its women employees.
Besides this, ladies club at units, from time
to time, distribute useful items like Utensils,
Sewing Machines, Blankets etc. to the poor
women in the neighboring villages.
14.3.2 There is no instance of any Gender
inequality and both men and women
employees are enjoying equal rights. The
working atmosphere is very cordial and
harmonious. A Committee is functioning at
all the Units / Offices of the Company to
deal with the cases of sexual harassment
at work place.
14.3.3 NFL Employees (Conduct, Discipline &
Appeal) Rules and Standing Orders have
also been amended to include sexual
harassment of women at workplace as
‘Misconduct’.
14.4 FACT
14.4.1 Equal opportunity has been provided to
women in recruitment to posts both in
technical and administrative disciplines.
Exception has been made only for jobs
involving shift-work round the clock. Equal
remuneration is paid to employees of both
genders doing the same type of work. There
is no discrimination on grounds of gender.
This has enabled some of our women
officers to excel in their respective field of
activities leading to their being chosen for
the coveted Merit Award given for
outstanding performance and achievements.
14.4.2 Out of 3569 employees, 259 are women
employees which constitutes 7.25% of the
total strength. In the managerial cadre, 96
out of 873 are women which constitutes
11% of the managerial strength. Women
executives occupy key positions in the
Management cadre as Chief Managers/
Chief Engineers & Dy.Chief Managers/
Dy.Chief Engineers in various Engineering
disciplines like Chemical, Electrical, Civil,
Computer, Industrial Engineering etc. and
administrative disciplines like Finance,
Human Resources, Materials, Marketing
etc.
14.4.3 Under the Maternity Benefit Act, women
employees are entitled for maternity leave
of 90 days and medical benefits
associated with pregnancy, delivery,
miscarriage etc. Under the provisions of
the Factories Act, the working hours of
women employees covered under the Act
is restricted between 6 am and 7 pm.
Nursing mothers are given two intervals
of 15 minutes each as feeding time, or
alternatively as a working arrangement
of 30 minutes at a stretch, for feeding
their infants, up to a maximum of fifteen
months after confinement.
14.4.4 As per GOI Orders, women employees
undergoing family planning operation are
given special leave up to 2 weeks.
14.5 MFL
14.5.1 MFL do not have any problems related
with gender issues. However a wing of
Women in Public Sector (WIPS) is
functioning at MFL and women employees
are nominated for the programs organized
by WIPS.
14.6 BVFCL
14.6.1 BVFCL lays emphasis in development of
employees without any gender
discrimination. Recruitment of women
candidates are made in the company. As
per the guidelines circulated by the
National Commission for Women, a
complaint committee has already been
constituted under the Chairmanship of a
lady officer to look into the matter of
sexual harassment of women employees
at the workplace. There is no
discrimination against any woman at any
point of time.
14.7 FAGMIL
As such, the company is a new Company
and is engaged in the business of mining
87
 in the desert areas of Rajasthan. Suitable
measures will be taken for the welfare and
the empowerment of women and for
mainstreaming gender issues.
14.8 KRIBHCO
14.8.1 KRIBHCO the role of women employee has
been seen in more holistic term. Women’s
issues are well integrated in the total
development endeavor. Women are
provided equal opportunities with their
counterpart keeping in mind the principles
of equality in gender with respect to their
working, development and growth.
14.8.2 The physical & mental growth and
development of women employees in
KRIBHCO are given special attention by

88
imparting them specialized training and
nominating in specialized women
empowerment seminars and programmes.
Female officers are equally associated in
formulation of policies be it promotion and
recruitment policies or other matters of
importance.
14.8.3 Complaint Committee headed by a woman
officer as its chairperson has been
functioning to resolve their grievance, if any.
In order to avoid any incidence of
misconducts relating to harassment towards
women employees, special provisions have
been incorporated in the Conduct, Discipline
& Appeal (CDA) Rules of the Society to
prevent the same and protect the female
employees.
 ANNEXURE- I

LIST OF SUBJECTS ALLOCATED TO THE DEPARTMENT OF FERTILIZERS AS PER

GOVERNMENT OF INDIA

(ALLOCATION OF BUSINESS) RULES, 1961

(See Chapter- 2)

1. Planning for fertilizer production including import of fertilizer through a designated canalising agency.

2. Allocation and supply linkages for movement and distribution of urea in terms of assessment made
by the Department of Agriculture & Cooperation.

3. Administration of concession schemes and management of subsidy for controlled as well as

decontrolled fertilizers including determination of retention price for urea, quantum of concession of
decontrolled fertilizers costing of such fertilizers and pricing of Phosphatic and Potassic fertilizes.

4. Administration of the Fertilizers (Movement Control) Order, 1960.

5. Administrative responsibility for fertilizer production units in the cooperative sector, namely, Krishak
Bharti Cooperative Limited.

6. Administrative responsibility for the Indian Potash Limited (IPL).

89
 ANNEUXRE-II

(See Chapter-2)

Minister for Chemicals & Fertilizers : Shri M.K. Alagiri

Minister of State for C&F : Shri Srikant Kumar Jena

Secretary : Shri Atul Chaturvedi (upto 22.10.2009)

Shri S. Krishnan (w.e.f. 22.10.2009)

Special Secretary & Financial Adviser : Shri Mathew C. Kunnumkal

(upto 05.02.2010)

Joint Secretary : Shri Sudhir Bhargava

Shri Satish Chandra
Shri Deepak Singhal

Joint Secretary Level Officers : Shri A.K. Parashar, Eeconomic Adviser

Shri B.N. Tiwari, DDG

Directors : Shri Deepak Kumar

Shri B.B. Mehtani
Shri Manoj Kumar Gupta
Shri Rajesh Agrawal (upto 14.01.2010)

Director Level Officer : Dr. Sri Chandra, Joint Adviser

(upto 30.11.2009)
Shri M. Dandayudhapani (FICC)
Shri Pradeep Yadav, PS to Minister(C&F)
Smt. T.C.A Kalayani (Director of Accounts)
Shri T.A. Basil (FICC)
Shri Umesh Dongre (FICC)
Shri A.S. Sandhu (FICC)

Deputy Secretary : Shri Sanjay Kumar Sinha

Shri H. Abbas
Shri K.K. Padmanabhan

Controller of Accounts : Shri Hemant Jain (Upto 22.01.2010)

Shri Akhilesh Jha (w.e.f. 22.01.2010)

Deputy Secretary Level Officer : Shri Nand Lal, Sr. PPS (upto 28.10.2009)
Shri A.K. Chandwani, Sr. PPS (w.e.f. 30.12.2009)

90
 ANNEXURE-III

LIST OF PUBLIC AND COOPERATIVE SECTOR UNDERTAKINGS UNDER THE ADMINISTRATIVE

CONTROL OF DEAPRTMENT OF FERTILIZERS

(See Chapter-2)

PUBLIC SECTOR :

Sl. Name of the Company Headquarters Incorporation in

No.

1. Fertilizers And Chemicals Travancore Ltd. (FACT) Udyogamandal September, 1943

2. Fertilizer Corporation of India Ltd. (FCI) New Delhi January, 1961

3. National Fertilizers Limited (NFL) Noida August, 1974

4. Rashtriya Chemicals & Fertilizers Ltd. (RCF) Mumbai March, 1978

5. Madras Fertilizers Limited (MFL) Chennai December, 1966

6. Projects & Development India Limited (PDIL) Noida March, 1978

7. Hindustan Fertilizer Corporation Limited (HFC) New Delhi March, 1978

8. Brhamaputra Valley Fertilizer Corporation Limited (BVFCL) Guwahati April, 2002

9. FCI Aravali Gypsum And Minerals India Limited (FAGMIL) Jodhpur February, 2003

COOPERATIVE SECTOR :
10 Krishak Bharati Cooperative Limited (KRIBHCO) Noida April, 1980

91
 ANNEXURE-IV

UNIT-WISE INSTALLED CAPACITY, PRODUCTION

AND CAPACITY UTILIZATION FOR THE
YEAR 2008-09 & 2009-10 (Estimated)

(Chapter-3)

NITROGEN
Name of Name of Annual Installed Production Percentage capacity
Company/Plant Products Capacity (‘000 MT) utilization
(As on 1-04-06)
(in ‘000’ MTs) 2008-09 2009-2010 2008-09 2009-2010
(Estimated) (Estimated)
Public Sector:
NFL:Nangal-II Urea 220.1 236.6 209.3 107.5 95.1
NFL:Bhatinda Urea 235.3 247.2 244.4 105.1 103.9
NFL:Panipat Urea 235.3 224.7 233.0 95.5 99.0
NFL:Vijaipur Urea 397.7 398.2 417.8 100.1 105.1
NFL:Vijaipur Expn. Urea 397.7 431.5 426.8 108.5 107.3
TOTAL (NFL): 1486.1 1538.2 1531.3 103.5 103.0
BVFCL:Namrup-II Urea 110.4 27.9 38.0 25.3 34.4
BVFCL:Namrup-III Urea 144.9 59.1 107.9 40.8 74.5
TOTAL (BVFCL): 255.3 87.0 145.9 34.1 57.1
FACT:Udyogamandal A/S , 20:20 77.0 50.2 57.8 65.2 75.1
FACT:Cochin-II 20:20 97.0 97.9 107.3 100.9 110.6
TOTAL (FACT): 174.0 148.1 165.1 85.1 94.9
RCF:Trombay 15:15:15 45.0 70.7 70.6 157.1 156.9
RCF:Trombay-IV 20.8:20.8, 20:20 75.1 0.0 14.0 0.0 18.6
RCF:Trombay-V Urea 151.8 0.0 133.4 0.0 87.9
RCF:Thal Urea 785.1 875.6 819.1 111.5 104.3
TOTAL (RCF): 1057.0 946.3 1037.1 89.5 98.1
MFL:Chennai Urea / 17:17:17 366.7 186.7 190.8 50.9 52.0
SAIL:Roulkela CAN 120.0 0.0 0.0 0.0 0.0
By Product A/S 38.4 18.9 18.9 49.2 49.2
Total (Public): 3497.5 2925.2 3089.1 83.6 88.3
Cooperative Sector
IFFCO:Kandla 10:26:26 / 12:32:16 /DAP 351.5 207.3 302.8 59.0 86.1
IFFCO:Kalol Urea 250.5 257.5 268.5 102.8 107.2
IFFCO:Phulpur-I Urea 253.5 304.8 328.3 120.2 129.5
IFFCO:Phulpur-II Urea 397.7 386.7 463.0 97.2 116.4
IFFCO:Aonla-I Urea 397.7 454.0 462.0 114.2 116.2
IFFCO:Aonla-II Urea 397.7 468.4 464.6 117.8 116.8
IFFCO:Paradeep DAP / 10:26:26 / 20:20 / 325.2 252.5 279.8 77.6 86.0
12:32:16
TOTAL(IFFCO): 2373.8 2331.2 2569.0 98.2 108.2
KRIBHCO:Hazira Urea 795.4 801.8 817.1 100.8 102.7
Total(Co-operative): 3169.2 3133.0 3386.1 98.9 106.8
Total(Pub.+Coop.): 6666.7 6058.2 6475.2 90.9 97.1

92
Name of Name of Annual Installed Production Percentage capacity
Company/Plant Products Capacity (‘000 MT) utilization
(As on 1-04-06)
(in ‘000’ MTs) 2008-09 2009-2010 2008-09 2009-2010
(Estimated) (Estimated)

Joint Venture
GSFC:Vadodara Urea / DAP / 20:20 / A/S 248.1 194.0 253.9 78.2 102.3
GSFC:Sikka-I DAP / 12:32:16 105.8 48.0 78.4 45.4 74.1
GSFC:Sikka-II DAP / 12:32:16 71.3 71.5 89.3 100.3 125.2
TOTAL(GSFC-Sikka): 177.1 119.5 167.7 67.5 94.7
GNFC:Bharuch Urea / CAN / 20:20 356.7 333.9 375.1 93.6 105.2
KSFL:Shahjahanpur Urea 397.7 397.5 440.6 99.9 110.8
Private Sector
CFL:Vizag 28:28 / 14:35:14 / 20:20 / 124.0 157.3 216.2 126.9 174.4
16:20 / 10:26:26
CFL:Ennore 16:20 / 20:20 41.2 25.3 32.5 61.4 78.9
CFL:Kakinada DAP / 10:26:26 / 20:20 / 120.6 160.1 203.1 132.8 168.4
14:35:14 / 12:32:16
SFC:Kota Urea 174.3 181.9 168.8 104.4 96.8
DIL:Kanpur Urea 332.1 0.0 0.0 0.0 0.0
ZIL:Goa Urea / DAP / 19:19:19 / 288.7 268.5 275.4 93.0 95.4
10:26:26 / 12:32:16
SPIC:Tuticorin Urea / DAP / 20:20 / 370.7 0.0 89.0 0.0 24.0
17:17:17
MCF:Mangalore Urea / DAP / 20:20 / 207.2 217.8 234.7 105.1 113.3
16:20
TAC:Tuticorin A/C 16.0 0.0 6.2 0.0 38.8
TCL:Haldia DAP / 10:26:26 / 12:32: 121.5 70.0 89.6 57.6 73.7
16/ 14:35:14 / 15:15:15
PNF:Nangal A/C 16.0 0.0 0.0 0.0 0.0
IGCL:Jagdishpur Urea 397.7 491.6 503.3 123.6 126.6
Hin.Ind.Ltd.:Dahej DAP / 10:26:26 /12:32:16 72.0 30.4 33.8 42.2 46.9
DFPCL:Taloja 23:23 52.9 13.3 28.6 25.1 54.1
NFCL:Kakinada-I Urea 274.8 353.7 345.9 128.7 125.9
NFCL:Kakinada-II Urea 274.8 280.2 327.6 102.0 119.2
TOTAL(NFCL): 549.6 633.9 673.5 115.3 122.5
CFCL:Gadepan-I Urea 397.7 418.5 477.8 105.2 120.1
CFCL:Gadepan-II Urea 397.7 463.8 462.9 116.6 116.4
TOTAL(CFCL): 795.4 882.3 940.7 110.9 118.3
TCL:Babrala Urea 397.7 470.9 557.6 118.4 140.2
PPL:Paradeep DAP / 14:35:14 / 20:20 / 129.6 159.4 197.6 123.0 152.5
12:32:16 / 10:26:26 /
28:28
By Product A/S 7.5 3.8 5.4 50.7 72.0
Total (Private Sector): 5394.3 4811.4 5493.3 89.2 101.8
Total(Pub+Coop+Pvt): 12061.0 10869.6 11968.5 90.1 99.2

93
PHOSPHATE
Name of Name of Annual Installed Production Percentage capacity
Company/Plant Products Capacity (‘000 MT) utilization
(As on 1-04-06)
(in ‘000’ MTs) 2008-09 2009-2010 2008-09 2009-2010
(Estimated) (Estimated)
Public Sector:
FACT:Udyogamandal 20:20 29.7 23.2 31.8 78.1 107.1
FACT:Cochin-II 20:20 97.0 97.9 107.3 100.9 110.6
Total(FACT): 126.7 121.1 139.1 95.6 109.8
RCF:Trombay 15:15:15 45.0 70.7 70.6 157.1 156.9
RCF:Trombay-IV 20.8:20.8 75.1 0.0 14.0 0.0 18.6
Total(RCF): 120.1 70.7 84.6 58.9 70.4
MFL:Chennai 20:20 / 19:19:19 / 17:17:17 142.8 0.0 0.0 0.0 0.0
HCL:Khetri SSP 30.1 0.0 0.0 0.0 0.0
SSP Units SSP 12.8 0.0 0.0 0.0 0.0
Total(Public): 432.5 191.8 223.7 44.3 51.7
Cooperative Sector
IFFCO:Kandla DAP / 10:26:26 / 12:32:16 910.0 541.5 786.1 59.5 86.4
IFFCO:Paradeep DAP / 10:26:26 / 20:20 / 802.8 374.7 386.8 46.7 48.2
12:32:16
Total(Co-op.) 1712.8 916.2 1172.9 53.5 68.5
Total(Pub.+Coop.): 2145.3 1108.0 1396.6 51.6 65.1
Joint Venture
GSFC:Vadodara DAP / 20:20 75.9 59.5 58.1 78.4 76.5
GSFC:Sikka-I DAP , 12:32:16 270.5 123.4 200.8 45.6 74.2
GSFC:Sikka-II DAP 182.2 182.7 228.2 100.3 125.2
TOTAL(GSFC-Sikka): 452.7 306.1 429.0 67.6 94.8
GNFC:Bharuch 20:20 28.5 26.8 38.4 94.0 134.7
Private Sector
CFL:Vizag 14:35:14 / 28:28/10:26:26/ 166.0 176.5 257.2 106.3 154.9
20:20
CFL:Ennore 16:20 / 20:20 48.0 31.7 40.6 66.0 84.6
CFL:Kakinada DAP / 12:32:16 / 20:20 / 308.2 395.1 516.3 128.2 167.5
14:34:14 / 10:26:26
ZIL:Goa DAP / 19:19:19 / 10:26:26/ 197.4 193.0 247.5 97.8 125.4
12:32:16
SPIC:Tuticorin DAP / 17:17:17 / 20:20 218.5 0.0 34.8 0.0 15.9
MCF:Mangalore DAP / 20:20 / 16:20 82.8 87.7 109.8 105.9 132.6
TCL:Haldia DAP / 10:26:26 / 12:32:16/ 336.9 202.2 243.0 60.0 72.1
14:35:14
Hin.ind.Ltd.:Dahej DAP / 10:26:26 / 12:32:16 184.0 77.6 86.5 42.2 47.0
DFPCL:Taloja 23:23 52.9 13.3 28.6 25.1 54.1
PPL:Paradeep DAP / 14:35:14 / 20:20 / 331.2 355.1 433.8 107.2 131.0
12:32:16 / 10:26:26 / 28:28
SSP Units SSP 1030.6 432.0 432.0 41.9 41.9
Total (Private Sector): 3513.6 2356.6 2955.6 67.1 84.1
Total(Pub+Coop+Pvt): 5658.9 3464.6 4352.2 61.2 76.9
* Actual figures have been considered from April 2009- December 2009 and estimated for January 2010 to March 2010
* Estimated Production figures have been reported for the year 2010-11.

94
 ANNEXURE-V

YEAR-WISE, NUTRIENTS-WISE CONSUMPTION,

PRODUCTION AND IMPORTS OF FERTILIZERS

(Chaper-5)
(lakh M.T.)
YEAR CONSUMPTION PRODUCTION IMPORTS
N P K TOTAL N P K TOTAL N P K TOTAL
1981-82 40.69 13.22 6.73 60.64 31.44 9.49 0.00 40.93 10.54 3.43 6.44 20.41
1982-83 42.24 14.37 7.27 63.88 34.24 9.80 0.00 44.04 4.25 0.63 6.44 11.32
1983-84 52.86 17.07 7.99 77.92 34.85 10.48 0.00 45.33 6.56 1.43 5.56 13.55
1984-85 54.87 18.86 8.38 82.11 39.17 12.64 0.00 51.81 20.08 7.45 8.71 36.24
1985-86 56.61 20.05 8.08 84.74 43.28 14.28 0.00 57.56 16.80 8.16 9.03 33.99
1986-87 57.16 20.79 8.50 86.45 54.10 16.60 0.00 70.70 11.03 2.55 9.52 23.10
1987-88 57.17 21.87 8.80 87.84 54.66 16.65 0.00 71.31 1.75 0.00 8.09 9.84
1988-89 72.51 27.21 10.68 110.40 67.12 22.52 0.00 89.64 2.19 4.07 9.82 16.08
1989-90 73.86 30.14 11.68 115.68 67.47 17.96 0.00 85.43 5.23 13.11 12.80 31.14
1990-91 79.97 32.21 13.28 125.46 69.93 20.52 0.00 90.45 4.14 10.16 13.28 27.58
1991-92 80.46 33.21 13.61 127.28 73.01 25.62 0.00 98.63 5.66 9.67 12.36 27.69
1992-93 84.27 28.44 8.84 121.55 74.30 23.06 0.00 97.36 11.37 6.89 10.82 29.08
1993-94 87.89 26.69 9.08 123.66 72.31 18.16 0.00 90.47 15.88 7.22 8.57 31.67
1994-95 95.07 29.31 11.25 135.63 79.45 24.93 0.00 104.38 14.76 3.80 11.09 29.65
1995-96 98.23 28.98 11.56 138.77 87.77 25.58 0.00 113.35 19.93 6.47 13.15 39.55
1996-97 103.01 29.77 10.30 143.08 85.99 25.56 0.00 111.55 11.67 2.46 6.13 20.26
1997-98 109.01 39.14 13.73 161.88 100.86 29.76 0.00 130.62 13.62 6.72 11.40 31.74
1998-99 113.54 41.12 13.32 167.98 104.80 31.41 0.00 136.21 6.35 9.68 15.42 31.45
1999-00 115.92 47.99 16.78 180.69 108.90 33.99 0.00 142.89 8.33 15.03 17.39 40.75
2000-01 109.20 42.15 15.67 167.02 109.61 37.43 0.00 147.04 1.54 3.96 15.41 20.91
2001-02 113.10 43.82 16.67 173.59 107.68 38.60 0.00 146.28 2.69 4.29 17.01 23.99
2002-03 104.74 40.19 16.01 160.94 105.64 39.10 0.00 144.74 0.66 1.70 14.38 16.74
2003-04 110.76 41.24 15.98 167.98 106.34 36.32 0.00 142.66 1.32 3.38 15.48 20.18
2004-05 117.14 46.24 20.61 183.99 113.38 40.67 0.00 154.05 4.09 2.96 20.45 27.50
2005-06 127.23 52.04 24.13 203.40 113.54 42.21 0.00 155.75 13.85 11.21 27.47 52.53
2006-07 137.74 55.43 23.34 216.51 115.78 45.17 0.00 160.95 26.88 13.23 20.69 60.80
2007-08 144.19 55.15 26.36 225.70 109.00 38.07 0.00 147.07 36.77 12.53 26.53 75.83
2008-09 150.9 65.06 33.13 249.09 108.7 34.64 0.00 143.34 38.44 29.27 33.80 101.51
2009-10 N.A. N.A. N.A. N.A. 119.68 43.52 0.00 163.20 30.85 24.99 25.39 81.23
* Estimated Production figures have been reported for the year 2009-10
** Provisional Import figures are reported upto 31.12.2009 for the year 2009-10.

95
 ANNEXURE-VI

SECTOR-WISE PRODUCTION OF NITROGENOUS

AND PHOSPHATIC FERTILIZERS

(See Chapter - 5)
(‘000’ MT)

Nutrient 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Target Actual Target Actual Target Actual Target Actual Target Actual Target Actual Target Actual Target Actual Target Estimated

Nitrogen (N)

Public Sector 3429.9 2879.5 3366.7 2854.1 3106.2 3007.9 3091.5 3051.0 3141.8 2958.6 3117.0 3046.7 3119.7 2887.0 3053.5 2925.2 3054.8 3089.1

Co-operative 2706.1 2691.8 2699.5 2800.9 2672.7 2797.3 2812.3 2901.7 2832.5 2958.3 3106.4 3004.3 3303.4 3031.0 3260.7 3133.0 3280.8 3386.1
Sector

Private Sector 5523.0 5196.7 5549.1 4906.5 5401.9 5130.5 5502.0 5382.5 5837.0 5437.6 5224.9 5526.9 5485.0 4982.0 5583.6 4811.5 5749.0 5493.3

Total(Nitrogen): 11659.0 10768.0 11615.3 10561.5 11180.8 10935.7 11405.8 11335.2 11811.3 11354.5 11448.3 11577.9 11908.1 10900.0 11897.8 10869.7 12084.6 11968.5

Phosphate (P)

Public Sector 749.3 479.4 678.9 307.4 399.8 353.3 402.7 266.3 383.0 294.9 387.3 232.7 234.0 161.4 241.8 191.7 207.3 223.6

Co-operative 776.0 793.3 776.0 949.5 776.0 778.7 875.1 938.3 880.0 1035.8 1461.5 1129.7 1496.2 969.2 1104.8 916.2 937.0 1172.9
Sector

Private Sector 3404.7 2587.3 3364.2 2647.3 3464.8 2668.4 3648.1 2862.7 3400.0 2890.6 2972.0 3154.8 3184.2 2676.7 3087.7 2356.4 2986.8 2955.7

Total (Phosphate): 4930.0 3860.0 4819.1 3904.2 4640.6 3800.4 4925.9 4067.3 4663.0 4221.3 4820.8 4517.2 4914.4 3807.3 4434.3 3464.3 4131.1 4352.2

Grand Total: 16589.0 14628.0 16434.4 14465.7 15821.4 14736.1 16331.7 15402.5 16474.3 15575.8 16269.1 16095.1 16822.5 14707.3 16332.1 14334.0 16215.7 16320.7

* Estimated Production figures have been reported for the year 2009-10.

96
 ANNEXURE-VII

SECTOR-WISE CAPACITY UTILIZATION

OF NITROGENOUS AND PHOSPHATIC FERTILIZERS

(See Chapter - 5)

(% age)

Nutrient 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
(Estimated)
Nitrogen (N)

Public Sector: 74.1 78.9 86.7 87.2 84.6 87.1 82.5 83.6 88.3

Co-operative Sector: 101.0 101.0 99.5 102.0 93.3 94.8 95.6 98.9 106.8
Private Sector: 95.0 85.8 89.7 94.1 100.8 102.5 92.4 89.2 101.8

Total(Nitrogen): 89.6 87.2 91.1 94.0 94.1 96.0 90.4 90.1 99.2

Phosphate(P)
Public Sector: 58.3 64.8 81.7 61.6 68.2 53.8 37.3 44.3 51.7

Co-operative Sector: 141.4 131.0 94.4 103.1 60.5 60.5 60.5 53.5 65.1

Private Sector: 69.6 63.6 64.1 66.3 82.3 89.8 76.2 67.1 84.1
Total(Phosphate): 75.7 72.8 70.1 71.9 74.6 79.8 67.3 61.2 76.9

* Estimated (Actual Production have been considered from April, 2008-October, 2008)

97
 ANNEXURE-VIII

ANNUAL PLAN 2010-11

DEPARTMENT OF FERTILIZER

(Chapter-5)

(Rs. crores)

S. Name of the Annual Plan 2009-10 (BE) Annual Pan 2009-10 (RE) Annual Plan 2010-11 (BE)
No. Scheme
GBS Total Outlay GBS Total Outlay GBS Total Outlay
Earmarked Earmarked Earmarked
for NER for NER for NER
Centally Sponsored
Schemes-CSS
Total CSS
Central Sector
Scheme (CS)
1 RCF 988.05 250.68 622.82
2 FAGMIL 29.01 4.35 11.29
3 PDIL 5.35 8.38 5.38
4 NFL 550.15 139.25 900.5
5 KRIBHCO 497 421.50 1160.00
6 Revival of Sick CPSEs
6(i) BVFCL 65.00 65.00 * 65.00 65.00 * 45.00 45.00 *
6(ii) FACT 34.00 34.00 34.00 34.00 89.99 89.99
6(iii) MFL 96.99 96.99 96.99 96.99 74.50 74.50
6(iv) FCI
6(v) HFC
6(vi) PPCL
7 Misc. Schemes 4.00 4.00 4.00 4.00 5.50 5.50
(MIS/IT and R&D)
8 Capital Subsidy for
conversion
9 Investments for JVs 0.01 0.01 0.01 0.01 0.01 0.01
abroad#
10 Revival of Closed Units
Total CS 200.00 2269.56 200.00 1024.16 215.00 2914.99

* The amount earmaked for BVFCL will be utilised for the benefits of North-East Region
# DOF is exploring posiibilities of JV Abroad. Since no firm proposal is at hand right now only a token amount of Rs.1 Lakh has been provided.

98
 ANNEXURE-IX

DETAILS OF HEAD-WISE ALLOCATION OF FUNDS UNDER NON-PLAN AND PLAN FOR BE

2009-2010 and RE 2009-2010

(Chapter-5)

(Rs In Crore)

I NON-PLAN PROVISIONS: BE 2009-2010 RE 2009-2010

A REVENUE SECTION
1. Sectt. Proper (MH 3451) 17.22 17.22
2. Office of FICC & other Programmes (FICC+MIT) (MH 2852) 2.47 2.47
3. Subsidy on Nitrogenous Fertilizers (MH 2852)
Indigenous Urea including Frieght Subidy (Gross) 9780.25 14080.25
4. Subsidy on Imported Fertilizers (MH 2401)
Gross 9548.44 7548.44
Recovery(-) 3600.50 3600.50
Net 5947.94 3947.94
5. Payment to Manufacturers/ Agencies for concessional sale of
Decontrolled Fertilizers (MH 2401)
(i) Indigenous Decontrolled Fertilizers (Gross) 16800.00 16000.00
(ii) Imported Decontrolled Fertilizers (Gross) 17452.06 18952.06
Total (Decontrolled Fertilizers)-(Gross) 34252.06 34952.06
6. Write off of loans, interest and penal interest on GOI loan outstanding 0.01 0.01
against HFCL, FCI, MFL, PDIL and FACT (MH 3475)
7. Post closure adjustment liabilities of PPL (MH 3475) 0.01 0.01
TOTAL : (REVENUE SECTION) -
Gross 53600.46 56600.46
Net 49999.96 52999.96
B. CAPITAL SECTION
Non-Plan loans to PSUs (MH 6855)
HFC 0.01 0.01
FCI 0.01 0.01
PPCL 0.01 0.01
BVFCL 0.01 0.01
FACT —- —-
TOTAL (CAPITAL SECTION) 0.04 0.04
TOTAL : NON-PLAN
Gross 53600.50 56600.50
Net 50000.00 53000.00

99
II PLAN PROVISIONS:
A. REVENUE SECTION
1. Grant to PDIL for R&D —- —-
2. S&T Programme of Department (MH 2852) 2.00 2.00
3. Grant in the field of Management Information Technology (MH 2852) 2.00 2.00
4. Capital subsidy for conversion of 4 existing FO/LSHS Plants to NG/LNG 0.00 0.00
(MH 2852)
TOTAL (REVENUE SECTION) 4.00 4.00
B. CAPITAL SECTION :
Investment in and loans to PSUs (MH 6855)
1. FACT 34.00 34.00
2. BVFCL 65.00 65.00
3. HFC —— ——
4. PDIL —— ——
5. MFL 96.99 96.99
6. FCI —— ——
7. PPCL —— ——
Investments for JVs abroad (MH 4855) 0.01 0.01
TOTAL (CAPITAL SECTION) 196.00 196.00
TOTAL PLAN 200.00 200.00
TOTAL-DEPARTMENT OF FERTILIZERS (Gross) 53800.50 56800.50
TOTAL-DEPARTMENT OF FERTILIZERS (Net) 50200.00 53200.00

100
 ANNEXURE-X

PROFITABILITY OF THE PUBLIC SECTOR UNDERTAKINGS AND COOPERATIVES

UNDER THE DEPARTMENT OF FERTILIZERS

(See Chapter-7)

(Rupees in Crores)

Name of Undertaking/ Net profit(+)/Net loss(-)

Cooperative
2005-06 2006-07 2007-08 2008-09 2009-10
(Up to
Dec. 09)

Fertilizer Corporation of India (-)1299.01 (-)1422.63 (-)1504.83 (-)752.60 (-)417.20

Limited (FCI)

Hindustan Fertilizer (-) 964.61 (-)1065.14 (-)1101.98 **4841.16 (-)288.35

Corporation Limited (HFC)

Rashtriya Chemicals & 147.96 148.74 158.15 211.58 165.45

Fertilizers Limited (RCF)

National Fertilizers 116.40 176.10 109.00 97 118

Limited (NFL)

Project & Development India 10.64 11.20 12.26 14.82 9.26

Limited (PDIL)

Fertilizers And Chemicals (-) 235.66 (-) 124.72 8.97 42.95 (-) 63.39
Travancore Limited (FACT)

Madras Fertilizers Limited (-)131.74 (-)114.78 (-)134.85 (-)145.38 (-) 51.54

(MFL)

Brahamputra Valley Fertilizer (-)99.77 (-)62.37 (-)105.83 (-)215.04 (-) 104.40

Corporation Ltd., (BVFCL)

FCI Aravali Gypsum & 9.85 11.51 7.54 9.04 4.93

Minerals India Limited
(FAGMIL)

Cooperative Sector

Krishak Bharti Cooperative 140.95 193.24 209.20 250.13 203.61*

Limited (KRIBHCO)

* pre tax profit.

** Profit is due to write back of interest on Govt. of India loan.

101
 ANNEXURE-XI

EMPLOYMENT OF SC/ST, EX-SERVICEMEN,PHYSICALLY HANDICAPPED & OTHER BACKWARD

CLASSES(OBCs) PERSONS IN PUBLIC SECTOR UNDERTAKING

(See Sub Para 13.2.1 of Chapter 13)

Name of PSU Group Total No. of No. of Employees belonging to

Employees
SC ST Ex.Ser P.Hs OBC
1. KRIBHCO A 1359 32 13 8 2 134
B 309 19 16 4 Nil 55
C 390 44 23 3 5 66
D 26 3 - 4 Nil 14
TOTAL 2084 98 52 19 7 269
2. NFL A 1710 362 79 7 10 88
B 1936 507 158 37 22 114
C 1006 251 44 45 20 124
D 147 115 3 2 3 8
TOTAL 4799 1235 284 91 55 334
3. MFL A 241 24 3 — 1 53
B 208 46 5 — 1 80
C 329 84 1 13 3 126
D 40 28 - - - 9
TOTAL 818 182 9 13 5 268
4. FAGMIL TOTAL 109 17 5 1 Nil 8
5. PDIL A 438 44 20 — — 58
B 38 5 — — — 1
C 30 10 — — — 6
D - - — — — -
E 49 8 — —- —- 16
TOTAL 555 67 20 — — 81
6. RCF TOTAL 4220 583 259 9 27 286
7. FACT A 515 89 10 - 4 76
B 1418 209 51 14 21 348
C 817 82 23 25 14 334
D 782 124 21 11 33 307
E 37 10 - - 1 18
TOTAL 3569 514 105 50 73 1083
8. BVFCL TOTAL 1205 91 181 4 4 365

102
 ANNEUXRE-XII

STATUS OF ACTION TAKEN NOTES

S. Report No Number of paras of CAG Report No. of No.of ATNs No.of ATNs No. of ATNs
No. & Year & PAC Report on which ATNs Paras/PA not sent by sent but which have
submitted to PAC and monitoring Reports on the Ministry returned been finally
cell of Ministry of Finance after which ATNs even for with vetted by
vetting by Audit / Brief Subject have been the first obser- audit but
submitted time vations have not
to PAC and Audit been
after vetting is awaiting submitted
by Audit their by the
resubmission Ministry
by the to PAC
Ministry
1. 1 of 1999 14.3(3): — — — —
Grants under U.K. Fertilizer
Development Programme
1 of 1999 14.3(24): — — — —
(i) Investment in PPL
(ii) Loan to FA &CT
2. 1 of 2000 12.3(24): — — — —
(i) Investment in /Loan to HFC
Rs.40.00 crore
(ii) Loan to FA &CT Rs.19.90 crore
3. 1 of 2001 11.12(27): — — — —
(i) Investment of HFC Rs.12.00 crore
(ii) Loan to FCI Rs.47.95 crore
4. 1 of 2001 12.1: — — — —
Overall position of the Grant for the last five
years viz..Budget provision actual expenditure
and unspent provision
5. 1 of 2001 12.2: — — — —
Unspent Provision in 1999-2000 under
Revenue Section and Excess in Capital Head
6. 1 of 2001 12.3: — — — —
Unspent Amount and Excess leading to net
unspent provision
7. 1 of 2001 12.4: — — — —
Rush of Disbursement
8. 1 of 2001 12.5: — — — —
Unrealistic Budgeting – Surrender of funds
for the year 1997-98
9. 1 of 2001 12.6: — — — —
Irregular Re-appropriation from Capital to
Revenue Section
10. 1 of 2001 12.7: — — — —
Delay in surrender of unspent provision
11. 1 of 2002 8.12: — — — —
Lumpsum provision for projects / scheme for
the benefit of the North Easter Region and
Sikkim Loans to HFC Rs.20000 crore and
MFL Rs.7.90 crore
12. 1 of 2005 7.8: — — — —
Test Check of Re-appropriation of orders for
2003-04 amounting to Rs.1088 crore.

103
 S. Report No Number of paras of CAG Report No. of No.of ATNs No.of ATNs No. of ATNs
No. & Year & PAC Report on which ATNs Paras/PA not sent by sent but which have
submitted to PAC and monitoring Reports on the Ministry returned been finally
cell of Ministry of Finance after which ATNs even for with vetted by
vetting by Audit / Brief Subject have been the first obser- audit but
submitted time vations have not
to PAC and Audit been
after vetting is awaiting submitted
by Audit their by the
resubmission Ministry
by the to PAC
Ministry

13. 1 of 2005 6.10(12.13):

+13 Disbursement — — — —
=26 3 of 2005 3.1 to 3.13: — — — —
Concession Scheme Information system
27. 1 of 2005 7.15: — — — —
Unnecessary Supplementary Grants
28. 1 of 2006 6.10: — — — —
Disbursement (Appendix –VI-D16)
29. 1 of 2006 7.8: — — — —
Re-appropriation of funds
Fifty – Fourth Report (14th Lok Sabha) of PAC on Excess over Voted Grants and Charged Appropriations 2005-06
30. ATN on 54th 52: — — — —
Report of PAC Strictly complying with the instruction of
Min./Fin. On Monitoring of expenditure
31. ATN on 54th 53: — — — —
Report of PAC Measures for check on excess expenditure
32. ATN on 54th 54: — — — —
Report of PAC Explanatory note on excess expenditure
33. ATN on 54th 58: — — — —
Report of PAC Repayment of Debt
34. ATN on 54th 59: — — — —
Report of PAC Corrective measure alongwith specific results
achieved to curb excess expenditure
35. ATN on 54th 60: — — — —
Report of PAC Regularizing Expenditure under
Acrticle 115(1)(b)

Audit Report No. CA 24 of 2009-10 (Compliance Audit)

National Fertilizers Limited

The Company suffered a loss of Rs. 1.45 crore due to deployment of a driver without valid driving licence to transport its crane in violation
of the terms of the insurance policy.
Para 7.1.1

The Company irregularly paid additional house rent allowance and short recovered rent from the employees provided with leased
accommodation in violation of the DPE guidelines, resulting in extra expenditure of Rs. 1.44 crore.
Para 7.1.2.

The Fertilisers And Chemicals Travancore Limited

The Company’s decision to defer procurement of sulphur resulted in additional expenditure of Rs. 3.98 crore.
Para 7.2.1.

104
 GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF FERTILIZERS