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Revised procedure for submission of bills for payment/recoveries in respect of sales of de-controlled phosphatic & potassic fertilizers under the Concession Scheme of the Department of Fertilizers
 

( May 17, 2001 )

In supersession of letter No. M11011/4/2000-MPR dated 9.10.2000 of the Government of India, Department of Fertilizers, laying down procedures for administration of Concession Scheme for decontrolled phosphatic & potassic Fertilizers, (consequent upon transfer of work relating to administration of this Scheme to Department of Fertilizers w.e.f. 1.10.2000), it has now been decided that, for submission of claims for concession on sales of decontrolled fertilizers on or after 1.4.2001, the following revised procedure shall be followed:

2. Eligibility for claiming concession

a)  Manufacturers of potassic and phosphatic fertilizers other than SSP

All manufacturers of potassic and phosphatic fertilizers (other than SSP) are eligible for 80% `On account’ payment on their production as well as for quantities of these fertilizers imported by them for sale to farmers. The balance 20% shall become payable on certification of sales by State Governments/UTs in Proforma `B’ enclosed with this letter.

b)  Importers of phosphatic and potassic fertilizers

All importers of phosphatic and potassic fertilizers who have been importing these fertilizers at least for the preceding two years are eligible for 80% `On account’ payment under the Concession Scheme. The balance 20% shall be released on certification of sales by State Governments/UTs in Proforma `B’ enclosed with this letter. All occasional importers of phosphatic and potassic fertiliers would continue to receive their entire payment after certification of sales by the State Governments in Proforma ‘B’ enclosed with this letter.

c)  Single Super Phosphate (SSP) Manufacturers

  1. Instances have been brought to the notice of the Department of Fertilizers (DOF) regarding sale of non-standard SSP to farmers by some manufacturers. In order to put a curb on such practices, the DOF is of the view that there is a need to promote use of specified grades of rock phosphate purchased from notified sources for manufacture of SSP. Accordingly, the DOF is constituting a Technical Audit and Inspection Cell (TAC) to conduct first time and six-monthly inspections of SSP manufacturers regarding usage of specified grades of rock phosphate from sources notified by the DOF from time to time. The State Governments/UTs are also being 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 FCO. Further, it has also been decided that the facility of 80% `On-account’ payment would be given only to those manufacturers of SSP who use specified grades of rock phosphate as raw material and submit monthly information on raw materials used in Proforma ‘E’ enclosed with this letter. Such units would continue to be eligible for 80% ‘On account’ payment until recommended otherwise by the TAC after inspections.

  2. The provisions of c(i) above will become applicable to claims for concession for sales of SSP from 1.6.2001.

  3. The balance 20% concession would be released only after certification of sales by State Governments in Proforma ‘B’.

  4. All manufacturers of SSP, who do not use specified grades of rock phosphate from notified sources, would receive their entire concession payment only after certification of sales by the State Governments in Proforma ‘F’ and monthly submission of information regarding raw materials used in Proforma ‘E’ enclosed with this letter.

 
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