Techno-economic Clearance Guidelines

In accordance with requirement of Notifications, D/o fertilizer (DOF) has formulated internal guidelines for grant of Techno-economic Clearance (TEC). The TEC for Project imports for new fertilizer plant (initial setting up or substantial expansion) and renovation/modernization/revamping of the existing fertilizer plant is granted on the basis of two stage clearance/procedure as stated below:

(i)          

In the First Stage, the essentiality of the proposal is examined by Director (E&S) of the DOF in consultation with PDIL for technical inputs and submits it through Economic Adviser and AS&FA for approval of Secretary, D/o Fertilizers. The proposal is examined on the basis of the estimated capital cost of the scheme/ Project and cost of goods that are proposed to be imported. Besides essentiality, the applicant/importer is also required to adopt competitive bidding process for procurement of goods so as to minimize the cost.  In the case of proprietary item, the reasonableness of Price of imported item is to be established by the company/applicant. Once the essentiality and reasonableness of price of goods are established, the first stage Techno-economic clearance/approval of Project import is accorded. The competent authority for grant of first stage Techno- Economic Clearance/approval of Project Import is Secretary, D/o Fertilizers.

(ii)      In the second stage, in consultation with Economic Adviser, Director(E&S) of the DOF attests the list of goods to be imported after ensuring that the procedure of competitive bidding has been followed by the company/applicant except in the case of items which are proprietary in nature.  However, in the case of Proprietary items, the reasonableness of price has to be established by the applicant.