Dated, the 5th August, 2002.

To
All Chief Secretaries of States/UTs.
All Agriculture Production Commissioners/Secretaries, Deptt of Agriculture.
All manufacturers/Importers of DAP, MOP, SSP and Complex Fertilizers.

Subject: Revised procedure for submission of bills for payment/recoveries in respect of sales of de-controlled phosphatic & potassic (P&K) fertilizers under the Concession Scheme of the Department of Fertilizers (DOF).


The guidelines on procedure for submission and processing of claims for payment of concession on sales of decontrolled fertilizers, in the matter of implementation of Concession Scheme for decontrolled phosphatic and potassic (P&K) fertilizers, prescribed hereunder, shall be applicable to sales made on or after 1.8.2002. These guidelines shall supersede those issued vide letter No. M11011/4/2000-MPR dated 17.5.2001 and amendments thereto issued from time to time by Department of Fertilizers (DOF). In the course of implementation of Concession Scheme the DOF in the Government of India indicates Maximum Retail Price (MRP) in respect of DAP, MOP and each of the complex grade fertilizers covered under the Scheme. In the case of SSP, the respective State Government (the term State Government in these guidelines also includes reference to Union Territory Government) announces the indicative MRP. In order to avail of concession under the Scheme, the manufacturers/importers are required to sell the decontrolled fertilizers at the applicable MRP. In respect of each fertilizer covered under the Scheme, except for SSP, the DOF notifies base rate for the year as well as rate of concession on quarterly basis. In respect of SSP, only annual rate of concession is notified by DOF. The payments made under the Scheme include 'On account' payment of concession claim and balance payment (final settlement of claim). The 'On account' payment is made with reference to applicable base rate. The manufacturers/importers are also allowed differential payment with reference to base rate and final rate announced for the quarter, while balance payment is based on quarterly final rate and is made only after the receipt of certification of sales in Proforma 'B' from the concerned State Government.