2. Eligibility for claiming concession

a) Manufacturers of P&K fertilizers other than SSP

Manufacturers of P&K fertilizers (other than SSP) are eligible for 'On account' payment of concession on the quantities of these fertilizers produced/imported by them and sold for agricultural use or to registered (under FCO) manufacturers of NPK mixture fertilizers, except those quantities of sales notified otherwise in the context of any violation of the Scheme. The balance amount of concession shall become payable on certification of sales by State Governments in Proforma `B' enclosed herewith.

b) Importers of P&K fertilizers

Importers notified under the Concession Scheme for P&K fertilizers who have been importing these fertilizers at least for the immediate preceding two years are eligible for 80% `On account' payment, however, the period of two years could be relaxed on case to case basis if the importer is willing to offer Bank Guarantee (BG) against 100% payment of the claim under the Scheme. The balance 20% shall be released on certification of sales by State Governments in Proforma `B'. On the other hand, any occasional importer of P&K fertilizers, after induction, would continue to receive 100% payment only after certification of sales by the State Governments in Proforma 'B'.

(c) Single Super Phosphate (SSP) Manufacturers:-

i) Concession under the Scheme shall be available only to those manufacturers who undergo 'first time' and six-monthly audits/inspections by Technical Audit and Inspection Cell (TAC) and use the specified grades notified by DOF from time to time. The State authorities shall be intimated the names of SSP units that qualify to avail of concession under the Scheme. In addition to the above conditions for availing of 'On account' payment facility, the SSP manufacturers shall have to submit monthly information on raw material purchased and used as per enclosed Proforma 'E'. The balance payment of concession would be released only after receipt of certification of sales from States in Proforma 'B'. It must be ensured that the information provided in Proforma 'E'is complete and accurate in all respects. The units would continue to be eligible for 'On account' payment until recommended otherwise by the TAC after inspection. Others, who do not fulfil either the condition of undergoing inspections by TAC or the use of specified grades, shall not be eligible for claiming concession.

ii) To keep under check the production and sale of sub-standard SSP and other malpractice, only specified grades of rock phosphate purchased from notified sources have to be used for manufacture of SSP. Accordingly, a TAC has been constituted to conduct 'first time' and subsequent 'six-monthly' inspections of SSP manufacturers regarding usage of specified grades of rock phosphate for manufacture of SSP. The manufacturers are required to purchase/procure these specified grades from the country/source of procurement indicated by DOF while notifying these grades. The DOF has already notified eight grades each of primary and blending rocks.

iii) The State Governments are also advised to avail of the services of TAC to assist them in meeting their obligations towards ensuring production/sales of SSP as per specifications laid down under the Fertilizer (Control) Order (FCO).