Fert.nic.in Sites Default Files Annual Report 2011-12 English

8/13/2019 Fert.nic.in Sites Default Files Annual Report 2011-12 English

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ANNUAL REPORT2011-2012

GOVERNMENT OF INDIA MINISTRY OFCHEMICALS & FERTILIZERS

DEPARTMENT OF FERTILIZERS


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CONTENTS

S.No. Subjects Page No.

1. Introduction

2. Organizational Set up and Functions

3. Development & Growth of Fertilizer Industry

4. Availability of Major Fertilizers during 2011-12

5. Plan Performance

6. Measures of Support for Fertilizers

7. Public Sector Undertakings

8. Fertilizer Education Projects

9. Information Technology (IT)

10. Vigilance Activities

11. Rights to Information Act, 2005

12. Progressive Use of Official Language (Hindi)

13. Welfare of SCs, STs, OBCs and Physically Handicapped persons

14. Woman Empowerment

15. Citizen Charter/Grievance Redressal Mechanism

16. Annexure I to XIV

1-3

4-5

6-14

15-16

17-18

19-37

38-60

61-63

64-67

68-68

69-69

70-72

73-74

75-77

78-78

79-104


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Presenting the dividend cheque for the year 2010-11 to the Hon'ble Minister (Chemicals & Fertilizers)

Shri M.K. Alagiri by Dr. S.K. Das, CMD, FAGMIL. Shri Sutanu Behuria, former Secretary (Fertilizers),Shri S C Gupta, Joint Secretary, DoF, Shri Deepak Kumar, Director (Movement), DoF are alsopresent along with others.


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3

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 substantialincrease 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 235.88

million MT in 2010-11. 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 281.22 lakh MT

2010-11, while per hectare consumption of

fertilizers, which was less than 1 Kg in 1951-52

has risen to the level of 144.14 Kg (estimated )

in 2010-11.

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. Similarly,

adequate indigenous capacity has been

developed in respect of phosphatic fertilizers to

meet domestic requirements. However the raw

materials and intermediates for the same 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 in1906, 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 31.03.2010 has

reached a level of 120.61 lakh MT of nitrogen

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.

1.2.3 Presently, there are 30 large size fertilizer

plants in the country manufacturing urea (as on

date 29 are functioning) 21 units produce DAP

and complex fertilizers, 5 units produce low

analysis straight nitrogenous fertilizers and the

9 manufacture ammonium sulphate as by-

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product. Besides, there are about 84 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 31.03.2010

Sr

No

Sector Capacity

(lakh MT)

PercentageShare

N P N P

1

2

3

Public Sector

Cooperative

SectorPrivate Sector

34.98

31.69

53.94

4. 33

17.13

35.13

29.0

26.27

44.73

7.65

30.27

62.08

Total: 120.61 56.59 100.00 100.00

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 utilization 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 1985. As the

usage of gas increased and its available supply

dwindled, a number of expansion projects came

up in the last few years with duel feed facility

using both naphtha and gas. Feasibility of

making available Liquefied Natural Gas (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 meet only

5-10% of the total requirement of P2O5.A policy

has therefore been adopted which involves mix

of three options, viz, domestic production based

on indigenous/imported rock phosphate,

imported sulphur and ammonia; domestic

production based on indigenous / importedintermediates, viz. ammonia and phosphoric

acid; and third, import of finished fertilizers.

During 2010-11 roughly 70% 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

fertilizer 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 from 01.04.2003, for securing

additional indigenous supply of urea,

economically efficient units are being permittedto 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

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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

fertilizes has led to a substantial increase in

requirement of subsidy. In spite of increase in

cost of fertilizes, 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 farmers at subsidized level of prices. The

subsidy on fertilizers has been increasedsharply over the last few years. The details of

fertilizer subsidy over the last few years are as

below:-

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 followedby another increase by 10% with effect from

21.2.97. The prices of urea were again revised

in February 2002 by 5% and by Rs. 240 PMT of

DETAILS OF EXPENDITURE ON SUBSIDY/CONCESSION

Period Amount of concession disbursed onDecontrolled Fertilizers

(Indigenous + imported)

Amount of Subsidy

disbursed on Urea

Total for allfertilizers

Indigenous

P&K

Imported

1P&K

Total

(P&K)

Indigenous

Urea

Imported

Urea

Total

(Urea)

2007-08 10333.80 6600.00 16933.80 16450.37 9934.99 26385.36 43319.16

2008-09 32957.10 32597.69 65554.79 20968.74 12971.18 33939.92 99494.71

2009-10 16000.00 23452.06 39452.06 17580.25 6999.98 24580.23 64032.29

2010-11 20650.00 20850.00 41500.00 15080.73 9255.95 24336.68 65836.68

2011-12(RE)

19832.00 14954.87 34786.87 19308.00 17475.00 36783.00 71569.87

2012-13

(BE)

16000.01 12576.11 28576.12 19000.01 18016.00 37016.01 65592.13

1.4.3 The steady increase in fertilizer subsidies over urea w.e.f. 28.2.2003. The price increase madethe years has largely been the result of effective from 28.2.2003 was, however, laterincreasing production / consumption and withdrawn w.e.f. 12.3.2003. The MRP of urea i.increases in the costs of inputs of indigenous e. Rs. 4830 per tonne exclusive of local leviesfertilizers and prices of imported fertilizers from continued upto 31-03-2010. With effect from 1-time to time. The cost of various inputs / utilities, 04-2010, MRP of urea increased by 10% i. e.such as coal, gas, naphtha, rock phosphate, from Rs. 4830 per MT to Rs. 5310 per MT.

*****

ANNUAL REPORT 3


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CHAPTER -2



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*****

ANNUAL REPORT 5


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Year of

Comm.

Unit Feedstock andSector

InstalledCapacity

(lakh/MT)

1967 GSFC-Baroda Gas-Private 3.706

1969 SFC-Kota Naphtha-Private 3.790

1970 DIL-Kanpur Naphtha-Private 7.220

1971 MFL-Madras Naphtha-Public 4.868 @

1973 ZIL -Goa Naphtha-Private 3.993

1975 SPIC-Tuticorin Naphtha-Private 6.200

1976 MCFL-Mangalore Naphtha-Private 3.800

1978 NFL-Nangal FO/LSHS-Public 4.785

1978 IFFCO-Kalol Gas-Coop. 5.445 @

1979 NFL-Bhatinda FO/LSHS-Public 5.115

1979 NFL-Panipat FO/LSHS-Public 5.115

1981 IFFCO-Phulpur Gas--Coop. 5.511

1982

RCF-Trombay

-V

Gas-Public

3.301982 GNFC-Bharuch FO/LSHS-Private 6.360

1985 RCF-Thal Gas-Public 17.068

1986 KRIBHCO-Hazira Gas-Coop. 17.292

1987 BVFCL-Namrup-III(Formerly HFC)

Gas-Public 3.150

1988 NFL-Vijaipur Gas-Public 8.646

1988 IFFCO-Aonla Gas-Coop. 8.646

1988 Indogulf-Jagdishpur Gas-Private 8.646

1992 NFCL-Kakinada Gas-Private 5.9701993 CFCL-Gadepan Gas-Private 8.646

1994 TCL-Babrala Gas-Private 8.646

1995 KRIBHCO SHYAM -

Shahja- hanpur(Formerly OCFL)

Gas-Private 8.646

1996 IFFCO-Aonlaexpansion

Gas-Cooperative 8.646

1997 NFL-Vijaipurexpansion

Gas-Public 8.646

1997 IFFCO-Phulpurexpansion

Gas--Cooperative 8.646

1998 NFCL-Kakinadaexpansion

Naphtha-Private 5.970

1999 CFCL-Gadepanexpansion

Naphtha/Gas-Private

8.646

2005 BVFCL:Namrup-II Gas-Public 2.400 @

3.1 D E V E L O P M E N T A N D G R O W T H O FFERTILIZER INDUSTRY

3.1.1 CAPACITY BUILD-UP

At present, there are 30 large size fertilizer

plants in the country manufacturing urea (as on

date 29 are functioning) 21 units produce DAP

and complex fertilizers, 5 units produce low

analysis straight nitrogenous fertilizers and the

9 manufacture ammonium sulphate as by-product. Besides, there are about 84 medium

and small-scale units in operation producing

SSP. The total installed capacity of fertilizer

production which was 119.60 lakh MT of

nitrogen and 53.60 lakh MT of phosphate as on

31.03.2004 has marginally increased to120.61

lakh MT of nitrogen and 56.59 lakh MT of

phosphate as on 01.04.2010.

3.2 PRODUCTION CAPACITY AND CAPACITY

UTILISATION3.2.1. The production of fertilizers during 2010-11

was 121.56 lakh MT of nitrogen and 42.22 lakh

MT of phosphate. The production target for

2011-12 was 127.56 Lakh MT of nitrogen and

49.24 Lakh MT of Phosphate, representing a

growth rate of 4.9% in nitrogen and 13.9% in

Phosphate as compared to production in 2010-

11. Production target for nitrogenous fertilizer is

more than the installed capacity. The production

target for phospahtic fertilizer is less than

installed capacity due to constraints inavailability of raw materials/ intermediates

which are substantially imported. However,

taken together, the production of 'N' and 'P'

during the year is very nearer to the

corresponding period of last year

3.2.2. The production performance of both

nitrogenous and phosphatic fertilizers during

the year 2010-11 was satisfactory. Production of

nitrogenous fertilizers was less than target by

2.97 Lakh MT, as there was no production by

SPIC. The production of phosphatic fertilizers

was more than target by 6.22 Lakh MT.

3.2.3. The installed capacity of urea units in thecountry is as follows:-

UREA UNITS SET UP BETWEEN 1967-2005 WITH

REASSESSED CAPACITY

Note: @ After revamp



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3.2.4 The following 9 urea plants of the companies

are presently closed/under shutdown due to

various reasons, inter-alia, on account of

t e c h n o l o g i c a l o b s o l e s c e n c e , f e e d s t o c k

limitation, non-viability of unit/company andheavy financial losses.

Sl.No.

Name of theCompany/Unit

Date ofclosures

AnnualInstalledCapacity(In Lakh MT)

1. FCI: Gorakhpur 10.6.1990 2.852. FCI: Ramagundam 1.4.1999 4.953. FCI: Talcher 1.4.1999 4.954. FCI: Sindri 16.3.2002 3.305. HFC: Durgapur 1.7.1997 3.306. HFC: Barauni 1.1.1999 3.307.

RCF: Trombay-I

1.5.1995

0.98

8. NLC: Neyveli 31.3.2002 1.539. FACT: Cochin-I 15.5.2001 3.30

Total 28.46

Note: Production by DIL-Kanpur (7.22 LMT) was suspended due

to financial constraints.

E x p a n s i on a n d c a p a c i t y a d d i t i o n /

e f f i c i e n c y e n h a n c e m e n t t h r o u g h

retrofitting / revamping of existing

fertilizer plants.

Setting up joint venture projects in

countries having abundant and cheaper

raw material resources.

Working out the possibility of using

alternative sources like liquefied natural

gas, coal gasification, etc., to overcome

t h e c o n s t r a i n t s i n t h e d o m e s t i c

a v a i l a b i l i t y o f c h e a p a n d c l e a n

feedstock, particularly for the production

of urea.

Looking at possibilities of revival of

some of the closed units by setting up

brownfield units subject to availability of

gas.

3.2.5. The domestic fertilizer industry has by and

large attained the levels of capacity utilisation

comparable with others in the world. The

capacity utilisation during 2010-11 was 100.9%

for nitrogen and 75% for phosphate. Theestimated capacity utilisation during 2011-12 is

104.4% of nitrogen and 78.7% of phosphate.

Within this gross capacity utilization, the

capacity utilisation in terms of the urea plants

was 109.2% in 2010-11 and 107.4% in 2011-12.

As for phosphate fertilizers, apart from the

constraints mentioned earlier, the actual

production capacity utilisation has also been

influenced by the demand trends.

3.2.6. The capacity utilisation of the fertilizer industry,particularly in respect of urea, is expected to

i m p r o v e f u r t h e r t h r o u g h r e v a m p i n g /

modernisation of the existing plants..

3.2.7 The unit-wise details of installed capacity,

production and capacity utilisation during 2010-

11 and 2011-12 are given in Annexure-IV.

3.3 STRATEGY FOR GROWTH

3.3.1 The following strategy has been adopted to

increase fertilizer production:

3.4 FEED STOCK POLICY

3.4.1 At present, natural gas based plants account for

more than 66% of urea capacity, naphtha is

used for less than 30% urea production and the

balance capacity is based on fuel oil and LSHS

as feedstock. The two coal based plants at

Ramagundam and Talcher were closed down

due to technological obsolescence and non-

viability.

3.4.2 Natural gas has been the preferred feedstock

for the manufacture of urea over other

feedstocks viz. naphtha and FO/LSHS, firstly,

because it is clean and efficient source of

energy and secondly, it is considerably cheaper

a n d m o r e c o s t e ff e c t i v e i n t e r m s o f

manufacturing cost of urea which also has a

direct impact on the quantum of subsidy on

urea.

3.4.3 Accordingly, the pricing policy, announced in

January 2004, provides that new urea projects,

expansion of existing urea units and capacity

i n c r e a s e t h r o u g h d e - b o t t l e n e c k i n g /

r e v a m p / m o d e r n i z a t i o n w i l l b e a l s o

allowed/recognized if the production comes

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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 hasalso 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 Allocation of Natural Gas for FY 2011-12

Ministry of Petroleum & Natural Gas on 30th

September 2011 has allocated 3.021

mmscmd of gas as against the demand of

3.732 mmscmd of gas during the current year

2011-12, from the additional gas available

from ONGC's nominated blocks. However,no allocation has been made to IFFCO-

Phulpur (0.3 mmscmd) and IGFL-Jagdishpur

(0.338 mmscmd). Department of Fertilizers

has therefore requested Ministry of Petroleum

& Natural Gas (MoPNG) to include the above

demand. In addition DOF has also requested

MoPNG for meeting the requirement of 1.28

mmscmd of gas by the ZIL, Goa who will

complete the pipeline connectivity by the first

week of Feb 2012 and the requirement of 0.10

mmscmd of NFCL-Kakinada because of lean

gas supply to the unit.

3.6. ALLOCATION OF NATURAL GAS FOR FY

2012-13 ONWARDS

3.6.1 DOF has already communicated year-wise

requirement of Natural Gas to Ministry of

Petroleum & Natural Gas (MoPNG). DOF has

requested MoP&NG that a minimum firm

allocation of 24.2 mmscmd gas is required to

be allocated by MOPNG for setting up of

seven expansion units, two Greenfield units

and revival of at least two closed urea units of

FCIL/HFCL on gas, so that the country can

become self sufficient in Urea production innext three to four years. Further, a firm

allocation of 3.75 mmscmd of gas by MOPNG

should be made for FO/LSHS based urea

units converting to gas and 8.52 mmscmd of

gas for conversion of naphtha based units.

3.6.2 Allocation and pricing of CBMMOPNG has

been requested to take immediate action for

allocation of the required CBM to the urea unit

being setup by MATIX at Burdwan. MOPNG

has also been requested for deciding the price

of CBM as soon as possible, since the unit isunder construction and any delay in allocation

of CBM and discovery of its price may impact

the viability and production from the said urea

unit.

3.6.3 Gas pipeline connectivity - Connectivity to all

FO/LSHS and Naphtha based urea units

converting to gas, revival of closed urea units

of FCIL and HFCL and proposed Greenfield

units need to be provided on priority basis.

The required pipeline connectivity throughvarious pipelines for the aforesaid urea units

is indicated below:

The units of NFL at Bhatinda, Nangal (Punjab)

and Panipat (Haryana) are to be connected by

Dadri-Bawana-Nangal pipeline.

Indian Farmers Fertilizers Cooperative Ltd

(IFFCO), Phulpur and Indo-Gulf Fertilizers

Limited (IGFL), Jagdishpur were allocated only

half of their additional requirement of gas from

KG-D6 due to capacity constraint in thepipeline. MoPNG indicated that the remaining

gas will be supplied after the enhancement of

pipeline capacity by 2011-12.

Connectivity to DIL-Kanpur can be through

adjacent pipeline network.

Construction of Jagdishpur-Haldia pipeline

may be expedited for providing gas to units in

eastern sector (Halida, Baruni, Gorakhpur,

Durgapur, Burdwar, Kanpur).



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S.No. Name of Unit Status of pipelineconnectivity

1 HFCL/ FCIL

a

Durgapur

Proposed to beconnected to GAILsproposed Haldia-Jagdishpur pipelineauthorized by GoI butthe laying of thepipeline is being firmedup based onconfirmation regardingschedule for revival ofthe plant.

b Barauni Proposed to beconnected to GAILs

proposed Haldia-Jadishpur pipelineauthorized by GoI butthe laying of thepipeline is being firmedup based onconfirmation regardingschedule for revival ofthe plant.

c Ramagundam No plans to connectthis unit to any GAILsupcoming pipeline butmay be connected to

Mallavaram-Bhilwarapipeline for which bidshave been submitted toPNGRB

d Gorakhpur Proposed to beconnected to GAILsproposed Haldia-Jadishpur pipelineauthorized by GoI butthe laying of thepipeline is being firmedup based onconfirmation regarding

schedule for revival ofthe plant.

e Haldia Proposed to beconnected to GAILsproposed Haldia-Jadishpur pipelineauthorized by GoI butthe laying of thepipeline is being firmedup based onconfirmation regardingschedule for revival ofthe plant.

New pipeline to connect the closed units of

HFCL-Durgapur, HFCL-Barauni, HFCL-Haldia,

FCIL-Sindri & FCIL-Gorakhpur should be

targeted for completion by 2013-14.

Early gas connectivity to naphtha units viz MFL-

Chennai, ZIL-Goa, MCFL-New Mangalore and

SPIC-Tuticorin will lead to a substantial subsidy

savings.

Revival

3.6.4 Status of Pipeline connectivity for FertilizerPlants.

Expansion

S.No. Name of Unit Status of pipelineconnectivity

1

KRIBHCO-Hazira(Gujarat)

The plant has beenconnected throughnewly laid DUPLconnectivity whereincapacity exists.

2 RCF-Thal(Maharashtra)

Presently capacity doesnot exist in DULPpipeline but the same isplanned to augmented.

3 ChambalGadepan(Kota)

Rajasthan

Presently limitedcapacity exists in Kota-

Vijaipur segment,however, the same isplanned to beaugmented

4 TCL-Babrala Presently capacity ofHVJ/DVPL has beenaugmented but in thedownstream segmentthere is capacityconstraint in the

Auraiya-Dadri segment

which is planned to beaugmented.

5 IGFL-Jagdishpur(UP)

Presently capacity ofHVJ/DVPL has beenaugmented but in thein the downstreamsegment there iscapacity constraint inthe Auraiya-Dadrisegment which isplanned to beaugmented.

ANNUAL REPORT 9


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Take Agreement (AOTA). OMIFCO is

examining possibility of expansion and increase

in production of Urea and Ammonia.

B. ICS SENEGAL

The Government of India (GoI), Indian Farmers

Fertilizer Cooperative Ltd. (IFFCO) and

S o u t h e r n P e t r o c h e m i c a l s I n d u s t r i e s

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 Indianc o n s o r t i u m p a r t n e r s h a v i n g 8 5 % a n d

Government of Senegal having 15% share.

The restructuring plan after having been

approved by the Regional High Court of Dakar

(Senegal) on 27.3.2008 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 DAPand 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.

C. 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 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.

D. 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.

3.8.3 OVERSEAS JOINT VENTURES UNDER

IMPLEMENTATION / CONSIDERATION

A. 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) or 4.3 MillionTonne Per Annum . Equity holding in the project

is 52:48 between IFFCO and JPMC,

respectively. The plant is expected to be

commissioned by 2013.

B. TIFERT 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 DesPhosphates De Gafsa (CPG), both Tunisian

entities are setting up a joint venture project,

Tunisian Indian Fertilisers S.A. (TIFERT) at

Skhira in Tunisia 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

ANNUAL REPORT 11


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and borrowings of US $99 million. The project is

expected to be commissioned by end of the

year 2011-12.

C. 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

e n h a n c e m e n t c o n s u l t a n c y s t u d y w i t h

GECOPHAM in Syria. Government of India is

funding the study. As per the MOU signed

between this Department and GECOPHAM in

May 2009, the Indian consortium undertook the

feasibility studies, which have now been

completed and the Pre-Feasibility Report has

been submitted to the Syrian Authorities. A

Government level MOU spelling out broadframe work of cooperation in Phosphate sector

between the Countries has also been signed in

Oct' 2010. The consortium has submitted the

Feasibility Report to GECOPHAM. The

authorities concerned in Syria have to consider

the report. For the reason of ongoing socio-

political situation in Syria, matter is stand still at

present, however, the DOF is keeping a close

watch in the matter.

D. COOPERATION WITH RUSSIAOn 12.03.2010 an MOU has been signed

between the Government of India and the

Government of Russia, during the visit of Prime

Minister of Russia to India, envisaging inter-alia

encouraging collaboration in the areas of trade,

production, possible establishment of Joint

Ventures, investment and R&D activities,

exchange of information and holding of

consultations on the issues of production and

consumption of mineral fertilizers, exchange

experience encourage contacts between the

specialists, organization of Joint Conferences,

symposia and business events on the issues of

Co-operations in the sector of mineral fertilizers.

In the follow-up a senior level officers visited

Russia in November'2011 to discuss with the

various Russian entities about possibilities of

Joint Ventures for production of Potash in

Russia. Some proposals have been received,

which are being examined in the Department.

E. COOPERATION IN INDONESIA

A team led by the Secretary (F) visited

Indonesia during 30.10.2010 to 02.11.2010 to

hold preliminary discussions with theIndonesian Authority to ascertain the technical

feasibility of putting up of an Ammonia Urea

plant based on Coal Gasification Technology.

During the visit of the President of Indonesia as

Chief Guest on occasion of the Republic Day is

January 2011 following two documents have

been signed:

(i) MOU for setting up an Ammonia Urea Plant in

Indonesia and agreement for off-take of surplus

urea produced in the plant.(ii) Agreement for supply of 3 L MT of Urea and 2.5

LMT of NPK Complex fertilizer in designated

grades.

M/s Rashtriya Chemicals & Fertilizers Ltd.

(RCFL) is pursuing with the Indonesian

Authorities about the proposal for JV Ammonia

Urea Plant in Indonesia. The Indonesian

Authorities have assured for the full cooperation

to RCFL in this regard.

F. COOPERATION 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



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mining in Australia. IFFCO would provide both

technical and financial facilitation to Legend

International Holdings in the development of its

and the Government of Belarus on 27.08.2011.

As per Protocol follow up action are in progress

regarding long term agreement for supply of

phosphate mining and shipment of its product to

potash from Belarus to India at concessional

India. price and the possible equity acquisition in

G. COOPERATION IN GHANAe arus a y n an en es. rm

uantities of Potash for off-take to India over the

Given its gas reserves, Ghana is considered a next 7 years beginning from the year 2012, have

rich source of nitrogenous feedstock. Chairman been communicated to Belarusian company

of Ghana National Petroleum Corporation and the negotiations on prices are going on. As

(GNPC), Ghana during his visit to India, in regards, exploring possible equity acquisition in

September 2009 and discussed with the Belaruskali, this Department is pursuing the

Secretary (F) the possibility of cooperation in matter with the concerned authorities in Belarus

Fertilizer sector was discussed. It was proposed in consultation with MEA and the Indian Mission

to set-up a Ammonia-Urea plant (Gas based) in

in the Country.

Ghana. To give proper shape to the project-

proposal, an MOU has been signed in July 2010

at the Government level between the Countries. The President of Mali was scheduled to visit

As per MOU, to proceed further a technical India during 11th

12th of January, 2012.

team comprising of Officers from RCF & PDIL Keeping in view the availability of Phosphate

visited Ghana. Site selection Report and the resources in the country, DOF proposed to

Pre-feasibility reports were prepared by RCF enter into an MOU with Mali. Accordingly, a

and PDIL, which were provided to Ghanaian copy of the draft MOU was sent to MEA on 2nd

Authorities. In January'2011 a team led by January, 2012 with a request to consider the

Secretary (F) visited Ghana to discuss further same in consultation with the L&T Division of

modalities in the matter. Ghanaian Authorities

have been requested for an early decision on

pricing of Gas.

MEA and also for pursuing the same with theGovernment of Mali. The response from Mali is

awaited.

The Government of Ghana has conveyed that 3.8.4 DISCUSSIONS FOR COOPERATION IN

their Cabinet has formally given its approval for

formation of the Ghana-India Joint Venture Discussion are on with the fertilizer and minin Fertilizer Company (with 1 million tone entities in following resource rich countries forproduction capacity). The Share Structure as

approved by the Cabinet of Ghana is 48% for

RCF (India) and 52% for the Government of

Ghana. RCF has prepared the draft JointVenture Agreement and a copy of the same has

b e e n c o m m u n i c a t e d t o t h e G h a n a i a n

Authorities for their consideration. It is likely to

finalize the JV Agreement by both the sides at

an early date.

H. CO-OPERATION WITH BELARUS

During the visit of a delegation led by Secretary

(East), Ministry of External Affairs a Protocol

was signed between the Government of India

long term cooperation for setting up of projects

for production and off take of fertilizers:

(i) Discussion at Government level is underwayw i t h t h e G o v e r n m e n t o f S e n e g a l f o r

development of Matam phosphate mines.

(ii) Two separate consortia of Indian entities

comprising IPL & IFFCO and MMTC & RCF are

in discussion with M/s Potash One 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

ANNUAL REPORT 13


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for JV project with Athabasca for evaluation and

assessment in technical, marketing and

financial aspect. They have also signed a

confidentiality agreement for sharing relatedinformation. 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) Discussions are also going on for exploring

possibilities for an 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.

(v) M/s Nagarjuna Fertilizers & Chemicals Ltd.

(NFCL) is pursuing with the Government of

Nigeria for setting up of AmmoniaUrea Joint

Venture Fertilizer Project in Nigeria. The

Nigerian Government has assured about

supply of adequate quantity of gas for the

project. The prices of the gas for the project

have also been finalized.

*****



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3

CHAPTER -4

4.1 AVAILABILITY OF MAJOR FERTILIZERSDURING 2011-12

CONTROLLED FERTILIZERUREA

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 2011 season as well as

during the current Rabi 2011-12 (uptoDecember, 2011).

KHARIF 2011

4.1.2 The field opening stock of 4.25 LMT as on

1.4.2011 coupled with indigenous production

of 108.16 LMT and imports of 33.82 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 146.23

LMT against the assessed requirement of142.16 LMT. The sales were of 139.21 LMT

urea during Kharif 2011.

anywhere in the country at notified maximumretail price.

4.2 DECONTROLLED FERTILIZERS DAP &

MOP

KHARIF 2011

4.2.1 In case of fertilizers other than the urea, whichare decontrolled, no allocation is made under

Essential Commodities Act (ECA) by theCentral Government. Assessment ofrequirement of Urea, DAP and MOP is beingmade by the Department of Agriculture &Cooperation to enable better monitoring ofavailability at the national level.

4.2.2 DAP and MOP are the two major decontrolledand decanalised fertilizers, which may beimported freely.

DAP

4.2.3 The imports of 40.23 LMT of DAP coupledwith indigenous production of 19.67 LMT andthe opening stock of 0.90 LMT of DAP as on

RABI 2011-12 1st

April, 2011 resulted slightly less

4.1.3 The requirement of urea for Rabi 2011-12 has

been assessed at 162.80 LMT envisaging a

growth of about 4.31% over the sales of

156.08 LMT in Rabi 2010-11. The

requirement is being met from the opening

stocks taken together with estimatedproduction of 112.97 LMT and imports of

about 45,00 LMT during the season. Thus

the cumulative availability of urea for Rabi

2011-12 has been estimated to be about

157.97 LMT by the end of 31st

March, 2012.

4.1.4 Allocation of urea was restricted to 50% ofproduction of installed capacity of eachmanufacturer during Kharif 2011 and Rabi2011-12. The manufacturers are free to sellthe remaining quantity of urea to the farmers

availability of about 60.80 LMT DAP duringKharif 2011 season against the assessedrequirement of 71.38 LMT. The sales of DAPin Kharif 2011 were about 48.71 LMT.

MOP

4.2.4 The imports of 5.51 LMT of MOP takentogether with opening stock of 5.22 LMT as

on 1st

April, 2011 resulted in availability ofabout 10.73 LMT during Kharif 2011 seasonagainst the assessed requirement of 22.54LMT. The sales of MOP were reported asabout 7.00 LMT.

RABI 2011-12

DAP

4.2.5 The production of DAP during Rabi 2011-12 is

ANNUAL REPORT 15


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estimated to be about 22.83 LMT. Stocks as

on 1.10.2011 coupled with estimated imports

will be adequate in meeting the country's

requirement of DAP assessed at 54.79 LMTduring Rabi 2011-12, considering that about

4.04 LMT of DAP will be surplus towards the

requirement of Rabi 2011-12.

During the current year, there is a shortage of

DAP because of the political disturbances in

the Middle East and gulf countries which is

main source of DAP import. During the Zonal

Conference organized by Department of

Agriculture and Cooperation (DAC), it was

clearly indicated to all the State Governmentsthat there will be a shortage of DAP fertilizer

during current year.

MOP

4.2.6 Stocks of MOP as on 1.10.2011 coupled with

adequate imports till March 2012 will ensure

that the country's requirement of MOP during

Rabi 2011-12 is fully met.

As regards MOP, there is tightness in

availability of MOP during current year.There is no viable source of Potash in the

country as such the entire demand of MOP is

met through imports. During the current year

up to the month of July, contracting for import

of MOP could not be materialized due to

s u b s t a n t i a l i n c r e a s e o f p r i c e s a n d

cartelization by MOP producers in the

International market. The contracting of MOP

took place only in the month of August. As a

result, MOP availability for direct application

as well as for indigenous production of NPK

fertilizers will be comfortable in Rabi 2011-12.

Following table summarizes the season-

wise position in respect of the availability and

sales of the major fertilizer i.e. Urea, DAP &MOP during the last three seasons:

Crop season Demand

Assessment

Cumulative

Availability

Cumulative

Sales

% age of

availability toassesseddemand

Kharif 2010UreaDAPMOP

136.6568.7522.98

132.1679.0127.51

126.0265.0519.63

96.71114.92119.71

Rabi 2010-11UreaDAPMOP

154.1452.1724.82

165.7746.6420.22

156.0847.6319.27

107.5489.4081.46

Kharif 2011Urea

DAPMOP

142.16

71.3822.54

146.23

60.8010.73

139.21

48.717.00

102.86

85.1747.60

4.3 MOVEMENT OF FERTILIZERS

4.3.1 Under the Allocation of Business Rules, theDepartment of Fertilizers has been entrustedthe responsibility of ensuring movement,distribution and allocation of controlledfertilizer, i.e. urea, from various fertilizerplants and ports in accordance with the State-w i s e r e q u i r e m e n t a s s e s s e d b y t h e

Department of Agriculture & Co-operation(DAC). The distribution of imported urea ismade keeping in view the requirements ofeach of the States.

4.3.2 The major share in transportation of fertilizersis of the Railways. During 2011-12, Railwayshad moved about 75% of the fertilizersproduced and/or imported in the country.

4.3.3 Judicious management of the demand-supply balance has helped in maintaining the

average lead of fertilizer movement by rail.During 2010-11 the average lead was 827KMs. During the current year the averagelead for the period April-November, 2011would also be almost same.

*****



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3

CHAPTER -5

5.1 PLAN PERFORMANCE

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:

5.1.3 Year-wise consumption, production and

imports of fertilizers in nutrients terms are

given in Annexure-V

5.1.4 The production of fertilizers in nutrient terms

during 2010-11 was 121.56 LMT of nitrogen

and 42.22 LMT of phosphate. The estimated

INSTALLED CAPACITY AND PRODUCTON OF NITROGENOUS AND PHOSPHATICFERTILIZERS IN EIGHT, NINTH AND TENTH FIVE YEAR PLANS.(In lakh MT(LMT))

Sr.No

Particulars At the end ofEighth Five Year Plan

(1996-97)

At the end of Ninth Plan( 2001-02).

At the beginning of 5t

year of Tenth Plan(2006-07)

1 Capacityi ) Nitrogenii) Phosphates

97.7729.05

120.5852.31

120.6156.59

2 Productioni ) Nitrogen

ii) Phosphates

85.99

25.56

107.68

38.60

115.78}

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 LMT and 29.05

LMT, respectively. Three major phosphatic

fertilizer plants were commissioned during

the ninth five year plan period, namely, Oswal

Chemicals & Fertilizers Ltd.-Paradeep ( since

t a k e n o v e r b y I F F C O ) , I n d o - G u l f

Corporation-Dahej and Gujarat StateF e r t i l i z e r s C o m p a n y L t d . - S i k k a - I I .

Consequent upon reassessment of urea

capacity on the basis of Dr. Y.K. Alagh

Committee and DAP capacity by Tariff

Commission, despite phasing out of 10 urea

units due to closure, the installed capacity of

nitrogen and phosphate has increased from

97.77 LMT at the end of eighth plan to 120.61

LMT and 29.05 LMT to 56.59 LMT

respectively during the same period.

production for 2011-12 is 125.76 LMT of

nitrogen and 44.32 LMT of phosphate.

Sector-wise targets and achievements inrespect of production and capacity utilization

from 2003-04 onwards are given inAnnexures-VI & VII respectively.

5.2 Plan Outlays

5.2.1 For the Eleventh Five Year Plan (2007-12),

Planning Commission has approved anoutlay of Rs.20627.87 crore consisting of

Rs.1492.00 crore as Domestic Budgetary

Support and Rs.19135.87 crore as Internal &Extra Budgetary Resources (IEBR).

5.2.2 For the year 2011-12, a plan outlay of

Rs.3550.22 crore was approved by the

Planning Commission with Rs.3325.22 crore

to be met out of IEBR and balance amount of

Rs.225.00 crore as budgetary support. The

ANNUAL REPORT 17


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details of Plan outlays are given at made to three loss making PSUs, namely

Annexure-VIII. The gross outlay of BVFCL, FACT and MFL for meeting their

R s . 3 5 5 0 . 2 2 c r o r e i s f o r R a s h t r i y a

Chemicals & Fertilizers Limited (Rs.293.30crore), FAGMIL (Rs.4.15 crore), Project &

Development India Limited (Rs.9.73 crore),

National Fertilizers Limited (Rs.2363.08

crore), Krishak Bharati Cooperative Limited

(Rs.654.96 crore), Brahmaputra Valley

Fertilizer Corporation Limited (Rs.67.80

crore), Fertilizers & Chemicals Travancore

Limited (Rs.60.74 crore), Madras

Fertilizers Limited (Rs.88.95 crore), and

o t h e r M i s c e l l a n e o u s D e p a r t m e n t a lschemes such (MIS/IT and R&D) Rs.7.50

crore. 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.0.01 crore has

been provided.

5.2.3 Out of the budgetary support provided by

the Government, bulk of allocation was

urgent capital expenditure requirement. A

small amount of Rs.2.00 crore wasearmarked for Grants-in-Aid to various

research institutes for carrying out relevant

research which may be beneficial to the

fertilizer industry in the field of fertilizer

sector under S&T Head. Similarly,

another small amount of Rs.5.50 crore was

earmarked for Management Information

Technology (MIT) scheme.

5.2.4 For the year 2011-12, there was net

Budgetary Provision (BE) of Rs 50,245

crore. Rs 225 crore under Plan and Rs 50,020

crore under Non-Plan. In the Revised

Estimates (RE) for 2011-12 the net provision

is Rs 68,225 crore, Rs 225 crore under Plan

and Rs 68,000 crore under Non-Plan. The

details of Non-Plan and Plan provisions in

FY 2011-12 (BE) and (RE) are given in

Annexure-IX.

*****



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3

CHAPTER -6

6.1 MEASURES OF SUPPORT FOR technology, feedstock used, the level ofFERTILIZERS capacity utilization, energy consumption,

6.1.1 For sustained agricultural growth and topromote balanced nutrient application, it isimperative that fertilizers are made availableto farmers at affordable prices. With thisobjective, urea being the only controlledfertilizer, is sold at statutorily notified uniform

sale price, and decontrolled phosphatic andpotassic fertilizers are sold at indicativemaximum retail prices (MRPs). The problemsfaced by the manufacturers in earning areasonable return on their investment withreference to controlled prices, are mitigatedby providing support under the New PricingScheme for urea units and the ConcessionScheme for decontrolled phosphatic andpotassic fertilizers. The statutorily notifiedsale price and indicative MRP is generally

less than the cost of production of therespective manufacturing unit. Thedifference between the cost of production andt h e s e l l i n g p r i c e / M R P i s p a i d a ssubsidy/concession to manufacturers. As theconsumer prices of both indigenous andimported fertilizers are fixed uniformly,financial support is also given on importedurea and decontrolled phosphatic andpotassic fertilizers.

6.2 MEASURES OF SUPPORT FOR UREA

6.2.1 Until 31.3.2003, the subsidy to ureamanufacturers was being regulated in termsof the provisions of the erstwhile RetentionPrice Scheme (RPS). Under RPS, thedifference between retention price (cost ofproduction as assessed by the Governmentplus 12% post tax return on networth) and thestatutorily notified sale price was paid assubsidy to each urea unit. Retention priceused to be determined unit wise, which

differed from unit to unit, depending upon the

distance from the source of feedstock/rawmaterials, etc. Though the RPS did achieveits objective of increasing investment in thefertilizer industry, and thereby creating newcapacities and enhanced fertilizer productionalong with increasing use of chemicalfertilizers, the scheme had been criticized forbeing cost plus in nature and not providingincentives for encouraging efficiency.

6.2.2 Given the importance of fertilizer pricing ands u b s i d i z a t i o n i n t h e o v e r a l l p o l i c yenvironment, which has direct implicationswith reference to the growth and developmentof agriculture and sustainability of the fertilizerindustry, the need for streamlining the subsidyscheme in respect of urea producing unitshad been felt for a long time. A High Powered

Fertilizer Pricing Policy Review Committee( H P C ) w a s c o n s t i t u t e d , u n d e r t h echairmanship of Prof. C.H. Hanumantha Rao,to review the existing system of subsidizationof urea, suggest an alternative broad-based,scientific and transparent methodology, andr e c o m m e n d m e a s u r e s f o r g r e a t e rcohesiveness in the policies applicable todifferent 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 discontinuedand, instead, a uniform Normative ReferralPrice be fixed for existing gas based ureaunits and also for DAP and a FeedstockDifferential Cost Reimbursement (FDCR) begiven for a period of five years for non-gasbased urea units.

6.2.3 The Expenditure Reforms Commission(ERC), headed by Shri K.P. Geethakrishnan,had also examined the issue of rationalizingfertilizer subsidies. In its report submitted on

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2 0t h

S e p t e m b e r 2 0 0 0 , t h e E R C power and water. Under the scheme, no

recommended, inter-alia, dismantling ofexisting RPS and in its place the introduction

of a Concession Scheme for urea units basedon feedstock used and the vintage of plants.

6.2.4 The recommendations of ERC wereexamined in consultation with the concernedMinistries/Departments. The views of thef e r t i l i z e r i n d u s t r y a n d t h e S t a t eG o v e r n m e n t s / U n i o n t e r r i t o r i e s , a n deconomists/research institutes were alsoobtained. After due examination of all theseviews, a New Pricing Scheme (NPS) for ureaunits for replacing the RPS was formulated

and notified on 30.1.2003. The new schemetook effect from 1.4.2003. It aims at inducingthe urea units to achieve internationallycompetitive levels of efficiency, besidesbringing in greater transparency andsimplification in subsidy administration.

6.2.5 New Pricing Scheme (NPS) for urea was

introduced w.e.f. 1stApril, 2003. The Stage-I

of NPS was of one year duration from 1stApril,

2003 to 31st

March, 2004 and Stage-II was of

reimbursement is allowed in respect of

investment made by a unit for improvement in

its operations nor are the gains as a result ofoperational efficiencies to be mopped up.

6.2.8 It has also been provided under the schemethat 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 beennotified and intimated to urea units.

Reduction in rates of concession during

Stage-II of NPS for urea units on account ofreduction in capital related charges have also

been notified and intimated to urea units.

6.3 PHASED DECONTROL OF UREA

DISTRIBUTION

6.3.1 As per the New Pricing Scheme for urea

units, it was also envisaged that decontrol of

urea distribution/movement will be carried outin a phased manner. During Stage-I, i.e.

from 1.4.2003 to 31.3.2004, the allocation of

two year duration from 1st

April 2004 to urea under the Essential Commodities Act31

stMarch, 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 beendivided into six groups based on vintage andfeedstock for determining the group basedconcession. These groups are : Pre-1992gas based units, post-1992 gas based units,

pre-1992 naphtha based units, post-1992naphtha based units, fuel oil/low sulphurheavy stock (FO/LSHS) based units andmixed energy based units. The mixed energybased group shall include such gas basedunits that use alternative feedstock/fuel to theextent of more than 25% as admissible on1.4.2002.

6.2.7 Under NPS, escalation/de-escalation is given

in respect of variable cost related to changesin the price of feedstock, fuel, purchased

1955 (ECA) was restricted up to 75% and50% of installed capacity (as reassessed) of

each unit in Kharif 2003 and Rabi 2003-04,

respectively. It was further envisaged thatduring Stage-II commencing from 1.4.2004,

urea distribution will be totally decontrolled

after evaluation of Stage-I and with theconcurrence of the Ministry of Agriculture.

6.3.2 The total decontrol of urea distribution was

deferred initially for a period of six monthsw.e.f. 1.4.2004 i.e., up to Kharif 2004, whichhas 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.

6.3.3 The pricing policy for urea units for Stage-IIIof New Pricing Schemes (NPS) which is

effective from 1.10.2006 to 31.3.2010 hasbeen formulated keeping in view the



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recommendations of the Working Group set

up under the Chairmanship of Dr. Y.K.

Alagh. The salient features of Stage-III

Policy which is aimed at promoting furtherinvestment in the urea sector, are tomaximize urea production from the Urea

units including through conversion of non-

gas based Units to gas, incentivizingadditional 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 ensureavailability of urea in the remotest corners of

the country.

6.3.4 The Stage-III policy seeks to promoteusage of most efficient and comparativelycheaper feed stock natural gas/LNG forproduction of urea in the country. The policylays down a definite plan for conversion ofall non-gas based urea units to gas. Atpresent, 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 asfeed stock. All these 8 units are required toswitch over to natural gas/LNG within aperiod of next three years. Beyond this time

limit, the high cost urea produced by thesenon-gas based units will not be entitled tosubsidy at the existing levels and it will berestricted to import parity price of urea. Theunits, which are unable to tie up gas will

have to explore alternative feedstocks likeCoal Bed Methane (CBM) and coal gas.

SFC has started using gas w.e.f.22.9.2007.

6.3.5 The availability of gas is critical to thegrowth of urea industry in the country.

Presently, the indigenous availability is notsufficient 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

S e c r e t a r y ( F e r t i l i z e r s ) , S e c r e t a r y

( E x p e n d i t u r e ) , S e c r e t a r y ( P l a n n i n g

Commission) as its members to deliberate

upon various issues relating to connectivity

and assured supply of gas to the fertilizersector. The Committee will also develop anappropriate mechanism for fixing the price

of the gas in a transparent manner. It wasexpected that the availability of gas in the

country will improve from 2008-09 onwardsand the new policy, taking into account the

above fact, has laid down specific timelines

for conversion of all non-gas based units in

the country to gas.

6.3.6 In order to incentivize 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 ofconversion of FO/LSHS based units to gas

and provides for one time capital investmentassistance to these units for conversion to

gas during the next three years. A specific

policy to this effect has been announced bythe Government on 6

thMarch 2009..

6.3.7 The policy also lays down a formulation to

dis-incentivize 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 anagreed timetable for conversion to Gas and

tie up requisite Gas/CBM/Coal gas. If they

do not, they will be given only 75% of thefixed 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.

6.3.8 C o n s i d e r i n g t h e l i k e l y g r o w t h i n

consumption of urea in the years to come,

the policy seeks to encourage the existing

urea units to produce beyond 100% of their

installed capacities by introducing a system

of incentives for additional urea production

ANNUAL REPORT 21


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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 incentivized 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 ofImport Parity Price (IPP). To the extent

Government does not require any quantities

o f a d d i t i o n a l p r o d u c t i o n , t h e u r e a

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

p r i c e s . I t r e c o g n i z e s o u r h e a v y

dependence on imported raw materials/intermediates and feedstock in the fertilizer

sector and to properly leverage this

position, the policy seeks to create

s p e c i a l i z e d a g e n c y t o c o o r d i n a t e

investments abroad in fertilizer sector.

6.3.9 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 district-

wise, month-wise and supplier-wise format.

The units will be required to maintain a

district level stock point and the subsidy will

be paid only when the urea reaches the

district. The monitoring of movement and

distribution of urea throughout the country

up to the district level will be done by an On

line Web based 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 Courtdirective 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.

6.3.10 The Stage-III of NPS seeks to carry on the

existing 6 group classification of urea

manufacturing units in the country with

updation of all costs upto 31st

March, 2003.

The respective pre-set energy consumption

norm of each urea units during Stage-II of

NPS or the actual energy consumption

achieved during the year 2003, whichever is

lower, will be recognized as the norm for

Stage-III of NPS. The policy also providesfor 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.

6.3.11 NPS Stage-III seeks to take forward the

principles of uniformity and efficiency in



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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 thepolicy 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 ofthe 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.

6.4 AMENDMENTS TO STAGE III OF NEW

PRICING SCHEME (NPS)

6.4.1 The Stage-III of New Pricing Scheme (NPS)is being implemented w.e.f. 1

stOctober, 2006

and will be effective till March, 2010. In the

Policy proposal approved by CCEA, it was

mentioned that some urea units such as

Nagarjuna Fertilizers & Chemicals Ltd.

(NFCL), Kakinada, Southern Petrochemicals

Industries Corporation Ltd. (SPIC), Tuticorin

etc. has represented that the implementation

of group based NPS in place of unit specific

cost plus Retention Price Scheme (RPS) hasresulted in certain under recoveries of their

individual costs of production. It was

proposed to take appropriate action in these

cases on merits in consultation with

Department of Expenditure (DoE).

6.4.2 Accordingly, after notification of NPS-III on

8th March, 2007, a number of units have

represented to Department of Fertilizers

indicating the under recoveries on account of

various provisions of the group based NPS.

The issues raised by the units have been

examined within the Department and these

can be divided into two categories. The firstissue relates to losses due to group

averaging, and the second issue relates to

increase in capacity utilization norms for NPS

Stage-III.

6.4.3 It was found that some of the companies are

losing upto 85% of their fixed cost due to the

group averaging principle followed under

N P S - I I I , m a k i n g t h e i r o p e r a t i o n s

unsustainable from day one. Thus, there was

a need to limit the reduction due to averagingprocedure for various units so as to ensure

sustainability of production while encouraging

efficiency. It has been, therefore, decided to

restrict the reduction in fixed costs of a unit

due to group averaging under NPS-III to 10%

of the total fixed cost of the unit, w.e.f 1st April

2009 onwards.

6.4.4 It was also found that for all the companies

the capacity utilization norms have been

increased by 3% from NPS-II stage to NPS-III. However, for post-92 Naphtha based

group it has been increased by 8% on the

pretext that the units have converted to gas.

But since the cost of conversion is not borne

by GOI, an indiscriminate increase by 8% for

this group has put the units under this group at

a disadvantage. It was thus decided to take

capacity utilization for post 1992 naphtha

group at 95%, instead of earlier approved

98% under NPS-III, for calculation of notional

retention price of the units within the group, if

there has been no recognition of cost of

conversion under NPS-III.

6.5 UREA POLICY BEYOND NPS-III

6.5.1 The tenure of NPS Stage-III policy expired on

31st

March 2010. The provisions of the NPS-

III policy has since been extended

provisionally till further order. Now the policy

beyond NPS-III is under consideration of

ANNUAL REPORT 23


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Government. The Group of Ministers (GoM)

constituted to review the fertilizer policy has

decided in its meeting held on 5th

January

2011 to constitute a Committee under the

Chairmanship of Dr. Saumitra Chaudhuri,

Member Planning Commission to examine

the proposal for introduction of NBS in urea,

including various options therefore, and make

suitable recommendations. The committee

has also to examine the issues relating

to investment policy and amendments

proposed therein, and make appropriate

recommendations.

6.5.2 The Committee constituted under the

Chairmanship of Dr. Saumitra Chaudhuri,

Member Planning Commission has submitted

its report on 26-04-2011 on the proposal for

Nutrient Based Subsidy in Urea sector. The

Group of Ministers, considered the report of

the Committee of Secretary in its meeting

held on 5thAugust 2011 and directed that the

proposal on Nutrient Based Subsidy (NBS)

for Urea may be placed before CCEA alongwith the proposal of Department of Fertilizers

and the views of Minister of Chemicals &Fertilizers and sought directions of CCEA.

Draft Note for consideration of CCEA wascirculated on 25-11-2011 for Inter-Ministerial

comments. Final CCEA Note, incorporating

comments of all Ministries/Departments, is

being finalised.

6.6 MRP OF UREA

6.6.1 The MRP of urea since 2003 was Rs. 4830/-

per tonne. The MRP of urea has increased to

Rs. 5310/- per tonne w.e.f. 1stApril 2010. TheMRP fixed is exclusive of CST, Sales Tax and

Central Excise Duty. There has been no

further increase in MRP of urea.

6.7 PRICING POLICY FOR INVESTMENT IN

FERTILIZER SECTOR

UREA

6.7.1 A pricing policy was announced on 29.1.2004

for setting up new urea projects and

expansion of existing urea projects for

augmenting the domestic production capacity

of urea to meet the growing demand for

enhancing the agricultural production in thecountry. 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).

6.7.2 The above policy was not successful inattracting 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 4

th

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.

6.7.3 The New Investment Policy aims at revamp,

expansion, revival of existing urea units and

setting up of Greenfield/ Brownfield projects.

The policy was notified keeping in view

adequate availability of gas at reasonableprices for new investments, which may result

in bridging the gap between the consumption

and domestic consumption. The policy has to

lead to savings to the Government in the form

of availability of Urea at a price below IPP. The

salient features of the new investment policy

are as under :-

I. The policy is based on Import Parity Price

(IPP) benchmarked with suitable floor



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and ceiling prices of USD 250/MT and VII. Allocation of Gas: Only non-APM gas

USD 425/MT respectively. will be considered for the new investmentin urea sector.

II. Revamp project: Any improvement in

capacity of existing plants throughinvestment 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.

VIII. Coal gasification based Urea Projects:The Coal gasification based urea projectswill also be treated on par with a revival ora Greenfield project as the case may be.In addition, any other incentives or taxbenefits as provided by Government forencouraging coal gasification technologywill also be extended to these projects.

IX. Joint Ventures abroad: The JointIII. Expansion projects: Setting up of a Venture projects abroad in gas rich

IV.

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.

Revival/Brownfield projects: The 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

countries are also proposed to bee n c o u r a g e d t h r o u g h f i r m o ff t a k econtracts with pricing decided on thebasis of prevailing market conditions andin mutual consultation with the jointventure company. However, the principlefor deciding upon the maximum price willbe the price achieved under Greenfieldprojects or 95% of IPP as proposed forrevival projects (in absence of anyGreenfield projects) with a cap of USD

405 CIF India per MT and a floor of USD225 CIF India per MT (inclusive ofhandling and bagging costs)

X. Time period for proposed investment

with prescribed floor & ceiling price, if thepolicy: Only those revamp projects

revival of closed units takes placed in

public sector.

which start production of additionalcapacities within four years of notificationof the new policy would qualify for the

V. Greenfield projects: The pricing of dispensation recommended above.

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.

Similarly production from expansion andrevival (brownfield) units that come about

within five years of notification of the newpolicy would qualify for dispensationprovided in the policy. If the productiondoes not come through within the

VI. Gas transportation charges: An stipulated time period, such brownfieldadditional 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.

projects will be treated similar to aGreenfield projects wherein price will bedecided through limited bidding options.The time period for setting up of new JointVentures would also be five years underthe new investment policy.

ANNUAL REPORT 25


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6.8 IMPACT OF INVESTMENT POLICY ON

FERTILIZER SECTOR

6.9 NUTRIENT BASED PRICING REGIME FOR

ALL SUBSIDIZED FERTILIZERS

6.8.1 The fertilizer Industry has responded 6.9.1 Keeping in view the interests of the farmers

positively towards the New Investment Policyby initiating investment decision for revamp of

and to promote balanced use of fertilizers, theDepartment of Fertilizers has notified on 17

th

existing capacities. The fertilizer units like June 2008 a nutrient based pricing regime forIFFCO-AonlaI & II, IFFCO-PhulpurI & II, all subsidized fertilizers. It has been furtherChambal Fertilizers and Chemicals Limited decided to fix the farmgate price of nutrients(CFCL) Gadepan I&II, Nagarjuna at the level of their existing price in straight

Fertilizers and Chemicals Limited (NFCL) fertilizers viz. Urea, DAP, MOP and SSP. This

Kakinada I & II and the unit of Tata will lead to significant reduction in existing

Chemicals Limited - Babrala have informed Maximum Retail Prices (MRPs) of complex

regarding availability of additional productionof urea after revamp. Further, RCF, Thal;KRIBHCO- Hazira and NFL, Vijaipur haveundertaken revamp of their units. As regardsexpansion projects, six companies viz.IFFCO, KRIBHCO, Rashtriya Chemicalsa n d F e r t i l i z e r s L i m i t e d , I N D O - G U L FFertilizers Limited, TATA Chemicals Limitedand Chambal Fertilizers and ChemicalsLimited have proposed to undertakeexpansion of their units. However, theseunits have expressed concern regardingpricing and firm availability of gas beforetaking final investment decision to undertakeexpansion of their existing units

6.8.2 The Group of Ministers(GoM) constituted toreview the fertilizer policy has decided in its

fertilizers. Under this regime, the farm gateprice of each nutrient will be uniform acrossall subsidized fertilizers. The selling price ofsubsidized fertilizers will be determined onthe basis of the nutrients contained therein

6.9.2 Under existing pricing regime, the price ofnutrients in complex fertilizers were higherthan the price of same nutrients in otherstraight fertilizers like Urea, DAP, MOP andSSP. This led to comparatively higher usageof straight fertilizers vis--vis complexfertilizers, which are agronomically better

fertilizer products. The nutrient based pricingwill lead to parity in price of complex fertilizerswith other straight fertilizers and, thus, isexpected to promote balanced fertilization byencouraging usage of complex fertilizers.

meeting held on 5th

January 2011 to6.9.3 POLICY FOR ENCOURAGING PRODUC-

c o n s t i t u t e a C o m m i t t e e u n d e r t h eChairmanship of Dr. Saumitra Chaudhary,Member Planning Commission to examinethe proposal for introduction of NBS in urea,including various options therefore, and

make suitable recommendations. Thecommittee has also to examine the issuesr e l a t i n g t o i n v e s t m e n t p o l i c y a n damendments proposed therein, and makeappropriate recommendations. The report ofthe Committee on Investment Policy in Urea

sector has been finalised and signed on 7th

January 2012. The report is being placedbefore the GoM for directions. A proposal toamend the New Investment policy is underconsideration of Government.

TION AND AVAILABILITY OF FORTIFIED

AND COATED FERTILIZERS IN THE

COUNTRY

Department of Fertilizers has notified on 2nd

June 2008 a policy for encouragingproduction and availability of fortified andcoated fertilizers in the country. In terms ofthis policy, the indigenous manufacturers/producers of the subsidized fertilizers area l l o w e d t o p r o d u c e f o r t i f i e d / c o a t e dsubsidized fertilizers up to a maximum of 20%of their total production of respectivesubsidized fertilizers. The manufacturers/producers are allowed to sell all the FCOa p p r o v e d f o r t i f i e d / c o a t e d s u b s i d i z e d



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fertilizers, except for Zincated Urea andBoronated SSP at a price up to 5% above theMRP of the subsidized fertilizer as indicated

in the table above. For Zincated Urea andBoronated SSP, the manufacturers areallowed to charge up to 10% above MRP ofUrea and SSP respectively. In January 2011,

report to Department of Fertilizers onFinalizing Per KM Per Tonne Rate forTransportation of Fertilizers by road. These

rates will be escalated by WPI (compositeroad transport index) every year. As per therecommendations made by the TariffCommission in their report, the Government

the ceiling of production of Neem Coated has issued a notification on 1st

Septemberurea which has been incorporated in

Schedule 1 of the Fertilizer Control Order,1985 has been increased from the existinglimit of 20% to a maximum of 35% of theirtotal production, company wise of theirrespective subsidized fertilizers.

6.9.4 P O L I C Y F O R U N I F O R M F R E I G H T

SUBSIDY ON ALL FERTILIZERS UNDER

THE FERTILIZER SUBSIDY REGIME

To ensure easy availability of fertilizers in allparts of the country, the Department of

2011 notifying the district wise revised roadtransportation rates for UREA dispatches by

all the units with effect from 1st

April 2008.The normative PTPK rate is to be annuallye

Documents

Fert.nic.in Sites Default Files Annual Report 2011-12 English