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A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6
lR;eso t;rs
Government of India
Department of Fertilizers Ministry of Chemicals & Fertilizers
lR;eso t;rs
Government of India
Department of Fertilizers Ministry of Chemicals & Fertilizers
ANNUAL REPORT 2005-2006
Government of India
MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS
Contents
Introduction
Organisational Set Up and Functions
Development & Growth of Fertilizer Industry
Availability of Major Fertilizers During 2005-06
Plan Performance
Measures of Support for Fertilizers
Public Sector Undertakings and Cooperative Societies
Fertilizer Education Projects
Information Technology (IT)
Vigilance Activities
Right to Information Act, 2005
Progressive Use of Official Language Hindi
Welfare of SCs, STs, OBCs and Physically Handicapped Persons
Activities in the North-East Region
Women Empowerment
Annexures l to Xll
3-6
7
8-15
16-17
18-19
20-27
28-48
49-52
53-54
55
56
57-59
60
61
62-63
64-79
Chapter-1
2 3
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Hon'ble Union Minister of Chemicals & Fertilizers and Steel,
Sh. Ram Vilas Paswan, addressing the Meeting of the Fertilizer Advisory Forum.
( 7th March, 2006)
1.1.1 Agriculture, which accounts for 22% 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 plans have laid stress on
self-sufficiency and self-reliance in foodgrains
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, foodgrain production rose to above
232.31 million MT in 2004-05. In India's success in
the agriculture sector, not only in terms of meeting
total requirement of foodgrains 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 foodgrain
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
184 lakh MT, while per hectare consumption of
fertilizers, which was less than 1 Kg in 1951-52 has
gone up to the level of 96.7 Kg in 2004-05.
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
i n d i g e n o u s i n d u s t r y. S i m i l a r l y, a d e q u a t e
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.
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 Fertiliser & Chemicals Travancore Ltd. (FACT)
at Cochin in Kerala and the Fertilizer 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
foodgrains. Subsequently, the green revolution in
the late sixties gave an impetus to the growth of the
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 31.10.2005 has
reached a level of 120.61 lakh MT of nitrogen
(inclusive of an installed capacity of 205.12 lakh
MT of urea after reassessment of capacity of which
the non functional capacity is estimated at 3.30
lakh MT) and 56.20 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 57 large sized fertilizer plants
in the country manufacturing a wide range of
nitrogenous, phosphatic and complex fertilizers.
Out of these, 29 are urea units, 20 units produce
4 5
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
indigenous/imported rock phosphate and imported
DAP and complex fertilizers, 7 units produce
low analysis straight nitrogenous fertilizers and
9 manufacture ammonium sulphate as by-product.
Besides, there are about 64 medium and small-
scale units in operation producing SSP. The
sector-wise installed capacity is given in the
following table: -
Pradesh. These coal based plants have, however,
been closed by Government w.e.f. 1.4.2002 due to
technical and financial non-viability. With natural
gas becoming available from offshore Bombay
High and South Bassein, a number of gas based
ammonia-urea plants have also been set up since
1985. As the usage of gas increased and its
available supply dwindled, a number of expansion
indigenous / imported rock phosphate and imported
sulphur; domestic production based on imported
intermediates, viz. ammonia and phosphoric acid;
and import of finished fertilizers. During 2004-05
roughly 88% 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
have grown steadily in tandem with the fertilizer
industry. These consultancy organisations are,
today, in a position to undertake execution of
fertilizer projects starting from concept / designing
to commissioning of fertilizer plants in India and
abroad.
1.4.2 A concept has been developed in the Department
to carry out research & development / basic
research work by mutual understanding between
Sector-wise, Nutrient-wise Installed Capacity of Fertilizer
Manufacturing Units as on 31.10.2005.
for production of complex fertilizers is met through
imports.
1.3.4 Given the volatility in international fertilizer market
in general, and the 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 the demand
supply scenario. Action for securing additional
supply of urea by permitting economically efficient
indigenous units to produce beyond their re-
assessed capacity to substitute imports, is also
being taken in the new pricing regime for urea
units, which is being followed since 01.04.2003.
Technological Advancements
industry and academic institutions, and the
Department has sponsored research and
development projects through the Indian Institute
of Technology, Delhi and Kharagpur under Science
& Technology activity for the development of
research / basic research in the field of fertilizer
industry. Action to widen the sphere of research
and development to encompass areas of fertilizer
usage, etc. is also under consideration.
1.4.3. The fertilizer plant operators have now fully
absorbed and assimilated the latest technological
developments, incorporating environmental
friendly process technology, and are in a position to
operate and maintain the plants at their optimum
levels without any foreign assistance and at
Self-Sufficiency in Fertilizer Sector
1.3.1 Out of the three main nutrients namely nitrogen,
phosphate and potash, 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
projects came up in the last few years with dual
feed facility using both naphtha and gas. The
feasibility of making available Liquefied Natural
Gas (LNG) to meet the demand of existing fertilizer
plants 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 the case of phosphates, the paucity of domestic
raw material constrains 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 a mix of three options,
v i z . , d o m e s t i c p r o d u c t i o n b a s e d o n
1.4.1 To meet the demand of fertilizers in the country
through indigenous production, self-reliance in
design engineering and execution of fertilizer
projects is very crucial. This requires a strong
indigenous technological base in planning,
development of process know-how, detailed
engineering and expertise in project management
and execution of projects. With the continuing
support of the Government for research and
development as well as design engineering
activities over the years, Indian consultancy
organisations in the field of fertilizers, Project and
Development India Limited (PDIL) & FACT
Engineering and Design Organisation (FEDO)
international standards in terms of capacity
utilisation, specific energy consumption &
pollution standards. The average performance of
gas based plants in the country today is amongst
the best in the world. The fertilizer industry is also
carrying out de-bottlenecking and energy saving
schemes in their existing plants to enhance the
capacity and reduce the specific energy
consumption per tonne of product. Companies
are also planning to convert their existing Naphtha-
based fertilizer plants to Liquefied Natural Gas
(LNG).
1.4.4 The country has also developed expertise for
fabrication and supply of major and critical
equipment such as high pressure vessels, static
6 7
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
international market.
2.1.2 The Department is broadly divided into 4 Divisions the PSUs under the Department.
dealing with (i) Fertilizer Projects and Planning, (ii) 2.1.6 A list containing the names of Minister-in-charge
Fertilizer Imports, Movement and Distribution, (iii) and the officers up to the level of Deputy Secretary
Administration and Vigilance and (iv) Finance and who are working / have worked in the Department
Accounts. Two Joint Secretaries, an Economic during 2005-06 is given in Annexure-II.
and rotating equipment, distributed control system
(DCS), heat exchangers and hydrolyser for
Concessions / Incentives on Import of Capital Goods for Fertilizer Industry
Chapter-2
Organisational Set Up and Functions
fertilizer projects. The indigenous vendors are now
in a position to compete and secure orders for such
equipment both in India & abroad under
International Competitive Bidding (ICB) procedure.
Presently, about 70% of the equipment required for
a major domestic fertilizer plant are designed and
manufactured indigenously.
1.4.5 A significant development / advancement has also
been made in the country in the field of
manufacturing of catalysts of various ranges by our
catalyst manufacturing organisations like PDIL.
P D I L i s i m p l e m e n t i n g t h e s c h e m e s f o r
enhancement of capacity and technological
upgradation in their existing catalyst plant and
other utilities at Sindri to compete in the
Hon'ble Union Minister of Chemicals & Fertilizers and Steel,
1.5.1 To encourage investment in the fertilizer sector,
concessional customs duty on import of capital
goods for setting up of new plants / substantial
expansion / renovation / modernisation of existing
plants is available to the domestic industry.
2.1.1 The main activities of Department of Fertilizers
( D O F ) i n c l u d e p l a n n i n g , p r o m o t i o n a n d
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.
Adviser, and an Additional Secretary/Joint
Secretary-cum-Financial Adviser handle the work
of these divisions.
2.1.3 Joint Secretary (Fertilizers) is entrusted with the
work pertaining to planning of fertilizer production
and development of fertilizer industry, which
includes pricing policy for urea units, and issues
relating to availability of raw materials such as
natural gas, fuel oil and naphtha. In respect of
PSUs, the Joint Secretary (Fertilizers) is
concerned with joint venture projects, external
assistance for new fertilizer projects, revival /
rehabilitation of sick fertilizer units and company
affairs.
2.1.4 The Joint Secretary in-charge of Administration
and Movement also looks after the work of
monitoring and assessment of production, import,
movement and distribution of fertilizers,
administration and management of concession
scheme for decontrolled phosphatic and potassic
fertilizers. The Joint Secretary (Administration &
Movement) also attends to grievances of the public
and the employees of the Department and
functions as the Chief Vigilance Officer (CVO) of
the Department.
2.1.5 The Economic Adviser (EA), an officer of the level
of Joint Secretary, advises the Department on
various economic issues like creation of additional
capacity, pricing and costing of fertilizers. EA also
deals with functions pertaining to bio-fertilizers,
micronutrients, organic-manure, and co-ordinates
the quarterly review meetings (QRMs) in respect of
Fertilizer Industry Coordination Committee (FICC)
2.2.1 The office of Fertilizer Industry Coordination
Committee (FICC) is an attached office under the
Department of Fertilizers headed by an Executive Director,
who is of the rank of Joint / Additional Secretary to the
Government of India. The FICC comprises the
Secretaries to the GOI in the Department of Fertilizers,
industrial Policy and Promotion, Agriculture and
Cooperation, Expenditure, Ministry of Petroleum & Natural
G a s , C h a i r m a n , Ta r i f f C o m m i s s i o n a n d t w o
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 made responsible through
Resolution dated 13.3.2003 to administer and operate the
New Pricing Scheme (NPS) pertaining to urea, which has
come into existence w.e.f. 1.4.2003.
Public Sector Undertakings And Multi-State Co-operative Societies
2.3.1 The Department has under its administrative
control ten public sector undertakings (PSUs), one
multi-state co-operative society and one joint
sector company. The list is given at Annexure III.
Sh. Ram Vilas Paswan, garlanding statue of Chhatrapati Shivaji during his visit to RCF, Thal
8 9
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Chapter-3
Development and Growth of Fertilizer Industry
UREA UNITS SET UP BETWEEN: 1951-1999 WITH REASSESSED CAPACITY
Capacity Build-Up
3.1.1 At present, there are 57 large size fertilizer units in
the country manufacturing a wide range of
nitrogenous, phosphatic and complex fertilizers.
Of these, 29 are urea units, 20 units produce DAP
and complex fertilizers, 7 units produce low
analysis straight nitrogenous fertilizers and 9
manufacture ammonium sulphate as by-product.
Besides, there are about 64 small and medium
scale units in operation producing single super
phosphate (SSP). The total installed capacity of
fertilizer production was 119.60 lakh MT of nitrogen
and 53.60 lakh MT of phosphate as on 31.03.2004.
This has marginally increased to120.61 lakh MT of
nitrogen and 56.20 lakh MT of phosphate as on
31.10.2005.
Production Capacity and Capacity Utilisation
3.2.1 The production of fertilizers during 2004-05 was
113.38 lakh MT of nitrogen and 40.67 lakh MT of
phosphate. The production target for 2005-2006
has been fixed at 118.07 lakh MT of nitrogen and
47.02 lakh MT of phosphate, representing a
growth rate of 4.4% in nitrogen and 15.6% in
phosphate, as compared to the actual production
in 2004-2005. Production target for nitrogenous
fertilizer is less than the installed capacity because
of low production by Rashtriya Chemicals &
Fertilizers (RCF), Trombay and Brahmaputra
Valley Fertilizer Corporation Ltd. (BVFCL),
Namrup due to gas limitations and equipment
problems. Similarly, the production of phosphatic
fertilizer is less than installed capacity due to
constraints in availability of raw materials /
intermediates which are substantially imported.
However, taken together, the production of 'N' and
'P' during the year was higher than that in the
corresponding period of last year.
3.2.2 The production performance of both nitrogenous
and phosphatic fertilizers during 2004-05 year was
less than the target mainly due to constraints in
supply and quality of natural gas, equipment
breakdowns, delay in commissioning of Namrup-II,
RCF Trombay-V, and DIL Kanpur having remained
under unscheduled shutdown. In case of
phosphate, production in DAP plants was low on
account of shortage of phosphoric acid and
imported ammonia. Similary, production of
complexes was also low due to shortage of raw
materials i.e. phosphoric acid and ammonia.
Note: @ After revamp
10 11
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
The following 9 urea plants are presently closed / under shutdown due to various reasons, inter-alia, on account of technological obsolescence, feedstock limitation, non-viability of unit / company and heavy financial losses.
Note: Two urea units have suspended production for the last three years namely RCF-Trombay-V (3.3 LMT) due to shortage of natural gas and DIL-Kanpur (7.22 LMT) due to financial constraints.
Projects Under Implementation
3.4.1 Brahmaputra Valley Fertilizer Corporation Ltd., is
implementing a major revamp of its Namrup unit in
Assam in the North Eastern Region of the country,
at an approved completion cost of Rs.610.24 crore
to increase urea production to 5.55 lakh tonnes per
annum. Namrup-III unit and one stream of
Namrup-I (partially) were commissioned in March
& May 2002, respectively. Namrup-II unit of BVFCL
has been commissioned following the completion
of revamp w.e.f. November 2005.
Feedstock Policy
3.5.1 At present, natural gas based plants account for
around 65% of urea capacity, naphtha is used for
around 24% urea production and the balance
capacity is based on fuel oil and LSHS as
feedstock. The two coal based plants at
3.5.4 In this context, the aspect of availability and pricing
of feedstock also becomes important, considering
that the cost of feedstock constitutes about 60 to
75% of the total cost of production of urea - in
respect of gas based units, it accounts for 60% of
cost of production, whereas in the case of naphtha
and FO/LSHS based units, it accounts for around
75% of the cost of production.
3.5.5 There is also a very considerable difference
between the prices of NG/LNG and Naphtha and
FO / LSHS. As compared to the present price of NG
/ LNG which ranges from US $ 2.6 to 5.0 per
MMBTU, the prices of Naphtha and FO / LSHS are
the equivalent of US$ 13-15 and US $ 9-11 per
MMBTU respectively.
3.5.6 Although natural gas is the preferred feedstock for
production of urea, due to dwindling supplies of
Administered Price Mechanism (APM) gas, gas
3.2.3 The domestic fertilizer industry has by and large
attained levels of capacity utilisation comparable
with others in the world. The capacity utilisation
during 2004-05 was 94.0% for nitrogen and 72.2%
for phosphate. The estimated capacity utilisation
during 2005-06 is 94.9% of nitrogen and 73.2% of
phosphate. Within this gross capacity utilization,
the capacity utilisation in terms of the urea plants
was 104.2% in 2004-05 and is estimated to be
103.7% in 2005-06. As for phosphate fertiizers,
apart from the constraints mentioned earlier, the
actual production capacity utilisation has also been
influenced by the demand trends.
3.2.4 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.
3.2.5 The unit-wise details of installed capacity,
production and capacity utilisation during 2004-05
and 2005-06 (estimated) are given in Annexure-
IV.
Strategy For Growth
3.3.1 The following strategy has been adopted to
increase fertilizer production:
l Expansion and capacity addition/efficiency
enhancement through retrofitting / revamping of
existing fertilizer plants.
l Setting up joint venture projects in countries having
abundant and cheaper raw material resources.
l Working out the possibility of using alternative
sources like liquefied natural gas, coal gasification,
etc., to overcome the constraints in the domestic
availability of cheap and clean feedstock,
particularly for the production of urea.
l Looking at possibilities of revival of some of the
closed units by setting up brownfield units subject
to availability of gas.
Ramagundam and Talcher were closed down due
to technological obsolescence and non-viability.
3.5.2 Natural gas has been the preferred feedstock for
the manufacture of urea over other feedstocks viz.
naphtha and FO / LSHS, firstly, because it is a
more efficient and clean source of energy and
secondly, it is considerably cheaper and more cost
effective in terms of manufacturing cost of urea as
compared to the other feedstocks, which also has
a direct impact on the quantum of subsidy on urea.
3.5.3 Accordingly, the policy announced in January 2004
provides that new urea projects, expansion of
existing urea units and capacity increase through
de-bottlenecking / revamp / modernization will be
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.
based units have been facing shortage of natural
gas. Against the total requirement of 33.01
MMSCMD of gas for the existing gas based units,
the actual average supply during 2004-05 was
23.79 MMSCMD only. With the commissioning of
the LNG terminal of Petronet LNG Ltd. and
commencement of supplies of RLNG to
consumers w.e.f. 1.4.2005, the gas based urea
units along the HBJ pipeline have received 7.6142
MMSCMD of R-LNG during the period April-
September, 2005 and the average actual supply of
gas to urea units during April-September, 2005
increased to 28.0089 MMSCMD. The shortfall in
supply of natural gas for units along HBJ pipeline
has, therefore, been significantly reduced.
However, the availability of gas in terms of the total
requirement with reference to the requirements of
existing units, expansion, de-bottlenecking /
revamp / modernization proposals and for
conversion of naphtha and FO / LSHS based units
continues to be a matter of concern.
12 13
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
3.5.7 The burgeoning demand for natural gas by sectors
such as fertilizers, power, transport etc. has
resulted in efforts to increase domestic gas supply,
through the public sector companies as well as
private companies / joint ventures through step up
in exploration activities, increased production from
existing fields, and bridging the gap between
demand and supply through imported LNG.
Constitution of Inter-Ministerial Group On Pricing and Availability of NG / LNG to Fertilizer Sector
3.6.1 An Inter-Ministerial Group (IMG) has been
constituted under the chairmanship of Finance
Minister to examine issues related to supply of
natural gas and LNG to fertilizer industry. The IMG
has been mandated to examine and work out a
framework for preferential allocation of domestic
natural gas to the fertilizer industry and making
available imported LNG to fertilizer units, its pricing
and related taxation issues. Based on decisions
taken by the IMG, the issue of reasonableness of
pricing of various components of Re-gasified-LNG
(RLNG) being marketed by PLL (post FOB price)
was referred to the Tariff Commission. The Tariff
Commission has recently submitted the final report
and the same have been examined in the
Department. It is expected that the matter will be
considered by the IMG shortly.
3.6.2 In the meanwhile, as a part of the recently
formulated policy on natural gas allocation and
prices, the Government has decided that all
available APM gas would be supplied to only the
power and fertilizer sectors against their existing
allocations after meeting the requirements of
specific end users as per commitments under
various court orders.
3.6.3 As per the directives of the IMG the Department of
Fertilizers had also constituted a Core Group on
30.7.2004 under the chairmanship of Director
General, Fertiliser Association of India with
representatives from urea companies, Department
of Fertilizers, Ministry of Petroleum & Natural Gas
and Ministry of Shipping for exploring the options of
delivery of LNG through direct import by the
fertilizer industry by forming a consortium as
against the purchase of LNG from suppliers at the
presently quoted prices; feasibility of creation of its
own infrastructure vis-à-vis utilizing the existing
infrastructure of PLL and GAIL on hire / rent basis;
means of ownership and financing of the proposed
LNG project of the fertilizer industry; negotiations
with other LNG suppliers if the LNG procured by
fertilizer industry is not adequate; and any other
options which, in the opinion of the Core Group,
could be feasible.
3.6.4 The Core Group, in its report submitted in March
2005, opined that additional quantities of R-LNG
can become available only after commissioning of
the re-gasification terminal of Shell at Hazira and
expansion of the capacity of the PLL terminal at
Dahej. Moreover, in view of the tight supply
situation of natural gas and firming up of energy
prices all over the world, it may not be possible at
this stage for the present Core Group or any other
group of fertilizer companies to obtain firm
commitments for LNG supplies at various locations
a t t h e i r l e v e l . H e n c e , t h e C o r e G r o u p
recommended that individual companies may
continue to make their own arrangements for their
requirements of NG / LNG as and when supplies
are available at the desired locations, and that the
Government of India should continue to intervene
in allocation and price of NG / LNG till a regulator
for the sector is established.
3.6.5 The Department is in constant interaction with the
Ministry of Petroleum & Natural Gas, GAIL (India)
Limited and other prospective suppliers of NG /
LNG so that the gas requirements of the fertilizer
industry are met adequately. The gas supply
scenario is going to change in a big way in the
coming years on account of new gas finds, efforts
to import LNG from gas rich countries by gas
companies both in public and private sector, and
possibilities of importing gas through trans-
national pipelines from countries such as Iran,
Myanmar, etc. Indications are that, by 2010-11,
while the availability of present APM gas supplied
by ONGC would decline, the supply from domestic
Joint Venture and private suppliers will rise, and
the quantum of LNG import from suppliers such as
Qatar, Shell and Iran will increase substantially.
3.6.6 In this scenario, the Department is making efforts
to ensure that in the years to come a substantial
portion of the additional NG/LNG is made available
on priority to its various fertilizer units located in all
parts of the country. This includes not only the
presently functional 28 urea units, but also the
additional urea capacity that is likely to come up in
the future by way of greenfield projects / brownfield
expansion, de-bottlenecking and revamp projects
as well as possible revival of closed units.
Joint Ventures Abroad
3.7.1 Due to constraints in the availability of gas, which is
the preferred feedstock for production of
nitrogenous fertilizers and the near total
dependence of the country on imported raw
materials for production of phosphatic fertilizers,
the Government has been encouraging Indian
companies to establish joint venture production
facilities, with buy back arrangement, in other
countries, which have rich reserves of natural gas
and rock phosphate.
3.7.2 The Government of India (GOI), Indian Farmers
Fertiliser Cooperative Ltd. (IFFCO) and Southern
Petrochemicals Industries Corporation Ltd. (SPIC)
are equity partners in a joint venture company set
up in Senegal for production of phosphoric acid.
The initial equity contribution of the Indian
consortium in the venture in 1980 amounted to
Rs. 13.67 crore, ie. about 18.20% of its total equity.
At present, the Indian sponsors together hold
27.28% equity (GOI-7.72%, IFFCO-18.34% and
SPIC-1.22%), in the Joint Venture Company in
Senegal named Industries Chimiques du Senegal
(ICS). The company has a capacity to produce
6.60 lakh tonnes of phosphoric acid per annum and
finished phosphate fertilizers in its plants in
Senegal. A major portion of the phosphoric acid
produced in the ICS plant is being utilized for
production of phosphate fertilizers in the country
through long term buy back arrangement with
IFFCO.
3.7.3 SPIC, Jordan Phosphates Mines Company Ltd.
(JPMC) and Arab Investment Company (AIC) have
set up a joint venture project in Jordan to produce
2.24 lakh tonnes of phosphoric acid per annum.
52.17% of the equity of the joint venture named
Indo Jordan Chemicals Company Limited is held
by SPIC, 34.86% by JPMC and 12.97% by AIC.
The plant had been commissioned in May 1997.
The phosphoric acid produced by this venture is
imported by SPIC.
3.7.4 A Joint venture IMACID (Indo Moroc Phosphore
SA) between Office Cherifien Des Phosphates
(OCP), Morocco and Chambal Fertilizers &
Chemicals Ltd. (CFCL) to produce 3.30 lakh
tonnes of phosphoric acid per annum was
commissioned in Morocco in October 1999. After
completion of first the phase of revamp/
debottlenecking project during 2004, the capacity
has been increased to 3.65 lakhs tonnes per
annum. The 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
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Limited, India, to induct it as third equal joint
venture partner in IMACID.
3.7.5 IFFCO & KRIBHCO along with Oman Oil Company
have set up a joint venture urea project in Oman for
production of 16.52 LMT of urea and 2.48 LMT of
surplus merchant ammonia per annum. The US$
320 million equity of Oman India Fertilizer
Company (OMIFCO) is held by the Oman Oil
Company (50%) and IFFCO & KRIBHCO (25%
each). The implementation of the project was
commenced on 15.8.2002 and the commercial
production has started w.e.f. 14th July 2005. The
plant was formally inaugurated on 28th January
2006. OMIFCO is supplying its urea to the
Government of India at fixed Long Term Prices for a
period of 15 years, and ammonia to IFFCO for 10
years at a fixed price under long term buy-back
agreement.
Overseas Joint Ventures Under Implementation / Consideration:
3.8.1 SPIC is in the process of setting up a gas-based
nitrogenous fertilizer plant at Dubai in United Arab
Emirates to produce 4.00 lakh MT of urea per
annum at an estimated cost of US$ 170 million. The
joint venture company by name SPIC Fertilisers
and Chemicals Limited, incorporated in Mauritius is
promoted by SPIC with equity participation of US $
22.64 million and Emirates Trading Agency of UAE
with equity holding of US $ 6.4 million. The project
is under implementation and is expected to be
commissioned during the second quarter of 2007,
and urea produced is proposed to be imported by
SPIC through a firm buy back arrangement.
3.8.2 Indian Farmers Fertiliser Cooperative Ltd. (IFFCO
and El Nasr Mining Co. (ENMC) have formed a
Joint Venture Company, the 'Indo Egyptian
Fertiliser Company on 15th November 2005 for
setting up a phosphoric acid plant in Egypt, with an
installed capacity of 0.5 million tonnes of P205 per
annum. The estimated cost of the Project is USD
325 million, which is expected to be financed with a
debt: equity ratio of 67: 33. IFFCO and its Affiliates
would hold the majority equity shareholding of 76%
while ENMC and its affiliates would hold the
balance equity of 24% in the Joint Venture
Company. ENMC, the largest Rock Phosphate
Mining Company of Egypt will supply Rock
Phosphate, the basic raw material of the Project
and IFFCO will buy back the entire Phosphoric
A c i d p r o d u c t i o n . T h e t a r g e t d a t e f o r
commencement of construction is mid 2006. The
project construction period is estimated to be 36
months and the plant is expected to achieve
commercial production by the year 2009.
will take 15% each. Balance fund will be raised
through borrowings. The project is expected to be
commissioned by June 2008.
Hon'ble Union Minister of Chemicals & Fertilizers and Steel, Sh. Ram Vilas Paswan, at the inauguration of the OMIFCO Plant at Sur,
Oman ( 28th January 2006)
3.8.3 Gujarat State Fertilizers & Chemicals Ltd. (GSFC)
and Coromandal Fertilizers Ltd. (CFL) alongwith
Groupe Chimique Tunisien (GCT) & Compagnie
Des Phosphates De Gafsa (CPG) are setting up a
joint venture project in Tunisia for production of
3,30,000 MTS of Phosphoric Acid per annum. The
JV will sell its full production to both the above
Indian parties. An MOU to this effect was signed in
October, 2005 between GSFC & GCT/CPG. The
cost of the project is US $ 165 million +_ 5%
(excluding working capital component estimated at
US$ 25 million). The estimated equity of the JV is
US$ 66 million, wherein GCT/CPG- the Tunisian
partners will take 70% share while GSFC & CFL
14 15
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Chapter-4
Availability of Major Fertilizers During 2005-06
country's requirement of DAP during Rabi
2005-06.
The distribution of imported urea is made keeping
in view the requirements of each of the States.
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 2005 season and so far during Rabi
2005-06.
Kharif 2005
4.1.2 The field opening stock of 9.84 lakh MTs as on
1.4.2005 coupled with indigenous production of
101.19 lakh MTs and imports of 5.17 lakh MTs
helped in ensuring adequate availability to the
States throughout the season. The cumulative
availability of urea at the end of the season was
nearly 116.20 lakh MTs against the assessed
requirement of 114.39 lakh MTs. The actual sales
of 107.66 MTs urea during Kharif 2005 were higher
by about 10% over sales of 97.81 lakh MTs in
Kharif 2004.
Rabi 2005-06
4.1.3 The requirement of urea for Rabi 2005-06 has
been assessed at 119.86 lakh MTs envisaging a
growth of about 11.32% over the sales of 107.67
lakh MTs in Rabi 2004-05. The requirement would
be met from the opening stocks of about 8.53 lakh
MTs, estimated production of 104.91 lakh MTs and
imports of about 14.51 lakh MT during the season.
Thus the cumulative availability of urea for Rabi
has been estimated to be about 127.91 lakh MTs
by the end of 31st March, 2005.
4.1.4 Allocation of urea was restricted to 50% of
production of installed capacity of each
manufacturer during Kharif 2005 and Rabi 2005-
06. The manufacturers are free to sell the
remaining quantity of urea to the farmers anywhere
16
in the country at notified maximum retail price
(MRP).
Decontrolled Fertilizers DAP & MOP
4.2.1 In the case of fertilizers other than urea, which are
decontrolled, no allocation is made under E.C. Act
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 and
supplies at the national level. While imports of
decontrolled fertilizers are freely allowed, imports
are also made on government account to bridge
the gap between demand and supply by way of
buffer stocks.
Kharif 2005
4.2.2 DAP and MOP are the two major decontrolled and
decanalised fertilizers, which are freely imported.
In Kharif 2005, 11.77 lakh MTs of DAP and 18.88
lakh MTs of MOP were imported.
4.2.3 The imports of DAP coupled with indigenous
production of 20.78 lakh MTs and the opening
stock of 4.26 lakh MTs of DAP as on 1st April, 2005
resulted in satisfactory availability of about 36.81
lakh MTs DAP during Kharif 2005 season. The
sales of 25.19 lakh MTs DAP were higher by 6%,
and in case of MOP, the sales of about 15.00 lakh
MTs were higher by about 3% as compared with
the sales in Kharif 2004 season.
Rabi 2005-06
4.2.4 The production of DAP during Rabi 2005-06 is
estimated to be about 24.52 lakh MTs. With DAP
stocks of 11.53 lakh MTs DAP as on 1.10.2005
coupled with adequate imports there has not been
any significant problem so far in meeting the
4.2.5 Similarly, with stocks of 5.57 lakh MTs MOP as on
1.10.2005 coupled with adequate imports till
October, 2005, there had not been any problem so
far in meeting the country's requirement of MOP
during Rabi 2005-06.
4.2.6 The following table summarizes the season-wise
position in respect of the availability and sales of
the major fertilizers i.e. Urea, DAP and MOP during
the last three seasons:
Movement of Fertilizers
4.3.1 Under the Allocation of Business Rules, the
Department of Fertilizers has been entrusted the
responsibility of ensuring movement, distribution
and allocation of controlled fertilizer, i.e. urea, from
various fertilizer plants and ports in accordance
with the State-wise assessment made by the
Department of Agriculture & Co-operation (DAC).
* Figures are up to 31.1.2006 $ Excluding silo stock & stock at shiphold
4.3.2 The major share in transportation of fertilizers is of
the Railways. During 2004-05, Railways had
moved about 73.15 per cent of the fertilizers
produced and / or imported into the country. In
2005-06, so far, the demand of railway wagons for
the transportation of fertilizers has been fully met.
During April-September 2005, 149.70 lakh MTs of
fertilizers was moved by the Railways as against
135.90 lakh MTs in the corresponding period of
2004-05.
4.3.3 Judicious management of the demand-supply
balance has helped in reducing the average lead of
fertilizer movement by rail. During 2004-05 the
average lead was 845 KMs. During the current
year the average lead for the period April -
September, 2005 is 824 KMs whereas it was 831
KMs during the corresponding period last year.
(Figures in lakh MTs)
17
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Chapter-5
Plan Performance
crore was approved by the Planning Commission,
under Plan and Rs.17287.00 crore under Non-
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 4th year of Tenth Plan (2004-05) are
indicated below:
Plan to 120.61 lakh MT and 29.05 lakh MT to 56.20
lakh MT, respectively, in the fourth year of the Tenth
Plan.
5.1.3 The production of fertilizers in nutrient terms during
2004-05 was 113.38 lakh MT of nitrogen and 40.67
lakh MT of phosphate. Sector-wise targets and
with Rs. 905.48 crore to be met out of IEBR and
balance amount of Rs.111.82 crore as budgetary
support. The details of Plan outlays are given in
Annexure IX.
5.2.3 The outlay for 2006-07 is Rs. 985.03 crore, of
which as amount of Rs. 886.22 crore will be met
from the internal and extra budgetary resosurces
plan. The details of Non-Plan and Plan provisions
in 2005-06(BE), 2005-06(RE) and 2006-07(BE)
are given in Annexure X.
Installed Capacity and Producton of Nitrogenous and
Phosphatic Fertilizers in Eighth, Ninth and Tenth Five Year Plans. (In lakh MT)
and the balance amount of Rs. 98.81 crore will be
provided by way of budgetary support. The
internal and extra budgetary resources would
consist of National Fertilizers Ltd. (Rs. 59.02
crore), Project and Development India Ltd.
(Rs. 2.00 crore), Rashtriya Chemicals & Fertilizers
Ltd. (Rs. 237.70 crore), FCI-Arawali Gypsum and
Minerals India Ltd. (Rs. 1.50 crore), and Krishak
Bharati Cooperative Ltd. (Rs. 586.00 crore). The
budgetary support will be for Fertilizers And
Chemicals Travancore Ltd. (Rs. 30.00 crore),
Brahmaputra Valley Fertilizers Corporation Ltd.
(40.86 crore), Madras Fertilizers Ltd. (Rs. 9.00
crore) and other Departmental Schemes
(Rs. 18.95 crore). Under other Department
Schemes, there is a provision of Rs. 12.95 crore for
Rainfed Farming Project of Krishak Bharati
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, 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 report,
and DAP capacity by Tariff Commission, despite
phasing out of 8 urea units due to closure, the
installed capacity of nitrogen and phosphate
increased from 97.77 lakh MT at the end of Eighth
achievements in respect of production and
capacity utilization from 1998-99 onwards are
given in Annexures-VI & VII.
Plan Outlays
5.2.1 For the Tenth Plan (2002-07), Planning
Commission approved an outlay of Rs.5900.00
crore consisting of Rs.975.00 crore as Domestic
Budgetary Support, Rs.75.00 crore as External Aid
routed through Budget and Rs.4850.00 crore to be
met out of Internal & Extra Budgetary Resources
(IEBR).
5.2.2 For the year 2005-06, a plan outlay of Rs.1017.30
Cooperative Ltd. Under Indo-UK Aid Programme,
Rs. 4.97 crore for S&T work and Rs. 1.03 crore for
Management of Information Technology.
Budgetary Support
5.3.1 For the year 2005-06, there was an overall
provision of Rs.16398.82 crore: Rs.111.82 crore
under Plan and Rs.16287.00 crore under Non-
Plan [ In the Revised Estimate(RE) for 2005-06,
the total provision is Rs.17392.82 crore, Rs.105.00
crore under Plan and Rs.17287.82 crore under
Non-Plan]. For the year 2006-07 there is a net
provision of Rs.17385.89 crore, Rs. 98.81 crore
18 19
Chapter-6
Referral Price be fixed for existing gas based urea
units and also for DAP, and a Feedstock
however, deferred initially for a period of six
months w.e.f. 1.4.2004 i.e., up to Kharif 2004,
units; fuel oil / low sulphur heavy stock (FO/LSHS)
based units; and mixed energy based units. The
return on networth) and the statutorily notified sale
price was paid as subsidy to each urea-producing
20 21
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Measures of Support for Fertilizers
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
mixed energy based group includes such gas
based units that use alternative feedstock / fuel to
the extent of more than 25% as admissible on
1.4.2002.
6.2.6 Under NPS, escalation / de-escalation, over the
6.1.1 For sustained agricultural growth and, with this end
in view, to promote balanced nutrient application, it
is imperative that fertilizers are made available to
farmers at affordable prices. With this objective,
Urea is presently the only controlled fertilizer, and
is sold at a 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 (NPS) for urea units and
the Concession Scheme for decontrolled
phosphatic and potassic fertilizers. The statutorily
notified sale price and indicative MRP is
considerably lower than the assessed cost of
production of the respective manufacturing units.
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.
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 of each individual unit as
assessed by the Government plus 12% post tax
unit. Retention price used to be determined unit-
wise, depending upon the technology, feedstock
used, the level of capacity utilization, energy
consumption, distance from the source of
feedstock / raw materials, etc. Though the RPS
did achieve its objective of increasing investment
in the fertilizer industry, and thereby creating new
capacities and enhanced fertilizer production,
resulting in a substantial increase in the use of
chemical fertilizers, the scheme had been
criticized for being cost plus in nature and,
therefore, not providing incentives for encouraging
efficiency.
6.2.2 Given the importance of fertilizer pricing, which has
direct implications with reference to the growth and
development of agriculture and sustainability of the
fertilizer industry, on the one hand, and the
quantum of subsidy outgo, on the other, 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
examined the issue of rationalizing fertilizer
subsidies. In its report submitted on 20th
September, 2000, the ERC recommended, inter-
alia, dismantling of existing RPS and 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 to
replace the RPS was formulated and notified on
30.1.2003. The new scheme took effect from
1.4.2003. It aims inter alia to encourage the urea
units to achieve internationally competitive levels
of efficiency, besides bringing in greater
transparency and simplification in subsidy
administration.
6.2.5 The NPS is being implemented in stages. Stage-I
was of one year duration, from 1.4.2003 to
31.3.2004. Stage-II commenced from 1.4.2004 for
a two years' duration, from 1.4.2004 to 31.3.2006.
The modalities of subsequent stages were to be
decided after review of implementation of Stage-I
and Stage-II. 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
group base price, is given in respect of variable
costs related to changes in the price of feedstock,
fuel, purchased power and water. Under the
scheme, no reimbursement is allowed in respect of
investments made by a unit for improvement in its
operations nor are the gains as a result of
operational efficiencies to be mopped up.
6.2.7 It was also 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. Keeping
this in view, pre-set energy norms for different
groups / units were assessed and notified in Stage-
II of NPS. 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 the urea units.
Phased Decontrol of Urea Distribution
6.3.1 As per the NPS, it was also envisaged that
decontrol of urea distribution / movement will be
carried out in a phased manner. During Stage-I,
i.e., the allocation of urea under the Essential
Commodities Act 1955 (ECA) was restricted up to
75% of the installed capacity during Kharif and
50% during Rabi of 2003-04. It was further
envisaged that during Stage-II commencing from
1.4.2004, urea distribution will be totally
decontrolled after evaluation of Stage-I in
consultation with and concurrence of the Ministry
of Agriculture.
6.3.2 The total decontrol of urea distribution was,
22 23
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
which has been subsequently deferred up to Rabi
2005-06 i.e., up to 31.3.2006. Therefore, the
allocations of urea under ECA continue to be
restricted upto 50% of the installed capacity (as re-
assessed) of each unit and the remaining
quantities can be sold by the manufacturer
anywhere at the MRP.
Constitution of a Working Group For Formulation of Policy For Urea Units For Stage-III Commencing From 1.4.2006
6.4.1 For reviewing the effectiveness of Stage-I and II of
NPS, and for formulating a policy for urea units
beyond Stage-II i.e. from 1.4.2006 onwards, the
Department of Fertilizers constituted a Working
Group under the chairmanship of Dr. Y.K. Alagh on
10.12.2004. The Working Group was asked to
examine issues pertaining to formulation of policy
especially with regard to nature, pricing and
availability, demand and supply of urea upto the
end of 11th Five Year Plan, fixing milestones for
conversion of existing naphtha and FO/LSHS
based units to NG/LNG, feedstock policy, mode of
determination and methodology of payment of
concession to urea units, de-control of movement
and distribution of urea, balanced fertilization
through urea pricing etc. The Working Group has
since submitted its recommendations, which are
under examination in the Department.
Expenditure on Urea Subsidy
6.5.1 The financial support to indigenous and imported
urea from the year 1995-96 onwards is indicated
below : -
( Rs in crores)
6.5.2 The steady increase in fertilizer subsidies over the
years has largely been the result of increasing
production / consumption and increases in the
costs of inputs of indigenous fertilizers and prices
of imported fertilizers from time to time. The cost
of various inputs / utilities, such as coal, gas,
naphtha, rock phosphate, sulphur, ammonia,
phosphoric acid, electricity, etc., as also the cost of
transportation, has increased significantly over
the years. 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 Rs. 230 PMT and by
Rs. 240 PMT w.e.f. 28.2.2003. The price increase
made effective from 28.2.2003 was, however,
withdrawn w.e.f. 12.3.2003. The current price is
Rs. 4830 per tonne. However, the changes
effected in the prices of urea over the past two
decades 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. The relative levels of MRPs and the prices
of various feedstocks between 1981 and 2005 are
indicated below:
Increase in price of feedstocks vis-à-vis MRP of Urea
Note: 1. Figures in brackets indicate index with 1981-82 as the base.
2. Price of naphtha/FO during 1981-82 is Ex-storage point while 2004-05 prices are delivered prices. 3. There was no HBJ pipeline in 1981-82. The index of current prices along HBJ is with reference to the price
paid by the plants at landfall point in 1981-82.
nutrient application. In order to cushion the fertilizers with effect from 1.4.2002 and, based on has suggested a methodology for working out
impact of increase in prices of these fertilizers, the the same, the complex manufacturers have been concession rates for indigenous DAP based on
Ministry of Agriculture introduced a scheme of
divided in two groups. The base and the final
prices of imported DAP. The report is under
concession on sale of decontrolled fertilizers. In a quarterly rates for both the groups of the complex examination of the Department of Fertilizers.
major policy initiative taken by the Government on fertilizers are being calculated and announced 6.6.6 As regards SSP, the Department of Fertilizers
5.7.1996, the scale and coverage of the scheme
was substantially increased to give impetus to the
6.6.4
separately w.e.f. 1.4.2002.
Based on the recommendation of the Tariff
pays an ad-hoc concession. The MRP of SSP is
fixed by State Governments and varies from State
stagnating demand for these fertilizers and to
ameliorate the nutrient imbalance in the soil,
which is essential for sustaining the desired
growth in agricultural productivity. Again in 1997-
98, the concession on these fertilizers was
increased w.e.f. 1.4.97 vis-à-vis the uniform
6.6.5
Commission (TC) and the Inter Ministerial Group
(IMG) Government has implemented a revised
methodology of working out concession rates for
DAP (indigenous & imported) and MOP w.e.f.
1.4.2003.
The country is almost fully dependent on imported
to State. This ad-hoc dispensation and the low
rates of concession, coupled with the progressive
increases in the input cost, not only led to a sharp
decrease in SSP consumption, which is often
referred to as the “poor farmers' fertilizer,” but also
had a serious adverse impact on the SSP industry.
indicative maximum retail prices (MRPs) for these raw material / intermediates (i.e. rock phosphate, Keeping this in view, it was decided to increase the
fertilizers except Single Super Phosphate (SSP). sulphur and phosphoric acid) for the production of ad-hoc concession rate of SSP from Rs. 650/- to
Planning Commission was set up to examine the
Concession Scheme for Decontrolled
Fertilizers
6.6.1 Phosphatic and Potassic fertilizers were
decontrolled w.e.f. 25.8.1992. Consequent upon
this, the prices of these fertilizers registered a
sharp increase vis-à-vis the price of urea, and also
led to imbalance in fertilizer usage in terms
of the preceding quarter and the average
exchange rate of the current quarter.
6.6.3 The concession rates for complex fertilizers were
derived from the concession rates of indigenous
DAP and MOP till 31.3.2002. However, the
Government accepted the recommendations of
Tariff Commission's cost price study on complex
alternative methodology of pricing, linking the
price of phosphoric acid with the international
price of DAP. An Expert Group under the
chairmanship of Prof. Abhijit Sen, Member,
issues related to pricing of phosphatic fertilizers.
The Expert Group has submitted the report and
1.7.2005 announced by this Department are as
under:
(In Rs./MT)
6.6.8 The actual expenditure under the concession
scheme was Rs. 3326.00 crores during the year
2003-04 and Rs. 5142.18 crores during 2004-05.
The budget estimate (BE) for the year 2005-06 is
Rs. 5200 crore. The amount of concession
disbursed on sale of decontrolled P&K fertilizers
since 1992-93 is given below:
These measures were calculated to induce the
farmers to optimize the balanced use of the three
major plant nutrients.
6.6.2 The Department of Fertilizers is administering the
concession scheme for extending financial
support to decontrolled P&K fertilizers on sales
w.e.f. 1.10.2000. Under the concession scheme,
base rates of concession are announced annually
after the approval of Government. The final
concession rates, except for SSP, are calculated
and announced quarterly after taking into account
the average price of raw material & intermediates
24
phosphatic fertilizers in the country. The prices of
these commodities, both finished fertilizers and
intermediates, have shown a rising trend in the
international market during last two years. The
prices of finished fertilizers / fertilizer inputs
prevailing in the international market have a direct
bearing on the total subsidy outgo on phosphatic
and potassic fertilizers. In view of the difficulties
arising from the situation, both in terms of the
procurement and pricing of the raw materials /
intermediates and finished phosphate fertilizers, it
was considered necessary to work out an
Rs. 975/- PMT w.e.f. 1.9.2005. The State
Governments have also been requested to
maintain the present MRP of SSP in their States.
6.6.7 The base rates of concession for making "on
account" payment on the sales of decontrolled
P&K fertilizers during the year 2005-06 w.e.f.
25
Department of Fertilizers, Ministry of Chemicals & Fertilizers A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6
availability of liquidity with the manufacturers / constitution of TAC is to put a curb on the sale of
26 27
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Rationalizing and Streamlining of
Concession Scheme
6.7.1 Since 1992, Government of India is administering
Concession Scheme on decontrolled Phosphatic
& Potassic (P&K) fertilizers such as DAP, NPK,
MOP and SSP. The basic objective behind this
Scheme is to provide these fertilizers to the
farmers at affordable prices. For this purpose,
Department of Fertilizers fixes the indicative MRP
at which the manufacturers/importers are required
to sell decontrolled fertilizers in the market. The
normative cost of fertilizers is generally higher
than the MRP. The manufacturers/importers are
provided the difference between the normative
cost and MRP in the form of concession.
Accordingly, the benefit of subsidy on fertilizers is
passed on to the farmers by making them
available at the subsidized selling price. This
Scheme was implemented by Department of
Agriculture & Cooperation upto September 2000,
and was subsequently transferred to Department
of Fertilizers in October, 2000. After the transfer of
the Scheme, Department of Fertilizers framed
fresh guidelines on the Concession Scheme. At
present, the guidelines dated 5.8.2002 are in
vogue. Under the Scheme, the 'on account'
payment of 85% of the concession is released to
the manufacturers / importers on submission of
details of sales in the prescribed Proforma. The
balance payment of concession is released to the
manufacturers after the State Governments
certify the sales. The idea behind releasing 'on
account' payment of concession is to ensure the
importers in the event of delay in the certification of
sales. The role and responsibilities of the State
Governments in certification of sales have been
clearly defined laying down the time frame for the
same. Under the guidelines, the fertilizer
quantities as per the sales made by the
manufacturers/importers to the dealers registered
under Fertilizer Control Order (FCO), Government
agencies and NPK mixture manufacturers, are
eligible for concession. In order to facilitate the
manufacturers to make the fertilizers available far
and wide, the Department has been permitting
marketing arrangements, on case to case basis,
whereby the manufacturers could use each
other's dealers' network. The quality of the
fertilizers is ensured under the provisions of the
FCO.
6.7.2 In addition to provisions under FCO, to ensure
supply of quality fertilizers, especially standard
SSP, a Technical Audit & Inspection Cell (TAC),
under the aegis of Projects & Development India
Ltd. (PDIL), has also been constituted. The TAC
was assigned the task of examining various
grades of Rock Phosphate (both indigenous and
imported) and recommend the grades of Rock
Phosphate with source of origin, alongwith
technical parameters such as consumption norms
for each grade, for manufacture of SSP as per
FCO specifications. The TAC was also mandated
to conduct six-monthly techno-commercial audit
of SSP plants and to confirm as to whether the
SSP units are using the specified/notified grades
of Rock Phosphate. The objective behind the
non-standard SSP to the farmers and to cross-
check the concession claimed by the industry.
6.7.3 In the wake of shortage of Rock Phosphate of the
specified/notified grades, Department of
Fertilizers issued fresh guidelines on 10.8.2005,
whereby the grades/sources of Rock Phosphate
were liberalized and the SSP industry was
informed as to how to take benefit of the same. In
order to ensure smooth availability of decontrolled
fertilizers, Department is also permitting the sale
through marketing arrangements. The benefit of
concession under the Concession Scheme has
also been extended on sale of P&K fertilizers to
NPK mixture manufacturers registered under the
31.3.2005 was 863.06 crore. incur a loss of Rs.1300 crore with an interest the BIFR. of operations, the Government decided to close
28 29
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Chapter-7
Public Sector Undertakings and Cooperative Societies
down FCI in September 2002. Consequently, a FCO.
component on GOI loan at Rs.1290 crore and 0.32
crore towards depreciation.
Hindustan Fertilizer Corporation Limited
Operating Performance
7.3.4 Due to closure, the operational activities of the
Company have been suspended due to Closure
declared by Government of India. During the year 7.1.1 There are 10 public enterprises and one multi-state
cooperative society namely Krishak Bharati
Cooperative Limited (KRIBHCO) under the
administrative control of the Department.
The Fertilizer Corporation of India Limited
Introduction
7.2.1 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 beside an abandoned
project at Korba (Chhattisgarh). As on 31.3.2005,
FCI had an authorized share capital of Rs.800
crore and paid up share capital of Rs. 750.92 crore.
Reference to BIFR
7.2.2 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 (AAIFR)
on 9.4.2002 upheld BIFR's order dated 2.11.2001.
Closure of the Company
7.2.3 In view of the continuing losses of the Company,
stemming from technical and financial non-viability
Voluntary Separation Scheme (VSS) was offered
to all its 5712 employees. All the employees, who
opted for VSS have since been released, except
60 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 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. Further directions of the Delhi High Court are
awaited.
Production / Sales Performance
7.2.5 In view of the decision for closure of the
Corporation, there was no production during the
year.
Financial Results
7.2.6 During the year 2004-2005 the company incurred a
net loss of Rs.1209.10 crore which includes
Rs.1203.40 crore as interest on GOI loan and
Rs.0.32 crore towards depreciation. During the
year 2005- 2006 , the company is expected to
Introduction
7.3.1 The Hindustan Fertilizer Corporation Limited
(HFC) was incorporated on 14th March, 1978 as a
result of the reorganization of the Fertilizer
Corporation of India Limited (FCI), and comprised
Barauni, Bihar, Durgapur and Haldia, West Bengal
and Namrup. As on 31st March 2005, HFC had an
authorized capital of Rs. 1200 crore and a paid up
capital of Rs. 686.54 crores.
Closure of the Company
7.3.2 The Company was declared sick by BIFR. in
November 1992. Subsequently, the Government
decided to close the Company on account of
techno-economic non-viability. Almost all
employees have opted for Voluntary Separation
Scheme (VSS) and as on 31.12.2005, only 52
employees are on the roll of the company to carry
out post-closure activities.
BIFR Status
7.3.3 During the course of proceedings before BIFR, the
Namrup units of the Company were demerged with
effect from 1.4.2002 and the residual Company
comprising three units at Barauni, Durgapur and
Haldia and the Fertilizer Promotion & Agricultural
Research Division (FP & ARD) was ordered to be
closed. The AAIFR through its order on 26.4.2002
has 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. The case is pending before
2004-05, HFC has incurred a Net loss of Rs.
878.00 crore and during 2005-2006, the company
has projected a loss of Rs. 968.49 crore.
Pyrites, Phosphates & Chemicals Ltd.
Introduction
7.4.1 Pyrites, Phosphates & Chemicals Ltd. (PPCL) was
set up in 1960. It was entrusted the responsibility of
exploiting the country's pyrites deposits. The
company had three production units located at
Amjhore (Bihar), Dehradun (Uttaranchal) and
Saladipura (Rajasthan). The company was also
engaged in trading of indigenous fertilizers. As
against the authorized capital of Rs. 100 crore, the
paid up capital of the company was Rs. 95.40 crore
as on 31.3.2005.
7.4.2 The Government approved closure and hiving off
of the Dehradun and Saladipura units in July, 2002
and the Amjhore unit including all other
establishments in June 2003, implementation of
the Voluntary Separation Scheme (VSS) for its
employees, and disposal of the assets as per due
procedure. Accordingly, the company has relieved
1205 employees till January 2006 retaining 12
employees for all the three units, the Registered
Office and the Corporate Office. The company has
so far spent Rs. 63.05 crore on implementation of
VSS from the funds provided by the Government
for the purpose.
7.4.3 The company's winding up decision is pending
before the Patna High Court.
7.4.4 The loss for 2005-06 is projected at Rs. 140.00
crore. The accumulated loss of the company as on
30 31
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Revival of Closed Units of FCI, HFC, and PPCL
7.5.1 In the light of the Common Minimum Programme of
the UPA Government, the possibilities for revival of
the closed Fertilizer Public Sector Undertakings
(PSUs)/Units based on market demand and their
techno-economic viability was entrusted to
Projects & Development India Limited (PDIL) in
respect of FCI and HFC. After examining the
reports of PDIL, FCI has submitted revival
proposals in respect of its Gorakhpur and Sindri
Units by setting up gas-based “Brownfield
Fertilizer Plants” at the existing sites. In the case of
Ramagundam and Talcher units also, revival
proposals have been received both from the public
sector and private sector companies. In order to
examine these proposals and to arrive at a final
decision, some more time has been sought from
the Hon'ble High Court of Delhi.
7.5.2 Similarly, after examining the reports of PDIL, HFC
7.5.3 In the case of PPCL, the possibility of revival of the
Amjhore unit for the purposes of mining and selling
of pyrites for direct use as fertilizer is under
consideration of the Government.
Rashtriya Chemicals and Fertilizers Limited (RCF)
Introduction
7.6.1 Rashtriya Chemicals and Fertilizers Limited (RCF)
was incorporated as a separate company on 6th
March 1978 as a result of reorganization of the
erstwhile Fertilizer Corporation of India Limited. 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 also later implemented by RCF and
it commenced commercial production on June 1,
1985. As on 31st March 2005, the company had
Hon'ble Union Minister of Chemicals & Fertilizers and Steel, Sh. Ram Vilas Paswan, visits control room of RCF, Thal
During April-October 2005, RCF produced 5.10
has submitted revival proposals in respect of its
Barauni and Durgapur Units by setting up gas
based “Brownfield Fertilizer Plants” at existing
sites. In the case of Haldia Unit, Shriram
Engineering Project Construction has submitted a
revival proposal for setting a coke oven project
including manufacture of fertilizers. The above
status was placed before the BIFR in its hearing
held on 29.11.2005 and the BIFR has given some
more time for finalizing the revival plan by the
promoters(Government)/Company, which is under
examination. Government's decision to consider
revival of closed units of HFC was intimated to
AAIFR, which referred back the matter to BIFR.
The Board has been informed that a proposal to
revive Durgapur and Barauni units as gas based
“Brownfield Project” is under examination. Further
action on the revival will be taken as and when
availability of gas is crystallized.
an authorized share capital of Rs. 800 Crore and a
subscribed and paid up capital of Rs. 551.69
Crore.
Production Performance
7.6.2 The annual installed capacity of all the units of RCF
is about 10.57 lakh MT of nitrogen and 1.20 lakh
MT of phosphate in terms of fertilizer nutrients.
The production during 2004-05 was 9.22 lakh
tonnes of nitrogen and 0.98 lakh tonnes of
phosphate. Production during the year was
severely affected due to feedstock/natural gas
short supply.
Besides fertilizers, the company also produces a
number of industrial products such as Methanol,
C o n c e n t r a t e d N i t r i c A c i d , M e t h y l a m i n e s ,
Ammonium Bicarbonate, Sodium Nitrate, Sodium
Nitrite, Dimethyl Formamide, Dimethyl Acetamide,
Ammonium Nitrate, Argon, etc.
lakh tonnes of industrial nitrogen as against 5.49
lakh tonnes during the corresponding period of the
previous year and 0.54 lakh MT of phosphate as
against the production of 0.56 lakh tonnes in the
corresponding period of the previous year. During
the year 2005-06, the fertilizer nutrient production
is projected at 9.12 lakh MT of nitrogen and 1.03
lakh MT of phosphate. Capacity utilization during
the present year has been affected due to flooding
caused by heavy rains followed by severe gas cut
due to fire in the ONGC Platform in July 2005.
Sales Performance
7.6.3 The sale of fertilizers (including bought-out
products) during the year 2004-05 was of the order
of 25.37 lakh tonnes, which corresponds to 9.31
lakh tonnes of nitrogen and 1.05 lakh tonnes of
phosphate.
During the period April-October 2005, RCF sold
5.17 lakh tonnes of nitrogen and 0.60 lakh tonnes
of phosphate as against 5.34 lakh tonnes of
nitrogen and 0.64 lakh tonnes of phosphate for the
corresponding period last year.
The Company also produces and sells bio-
fertilizers, micronutrients, and 100% solid soluble
fertilizers.
The sales turnover of industrial products division of
the Company was Rs. 444 crore for the year 2004-
05. During the current year sales of industrial
products division till October 2005 was Rs. 222
crore.
The Company continued with its Fertilizers
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.
32 33
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Hon'ble Union Minister of Chemicals & Fertilizers and Steel, Sh. Ram Vilas Paswan, alongwith CMD, RCF attending Kissan Mela in Maharashtra
Grievance Redressal
7.6.7 The Company has established a grievance
redressal system with 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 a special officer of the
Company not below the rank of General Manager
who will act as the Nodal Officer for redressal. The
name, address and telephone No. of the officer is
available 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
material during peak seasons and preference in
supplies of fast moving material, etc. RCF had also
launched special drive for recruitment of only
SC/ST dealers during the year 2004-05.
Welfare of Minorities
7.6.10 RCF as a policy includes a representative of the
minorities in the recruitment selection boards to
ensure that the minorities get their rightful share in
the services and benefit of developments.
National Fertilizers Limited (NFL)
Introduction
7.7.1 N a t i o n a l F e r t i l i z e r s L i m i t e d ( N F L ) w a s
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
Financial Results
7.6.4 During the year 2004-05, the Company reported a
net profit (after tax) of Rs. 140.96 Crore.
During the period April-October 2005, the
Company has made a net profit after tax of
Rs. 52.73 Crore.
Disinvestment
7.6.5 Government of India disinvested about 5.64
percent of the equity Share Capital of the Company
during 1991-92. Further disinvestment of about
1.57 percent and about 0.27 percent was effected
during October 1992 and December 1994
respectively. Thus, the total disinvestment has
been of the order of 7.48 percent of the equity.
Modernisation / Expansion Schemes
7.6.6 Ammonia-V plant at Trombay, commissioned in
1981, is being technologically upgraded at an
estimated cost of Rs. 249 Crore, to reduce energy
consumption.
Concentrated Nitric Acid Plant at Trombay is being
modernized at an estimated cost of Rs. 14 Crore to
improve the longevity of plant.
An Argon plant is being set up at Thal to recover
argon from purge gas of the ammonia plant. The
project is estimated to cost Rs. 94 Crore.
RCF envisages an expansion project at Thal (Thal-
III Expansion) by setting up 1850 MTPD ammonia
plant and 3200 MTPD urea plant at an estimated
cost of Rs. 1841 Crore. The Techno-economic
Feasibility Report of the project has been
submitted to the Government and is under
examination.
respect of issues related to staff also.
Employment of SC/ST, Ex-Service Men, Physically Handicapped Persons & Other Backward Classes
7.6.8 The guidelines regarding reservation in
Recruitment and Promotion for SC, ST, OBC, Ex-
Servicemen and Physically Handicapped Persons
are being followed.
Out of total strength of 4235 (as on 1st November,
2005), there are 550 SCs, 261 STs, 103 OBCs, 10
Ex-Servicemen and 22 Physically Handicapped
Persons in the Company.
Reservation in Dealership
7.6.9 The Company has been giving priority to SCs/STs
in the appointment of dealers and gives them
special treatment like no security deposit, supply of
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 both for 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
Department of Fertilizers, Ministry of Chemicals & Fertilizers
biofertilizers with an installed capacity of 100 MT urea production. The CAN production at Nangal
per annum. unit has been stopped w.e.f. 1st April 05 due to its
The authorized capital of the company as on non-viability.
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6
31.
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 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 biofertilizers
plant at Indore produces three strains of
31.3.2005 stood at Rs.500 crore and the paid up
c a p i t a l a t R s . 4 9 0 . 5 8 c r o r e , c o m p r i s i n g
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.
Production Performance
7.7.2 During the year 2004-05, the company produced
34.32 lakh MT of urea, 0.14 lakh MT of Calcium
Ammonium Nitrate (CAN) and 13,151 tonnes of
industrial Nitrogen ('N'). Production of urea during
2004-05 at 106.2% capacity utilization is the best
ever achieved by the company, with all the plants
recording more than 100% capacity utilization.
Upto October 2005, the company has produced
20.65 lakh MT of urea thereby achieving a capacity
utilization of 109.6% (pro-rata basis) in respect of
Marketing
7.7.3 During 2004-05 the company sold 34.73 lakh MT of
urea, which is the best ever sale recorded by the
company. The company also made record
dispatches of 35.24 lakh MT of urea during the year
2004-05. The sale of urea during April 05 - Sept. 05
i.e. Kharif season was 17.80 lakh MT, which is also
the highest ever sales for any corresponding
season so far.
NFL is also producing and marketing Neem
Coated Urea which is in good demand. All NFL
plants have started production of Neem coated
urea. NFL is the 1st company in the Fertilizer
Industry to develop, produce & successfully
market Neem coated Urea. The company has also
initiated action for the development & production of
Zinc coated & Sulphur coated urea.
Financial Performance
7.7.4 During the year 2004-05, the company recorded a
post-tax profit of Rs.160.91 crores, and disbursed
a dividend of Rs.48.27 crore which is 9.84% of the
paid up capital.
For the period April-October 2005 the company
have made a post-tax profit of Rs.70.28 crores.
MoU
7.7.5 NFL received 'Excellent' rating under MoU system
for the year 2003-04, and for 2004-05 on the basis
of provisional data.
Employment of SC/ST, Ex-Servicemen and Physically Handicapped Persons as on 31.10.2005
7.7.6 The details in this respect are given in the following
table:
Public/Staff Grievance Redressal Machinery
7.7.7 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 respective Heads of the Unit/Marketing Division
with the help of the Grievances Redressal
Mechanism.
Reservation in Dealership
7.7.8 Appointment of Dealers is governed by NFL's
Marketing Manual and reservations for SC/ST, Ex-
serviceman, Physically handicapped etc. are
governed by guidelines issued by Deptt. of
Fertilizers, Ministry of Chemicals & Fertilizers.
Projects & Development India Limited
Introduction
7.8.1 Projects & Development India Limited (PDIL) was
registered as a separate company in March 1978
after hiving off from FCI. The company has its
registered office at Noida, Uttar Pradesh. The
authorized share capital of the company is Rs.60
crores and paid up capital is Rs.55.27 crores as on
3.2005.
34 Hon'ble Union Minister of Chemicals & Fertilizers and Steel, Sh. Ram Vilas Paswan, with CMD and officials & staff of NFL
35
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Bull
be
maj
Restructuring Scheme
7.8.2 The Government of India approved a Revival
Package for PDIL on 7.5.2003, which included
closure of E&C and R&D Division at Sindri, besides
various reliefs and concessions to make the
company viable on a long term basis. The Revival
Scheme was approved by BIFR on 26.3.04. The
Govt. of India has extended all the reliefs and
concessions envisaged in the approved revival
scheme, and the net worth of the company has
become positive. Major restructuring in terms of
manpower has also been done and 1188
employees have been released under VRS/VSS.
The regular manpower strength has come down to
449.
Operating Results
7.8.3 The Company has earned a net profit of Rs. 10.06
crore for the year 2004-05. During the period April
to November 2005, a profit of Rs 4.56 crore has
been earned. The estimated profit for the financial
year is Rs. 8.03 crore.
Engineering & Consultancy Division
7.8.4 The Company is mainly engaged in Design,
Engineering, Procurement, Inspection, Store
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 and through trouble shooting and
Non Destructive Testing (NDT) for health
maintenance of the plants.
During the year 2004-05, the following major
projects / assignments, in the fertilizer sector have
been executed/ under execution involving PDIL:
1. Energy Saving Scheme Phase I and Phase II for
Ammonia Plants of IFFCO viz. 1100 MTPD
Ammonia Plant at Kalol, 1520 MTPD Ammonia
36
Plant at Aonla-I and Aonla-II, 977 MTPD Ammonia
Plant at Phulpur I and 1520 MTPD Ammonia Plant
at Phulpur II.
2. Ammonia - Technology Upgradation project of
Rashtriya Chemicals & Fertilizer Limited for
providing Design, Engineering consultancy
services for Trombay V Ammonia Upgradation
Project.
3. Methyl Amine Expansion project for M/s RCF, Thal
(Design Engineering Consultancy and supervision
of construction and commissioning).
4. Revamp Project of ammonia, Urea and Offsite for
Namrup-II of Brahamputra Valley Fertilizers
Corporation Ltd. (BVFCL).
5. Consultancy services for Argon Recovery Plant
package for Hazira Fertilizer Complex of
KRIBHCO.
6. Techno Economic Feasibility Report and detailed
project reports for various clients in the Fertilizer
Sector.
Foreign Assignments
7.8.5 PDIL has proved its Engineering excellence and
contribution not only in Indian Fertilizer Industry but
also established its credentials in fertilizer and
diversified sectors abroad. The following
assignments have been completed / under
execution:
l The Design and Detailed Engineering activities for
2200 MTPD Ammonia Plant at Karatha in Australia
for M/s Burrup Fertilizers Pvt. Ltd. were completed
as per schedule. Site construction activity is
progressing. PDIL's Engineers from various
disciplines like Process, Mechanical, Civil,
Electrical etc. have been deputed to Karatha for
Quality Supervision.
l In association with M/s Sumatec Corporation PDIL
engineers from various disciplines were deputed to
Malaysia.
Jobs in Diversified Sectors
7.8.6 Some of the major jobs executed / being executed
by PDIL in different sectors are:
(i) Oil, Gas & Refinery
l Project Management Consultancy services to
Bharat Petroleum Corporation Limited for Lube Oil
Pipeline Project from BPCL Mumbai Refinery to
Wadilube Installation, and for ATF Pipeline from
Mumbai Refinery to Mumbai Airport.
l IOCL, Gujarat Refinery - Preparation of updated
“As Built” Piping & Instrumentation Diagrams &
Process Flow Diagram for Crude Units AU1 &
AU2, Hydrogen Unit 1 & Old Sulphur Recovery
Complex.
l Indian Oil Corporation Limited, Haldia Refinery -
Rendering engineering services for MSQ Project.
Supervision of shutdown and routine maintenance
jobs at HPCL-Mumbai is also being undertaken by
PDIL engineers.
l Pre-feasibility Report for LPG Import Terminal at
Tuticorin BPCL, Study for de-bottlenecking and
modernisation of Drinking water facility at Panipat
Refinery, IOCL , DFR, RRA, EIA Reports for H2S
Removal for Thal Line, GAIL (India) Limited.
(ii) Infrastructure Sector
The Company made a breakthrough in the
Infrastructure sector last year by receiving a major
job from Ministry of Defence for Project
Management Consultancy Services for their
Married Accommodation Project at various
locations viz. Guwahati, Kolkata, Chandigarh,
Pune, Delhi, Bangalore and Gwalior. In the current
year the company has secured another job of
Review Consultant for Married Accommodation
Projects at Allahabad, Jhansi, Bhopal, Shillong,
Kanpur, Bareilly, Mathura, Pithoragarh and
Shahjahanpur.
(iii) Power Sector
PDIL, has been awarded the job of Preparation of
DPR & Tender documents for Environment
Protection schemes at Anpara Thermal Power
Station, UP RAJYA VIDYUT UTPADAN NIGAM
LTD., ANPARA
It also got an assignment from Rajasthan Rajya
Vidyut Utpadan Nigam Limited (Kota Super
Thermal Power Station) for rendering consultancy
services for Cooling Tower, Cooling Water System
& Dry Fly Ash Handling System.
PDIL has also been in dialogue with M/s. SKODA
EXPORTS for providing engineering services for
the turnkey projects under execution / to be
executed by them.
(iv) Coal Sector
PDIL was retained by CMPDIL, Ranchi, for base
line data generation of 21 Projects of ECL in
Maharashtra & MP and for base line data
generation for Karo, Bermo, Konar and Topa OCP
of CCL.
SSP Audit
Deptt. of Fertilizers (DOF) has assigned the job of
Techno Commercial Audit of SSP plants, DAP
Plants and NPK Plants in India. The efforts put in
by PDIL on this assignment have been well
appreciated. Under this programme, periodical
technical audits are being carried on a regular
basis.
Inspection & NDT
The company has also established its credentials
for Third Party Inspection (TPI) and Non-
Destructive Testing (NDT) services. Statutory
Inspection and Testing of LPG Spheres, Mounded
ets, ammonia Storage Tanks etc continued to
the specialized activities of PDIL. Some of the
or jobs executed in this field are:
37
l Inspection order from IOCL for 690 Km Chennai-
Trichy-Madurai Pipeline Project.
l I n s p e c t i o n & e x p e d i t i n g s e r v i c e s f o r
Snamprogetti, Italy for indigenous supplies for
ARAMCO Projects, Inspection & expediting
services for Snamprogetti, Italy for indigenous
supplies for OMIFCO Project and TPI rate contract
of bought out items from BHEL, IOCL, Digboi,
Haldia and PHED, Rajasthan.
l Inspection & NDT for repair and modification of
20,000 MT Ammonia storage tank at M/s OCFL,
Paradeep, and inspection & certification of
Ammonia Storage tank at Kandla for IFFCO.
l IOCL also awarded a number of inspection jobs to
PDIL including inspection of many Petroleum
Storage Tanks at various locations.
Catalyst Division
7.8.7 Production of main catalysts i.e. High Temperature
CO Shift Conversion, Low Temperature CO Shift
Conversion and Vanadium Pentoxide Sulphuric
Acid during the year under review, was 362 MT
compared to 982 MT during the previous year.
During 2005-06 upto November, 2005 PDIL has
produced 40 MT of various types of Catalysts and
has targeted production upto 233 MT of Catalysts
during the entire year 2005-06. The production has
been constrained by lack of demand.
Efforts are being made to generate demand and
get orders. During the year, PDIL executed orders
from various companies, including, RCF,
KRIBHCO, IFFCO, SAIL, and a number of private
companies.
Facilities to SC/ST/OBC Employees
7.8.8 In line with Government Guidelines, PDIL
continued to extend a number of facilities to
SC/ST/OBC employees. A Liaison Committee is
functioning to protect and safeguard the interests
38
of SC/ST employees in the matter of promotion and
for SC/ST/OBC in the matter of recruitment
although there are inherent limitations in view of
the background of restructuring, VSS, etc.
The manpower position as on 31.3.05 including the
representation of SC/ ST & OBC is as follows:-
The Fertilisers And Chemicals Travancore Limited (FACT)
Introduction
7.9.1 The Fertilisers 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/multi-functional
Organisation involved in the manufacture and
marketing of Fertilisers and Petrochemicals,
Engineering Consultancy and Design and
Fabrication and Erection of Industrial Equipments.
The products manufactured by the Company
include: Factamfos (a 20:20:0 complex fertilizer),
Ammonium Sulphate, Urea, Caprolactam, Soda
Ash and Nitric Acid. However, the production of
urea has been suspended since March 2003.
Production Performance
7.9.2 Udyogamandal Division: During the year 2004-05
Udyogamandal Division produced 104388 MT of
Factamfos as against a target of 195000 MT,
200564 MT of Ammonium Sulphate as against
target of 227911 MT. The production of Factamfos
and Ammonium Sulphate up to November 2005 is
79808 MT and 124964 MT, respectively, as against
71960 MT and 123330 MT, respectively, during the
corresponding period in the previous year.
Petrochemical Division: The production of
Caprolactam for the year 2004-05 was 44932 MT
as against 41794 MT during the year 2003-04. The
reasons for low production of Caprolactam during
the financial year 2004-05 were shortage of raw
material and Oleum shortage due to problems
faced in DCDA acid plant in Udyogamandal and
leaks in a few heat exchangers.
Hon'ble Union Minister of Chemicals & Fertilizers and Steel,
Sh. Ram Vilas Paswan, being received at Udyogamandal
FACT, Cochin
Production of Caprolactam for the year 2005-06 up
to November 2005 is 27664 MT as against 27338
MT during the corresponding period in the previous
year.
Cochin Division: The production of Factamfos was
456400 MT in 2004-05 as against 426625 MT
during the year 2003-04. Production of Factamfos
for the year 2005-06 up to November 2005 is
364175 MT as against 278200 MT during the
corresponding period of the previous year.
During the year 2004-05 Annual production of
Sulphuric Acid recorded an all time high of 331960
MT. Annual production of Phosphoric Acid for the
year 2004-05 is 69600 MT which is the best
achieved so far.
Marketing Division: Fertiliser sales during 2004-05
was 7.84 Lakh MT as against 7.79 lakh MT during
the previous year. Compared to the last year, the
sales of Ammonium Sulphate was higher by 60564
39
Department of Fertilizers, Ministry of Chemicals & Fertilizers A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
MT. A significant achievement during the year
2004-05 was development of markets in other
States/Countries for Ammonium Sulphate. The
marketing cost during the year was also brought
down as no special discounts/rebates were offered
during the year, besides substantial savings in
secondary freight, godown rent and interest.
Sale of fertilisers upto November 2005 has been
6.42 lakh MTs as against 5.55 lakh MTs during the
corresponding period of the previous year. Sale of
Caprolactam for the period April-November 2005 is
19554 MT as against 26284 MTs during the
corresponding period of the previous year. On
account of unremunerative prices in the market, it
was decided to cut back on both sales and
production during this period.
FEDO & FEW: The turnover of FEDO for the year
2004-05 was Rs.3.13 crore as against Rs.6.67
crore during the previous year. During the year
2004-05 FEDO received orders to the value of
Rs.7.97 crore as compared to Rs.1.27 crore during
the year 2003-04. Value of orders on hand as on
31.3.2005 was Rs.10.27 crore.
The turnover of FEW for the year 2004-05 was
Rs.3.04 crore as against Rs.3.42 crore for the year
2003-04. Value of orders on hand with FEW as on
31.3.2005 was Rs.20.51 crore.
Financial Performance
7.9.3 The company incurred a loss of Rs.167.96 crore
during 2004-05. The loss during April 2005 to
Keeping in view the financial difficulties of FACT, a
financial restructuring proposal was submitted by
the company, which was considered by the Board
for Restructuring of Public Sector Enterprise
(BRPSE). The recommendations made by the
BRPSE are under consideration, and a decision is
expected to be taken within the current financial
40 year.
Redressal of Public Grievances
7.9.4 A Public Grievance Cell is functioning in the
Company, coordinated by Public Relations
Department. The Cell is functioning as per norms
laid down by Government of India. At present, no
grievance received from public is pending for
redressal.
Staff Grievance Redressal Machinery
7.9.5 Under the employee grievance procedure an
a g g r i e v e d e m p l o y e e c a n s u b m i t a
complaint/request to the Department Head
through his Supervisor, who disposes it in
c o n s u l t a t i o n w i t h t h e P e r s o n n e l / We l f a r e
department. If not satisfied, he may submit a
r e v i e w b e f o r e t h e D i v i s i o n a l G r i e v a n c e
Committee, chaired by the Division Head. Further
appeal lies with the Chairman & Managing Director
whose decision shall be final. In addition, there are
inter-divisional Grievance Committee and
Corporate Grievance Committee for managerial
employees. There is also an SC/ST Grievance
Cell with the General Manager (Personnel) as the
Chief Liaison Officer and other Officers including
two belonging to SC/ST as members. An
employee can seek the assistance of an Office
bearer of his Union for pursuing the grievance at all
levels.
Employment of SCs/STs, Ex-Servicemen, Physically Handicapped & OBCs
under:
Reservation in Dealership
7.9.7 FACT has provision for reservation in the induction
of new dealers. As on 30.6.2005, out of a total of
8158 dealers, 546, 87 and 63 belongs to the SC,
ST and unemployed Graduate categories,
respectively.
Welfare of Minorities
7.9.8 The Company has provided various facilities as
below for the Welfare of Minority Communities,
including Land for Mosques at Ambalamedu and
Udyogamandal, Land for Christian Cemetery in
Udyogamandal, construction of Pathway to
S t . J o s e p h ' s C h u r c h n e a r J N M H o s p i t a l ,
Udyogamandal, Lands for SCI, Catholic,
Marthoma, and Jacobite Syrian Churches at
Ambalamedu, four 4 separate cemeteries for the
above 4 Christian Churches in Ambalamedu and
Burial grounds (kabristan) for Muslims at
Ambalamedu and Udyogamandal
Madras Fertilizers Limited (MFL)
Introduction
7.10.1 Madras Fertilizers Limited (MFL) was incorporated
in December 1966 as a Joint Venture between GOI
and AMOCO India Inc. of USA (AMOCO) with GOI
holding 51% of the equity share capital.
In 1985, AMOCO disinvested their shares, which
were purchased by GOI and the National Iranian
Oil Company (NIOC) in their respective
proportions on 22.07.1985. The revised share
32.45%. The share holding pattern up to May 11,
1997 was GOI 69.78% and NIOC 30.22%.
2,58,09,700 shares were subscribed. After the
161.10
The company has an authorised share capital of
Rs 365 crore comprising of Rs. 175 crore as equity
and Rs 190 crore as preference share capital. The
preference share capital is yet to be subscribed. As
on 31.3.2005, the paid-up equity was Rs 161.10
crore.
7.10.2 MFL commenced commercial production in 1971,
with an annual installed capacity of 1.7 lakh tonnes
of Nitrogen (N) and 1.12 lakh tonnes of
Phosphoshate (P). A major revamp/expansion
was carried out in 1998 at a cost of Rs. 601 crore,
enhancing the annual installed capacity to 2.54
lakh tonnes of N and 1.42 lakh tonnes of P,
corresponding to 4,86,750 MT of urea and
8,40,000 MT of complex fertilizers. However,
certain problems were also experienced in the
revamp process which led to frequent shut downs,
low capacity utilization and resultant financial
difficulties and liquidity problems. In the wake of
this, there were also problems of adjusting to the
Urea Pricing Policy and the norms of determination
of concession on decontrolled fertilizers which
came into effect in 2002-03. Over a period of time,
despite two rounds of financial restructuring,
financial difficulties and problems of capacity
Keeping this in view the Company had submitted a
financial restructuring proposal which was
c o n s i d e r e d b y t h e B R P S E , a n d i t s
recommendations are under consideration of the
Government. It is expected that a decision in this
regard would be taken shortly.
41
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
BVFCL-Namrup
Production Performance Financial Performance Physical Performance
7.10.3 The annual installed capacity of MFL is as follows:
During the year 2004-05, the company produced
473.0 thousand tonnes of Urea and 333.5
thousand tonnes of NPK-Complex fertilizers with
capacity utilisation of 97% and 40% respectively.
During the period from April October 2005, the
company produced 248.1 thousand tonnes of Urea
and 84.7 thousand tonnes of NPK-Complex
fertilizers. During the year 2005-2006, the
company is likely to produce 463.0 thousand
tonnes of Urea and 378.0 thousand tonnes of NPK-
Complex fertilizers with capacity utilisation of 95%
and 45% respectively.
Further during the year 2004-05, the company
produced 213 tonnes of Bio-fertilizers. The
company is likely to produce 200 tonnes of Bio-
fertilizers during the year 2005-06.
Sales Performance
7.10.4 The sales performance of the company is given
below:
42
7.10.5 During 2004-05, the Company made a net loss of
Rs 58.39 crore The accumulated loss as on
31.3.2005 was Rs 267.18 crore. For the period
April to Oct 2005 the company has reported a
provisional loss of Rs 49.68 crore and the
estimated loss for the year 2005-06 is expected to
be Rs. 58.13 crore.
Reservation in Dealership
7.10.6 State wise, Region wise dealers position of under
the SC/ST category is indicated bellow:
The following special terms are allowed for the
above category:
l Waiver of security deposit of Rs 5000/-
l Exemption from seasonal minimum sales norms
Brahmaputra Valley Fertilizer Corporation Limited
Introduction
7.11.1 Brahmaputra Valley Fertilizer Corporation Limited
(BVFCL) with its Corporate Office at Namrup,
Assam, was incorporated after being hived off from
the Hindustan Fertilizer Corporation Ltd. (HFCL)
w.e.f. 1.4.2002. It owns Units at Namrup (Assam).
The other establishments of the company are
Marketing Division, Liaison Offices at NOIDA and
Kolkata. The authorised share capital and paid up
capital of the company as on 31.03.2005 was
Rs.510 crores and Rs.311.48 crores respectively.
The Namrup revamp proposal, which aimed at
achieving a higher production level of 5.5 lakh
meteric tonnes per annum (LMTPA) of urea
compared to the actually achieved level of 1.5
LMPTA in the pre-revamp period against the
original designed installed capacity of 7.15 LMTPA
was approved by the Government in October, 1997
at a total cost of Rs. 350 crores. Originally, zero
date of the project was 2.11.1998 and was to be
c o m p l e t e d b y 1 . 5 . 2 0 0 1 . H o w e v e r, t h e
commissioning of the project got delayed and the
first Revised Cost Estimate (RCE) was approved
by the Government revising the cost estimate of
the project to Rs. 509.90 crore (completion cost of
Rs. 525.47 crore) and the date of commissioning
as 1.2.2002. However, out of the three units at
Namrup, Namrup-III unit re-started production
from March, 2002 and one stream of Namrup-I
(which is basically an ammonia unit) was
commissioned in May, 2002. The revamp of
Namrup-II was delayed due to various reasons
resulting in cost and time overrun. The Public
Investment Board (PIB) approved second revised
cost estimates of BVFCL's Namrup Revamp
Project of Rs. 610.24 crore, with a target of
commissioning of Namrup II by 31st December,
2004. On account of various problems, this target
could not be achieved, and Namrup-II unit was
commissioned on 22.11.2005.
7.11.2 Namrup III unit produced 2.03 LMT of urea during
2004-05 as against 2.41 LMT in 2003-04.
In the current year, the actual production of
Namrup-III unit for April - October 2005 is 1,01,470
MT of Urea, and the targeted production for
Namrup-III for the Year 2005-06 is 2,00,930 MT of
Urea.
As for Namrup II, on account of its recent
commissioning, this will be a period of trial
although a target of 45,000 MT has been fixed for
the current year.
Financial Performance
7.11.3 BVFCL has incurred a loss of Rs. 22.54 crore
during 2004-05 against loss of Rs. 44.17 in 2003-
04. The loss upto October month during 2005-06
was Rs. 29.41 crore and projected loss is Rs. 89.45
crore during the entire year.
Sales Performance
7.11.4 The company sold 2.48 LMT of Urea during 2004-
05 as against 2.34 LMT during 2003-04. The
projected sales for 2005-06 are 2.47 LMT. The
company has made efforts towards adopting cost
effective marketing strategies, i.e. maximising sale
in economic marketing zone, economic mode of
movement, reduction in warehousing cost, freight
etc. resulting in savings in marketing cost.
Public /Staff Grievance Redressal Machinery and Welfare Activities
7.11.5 A grievance Redressal Cell is functioning at
BVFCL, Namrup for redressal of the grievances
received from the citizens.
To create a healthy working environment, the
company is providing Welfare and Recreation
facilities to its employees and their family
members. Many children of the employees have
43
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
earned laurels in games & sports and on the
cultural front at state, national and international
levels.
The corporation is also undertaking welfare
projects such as providing building materials to
educational and socio-cultural organizations in the
vicinity. Meritorious children of the employees' are
also given awards from the Employees' Amenities
Fund.
Employment of SC/ST, Ex-servicemen, Physically Handicapped & Other Backward Classes Persons
7.11.6 The matter of employment of persons belonging to
SC/ST, Ex-servicemen, Physically handicapped &
other backward classes are taken care of during
recruitment process. Reservation policy is being
followed as per Government guidelines. Category -
wise manpower strength is as under:
Officers Workers Total
Total no. of employees 368 1244 1612
Scheduled Caste 25 87 112
Scheduled Tribe 28 180 208
Ex-Serviceman - 17 17
Physically handicapped - 55 55
OBC 67 600 667
Reservation in dealership
7.11.7 As per the scheme for appointment of SC/ST
candidates as dealers formulated by the
Government of India, 25% of the appointment of
dealers are to be reserved for SC/ST category.
Category-wise details of which are as follows:
General : 360
ST : 39
SC : 15
44
I.B (Institutional Buyer) : 21
Total : 435
In spite of advertisement, the company is getting
very limited applications from SC/ST candidates.
All the applications received from SC/ST category
have been considered for BVFCL dealership.
FCI Aravali Gypsum & Minerals India Limited, Jodhpur
Introduction
7.12.1 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 Organisation
(JMO) of Fertilizer Corporation of India Ltd. (FCI).
The authorized share capital of the company was
Rs. 10 crore as on and the paid up capital was
Rs. 7,32,98,000/- as on 31.3.2005.
Production Performance
7.12.2 The production/sale of gypsum in 2004-05 was
7.16 lakh MT as against 5.22 lakh MT in 2003-04.
The target of production/sale for the year 2005-06
is 7.75 lakh MT.
Financial Performance
7.12.3 The Company has made a net profit of Rs.605.29
lakhs in 2004-05 as against Rs.261.28 lakhs in
2003-04, after making a provision of Rs.52.50
lakhs and Rs.21.75 lakhs respectively, towards
Corporate Tax. During 2005-06 the company has
projected an estimated profit of 632.43 lakhs after
providing for Tax of Rs. 73.47 lakh and dividend of
Rs.167.16 lakh (including dividend tax).
The Company declared maiden dividend of
Rs.146.60 lakh, equivalent to 20% on the Paid up
Capital, in the second year of operation itself.
Sales of Gypsum
7.12.4 The sales of Gypsum from April to October 2005
and anticipated monthwise sales from November-
to March 2006 (month wise) are as under:
Estimated Sales of Gypsum
The actual cumulative quantity of sales, sales
turnover and the provisional profit as on
31.10.2005 are 5.64 lakh MT, Rs 2803.48 lakh and
Rs. 777.54 lakh (before tax), respectively.
Grievance Cell
7.12.5 A Grievance Cell to redress the staff grievances
KRIBHCO-Hazira
has been functioning and no grievance is pending
as on date.
Employment of SC/ST, Ex-Servicemen, OBC and Physically Handicapped Persons
7.12.6 Employment of SC/ST, Ex-Servicemen, OBC and
Physically Handicapped persons as on 31st
December 2005 against a total strength of 131 is
as furnished below.
Krishak Bharati Cooperative Limited (KRIBHCO)
Introduction
7.13.1 KRIBHCO was incorporated as a Multi State
Cooperative Society on 17.04.1980 to implement
an Ammonia/Urea fertiliser project at Hazira,
based on natural gas from Bombay High/South
45
Mobile soil testing lab - KRIBHCO
B a s s e i n . T h e S o c i e t y c o m m i s s i o n e d i t s
Ammonia/Urea Plant in 1985. The Hazira complex
has two ammonia plants and four streams of Urea.
The annual reassessed capacity of the Urea Plants
is 17.29 Lakh MT. KRIBHCO has also installed a
Bio-fertiliser unit at Hazira in 1995. The capacity
of this Unit was enhanced from 100 MTPA to 250
MTPA in 1998. Two more Bio-fertiliser 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'04.
As on 31.03.2005 the paid up share capital was
Rs.393.54 crore which includes Rs.305.69 crore
(77.68%) equity of Government of India and
remaining Rs.87.85 crore (22.32%) subscribed by
the Cooperative Societies.
Production Performance
7.13.2 During the year 2004-05 KRIBHCO produced
18.06 lakh MT of Urea (8.31 lakh MT in terms of
nitrogen) achieving a capacity utilization of 104.4%
and 10.92 lakh MT of Ammonia achieving capacity
utilization of 108.9% based on re-assessed
capacity. The Society has also produced 560.4 MT
of Bio-fertilisers during the year.
During the year 2005-06 (up to October 2005), the
Society has produced 10.76 lakh MT of Urea (4.95
lakh MT in terms of nitrogen) achieving capacity
utilisation of 106.6%. During the whole year
(01.04.2005 to 31.03.2006), the Society is likely to
produce 18.22 lakh MT of Urea (8.38 lakh MT of
nitrogen). The Society has also produced 437 MT
of Bio-fertilisers during the year 2005-06 (upto
October 2005), and during the whole year, the
Society is likely to produce 680 MT of Bio-
fertilisers.
46
Sales Performance
Urea
7.13.3 In the year 2004-05, the Society sold 17.37 lakh
MT of own Urea, including 0.05 lakh MT exported
to Nepal, and 0.52 lakh MT of surplus Ammonia. In
the year 2005-06 (upto October 2005) the Society
has sold 11.08 lakh MT of own Urea and 0.47 lakh
MT of surplus Ammonia.
Granular Urea
During the year 2004-05 the Society also sold 0.50
lakh MT of imported Granular Urea. During the
year 2005-06 (upto October 2005) it sold 2.45 lakh
MT Granular Urea from the Indo-Oman Joint
Venture, OMIFCO.
Bio-Fertilisers
During the year 2004-05, the Society sold 611 MT
of Bio-fertiliser. This is the highest ever so far.
During the year 2005-06 (upto October 2005) the
sale of Bio-fertiliser was 366 MT. KRIBHCO has
also conducted several promotional programmes
on use and benefits of Bio-fertilisers.
Agricultural Promotion And Rural Development
7.13.4 KRIBHCO continued to organize programmes for
the benefit of farmers such as kisan melas, farmers
meetings, block demonstrations, field days,
agriculture campaigns like tree plantation, animal
and human health check-ups, farmers study visits,
cooperative conferences, group discussions, co-
operative society & village adoption programme,
technical wall painting and distribution of technical
literature, etc. The Society organized more than
1200 agricultural and rural development
programmes during the financial year 2004-05
directly benefiting more than 3.0 lakh farmers.
During Kharif-2005 the Society had adopted 24
cooperative societies & villages and continued the
above-mentioned programmes. So far 635
programmes have been organised in this season.
Analysis of soil and water samples were done
through its six mobile soil testing vans and fertiliser
application recommendations given. Besides
these, the Society adopted 8 villages for their over
all development. 109 storage-cum-community
centres have also been built till date.
The other important activities undertaken by
KRIBHCO include the following:-
1. Krishak Parivar Sangam Programme organized to
promote National Integration.
2. The Society has also has set-up a high-tech farm
advisory center at NOIDA to provide latest
information to farmers of all states. The facilities
are free and include testing of soil samples and
advise farmers regarding balanced fertilizer use
aimed at higher production and quality.
3. Other main facilities include KRIBHCO Kisan
Helplines phone 0120-2535628 and e-mail:
[email protected] for answering
queries from farmers.
Seed Multiplication Programme
7.13.5 KRIBHCO also initiated a 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, Coop.
Societies and State Coop. Federations in different
states. The Society stepped up production of
Seeds from 2928 quintals in 1991-92 to 1.54 lakh
quintals in 2004-05. This is the highest ever
production of Seeds so far. During the financial
year 2004-05, the Society has sold 1.49 lakh
quintals of Seeds.
During the financial year 2005-06, (upto October
2005) KRIBHCO has already produced 1.23 lakh
quintals of Seeds and sold 1.07 lakh quintals. In
view of the growing demand of KRIBHCO seeds,
the Society has planned to produce 2.3 lakh quintal
Seeds during 2005-06.
Financial Performance
7.13.6 During the financial year 2004-05, the Society
earned a net profit of Rs.140.59 crores (Post-Tax),
and paid a dividend of Rs.54.88 crore @ 20%.
During the financial year 2005-06 (upto
October'05) the society has made a net profit (post-
tax) of Rs.106.73 crore. The Society envisages a
profit (pre-tax) of Rs.241.06 crore and net profit
(post-tax) of Rs.171.83 crore during the financial
year 2005-06.
Expansion and Diversification Plans
7.13.7 KRIBHCO presently has the following expansion/
diversification plans.
KRIBHCO Expansion at Hazira
KRIBHCO proposes to set up a state-of-the-art
mega size Ammonia plant of capacity 1850 MTPD
and Urea plant of capacity 3250 MTPD at the
existing fertilizer complex at Hazira. The Plant will
be based on natural gas and will have low energy
47
Department of Fertilizers, Ministry of Chemicals & Fertilizers A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6
Chapter-8
Fertilizer Education Projects
consumption. Existing infrastructure facilities &
some of the offsite facilities will be utilized, resulting
in overall saving in project cost. The proposal was
approved by the PIB on 17.11.2004. The Society is
in the process of inviting tenders and firming up the
contract for the project.
Power Project At Pipavav
The Society is exploring the possibility of setting-
up a 615 MW Power Project at Pipavav in Gujarat
through a Joint Venture Company. However, the
schedule of supply and availability of Natural Gas
at Pipavav being uncertain, the Project has been
on hold till the issue of availability of gas is settled.
Equity Participations
Joint Venture Oman India Fertilizer Company,
Oman (OMIFCO)
KRIBHCO & IFFCO from India and the Oman Oil
Company, with a share holding of 25%, 25% and
50% respectively, have collaborated to set up a
world class fertilizer plant in Oman with a capacity
of 16.52 lakh MT of granular Urea per annum which
is to be purchased by Govt. of India under the long
term agreement. In addition, the plant would
produce 2.5 lakh MT of surplus Ammonia per year,
for which a long term off take agreement has been
entered into by OMIFCO with IFFCO as a part of
the overall joint venture agreement. KRIBHCO
has invested US $80 million as equity in the
project.
Commercial production of Urea has commenced
on 14th July, 2005. Till 31st December 2005
OMIFCO has produced 10.42 lakh MT of Urea and
8.22 lakh MT of Ammonia. Approximately 10.79
Lakh MT of superior quality “Granular Urea” has
been imported till 31st December 2005 on GOI
account for distribution in India. KRIBHCO and
IFFCO are currently handling the distribution of this
Urea in India.
Equity Participation in Nagarjuna Fertilizers & Chemicals Ltd. (NFCL)
Society has an equity participation of Rs.10.00
crore in NFCL, which is 2.20% of NFCL's paid up
share capital of Rs. 453.81 crore.
Equity Participation in Gujarat State Energy Generation Limited (GSEG)
KRIBHCO has invested Rs. 48.75 crore, being
30% of the equity, in Gujarat State Energy
Generation Limited (GSEG) 156 MW Power Plant.
Plant is in operation.
Information Technology
7.13.8 The Society has implemented a customized
Enterprise wide application software package for
computerizing its operations at Head Office,
Central Marketing Office, Plant, State Marketing
Offices and Area Offices using the Relational Data
Base Management System. Due to enhanced use
of IT and implementation of best practices in IT
operations, the Society has largely achieved
stabilization in its IT operations. The Applications
c o v e r I n v e n t o r y M a n a g e m e n t , F i n a n c i a l
Accounting, Payroll Application and a Provident
F u n d M a n a g e m e n t S y s t e m c o v e r i n g a l l
employees of KRIBHCO. At the plant level, an
i n t e g r a t e d s y s t e m c o m p r i s i n g F i n a n c i a l
Accounting, Payroll, Fixed Assets, Purchase,
Store, Production, Maintenance, Transportation,
Personnel & Administration and MIS, is in
operation. A comprehensive Management
Information System has been developed and
implemented in the Society.
Gramin Vikas Trust (GVT)
8.1.1 Gramin Vikas Trust (GVT), an independent legal
entity established by KRIBHCO is implementing
two projects i.e. Eastern India Rainfed Farming
Project (EIRFP) and Western India Rainfed
Farming Project (WIRFP) with technical and
financial support from the Department for
International Development (DFID) of the British
Government. The aim of the projects is to initiate a
process of widespread and sustainable/
renewable natural resources development, using
flexible, cost effective and participatory
approaches to improve the livelihood of poor men
and women in some states in the Western and
E a s t e r n I n d i a t h r o u g h f a r m i n g s y s t e m s
development and participatory research.
8.1.2 The WIRFP project (Phase-I) commenced on
01.01.1993 and EIRFP started in 1995-96. The
work of both the project was being handled under
KRIBHCO Indo-British Rainfed Farming Project
prior to the establishment of GVT in May 1999.
WIRFP (Phase-I) had a total project cost of
Rs.19.06 crore, out of which DFID contribution was
Rs.11.45 crores (reimbursable cost from DFID)
and KRIBHCO share was 1.53 crores. The total
expenditure of WIRFP Phase-I was Rs.11.17
crores. On the other hand, WIFRP (Phase-II)
started on 01.04.1999 for a period of seven years
under GVT with the total project cost of Rs.148.53
crore, which includes DFID's contribution of
Rs.81.89 crores (reimbursable cost from DFID)
and KRIBHCO's contribution of Rs.5.23 crores.
8.1.3 WIRFP (Phase-II) in its 7th year is working in seven
districts of three states i.e. M.P, (Jhabua, Dhar and
Ratlam), Rajasthan (Banswara and Dungarpaur)
and Gujarat (Panchmahal and Dahod). The
project is operating in 202 core and 497
dissemination villages involving about 7 lakh
people of 95,000 households.
8.1.4 EIRFP in its 10th year is operating in 9 districts of
three States i.e. Ranchi, Hazaribagh, Latehar and
Saraikela (Jharkhand), Dhenkanal, Keojhar and
Mayurbhanj (Orissa) and Purulia and Midnapur
(West Bengal) covering 252 core and 586
dissemination villages. It covers about 3.50 lakh
people of 75,000 households. The total outlay of
the project is Rs.27.41 crores (reimbursable cost
from DFID) for a period of 5 years (1995-2000).
The DFID funding support for EIRFP has come to
a close on 31st March 2005.
48 Extension programme - KRIBHCO 49
Department of Fertilizers, Ministry of Chemicals & Fertilizers A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6
8.1.5 Through the above projects GVT is engaged in the
rural and agricultural development in the Western
and Eastern States of India by evolving,
developing and implementing poverty focussed
participatory approaches for agriculture research
and development through integrated farming
systems. The projects lay Emphasis on increasing
the social, natural, physical, financial and human
capital in a sustainable and equitable manner
among the community.
8.1.6 Under participatory planning and community
development, different activities have been taken
up involving the community. 3892 Self Help
Groups (SHG) have been formed, who have made
savings of Rs.273 lakhs, out of which the group
members are utilizing an amount of Rs. 147.25
lakhs in diversifying their activities. Under crop
programme 2487 MT of seeds of different crops
were distributed in the villages of WIRFP and
EIRFP to conduct 91374 Farmers' Managed
Participatory Trials (FAMPAR) and for seed
multiplication. More than 27,625 ergonomically
designed farm implements and tools have been
distributed among the farmers to reduce the
drudgery as well as increasing the work efficiency.
11072 compost pits have been constructed. About
57.10 lakh saplings for fuel, fodder and fruit trees
have been planted in about 4988-hectare waste
land as well as homestead area. More than 71133-
hectare land was treated by bunding, gully
plugging, anicut etc. for conservation of soil and
moisture. 2527 wells and 39 check dams were
constructed/renovated and 929 pump sets were
supplied for irrigation. The aquaculture
p r o g r a m m e h a s b e e n t a k e n u p i n 2 4 6
perennial/seasonal ponds in EIRFP for increasing
the rural fish production. GVT has also started a
Migrant Labour Support Programme (MLSP) to
generate more employment and reduce migration
in WIRFP area. 9,486 migrants have registered 50
their names in 32 Palayan Suchana Kendras
(PSK) and 9,396 Identity Cards have been issued
to migrants.
8.1.7 Besides, DFID Projects, under WIRFP and EIRFP
different projects of State Governments are also
being implemented on partnership basis. Some of
these projects are Watershed Development
Project in the States of Jharkhand, West Bengal,
Orissa, M.P., Rajasthan & Gujarat; Livelihood
Enhancement Project under Jharkhand Tribal
Development Society, Jharkhand; Sewa Shakti
Project in Jharkhand and Gujarat; Training of
personnel of Panchayati Raj Institutions (PRIs)
and DRDA in West Bengal, M.P., Rajasthan and
Gujarat, and Western Orissa Rural Livelihood
Project (WORLP) in Orissa. Many projects for
d e v e l o p m e n t o f n e w t e c h n o l o g y u n d e r
participatory technology development and
collaborative research are in progress with the
Agricultural Universities of respective States. GVT
has developed through collaborative research
programme and released two rice, three maize and
one chick pea variety suitable to rainfed areas.
8.1.8 During the year 2005-2006, an expenditure of
Rs.329.52 lakhs has been incurred till 30th
September'2005 in WIRFP. The cumulative
expenditure incurred in this project from
01.04.1999 to 30.09.2005 is Rs.6133.39 lakhs.
8.1.9 During the year 2004-05, an expenditure of
Rs.406.87 lakhs has been incurred in EIRFP. The
cumulative expenditure incurred on this project
from 01.04.1995 to 30.09.2005 is Rs.3704.15
lakhs.
Potash Promotion Project
(Correcting the Imbalance)
8.2.1 This project was conceptualised after a
Memorandum of Understanding (MOU) was
entered into between International Potash
Company (IPC), Moscow and Indian Potash
Limited (IPL), New Delhi on 17th February 2003.
The project was operationalised on 1st April 2003.
8.2.2 The project comprises of a comprehensive
programme for correcting the imbalance in
fertilizer application in India by increasing the
consumption of Potash to achieve N: K ratio of 4: 1
in the long run and at least 6:1 at the end of the 3
years of project period.
8.2.3 While all states in India are to be covered in this
p r o j e c t e v e n t u a l l y, t h e f i r s t p h a s e o f
implementation is as follows: -
East Zone : O r i s s a a n d W e s t B e n g a l
West Zone : M.P., Chhattisgarh, Gujarat and
Maharashtra
North Zone : U.P., Haryana, Punjab and H.P.
South Zone : Kerala and A.P.
IPL's extension programme - Potash Promotion
State of Rajasthan was also included during 2004-2005
8.2.4 Extension activities were further intensified in
2004-05 to effectively establish the need of
applying K for enhancing crop production and thus
farm income. Various field activities organized
under the project are presented below:-
51
Department of Fertilizers, Ministry of Chemicals & Fertilizers A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6
Chapter-9
System' is applicable to DAP, MOP and NPK and have an adverse impact on soil fertility, the outcome of this project is expected by 2006.
52 53
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Information Technology (IT)
8.2.5 Besides field Programme mass media
was also employed to create awareness about the
balanced fertilizer application through enhancing
the use of potassic fertilizers.
8.2.6 Technical information on the various aspects of
potash in agriculture covering the topics such as
rate of potash application, removal of potash by
crops, potash fertility status, K deficiency
symptoms on crops, method of K application etc.
were published in the form of booklets, brochures,
folders and posters and provided to field in the
language of the state. Results of crop
demonstrations conducted during 2003-04 and
2004-05 were compiled, published and circulated
for experience sharing. Agriculture magazines and
periodicals were also used to create awareness
about use of potash.
8.2.7 Two mobile Audio-Visual Units were added to the
fleet. Presently eleven mobile Audio-Visual units
have been deployed all over the country to educate
farmers through films and slides on balanced
fertilization, improved crop production and other
related aspects.
8.2.8 A 30 second radio jingle was prepared and
released from 36 stations of All India radio.
Similarly, a 30 second TV jingle was also released
in Krishi Darshan and other agricultural
programmes of Door Darshan from various
stations.
8.2.9 The Project has made a definite impact in creating
awareness about use of K which can be seen from
a 34% increase in K consumption during 2004-05
over 2003-04. The N:P:K ratio during the year
2004-05 also appreciably narrowed down to
5.5:2.2:1 from the level of 6:5:2.5:1 in 2003-04.
Integrated Nutrient Management
8.3.1 To avoid indiscriminate use of fertilizers that could
Department of Agriculture & Cooperation is
advocating the promotion of Integrated Nutrient
Management (INM) through soil test based
judicious and balanced use of chemical fertilizers
including micro nutrients, in conjunction with
organic manures, green manure, compost,
vermicompost, bio-fertilizers etc. under a Centrally
Sponsored scheme on Balanced and Integrated
Use of Fertilizers. Under this scheme, Government
is promoting establishment of new soil testing
laboratories alongwith training / orientation of staff.
At present there are 551 soil-testing laboratories
out of which 426 are static and 125 are mobile. The
total annual sample analyzing capacity of these
laboratories is 6.75 million. The minimum
requirement of soil testing in the country is,
however, much higher and 208 districts in the
country still have no soil testing laboratories.
Fertilizer companies are playing an active role in
educating farmers through their programmes on
the need to adopt soil testing and the balanced
application of fertilizers throughout the country.
Efforts are being made to further expand these
efforts, including setting up of more soil testing
laboratories.
8.3.2 In pursuance of clause 20A of FCO (1985), Ministry
of Agriculture, Department of Agriculture & Co-
operation, vide S.O. No.807 (E) dated 9.7.2004
permitted M/s. National Fertilizer, M/s. Sri Ram
Fertiliser Ltd. and M/s Indo Gulf Fertilizer to
manufacture Neem Coated Urea for a period of two
years for commercial trial from the date of issue of
notification. M/s. Tata Chemicals and M/s Chambal
Fertilizer Ltd. have also been allowed to
manufacture neem-coated urea at a commercial
level. ICAR has sanctioned an ad hoc project
entitled “Standardization of nitrification in inhibitory
principles in Neem Coated Urea” at Indian
Agricultural Research Institute, New Delhi. The
Fertilizer Management On-Line:
9.1.1 To meet the national objective of making fertilizers
available timely, proper planning and monitoring of
various aspects like fertilizer production, imports,
quality control, distribution, movement, sales,
stocks, subsidies and concessions is essential. In
order to manage thjis effectively, Fertilizer
Management On-line programme has been
formulated by the Department of Fertilizers in
consultation with the National Informatics Centre
and the following application systems are
operational:
Web Based Fertilizer Distribution And Movement Information System
9.2.1 The system maintains ECA distribution and
monthly movement orders for urea, and
i n f o r m a t i o n a b o u t f o r t n i g h t l y d i s p a t c h e s /
availability/ sales/closing stock of various
indigenous and imported fertilizers in the country.
Web Based Fertilizer Production Monitoring System
9.2.2 For planning and monitoring the fertilizer
production in the country, the application system
provides information support related to Installed
Capacity, Production Targets, Actual Production,
C a p a c i t y u t i l i z a t i o n , a n d R a w M a t e r i a l
Requirement of various fertilizer products
manufactured by the fertilizer units.
Web Based Fertilizer Concession Scheme Monitoring System
9.2.3 It facilitates release of payments and monitoring of
concessions to the fertilizer manufacturers and
importers for the sales of indigenous/imported
phosphatic and potassic fertilizers under the
Fertilizes Concession Scheme.
Fertilizer Subsidy Payment Information System
9.3.1 The application system is used for timely
processing of subsidy payment to urea
manufacturers and monitoring of various activities
pertaining to the payment of subsidy by generating
various periodic reports as well as query retrieval.
Web Based Fertilizer Import Management System
9.4.1 The Fertilizer Import Management System assists
in monitoring of the fertilizer Import Plan based on
actual imports against targets, status of import
contracts, source-wise availability of funds for
imports and maintains details of Department of
Fertilizer's authorization to State Trading
Enterprises (STEs) for import of Urea during a
scheduled period.
Web Based Fertilizer (Decontrolled) Monitoring System
9.4.2 Keeping in view a number of problems in the
existing system of sale certification by State
Governments for payment of concession under
Concession Scheme, Department of Fertilizers
has now devised an alternative mechanism for
release of payment. Accordingly, on 26.1.2006,
the Department has announced the launching of a
web based on-line 'Fertilizer Monitoring System'
for monitoring import of finished fertilizers, raw
material and intermediates required for indigenous
production, distribution and sales of decontrolled
phosphatic and potassic fertilizers in the country.
This system aims to bring transparency in fertilizer
distribution and provide an up-to-date information
to the public on the despatches and receipts of
phosphatic and potasic fertilizers to different
destinations in the country on day to day basis.
The implementation of the 'Fertilizer Monitoring
Chapter-10
these cases are still under investigation by the CBI. qualitatively made more informative and user constant effort is being made to ensure the
54 55
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Vigilance Activities
will run concurrently with the present system w.e.f.
1.1.2006. Once the new system is stabilised, the
present system of sale certification will be done
away with.
Fertilizer Equated Freight Fixation Information System
9.5.1 The system fixes the equated freight rate for the
fertilizer manufacturers for transporting the
fertilizers from the fertilizer plants to the
c o n s u m p t i o n c e n t e r s , w h i c h a r e b l o c k
headquarters of States/ UTs taking into account
various parameters like ECA, despatches by
Rail/Road, Normative Rail/Road distances of
various states, Rail/Road rates, secondary rates,
etc. The fertilizer subsidy on equated freight is
calculated based on these rates and paid to the
manufacturers on monthly basis for the despatch
of fertilizer.
Fertilizer Project Monitoring System
9.6.1 The system provides detailed Information on plan
outlays and actual expenditure incurred through
Internal and Extra-budgetary Resources (IEBR)
a n d B u d g e t a r y S u p p o r t f o r v a r i o u s
schemes/projects approved by DoF during Five
Year Plans.
Information & Communication Technology (ICT) Infrastructure
9.7.1 Internet connectivity through RF link of MICNET is
available in all computer systems in the
Department's offices located in Shastri Bhawan,
Udyog Bhawan, Janpath Bhawan and Sewa
Bhawan under the DOF's Intranet consisting of 270
nodes.
Web Site
9.7.2 The web-site of Department of Fertilizers
(www.fert.nic.in) has been upgraded and
friendly to bring transparency in Government
functioning and citizen interface. The companies
under the administrative control of the Department
of Fertilizers have hosted their websites on the NIC
server to maintain the security of their content. The
companies have been provided secured Virtual
Private Network (VPN) connection of NIC to have
facility for instant updations in their websites.
E-Governance
9.7.3 As per the guidelines of Department of
Administrative Reforms & Public Grievances
(DARPG), Department of Fertilizers has taken
various measures to enhance e-Governance:
l In order to have information exchange with
fertilizer companies and other agencies, e-mail
service is being extensively used by the officials of
Department of Fertilizers.
l Various packages of office automation viz.
C o m p o s i t e P a y r o l l S y s t e m f o r C e n t r a l
Government Offices, Web based File Tracking
System, Application Monitoring System under RTI
Act, Inventory Management System, Foreign Visit
Tracking System, Board Level Appointment
System and PGRAMS (Public Grievances
Software Package) are operational in the
Department of Fertilizers.
l Hindi Word Processor facility has been provided in
all the computer systems in the Department.
10.1.1 The ambit of the supervisory, vigilance activities of
the Department extends not only to the
Department but also to the supervision of the
vigilance activities of the 10 PSUs and the one
multi state cooperative society under the
administrative control of the Department. The
departmental vigilance set up is headed by the
Joint Secretary (Administration and Vigilance) who
is the Chief Vigilance Officer designate of the
Department, assisted by Deputy Secretary
(Vigilance), Under Secretary (Vigilance) and other
vigilance staff. The Department supervises the
vigilance activities in the PSUs and the Multi State
Cooperative under its administrative control, within
the framework provided by the Central Vigilance
Commission. With the thrust on pre-emptive
rather than remedial vigilance, pro-active role is
played by the Department in ensuring not only the
prompt disposal of vigilance cases but also in
framing preventive guidelines based on which the
occurrence of vigilance cases can be minimized.
10.1.2 A constant effort is made by the Department to
streamline and simplify the procedure prevalent in
the Public Sector Fertilizer Organisations in order
to make the working of these organisations more
transparent thereby reducing the chances of
corruption and malpractices. By virtue of being the
administrative Ministry for the fertilizer sector, the
Department is entrusted with the duty of being the
watch dog of the fertilizer PSUs and this is
achieved by an energetic pursuance of the
vigilance activities in these units, coupled with
frequent inter active sessions held with the Chief
Vigilance Officers of these Organisations.
Vigilance Activities During 2005
10.2.1 The number of pending vigilance cases in the
PSUs, was 29 as on 31st Oct, 2005 as compared to
15 as on 30th November 2004. The Department
has been regularly monitoring the pending
complaints / investigations by having close inter
action with the concerned CVOs of PSUs and a
disposal of disciplinary proceedings within the time
frame provided by the Central Vigilance
Commission.
Vigilance Week Celebrations
10.3.1 The 'Vigilance Week' was celebrated during the
7th to 11th of November 2005. A number of
banners and posters were displayed in the
Department to create vigilance awareness among
the staff. The pledge was administered to the staff
by Secretary (Fertilizers) and an essay competition
on the topic “ Will the Right to Information Act, 2005
be effective weapon against corruption in public
service” was held. 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 earnestness in the fertilizers
P S U s , i n c l u d i n g K R I B H C O a n d v a r i o u s
competitions like Solgan writing, Essay, Debate,
Quiz etc. were held.
Surveillance And Detection
10.4.1 Agreed list of public servants as well as Public
Servants of Doubtful Integrity 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 a five years were
transferred.
Punitive Action
10.5.1 Forty complaints were received from various
sources against the officials of PSUs, which were
got investigated/examined and appropriate action
was taken.
10.5.2 The Department had recommended two cases to
the CBI for registration of regular case during the
year 2003-04 against the officials of a PSU. Both
Chapter-11 Chapter-12
rs
Right to Information Progressive use of official Language Hindi
Act, 2005
11.1 The Right to Information Act, 2005, (RTI) 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 organisation 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 Ooctober 2005.
11.2 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: -
l 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.
l Orders designating PIOs, with required details, placed on website.
l Counter opened at Public Information Centre of DoF at Shastri Bhavan for applications as well as prescribed fee
under RTI.
l Appointment of Nodal Officer intimated to Department of Post enabling providing of services by that Department
as CAPIOs across the country.
12.1.1 Department of Fertilizers continued its efforts
towards increasing the use of Hindi in official work
during 2005-2006 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, One Assistant and two Lower Division
Clerks.
12.1.2 All the 201 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. Except one employee, all
officers/employees of the Department are having
working knowledge of Hindi. Similarly, all the
stenographers and typists, except one typist and
o n e s t e n o g r a p h e r, a r e t r a i n e d i n H i n d i
Stenography and Hindi typing, respectively.
Besides, a number of measures have been taken
for the promotion of use of Hindi in the Department,
its attached office of FICC, PSU's and the multi-
Hon'ble Union Minister of Chemicals & Fertilizers and Steel,
Sh. Ram Vilas Paswan, presiding over the meeting of the
56 Hindi Salahkar Samiti of the Ministry of Chemicals & Fertilize 57
Department of Fertilizers, Ministry of Chemicals & Fertilizers A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6
Department. These words/phrases are generally
58 59
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
state cooperative society, namely KRIBHCO,
under its administrative control. Details of these
measures are summarized below:-
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 Hindi and English. 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.
Official Language Implementation Committee (OLIC)
12.3.1 There is an Official Language Implementation
Committee (OLIC) under the Chairmanship of the
Joint Secretary (Adm.) in the Department. This
committee periodically reviews the progress made
in the use of Hindi in the Department, its attached
office of FICC, PSUs and the Multi-State
Cooperative Society, KRIBHCO on a quarterly
basis. It gives appropriate suggestions and
recommends measures to be taken for the
effective implementation of the official language
policy.
Rajbhasha Shield/Trophies
12.4.1 The Department is operating a Scheme which was
drawn up in the year 2001-2002 for the grant of
a w a r d s t o v a r i o u s P S U ' s / C o o p e r a t i v e
Societies/Offices under the administrative control
of the Department. Under this scheme, Shields for
the year 2002-03, 2003-04 and 2004-05 were
awarded in order of merit to those offices, which
were adjudged the best in the implementation of
the official language policy of the Government. The
first prize for the year 2002-03 was awarded to
KRIBHCO, second prize to IFFCO and the third
prize to NFL. The first prize for the year 2003-04
was awarded to NFL, second prize to KRIBHCO
and the third prize to RCF, and the first prize for the
year 2004-05 was awarded to KRIBHCO, second
prize to NFL and the third prize to RCF. In addition,
one prize each was also awarded to the P&I
Section, HR-II Section and Fertilizer Movement
Section of the Department for doing maximum
work in Hindi for the year 2002-03, 2003-04 and
2004-05 respectively.
Hindi Salahkar Samiti
12.5.1 With a view to render advice for effective
implementation of the official language policy of the
Government, 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) was reconstituted on 23.6.2005. The
first meeting of the reconstituted committee was
held on 17.12.2005 in Chandigarh under the
chairmanship of the Minister of Chemicals and
Fertilizers. The second meeting of the Committee
was held on 5.2.2006 in Goa.
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
was also continued during the year. This scheme
carries two prizes of Rs.1000/- each, three second
prizes of Rs.600/- each and five third prizes of
Rs.300/- each. Under this scheme, two employees
were given cash awards of Rs.1000/- (first prize),
three employees were given cash awards of
Rs.600/- (second prize) and three employees were
given cash awards of Rs.300/- for the year 2004-
2005.
Cash Prize Scheme for Dictation in Hindi
12.7.1 An incentive scheme for officers for giving dictation
in Hindi is in operation in this Department. Under
this scheme, there is a provision of two cash prizes
(one for Hindi speaking and other for Non-Hindi
speaking). This year a cash prize of Rs.1000/- was
given to the Non-Hindi speaking officer who gave
maximum dictation in Hindi during the year.
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, 2005.
During the Hindi fortnight, which was organised in
the Department from 14th September, 2005 to 28th
September, 2005, various competitions such as
Hindi Essay writing, Hindi shorthand, Hindi typing,
Hindi-English translation and poetry recital
competitions were organised and all together 73
o f f i c e r s / e m p l o y e e s p a r t i c i p a t e d i n t h e
competitions. Winners were honoured with
certificates and cash prizes by the Secretary
(Fertilizer) in the closing ceremony organised on
06.10.2005. The participants, who did not get any
prize in the competitions, were given Hindi-English
dictionary each.
Prati Din Ek Shabd
12.9.1 The Scheme named 'Prati Din Ek Shabd', which
has been launched in he Department four years
back is being continued during the year. Under this
scheme, one word/phrase in Hindi and its English
equivalent is displayed daily on the Black Board
installed on the second floor 'A' wing of the
administrative and technical in nature and are
being used in the day-to-day official work.
Hindi Workshops
12.10.1 During the year 3 workshops were organised in the
Department to encourage the officials to
undertake more work in Hindi and altogether 49
o ff i c e r s / e m p l o y e e s p a r t i c i p a t e d i n t h e s e
workshops.
Inspections Regarding Progressive Use of Hindi
12.11.1 In order to oversee the implementation of the
official language policy, 08 offices/units of different
PSUs were inspected by the officers of the
Department during the year. In addition, the first
Sub-Committee of the Parliamentary Committee
on Official Language inspected four offices/units of
the different PSUs under the administrative control
of the Department.
PSUs as on is given in the Annexure-XI. p r o j e c t o f B r a h m a p u t r a Val l e y F e r t i l i z e r
60 61
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Chapter-13
Welfare of SCs/STs/OBCs and Physically Handicapped Persons in the Department
Chapter-14
Activities in the North-East Region
13.1.1 Due care has been exercised during the year
under review to implement Government's
instructions regarding recruitment and promotion
of candidates belonging to the Scheduled Castes
(SCs), Scheduled Tribes (STs), Other Backward
Classes (OBCs) and Physically Handicapped
(PHs) categories in various groups of services in
the Department. The representation of these
categories in the Department as on 17.1.2006 was
as under: -
Representation of SCs, STs, OBCs and Physically Handicapped Persons in PSUS
13.2.1 Presidential Directives on reservation for the
candidates belonging to the SCs and STs issued
from time to time by the Department of Public
Enterprises (DPE), have been implemented in all
the PSUs/Cooperative under the administrative
control of the Department. The Presidential
Directives regarding reservation for OBCs have
also been made applicable w.e.f. 8.9.93 in the
Department. The Cooperative Society viz.
KRIBHCO has also adopted the guidelines relating
to OBCs w.e.f. 1.10.95. The implementation of
these directives is being monitored in the
Department and concerted efforts are being made
to fill up the vacancies for the reserved categories.
The representation of SCs, STs, ex-servicemen,
physically handicapped persons and OBCs in the
13.2.2 B e s i d e s p r o v i d i n g e m p l o y m e n t ,
PSUs/Cooperative have been advised to prepare
and implement special programmes/schemes for
education of tribals in scientific use of fertilizers,
building up of dealer/retailer network in the tribal
areas, and making fertilizers available in small
packs in the tribal predominated areas.
Welfare Of Minorities
13.3.1 The PSUs/Co-operative under the Department
have further been advised to provide facility of pre-
examination coaching to the candidates of minority
community wherever feasible, and to take steps to
increase awareness of candidates belonging to the
communities about employment opportunities.
They have also been advised to include a
representative of the minorities in the recruitment
selection boards to ensure that the minorities get
an adequate share in the services and benefit from
development schemes.
Reservation in Dealership
13.4.1 The Department had instructed all the PSUs under
its administrative control to reserve at least 25% of
dealerships of fertilizers for the members
belonging to SCs/STs. To ensure availability of
sufficient numbers of suitable SC/ST candidates,
the following concession are generally given by the
undertakings:-
(a) exemption/relaxation from security deposits.
(b) preference in supply of fast moving materials.
(c) higher rate of dealership margin as compared to
that allowed to general dealers; and
(d) free training for handling of fertilizers.
13.4.2 The PSUs have also been advised to reserve 10%
of fertilizer dealerships for ex-servicemen.
14.1.1 The States of the North-East including, Sikkim face
a location disadvantage due to difficult terrain,
besides, inadequate rail and road infrastructure.
Except for the State of Assam, all other North-
Eastern States including Sikkim have very sparse
rail network. The difficulties of movement and
transportation are compounded in these States
further by problems arising out of militancy in
certain parts, limited sources of supply etc. The
per tonne cost of transportation, as a result, has
been exceedingly high as compared to the rest of
the country. These have been the major
bottlenecks to reaching urea supplies to these
States in time.
14.1.2 Considering this and with a view to ensure timely
and adequate supply of urea which would help in
boosting agriculture production in the region, the
Government decided to reimburse the freight for
carrying urea on actual basis through a Special
Freight Reimbursement Scheme. This scheme
has been introduced in lieu of the Equated Freight
Scheme for these States, including Sikkim, but
excluding Assam. The Scheme has been in
operation since 1.4.1997 and has helped in
ensuring timely distribution of urea in these States.
Under the special scheme, an expenditure of
Rs.2.29 crore was incurred during the year 2004-
05. A similar scheme is also in operation in these
States, including Assam, on movement of
decontrolled phosphatic and potassic fertilizers
covered under the Concession Scheme, at a fixed
rate from the declared railheads specific to each
State to various destinations within that State.
14.1.3 Ten percent of the annual plan budget of the
Department is earmarked as lump sum provision
for projects/schemes for the benefit of North-
Eastern Region and Sikkim. This provision is
generally utilised for funding the Namrup revamp
Corporation Limited (BVFCL). As no fund was
released for the project during 2004-05, the
amount of Rs. 14 crore earmarked for this purpose
has been transferred to Ministry of Development of
North Eastern Region, for keeping it in non-
lapsable pool fund.
both genders doing the same type of work. There
is no discrimination on the grounds of gender. This
l Special Cell for Women Employees (Supreme
Court Guidelines and Communication from
provided special facilitation rooms in offices and
lady doctors/nurses at hospitals to look after their
62 63
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Chapter-15
Women Empowerment
15.1.1 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 realise their full
potential and involvement in decision making.
Department of Fertilizers has a “Complaints
Committee” headed by an officer not less than the
level of a Joint Secretary 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.
15.1.2 Rashtriya Chemicals & Fertilizers (RCF) has also
taken a number of initiatives to provide
opportunities for growth, training/learning,
ch a l l e n g i n g a ssi g n me n ts e tc. to w o me n
employees. Women are also fairly represented in
the apprenticeship trainee programme, and
currently RCF has a total of 17 Women Apprentices
being trained in various technical trades. Apart
from ensuring all benefits under legal requirements
RCF has been giving special attention to schemes
and policies for women employees such as :-
National Commission on Women)
l Committee on Sexual Harassment Cases
(Supreme Court Guidelines)
l Special Medical check-ups/ camps
RCF is one of the pioneer members in the Forum of
Women in the Public Sector (WIPS) since its
inception (1990). Some RCF women officers have
been working with the Forum as heads of
taskforces and members of committees and have
contributed in policy making and development of
women to a great extent.
15.1.3 The National Fertilizers Limited (NFL) amended its
Employees (Conduct, Discipline & Appeal) Rules
so as to include 'Sexual Harassment' to the
working women in work places as 'Misconduct'.
There is also a Complaint Centre for dealing with
the complaints of the women employees. There is
no instance of any gender inequality and both men
and women employees are enjoying equal rights.
The working atmosphere is very cordial and
harmonious.
The Company has made a budget provision of
Rs.15 lakhs in the 9th Five Year Plan towards
welfare, development and empowerment of
women employees. Accordingly, an amount of
Rs.60,000/- for each Unit and Rs.40,000/- for
Corporate Office/Marketing Division for each
financial year has been allocated.
15.1.4 The Fertilizers And Chemicals Travancore Ltd.
(FACT) provides equal opportunity 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
has given an opportunity to women officers to excel
in their field of activities and being chosen for the
coveted Merit Award given for outstanding
performance and achievements. Out of 4068
employees, 286 are women, which constitute 7%
of the total strength. In the managerial cadre, 73
out of 829 are women, which constitute 8.8% of the
managerial strength. Women executives occupy
important key positions in the management cadre
such as Dy.Chief Managers/Dy.Chief Engineers,
etc.
All statutory provisions under various laws of the
land for welfare of women employees are being
complied with. There is a full fledged and active
Complaints Committee to look into complaints.
Not less than half the members are women
including an external member who is a Lady
Professor of a reputed Social Work College. In
addition the Company sponsors a Ladies Club for
the recreational activities of women employees
and wives of male employees. There is also an
association of women employees, by the name
FACT Women Welfare Association, whose
activities are welfare oriented.
15.1.5 In Krishak Bharati Cooperative Ltd. (KRIBHCO)
work environment is very cordial and conducive.
Both men and women are provided equal
opportunities keeping in mind the principles of
equality in gender with respect to their working,
development and growth.
Women employees in KRIBHCO are given equal
opportunities for their growth and development by
imparting them specialized training and
n o m i n a t i n g t h e m i n s p e c i a l i z e d w o m e n
empowerment seminars. They have been
health requirements.
Complaint Committees headed by women officers
as chairperson have been constituted to resolve
their grievances. Special provisions have been
incorporated in CDA Rules of the Society to
prevent and act against any incidence of
misconduct relating to their harassment.
64 65
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
ANNEXURES
I List of Subject Allocated to the Department of Fertilizers as per Government of India (Allocation of Business) Rules, 1961
II Officers in the Department of Fertilizers including FICC during 2005-2006.
III List of Public and Cooperative Sector Undertakings under the Administrative Control of Department of Fertilizers
IV Unit-wise, Nutrient-wise Consumption, Production and Imports of Fertilizers
V Year-wise, Nutrient-wise Consumption, Production and Import of Fertilizers.
VI Sector-wise Production of Nitrogenous and Phosphatic Fertilizers
VII Sector-Wise Capacity Utilization of Nitrogenous and Phosphatic Fertilizers
VIII Profitability of Public & Cooperative Sector Undertakings under Department of Fertilizers.
IX Details of Plan outlays and Actual Expenditure
X Details of Non-Plan and Plan Expenditure During 2004-05 and Budget Provision for 2005-06.
XI Statement showing employment of SCs/STs, Ex-servicemen and Physically handicapped persons in public sector undertakings.
XII Summary of Audit observation pertaining to Department of Fertilizers
ANNEXURE - l
LIST OF SUBJECTS ALLOCATED TO THE DEPARTMENT OF FERTILIZERS AS PER GOVERNMENT OF INDIA
(ALLOCATION OF BUSINESS) RULES, 1961
(See Chapter-2)
? Planning for fertilizer production including import of fertilizer through a
designated canalising agency.
? Allocation and supply linkages for movement and distribution of urea in
terms of assessment made by the Department of Agriculture & Cooperation.
? 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 fertilizers.
? Administration of the Fertilizers (Movement Control) Order, 1960.
? Administrative responsibility for fertilizer production units in the
cooperative sector, namely, Krishak Bharati Cooperative Limited (KRIBHCO).
? Administrative responsibility for the Indian Potash Limited (IPL)
--------------------
Ms Sofia Dahiya, Dir. of Fert. Accounts ( Nov. `05) Shri Biri Singh, Dir. of Fert. Accounts (upto Nov. `05)
66 67
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
ANNEXURE - ll ANNEXURE - lll
MINISTERS IN-CHARGE AND OFFICERS IN DEPARTMENT OF FERTILIZERS INCLUDING
FICC DURING 2005-06
(See Chapter-2)
LIST OF PUBLIC AND COOPERATIVE SECTOR UNDERTAKINGS UNDER THE ADMINISTRATIVE CONTROL OF DEPARTMENT OF FERTILIZERS
(See Chapter-2)
Minister for Chemicals & Fertilizers Shri Ram Vilas Paswan
Minister of State for C & F Shri B.K. Handique
Secretary Shri Madhukar Gupta
Additional Secretary & Shri J.S. Maini
Financial Adviser
Additional Secretary level officers Ms. Swatantra K. Sekhon, ED, FICC
Joint Secretary Shri B.K. Sinha
Shri Vijay Chhibber
Joint Secretary level officers Shri Tejinder Singh Lascher, EA
Directors Shri Manoj Kumar Shri R.N. Dash (from January `06) Shri A.P. Singh Shri Rajneesh Goel (up to June `05)
Director Level Shri Sri Chandra
Shri P. Ranadhir Reddy Shri M.G. Banga (up to January 06) Shri J. Alam, PS to Minister (C&F and S) Shri Vilas Ghodeswar, Controller of Accounts Shri B.B. Goyal, Director, FICC (up to June`05) Shri S.K. Das, Director, FICC Shri M. Dandayudhapani (from December `05)
Deputy Secretary Shri Rajesh Agrawal
Shri R.C. Meena Shri A.N. Murty (December '05)
Deputy Secretary level Shri R.K. Balasubramanian, Jt. Dir., FICC Shri M.S. Handa, Senior PPS (upto May `05) Shri K.K. Pahuja, Jt. Director, FICC Shri R. Asokan, Director, FICC
PUBLIC SECTOR :
68 69
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Private Sector
ANNEXURE - lV
UNIT-WISE INSTALLED CAPACITY, PRODUCTION AND CAPACITY UTILIZATION FOR THE
YEAR 2004-05 & ESTIMATES FOR THE YEAR 2005-06
Nitrogen (See Chapter-3)
70 71
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
Phosphate ANNEXURE - V
YEAR-WISE, NUTRIENTS-WISE CONSUMPTION, PRODUCTION AND IMPORTS OF FERTILIZERS
72 73
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
ANNEXURE - Vl
SECTOR-WISE PRODUCTION OF NITROGENOUS AND PHOSPHATIC FERTILIZERS
ANNEXURE - Vll
SECTOR-WISE CAPACITY UTILIZATION OF NITROGENOUS AND PHOSPHATIC FERTILIZERS
(See Chapter-5) (See Chapter-5)
(`000' MT)
ANNEXURE - Vlll ANNEXURE - lX
PROFITABILITY OF PUBLIC SECTOR UNDERTAKINGS & COOPERATIVE DETAILS OF PLAN OUTLAYS AND ACTUAL EXPENDITURE
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
(See Chapter-7) (See Chapter-5)
Rs. in Crore
* This includes Rs.14.00 crores for lump sum provision for North East Region.
** Includes Rs. 10.00 crores for lump provision for N.E. Region.
@ Government of India's equity stands reduced to 'Nil'.
Hence, no figure furnished in respect of IFFCO.
74 75
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
ANNEXURE - X
DETAILS OF NON-PLAN AND PLAN EXPENDITURE DURING 2005-2006 AND BUDGET PROVISION FOR 2006-2007
(See Chapter-5)
*This includes Rs. 14.00 crores for lump sum provision for North East Region.
**This includes Rs. 10.00 crores for lump sum provision for North East Region
76 Contd… 77
A n n u a l R e p o r t 2 0 0 5 - 2 0 0 6 Department of Fertilizers, Ministry of Chemicals & Fertilizers
ANNEXURE - Xl
EMPLOYMENT OF SC/ST, EX-SERVICEMEN, PHYSICALLY HANDICAPPED & OTHER BACKWARD CLASSES (OBCs)
PERSONS IN PUBLIC SECTOR UNDERTAKINGS
ANNEXURE - Xll
SUMMARY OF AUDIT OBSERVATION PERTAINING TO DEPARTMENT OF FERTILIZERS
(See Chapter-13)
The Office of Comptroller & Auditor General of India has included the following audit observation pertaining to Department of Fertilizers in the C&AG Report.
The Fertilisers and Chemicals Travancore Limited (i) The Company did not comply with the Ministry's directions in realization of the price difference from the
dealers, which resulted in undue benefit to the dealers and loss of revenue of Rs. 3.25 crore.
(Para 8.1.1 of Report No. 3 of 2005 Commercial) (ii) The Company procured raw material from the same vendor through two different tenders with the same
delivery schedule and incurred extra expenditure of Rs. 1.77. crore.
(Para 8.1.2 of Report No. 3 of 2005 Commercial) (iii) Non-observance of sales procedure and laxity in credit control led to non-recovery of Rs. 64.94 Lakh
from a dealer for over two years.
(Para 8.1.3 of Report No. 3 of 2005 Commercial)
Madras Fertilizers Limited (i) The Company's failure to charge enhanced rates resulted in undue benefit to dealers and higher claim
of subsidy from the government to the tune of Ts. 77.80 lakh.
(Para 8.2.1 of Report No. 3 of 2005 Commercial)
National Fertilizers Limited
(i) Failure of the company in assessing actual power load requirement resulted in an avoidable expenditure of Rs. 11.86 crore.
(Para 8.3.1 of Report No. 3 of 2005 Commercial)
Status:- The above five Audit paras of Report No. 3 of 2005 received from the office of C&AG in the first week of February, 2006 have been sent to the concerned divisions/sections of the Department for preparation of Action Taken Notes for vetting by C&AG office.
78 79