Central Government Departments

 

Ministry Of Heavy Industries And Public Enterprises

A. DEPARTMENT OF HEAVY INDUSTRY

(BHARI UDYOG VIBHAG)

1. The Heavy Engineering Corporation Limited.

2. The Mining and Allied Machinery Corporation Limited.

3. The Engineering Projects (India) Limited.

4. Bharat Heavy Electricals Limited.

5. H.M.T. Bearing Limited.

6. H.M.T. Limited.

7. H.M.T. International Limited.

8. Scooters India Limited.

9. Andrew Yule and Company Limited.

10. Bharat Opthalmic Glass Limited.

11. Bharat Leather Corporation.

12. Cement Corporation of India Limited.

13. Cycle Corporation of India Limited.

14. Hindustan Cables Limited.

15. Hindustan Paper Corporation Limited.

16. Hindustan Photo Films Manufacturing Company Limited.

17. Hindustan Salts Limited.

18. Hooghly Printing Company Limited.

19. Instrumentation Limited.

20. The Mandya National Paper Mills Limited.

21. Nagaland Pulp and Paper Company Limited.

22. National Bicycle Corporation of India Limited.

23. The National Industrial Development Corporation Limited.

24. National Instruments Limited.

25. N.E.P.A. Limited.

26. Rajasthan Electronics and Instruments Limited.

27. Hindustan Newsprint Limited.

28. Damodar Cement and Slag Limited.

29. Tannery and Footwear Corporation of India Limited.

30. Tyre Corporation of India.

31. Praga Tools Limited.

32. Rehabilitation Industries Corporation.

33. Sambhar Salts Limited.

34. Fluid Control Research Institute.

35. Bharat Bhari Udyog Nigam Limited:

SUBSIDIARIES

(a) Bharat Brakes and Valves Limited;

(b) Bharat Process and Mechanical Engineers Limited;

© Bharat Wagon and Engineering Company Limited;

(d) Braithwaite and Company Limited;

(e) Burn Standard Company Limited;

(f) Jessop and Company Limited;

(g) The Lagan Jute Machinery Company Limited;

(h) Braithwaite, Burn and Jessop Construction Limited;

(i) Reyrolle Burn Limited;

(j) Weighbird (India) Limited.

36. Bharat Yantra Nigam Limited.

SUBSIDIARIES

(a) The Triveni Structurals Limited, Allahabad;

(b) The Tungabhadra Steel Products (India) Limited, Durgapur;

© The Bharat Heavy Plates and Vessels Limited;

(d) Bharat Pumps and Compressors Limited;

(e) Richardson and Cruddas (1972) Limited;

(f) Bridge and Roof Company.

37. Maruti Udyog Limited.

38. Manufacture of heavy engineering equipment for all industries.

39. Heavy electrical engineering industries.

40. Machinery Industries including Machine Tools and Steel Manufactures.

41. Auto Industries, including tractors and earth moving equipment.

42. All types of diesel engines.

43. Automotive Research Association, Pune.

B. DEPARTMENT OF PUBLIC ENTERPRISES

(LOK UDYAM VIBHAG)

1. Bureau of Public Enterprises including Industrial Management Pool.

2. Coordination of matters of general policy of non-financial nature affecting all public sector industrial and commercial undertakings.

3. Matters relating to Memorandum Of Understanding mechanism of improving the performance of Public Sector Undertakings.

4. Matters relating to Permanent Machinery of Arbitration for the Public Sector Enterprises.

5. Counselling, training and rehabilitation of employees in Central Public Sector Undertakings under Voluntary Retirement Scheme.

 

Domestic Projects in Department of Fertilizers

Policy Environment

No license is required for setting up a new fertilizer project or for expansion of capacity of existing fertilizer plants. Investments/projects in the fertilizer sector can be undertaken after filing the industrial Entrepreneur’s Memorandum with the secretariat for Industrial Assistance(SIA) as per Industrial policy resolution of the Government dated 24th July, 1991.

A prior clearance of the project site from environmental angle is, however, a statuary requirement.

Any major public/cooperative Sector project for setting up new plants or for revamp/retrofit/expansion of existing plants are subject to investment approval of the Government through the Public investment Board etc., depending on the investment involved and the delegated financial powers available to each company.

Concessions/incentives on import of capital goods for fertilizer industry:

To encourage investment in the fertilizer sector, the following concessions are available to the domestic industry:
Concessional customs duty on import of capital goods for setting up of new plants/substantial expansion /renovation/modernization of existing plants.

Deemed export benefit to indigenous suppliers of capital goods for new/revamp/retrofit/modernization projects of fertilizers projects of fertilizers provided such supplies are made under the procedure of International Competitive Bidding.

Strategy for growth:

The fertilizer industry has adopted the following strategy to increase fertilizer production:
Expansion/retrofitting/revamping of existing fertilizer plants:

Setting up joint venture projects in countries having abundant and cheaper raw material resources.

Working out the possibility of adopting alter.

 

Quality : Department of Fertilizers

Quality of Fertilizers

i. Broad FCO provisions

ii. Implementation by State Machinery

iii. Sub/non-Standard Fertilizers

i) Broad provisions of FCO:

The quality of decontrolled P&K fertilizers sold under the Concession Scheme is ensured through the implementation of provisions in this regard under the Fertilizer (Control) Order, 1957 which initially came into being to regulate the sale, price and quality of fertilizers. The various provisions of the Order have been reviewed from time to time and led to issuance of a revised Fertilizer (Control) Order, 1985. The revised FCO 1985 came into effect on 25.9.85. The Department of Agriculture & Cooperation, Ministry of Agriculture is the implementing agency for FCO.

Schedule-I, Part-A of FCO, 1985 lays down specifications of fertilizers, while Schedule-I, Part-B lays down tolerance limit in plant nutrient for various fertilizers. Part-A of Schedule-II states procedure for drawal of samples of fertilizers, and method of analysis of fertilizers is given in Part-B of Schedule-II of FCO, 1985.

ii) Sub/non-Standard Fertilizers

Decontrolled P&K Fertilizers, indigenous as well as imported, which do not conform to FCO specifications as laid down under Schedule I, part-A of the FCO, 1985 are treated as non-standard on which concession is not admissible.

iii) Implementation by State Machinery

FCO, 1985 empowers the State Government to appoint inspectors of fertilizers with a view to secure compliance with the said order. The Agriculture Department of respective State Governments have set up their own machinery for carrying out certification of sales of decontrolled P&K fertilizers.

 

Concession Scheme for Decontrolled Phosphatic & Potassic Fertilizers

Concession Scheme for Decontrolled Phosphatic & Potassic Fertilizers

Background

i. Introduction of the scheme

ii. Evolution of the scheme

iii. Implementation by the Central Govt.

iv. Transfer of scheme to DOF

i) Introduction of the Scheme:

The price, distribution and movement of phosphatic and potassic fertilizers which were under the Retention Price cum Subsidy Scheme since November 1977, were decontrolled in August’92 on the recommendations of the Joint Parliamentary Committee on Fertilizer Pricing. After decontrol there was a steep hike in prices of P&K fertilizers. The Government, apprehending a drop in consumption and to enable availability of decontrolled phosphatic and potassic (P&K) fertilizers at reasonable prices, introduced a Scheme of Concession on sale of decontrolled P&K fertilizers in 1992-93, and announced concession on DAP and MOP.

ii) Evolution of the Scheme:

The scale and coverage of the special concession has been substantially increased to give impetus to the 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. Immediately after the decontrol of phosphatic and potassic fertilizers in August, 1992, the Government announced an adhoc concession (subsidy) of Rs.1000 on DAP and MOP and commensurately on complex fertilizers w.e.f Rabi’92-93. Respective State/UT Governments indicated the Maximum Retail Prices (MRP). The State/UT Governments disbursed the payment of concession up to 1993-94 from grants-in-aid received from from the Central Government for this purpose. The impact of these rates of concession on increased prices of fertilizers was, however, nullified gradually by the increase in prices of inputs as well as the dollar-rupee parity. In order to improve consumption of phosphatic and potassic fertilizers for improving nutrient balance, Government enhanced the rate of concession on indigenous DAP from Rs.1000 per MT to Rs.3000 per MT and fixed a concession of Rs.1500 per MT for imported DAP in July 1996. Besides, the concession on MOP was also enhanced to Rs.1500 per MT and commensurately on complexes. The scope and method of implementation of the Scheme has been undergoing experience based evolution, which is reflected in revised guidelines being issued by Government of India from time to time.

iii) Implementation by the Central Government:

There is no unit-wise or importer wise recognition of costs under the Concession Scheme; only industry level average cost of sales is taken into account. Accordingly, concession rate is determined separately for DAP, MOP and each grade of potassic and phosphatic fertilizer . For each decontrolled fertilizer, the Maximum Retail Price (MRP) is indicated by Central Government except for Single Super Phosphate, the MRP of which is indicated by each State/UT Government Generally, the difference between cost of sales and MRP forms the element of concession.. Payment of 80% ‘on account’ concession claim (enhanced w.e.f.1.4.2001 to 85% or 90%, if supported by Bank Guarantee applicable to manufacturers of P&K fertilizers only) is made on the basis of sales certified by Statutory Auditors. Imports of DAP/MOP are eligible to claim 80% ‘on account payment The balance 20% (15% or 10%) is to be paid after the sales have been certified by the States. In order to avail of concession under the Scheme, the manufacturers/importers are required to sell the decontrolled fertilizers at the applicable MRP. Single window system for preliminary examination of claims has been introduced to expedite payments.

iv) Transfer of scheme to Department of Fertilizers:

From 1.10.2000, the responsibility of the administration of the Scheme has been transferred from Department of Agriculture & Cooperation to the Department of Fertilizers. Subsequent to transfer of Concession Scheme to Department of Fertilisers sustained efforts are being made to streamline the procedures for implementation of the Scheme. Towards this end national level consultations were held in February 2001 and a one day Workshop was held on Concession Scheme in October 2001 with a view to receive views/suggestions of fertilizer sector in the matter of implementation of the Scheme. A half day conference was also held with Fertilizer Association of India (FAI) and SSP manufacturers on 12.11.02. The above interaction has lad to modification reflected in guidelines for the Concession Scheme issued on 9.10.2000, 17.5.2001 & 5.8.2002. The constitution of Technical Audit & Inspection Cell and specified grades of rock alongwith origin/source of procurement notified for use by SSP industry, are some of the features introduced by the DOF.

 

Retention Price Cum Subsidy On Urea : Department of Fertilizers

Retention Price Cum Subsidy On Urea

1. The sale prices of controlled fertilizers are fixed by the Government of India (Department of Agriculture & Cooperation) under the Fertilizer (Control) Order, 1985(FCO), issued under the Essential Commodities Act, 1955. FCO provides that the Central Government may, with a view to regulating equitable distribution of fertilizers and making fertilizers available at fair prices, by notification in the official gazette, fix the maximum prices at which any fertilizer may be sold by a dealer, manufacturer etc. At present, only urea is covered under the statutory price control under these provisions. While the phospahtic and potassic fertilizers were taken out of purview of RPS w.e.f 25.8.1992, the low analysis fertilizers viz., ammonium chloride, ammonium sulphate and calcium ammonium nitrate were decontrolled w.e.f 10.6.1994. From 1.4.2003, RPS will be dismantled and subsidy payments to urea units from 1.4.2003 would be regulated in terms of the new pricing scheme for urea units, which has already been communicated to all urea units on 30.1.2003.

2. The prices notified by the Central Government from time to time have been much lower than the cost of production. In order to compensate the manufacturers for lower realisation in the form of statutorily notified sale prices as compared to their retention prices (normative cost of production plus 12% post tax return on net-worth) fixed by the Government, the difference between the retention price of the individual units and their net realisation through their sale price is paid as subsidy by the Central Government to the individual urea manufacturing units under the Retention Price-cum-Subsidy Scheme (RPS) introduced in November,1977 vide Resolution dated 1.11.1977. The cost of production of various fertilizer units differ from unit to unit and even from month to month, depending upon the health and vintage of the plant, the feedstock used, the levels of capacity utilisation, energy consumption, distance from the source of feedstock / raw materials, cost of inputs etc.

3. In addition to the retention price subsidy, equated freight subsidy is paid to the manufacturers of controlled fertilizers to cover the cost of transportation from the production plants to the consumption centres.

4. Since the consumer prices of both indigenous and imported urea are fixed uniformly, subsidy is also paid on imported urea in order to bridge the difference between the cost of imports and statutorily fixed consumer price.

5. The RPS provides for fixation of retention price of individual units on per tonne basis, after taking into account the normative capacity utilisation prescribed under the scheme of the Government and a combination of norms and actuals in respect of the various cost elements and expenses. Pre-tax return on net-worth corresponding to post tax return of 12% is given as part of the retention price after covering various elements of cost.

6. The various cost elements taken into account for fixation of retention price of individual unit fall under the following three broad categories:-

(A) Variable Cost: Comprises of the cost of raw materials and utilities.

(B) Conversion Cost: Comprises of salaries and wages, repairs and maintenance, selling expenses and other overheads.

© Capital Related Charges: Comprises of depreciation, interest on loans and 12% post tax return on net-worth. (Networth = equity + free reserves)

7. During the currency of a given pricing period of three years, escalations / de-escalations are provided to reflect variations in the prices of major inputs. Escalations are also provided in respect of certain other items of cost (viz. Salaries and wages, chemicals and consumables, repairs and maintenance, overheads etc.) where there is a significant variation during the currency of the pricing period due to unavoidable factors.

for more details about RPS Click here

 

Growth Of Fertilizer Industry

GROWTH OF FERTILIZER INDUSTRY

The Indian fertilizer industry has succeeded in meeting almost fully the demand of all chemical fertilizers except for MOP. The industry had a very humble beginning in 1906, when the first manufacturing unit of Single Super Phosphate (SSP) was set up in Ranipet near Chennai with an annual capacity of 6000 MT. The Fertilizer & Chemicals Travancore of India Ltd. (FACT) at Cochin in Kerala and the Fertilizers Corporation of India (FCI) in Sindri in Bihar 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, green revolution in the late sixties gave an impetus to the growth of fertilizer industry in India. The seventies and eighties then witnessed a significant addition to the fertilizer production capacity.

The installed capacity as on 30.01.2003 has reached a level of 121.10 lakh MT of nitrogen (inclusive of an installed capacity of 208.42 lakh MT of urea after reassessment of capacity) and 53.60 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 unit produce urea, 20 units produce DAP and complex fertilizers 13 plants manufacture Ammonium Sulphate (AS), Calcium Ammonium Nitrate (CAN) and other low analysis nitrogenous fertilizers. Besides, there are about 64 medium and small-scale units in operation producing SSP.

Categories:

1. Urea units set up between: 1951-2001 with reassessed capacity

2. DAP units setup in the country with their date of commissioning, installed capacity and location of the units.

3. Complex fertilizers units setup in the country with their date of commissioning, installed capacity and location of the units.
4. Sector-Wise, Nutrient-Wise installed capacity of Fertilizer Manufacturing Units as on 31.1.2003

5. Sector-Wise installed capacity of Urea Production Manufacturers as on 31.1.2003

6. Low analysis nitrogenous fertilizer units setup in the country with their date of commissioning, installed capacity and
location of the units.

7. SINGLE SUPERPHOSPHATE INDUSTRY - An Overview

8. SSP Units list covered under concession scheme

9. Name of fertilizer products and their nutrients value

 

Production And Avilability Introduction of Fertilizers

Introduction

Agriculture accounts for nearly 1/4th of India’s GDP and more importantly, about 2/3rd of the country’s population is dependent on agriculture and allied activities for their livelihood. Successive Five Year plans have stressed on self-sufficiency and self-reliance in food grains production and concerted efforts in this direction have resulted in substantial increase in agriculture production and productivity. This is clear from the fact that from a very modest level of 52 million tonnes in 1951-52, food grain production rose to above 206 million tonnes in 1999-2000. Behind India’s success story of not only meeting total requirement of foodgrains but also having their exportable surplus, the significant role played by chemical fertilizers is well recognized and established beyond any doubt.

Chemical fertilizers have played a vital role in the success of India’s green revolution and consequent self-reliance in food-grain production. The increase in fertilizer consumption has contributed significantly to sustainable production of food grains in the country. The Government of India has been consistently pursuing policies conductive to increased availability and consumption of fertilizers in the country. The production of nitrogen (N) and phosphorus (P) fertilizer together has increased from mere 0.3 lakh MT in 1950-51 to about 147 lakh MT in nutrients terms in 2001-02 . since there are no commercially viable sources of potash (K) in the country, its entire requirement is met through imports. The overall consumption of fertilizers in nutrient terms (N, P & K) currently is about 175 lakh MT per annum.

As of now, the country has achieved near self-sufficiency in production capacity of urea and DAP, with the result that India could manage its requirement of these fertilizers from indigenous industry and imports of all fertilizers except MOP have presently been nominal.

Over the last five decades, the production of nitrogenous (N) and phosphatic (P) fertilizers taken together has increased from a mere 0.3 lakh MT in 1950-51 to 146.28 lakh MT in nutrients terms in 2001-02. Since there are no commercially known sources of potash (K) in the country, its entire requirement is met through import. The overall consumption of fertilizers in nutrients terms (N P and K) has increased from 0.7 lakh MT to about 173.6 lakh MT during the same period. Accordingly, per hectare consumption of fertilizers less than 1 Kg in 1951-52 has gone up to the level of 90.1 Kg. in 2001-02.

With this level of production capacity, the country has achieved near self sufficiency in urea and DAP whereas not long back, India imported 38.2 lakh MT of urea and DAP both in 1999-2000 to meet their indigenous demand.

 

Production : Department of Fertilizers

Fertilizer Production

At present, there are 64 large size fertilizer units in the country, manufacturing a wide range of nitrogenous and phosphatic/complex fertilizers. Of these, 39 units produce urea, 18 units produce DAP and complex fertilizers, 7 units produce low analysis straight nitrogenous fertilizers and 9 of the above units produce ammonium sulphate as a by-product. Besides, there are about 79 small and medium scale units producing single superphosphate. The total installed capacity of fertilizer production in the country which was 104.98 lakh tonnes of nitrogen and 29.51 lakh tonnes of phosphate as on 1.4.98 has risen to 110.71 lakh tonnes of nitrogen and 36.48 lakh tonnes of phosphate as on 29.2.2000.

The production of nitrogenous fertilizers during 1998-99 was 104.80 lakh tonnes of nitrogen and that of phosphatic fertilizers 31.41 lakh tonnes of phosphate. The production target for 1999-2000 was fixed at 110.67 lakh tonnes of nitrogen and 33.45 lakh tonnes of phosphate, representing a growth rate of 5.6% in nitrogen and 6.5% in phosphate, as compared to the actual production in 1998-99. As against this, the actual production upto February 2000 was at 101.16 lakh tonnes of nitrogen and 30.40 lakh tonnes of phosphate. Taking ‘N’ &’P’ together, there was an overall growth of 5.3% over the production during the corresponding period of last year.

Categories

Geographical Location

Raw Meterials and Intermediates

Installed Capacity of Fertilizer Plans

Production and % Capacity Ultilization

Bio Fertilizer

Fertilizer Production

 

Information And Facilitation Centre : Department of Fertilizers

INFORMATION AND FACILITATION CENTRE

Introduction

In pursuance of Government’s commitment to bring greater transparency in the administration through better access to information, Department of Fertilizers, Ministry of Chemicals & Fertilizers has established a NICNET based Information and Facilitation Centre at Shastri Bhavan (Gate No.3) with the objective of helping seeker of information from various segments of the society viz. Government Agencies - State as well as the Centre, Fertilizer Industry, Members of Parliament, Economists, Consultants, Scientists, Dealers/Distributors, Media, Farmers and the general Public who are interested to get information on fertilizers.

The facilitation centre guides and provides information through printed materials and computer print-outs which covers information on fertilizer production, import of fertilizers, distribution and consumption of fertilizers, price and subsidy, technology and safety, environment, bio-fertilizers and other information related to agriculture.

Computer Print-Outs

In order to help users to have current information on production, imports, availability and sale of fertilizers, computer print-outs are available.

FAI Publications

Publications of FAI, the apex representative body of the fertilizer industry in India, are available for reference and sale.

Department’s Publications

“Procedure for import of Urea in India” is available for sale at the centre.

Working Hours

The centre remains open for inquiries during the working days between 9.30 AM and 5.00 PM. Enquiries can also be sent through mail/fax/e-mail at the following address:

Officer-in-Charge
Facilitation Centre
Ministry of Chemicals and Fertilizers
Department of Fertilizers
Shastri Bhavan, Gate No.3
Dr. Rajendra Prasad Road
New Delhi - 110001

Fax No. 3388116

E-Mail : pifc@fert.delhi.nic.in

 

Vigilance Administration : Department of Fertilizers

Vigilance Activities And Achievements

The ambit 0f the vigilance activities of the Department of Fertilizers includes suprintendence and supervision over the vigilance administration of the nine fertilizer PSUs and the two Multi-State Co-operative Societies, namely IFFCO & KRIBHCO, under its jurisdiction; as well as over the Department itself. The Department has been playing a very proactive role in pursuing vigilance cases as well as taking remedial and preventive steps promptly on complaints or source information received by the Department. The Vigilance set tip is headed by joint Secretary (Administration and Vigilance) who is also the Chief Vigilance Officer designate for the Department assisted by Dy. Secretary (Vigilance) and a Section Officer, with supporting staff.

By virtue of being the watch-dog of fertilizer PSUs/Cooperative Societies, due attention has been paid by the Department to streamline and rationalize the procedures and practices prevalent in these organisations in order to make their working transparent, efficient and getting it systematized, thereby minimising the chances of corruption. For effective supervision and monitoring of the functioning of Vigilance, CVO’s meetings were regularly convened under the chairmanship of Secretary along with frequent interaction with CVOs at the level of JS/Chief Vigilance Officer.

‘Vigilance Awareness Week’ was observed during 31st October to 6th November, 2001. Secretary (Fertilizers) administered the pledge to the staff and an essay competition on the topic “Role of Common Citizen in Combating Corruption” was organised during the Week. Variety 0f new ideas were presented by the participants which could be imbibed to improve the vigilance functioning. Further, KRIBHCO organised a seminar in which CVC and Secretary (F) participated.

Vigilance Activities during 2001-2002
In order to maintain transparency and streamlining of tire procedures and practices in sensitive areas of working of PSUs/Societies number of steps were taken at the Department level. Model Manual on Imports of Raw Materials and Fertilizers, Appointment of Dealers, Hiring of Godowns and Contracting System were implemented in all PSUs/ Societies. Annual Property Returns of officers of Group ‘A’ and ‘B’ of Department and Board level officials of PSUs/Cooperatives were scrutinized.

Surveillence and Detection

List of public servants of Doubtful Integrity has been prepared in consultation with Chief Executives of PSUs/Cooperatives. Agreed List for the year 2001 has been finalised by all the enterprises in consultation with CBl.

Punitive Action

i) 97 Complaints were received from various sources against the officials of PSUs/ Cooperatives which were investigated and appropriate action was taken.

ii) Major penalty proceedings, against a Chief Executive were initiated in consultation with CVC.

iii) Departmental action was initiated against various below Board level officials of PSUs who were prima facie found involved in irregularities, in consultation with CVC.

iv) Two cases were referred to CBI for investigation.

v) Sensitive posts were identified within the Department. Staff posted on these posts are being rotated after every 3-5 years.

vi) Strengthening of vigilance structure in PSUs/Cooperatives as per the norms prescribed by CVC. PSUs/Cooperatives were also asked to rotate the staff posted in sensitive areas and specially in the Vigilance Wing after every three years.

vii) Directives have been issued to all Chief Executives to record reasons/justifications for their decision in those cases where deviation/variance from the established procedures/ practice takes place.

viii) Department has conveyed to all PSUs/ Cooperatives that a proper procedure be evolved with the approval of Board for the promotion of staff in PSUs to avoid irregularities in promotion.

 

Department of Fertilizer Industry Coordination Committee

FERTILIZER INDUSTRY COORDINATION COMMITTEE
Background

Chemical fertilizers have played a vital role in the success of India’s green revolution and consequent self - reliance in food grain production. The increase in fertilizer consumption has contributed significantly to sustainable production of food grains in the country. Government of India has been consistently pursuing policies conductive to increased availability and consumption of fertilizers in the country. The Retention Price Cum Subsidy Scheme (RPS) for indigenous nitrogenous fertilizer units was introduced by the Government of India in November 1977 to ensure a reasonable return on investment and to facilitate healthy development and growth of fertilizer industry. The Scheme was later extended to phosphatic and other complex fertilizers in February 1979 and Single Super Phosphate (SSP) in 1982. However, from August 1992, the Government has progressively decontrolled the prices and distribution of phosphatic and other complex fertilizers. At present, farmgate price of Urea is controlled by the Government whereas its distribution has been partially decontrolled from 1 April 2003.

The Retention Price Scheme stimulated indigenous production and consumption of fertilizers in the country. However, for attaining greater internal efficiencies and global competitiveness, unit specific approach of RPS has been replaced by a group based concession scheme based on greater normative approach called the New Pricing Scheme 9NPS) from 1 April 2003. The Fertilizer Industry Coordination Committee (FICC) constituted on 1 December 1977 to administer and operate the Retention Price Scheme continues under the New Pricing Scheme for administration of the scheme for urea.

Constitution

The Committee consists of the following:

Chairman

1. Secretary, Department of Fertilizers, New Delhi.

Members

2. Secretary, Ministry of Industrial Policy & Promotion, New Delhi.

3. Secretary, Department of Agriculture, Ministry of Agriculture and Cooperation, New Delhi.

4. Secretary, Department of Expenditure, Ministry of Finance, New Delhi.

5. Secretary, Ministry of Petroleum and Natural Gases, New Delhi.

6. Chairman, Tariff Commission, Ministry Industry, New Delhi.

In addition, the Committee has two representatives from the Fertilizer industry.

The fertilizer industry is presently represented on the FICC by:

7. Sri P.S. Gehlaut, CMD Indian Potash Ltd. And

8. Sri A.C. Muthaiah, Chairman Southern Petrochemicals Ltd.

Member Secretary

9. Executive Director, Fertilizers Industry Coordination Committee, New Delhi.

Functions

The scope and functions of the FICC are as under :

1. To evolve the group concession rates including freight rates for units manufacturing nitrogenous fertilizers;

2. To maintain accounts, to make payments to and to recover amounts from fertilizer companies.

3. To undertake costing and other technical functions.

4. To collect and analyse production data, costs and other information.

5. To review the group concession rates periodically and to make adjustments in these rates, where necessary, with the prior concurrence of the Government.

6. To undertake the examination necessary for evolving group concession rates for future pricing periods;

7. To undertake such other functions as the Government may entrust to the Committee from time to time.

Organisation

The FICC Office comprises five Divisions i.e.Cost Evaluation Division, Inputs Division, Finance & Accounts Division, Technical Division and Administration Division.

The Cost Evaluation Division works out the concession rates for the various urea manufacturing units and revision thereof depending upon the variations in the prices of inputs from time to time. The Inputs Division undertakes an annual exercise for fixation of equated freight for transportation of urea from plant gate to farmers. It is also responsible for allocation of coal to different coal based urea manufacturing units in consultation with Ministry of Coal and Ministry of Railways. The Finance & Accounts Division is responsible for payment of subsidy and maintenance of accounts. The Technical Division looks after all technical matters such as fixation of consumption norms, production levels, etc.

 

Organisation Set : Department of Fertilizers

Organisation Set Up and Functions

The main activities of the Department of Fertilizers (DOF) include planning, promotion and development of the fertilizer industry, planning and monitoring of production, import and distribution of fertilizers and management of financial assistance for indigenous and imported fertilizers.

The Department is broadly divided into four divisions dealing with (i) Fertilizer Projects and Planning (ii) Fertilizer Imports, Movement and Distribution (iii) Administration and (iv) Finance and Accounts. The work of first three divisions is handled by two Joint Secretaries. Joint Secretary (Fertilizers) is entrusted with the work pertaining to planning, production and development of fertilizer industry, which includes Retention Price Scheme (RPS), joint ventures, external assistance for new fertilizer projects, revival of sick fertilizer units, company affairs and issues relating to raw materials such as natural gas, fuel oil and naphtha. Besides, one post of Economic Adviser, has recently been created who advices the department on various economic issues like creation of additional capacity, pricing and costing of fertilizers.

The Additional Secretary and Financial Adviser (AS&FA) in charge of Finance and Accounts Division is also the Financial Adviser of the Department of Chemicals and Petrochemicals.

The Joint Secretary in-charge of Administration also looks after the work of monitoring evaluation of production, import, movement and distribution of fertilizers, administration and management of concession scheme for decontrolled phosphatic and potassic fertilizers. It also deals with the work relating to administration and disbursement of financial support under the Concession Scheme for decontrolled fertilizers. The Joint Secretary (Administration & Movement) also attends to the grievances of the public and the employees of the Department.

The Vigilance set up is headed by Joint Secretary (Administration and Movement) who is also the Chief Vigilance Officer (CVO) designate for the Department assisted by Dy. Secretary (Vigilance) and a Section Officer, with supporting staff. The ambit of the vigilance activities of the Department of Fertilizers includes superintendence and supervision over the vigilance administration of the nine fertilizer PSUs and the two multi-state co-operative societies, namely, IFFCO & KRIBHCO, under its jurisdiction; as well as over the Department itself.

The list containing the names of Minister-in-charge and the officers up to the level of Deputy Secretary who were working in the Department during 2002-03 is given in Annexure-II.

 

History : Department of Fertilizers

Department of Fertilizers comes under the ambit of Ministry of Chemicals and Fertilizers. This Department was earlier used to be named as Department of Chemicals & Fertilizers. The genesis of the Department of Chemicals and Fertilizers can traced to the erstwhile Ministry of Production in the fifties. During that time, while “Fertilizer” subject was being dealt as a part of the Section, the subject matter of “Chemicals” was assigned to Ministry of Commerce and Industry.

The importance of the fertilizer and chemical sectors was recognized in 1963 when the subjects concerned were placed in one Department in the newly set up Ministry of Petroleum and Chemicals. In 1975, with the appointment of a separate Cabinet Minister for Chemicals & Fertilizers, the Ministry of Chemicals & Fertilizers comprising the Department of Petroleum and the Department of Chemicals & Fertilizers came into being.

A separate Ministry of Chemicals & Fertilizers came into existence in September, 1982 headed by a Cabinet Minister who is assisted by Minister of State. It was part of the Ministry of Agriculture till 1984. In June, 1991, it become part of newly created Ministry of Chemicals & Fertilizers. Department of Fertilizers came into existence as a separate Department in September, 1985 consequent upon the bifurcation of the then Ministry of Chemicals & Fertilizers. Thereafter, this Department was brought under the ambit of Ministry of Agriculture for a short duration. However, the earlier position was restored in 1992.

 

Department of Fertilizer

Introduction

Fertiliser is generally defined as “any material, organic or inorganic, natural or synthetic, which supplies one or more of the chemical elements required for the plant growth". Sixteen elements listed in Table 1.1 are identified as essential elements for plant growth, of which nine are required in macro quantities and seven in micro quantities.

Of the elements listed in Table 1.1, carbon, oxygen and hydrogen are supplies by air and water and are, therefore, not treated as nutrients by the fertiliser industry. The main aim of the industry is to provide the primary and secondary nutrients which are required in macro quantities.

Table 1.1 - Essential elements for plant growth

No. Name of element : Nomenclature
1. Carbon
2. Oxygen
3. Hydrogen
4. Nitrogen
5. Phosphorus : Primary nutrients
6. Potassium
7. Calcium
8. Magnesium : Secondary nutrients
9. Sulphur
10. Boron
11. Chlorine
12. Copper
13. Iron : Mocro nutrients
14. Maganese
15. Molybdenum
16. Zinc

Note: As per the Fertiliser Control Order (FCO) ‘fertiliser’ means any substance used or intended to be used as a fertilisers of the soil and/ or crop and specified in part A of Schedule I and includes a mixture of fertilisers and special mixture of fertilisers.

Primary nutrients are normally supplied through chemical fertilisers. They are chemical compounds containing one or more of the primary nutrients and are generally produced by chemical reactions. Whatever may be the chemical compounds, its most important ingredient for plant growth is the nutrient content.

The primary nutrients are nitrogen, phosphorus and potassium; however, their concentration in a chemical fertiliser is expressed as a percentage of total nitrogen (N), available phosphate (P2O5) and soluble (K2O). Thus, ammonium sulphate contains 20.6 per cent N; single superphosphate 16 per cent P2O5 and muriate of potash 60 per cent K2O.

The grade of a fertiliser is expressed as a set of three numbers in the order of per cent N, P2O5 and K2O. If a nutrient is missing in a fertiliser, it is represented by a zero. Thus ammonium sulphate is represented as 20.6-0-0 (since it does not contain phosphorus and potassium), single superphosphate as 0-16-0 (as it does not contain nitrogen and potash), muriate of potash as 0-0-60 ( as it does not contain nitrogen or phosphorus). When a fertiliser contains more than one nutrient, for example diammonium phosphate, it is shown as 18-46-0, indicating that it contains 18 per cent of nitrogen, 46 per cent of P2O5 and no potash. Similarly, “Suphala", a nitrophosphate fertiliser produced by RCF, Trombay, is shown as 15-15-15 indicating that the product contains 15 per cent N, 15 per cent P2O5 and 15 per cent K2O.

Categories :

Nutrient Content of Fertilisers

Secondary Nutrients

Micronutrients

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