Indian-Fertilizer-Scenario - Department of Fertilizers

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department of fertilizers ministry of chemicals & fertilizers 123 19. NoTiFiCaTioN oN PoliCY For STage-iii oN NeW PriCiNg SCHeme For Urea maNUFaCTUre UNiTS-ameNDmeNTS tHeReoF to The executive Drector Fertilizer Industries Coordination Committee 8 th Floor, Sewa bhawan, R.K.Puram, New Delhi No.12012/19/2007-FPP Government of India Ministry of Chemicals & Fertilizers (Department of Fertilizers) Shastri bhawan, New Delhi. Dated the 10 th July 2009 Subject: Policy for Stage-III of New Pricing Scheme for Urea Manufacture Units - amendments thereof Im am directed to refer to this Department's letter No. 12012/3/2006-FPP dated 8th March, 2007, vide which the salient features of Stage-III of New Princing Scheme introduced with effect from 10.1.2006 were communicated. It has been furtehr paragraphs. (i) The capacity utilization of post-1992 Naphtha based Group averagewill beconsidered as 95% insted of 98% for calculating the base concession rates of urea units, provided no cost towards conversion is recognized under NPS-III (ii) The reduction is fixed cst of each urea unit strictly due to Group averaging principle under NPS-III will ve restricted to10% of the Normated Fixed Cost computed under the base concession rates. The above amendment will ve effective with effect from 1 st april, 2009 only (iii) The detailed paramenters forbuffer-Stocking Scheme ofureawillveas perthe provisions detailed at annexure-1. encl: as above Yours faithfully, ( Deepak Singhal ) Joint Secretary (Fertilizers) Tel: 23381294
124 indian fertilizer scenario 2010 indtodUCtUin BUFFeR stoCKinG sCHeMe FoR UReA aNNXUre - 1 1. The CCea in its meeting held on 1 st February, 2007 while approving NPS Stage-III for urea has authorized the Department of Fertilizers to operate a buffer stock of urea corresponding to 5% of the seasonal requirement. oBJeCtiVe 2. The buffer Stocking of Urea is required keeping in view the following objectives: (i) To maintain stocks of Urea in case there is either a shortfall in production due to disruption in supplies of feedstock or delay/disruption in imports. sCHeMe (ii) To tide-over the suddeen spurt in demand/shortages in any part of the country. 3. buffer stock would be positioned in the major agricultural states with the minimum stock being operated at 50,000 tonnes in each state. Major agriculture states requiring buffer stock will be identified at the beginning of each cropping season. 4. The buffer stocks would beoperated through the lead Fertilizer Suppliers (lFS) for These States as decided by the Department. The following states will have buffer stock of Urea:state Punjab Haryana Rajsthan uP MP aP Maharashtra gujrat bihar West bengal Karnataka tamil nadu orissa 5. Urea for buffer stocking purposes will be allocated by the Department ofFertilizers under the essential Commodities aCT. ThelFS will hold quantities of Urea under the buffer stockin their warehouses at designated locations as approved by DOF from time to time. Urea will be released from the buffer stock for sale by the lFS as per the directions of the DOF in consultation with the State Government. The locations of buffer stocking warehousesand the quantities could be changed as per the instructions of DOF. 6. For the purposes of payment of subsidy, the buffer stock warehouse will be treated as primary stock points and subsidy will be paid on the urea stocked as buffer once it reaches the burffer sotck warhouse at the designated location.
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i. CAPitAL stRUCtURe And FinAnCiAL
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Indian-Fertilizer-Scenario - Department of Fertilizers

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