Lok Sabha Question No. 1879 (UNSTARRED), answered on 2020-03-03
Subject: Movement of Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Bhagwanth Khuba

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO. 1879 TO BE ANSWERED ON : 03.03.2020

## Movement of Fertilizers

## 1879. SHRI BHAGWANTH KHUBA:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether the Government has launched any scheme for the movement of fertilizer through waterways in the country;
- (b) if the details thereof; and SO,
- (c) the details regarding quantum and destination of various type of fertilizers transported into the country through coastal  shipping,  company-wise and product-wise?

## ANSWER

## MINISTER OF CHEMICALS & FERTILIZERS

## (SHRI D V SADANAND GOWDA)

(a) & (b): Sir. There is a policy for reimbursement of freight subsidy for distribution of subsidized fertilizers through Coastal Shipping orland Inland Waterways: The details of the scheme is placed at Annexure- A. Yes,

- (c) As far as Urea is concerned 3s on date, IFFCO Phulpur-II has dispatched 119.880 MTs from IFFCO Phulpur-Il (Plant) to Howrah (West Bengal) by sea during the month of December; 2018. In respect of P&K Fertilizers the requisite details regarding quantity and destination of various types of fertilizers transported in the country through coastal shipping, company-wise and product-wise during the financial year 2017-18 and 2018-19 is attached at Annexure-B\_

## No. 23011/10/2016-MPR Government of India Department of Fertilizers

## QFFICE MEMORANDUM

Shastri Bhawan; New Delhi Dated: 17 June; 2019.

Sub: Policy for reimbursement 0f freight subsidy for distribution of Subsidised fertilizers through Coastal Shipping orland inland waterways:

In supersession of this Department's O.M: No. 12018/11/2007-FPP dated 25.06.2010 & 14.07.2010 and OMs of even number dated 13.10.2016 & 29.03.2017 on the subject mentioned above, the undersigned is directed to convey the decision of the Competent Authority to allow movement of fertilisers through Coastal Shipping/lnland waterways alongwith the Road movement that follow the Coastal MovementfInland Water movement upto the rake point in the destination district to make it qualify for reimbursement of freight subsidy under the primary movement.  The Primary movement will refer to movement of subsidised fertilisers by rail andlor coastal shippinglinland water  transportation including road bridging   (only in case of use of   Coastal Shipping or inland waterways) upto the rake in the destination district or by any or two or by all three modes of transportation from the plant or to various rake points in the destination districts  The salient features of the policy for reimbursement of freight claims of the companies using coastal shippinglinland waterways for the movement of fertilizers are as under: point port

- Only the movement of subsidised indigenous fertilizers (Urea and P&K fertilizers) through coastal shippinglinland waterways will be eligible for the payment of freight subsidy at this
- (iii) In case of single mode or multi modal transportation of fertilizers which includes coastal shipping also the freight subsidy for movement of fertilizers will be restricted to the railway charges or actual freight incurred whichever is less:
- Atagee movement of only domestic fertilizers will be eligible for freight subsidy payment; there is no need of checking the port clearance certificate issued by Custom authorities.
- (iv) For claiming freight subsidy in case of multimodal transportation of fertilizers, which includes movement   through coastal shipping/ inland waterways also, the fertilizer  companies will submit the multimodal transportation bill duly certified by the statutory auditors. Such bills duly certified by Statutory Auditors of the company would be treated as sufficient of actual freight charges incurred by fertilizer companies. proof
- The companies will submit the nearest rake in the destination equivalent lead railway distance to the nearest rake railway freight rates for the said lead distance for calculating the equivalent railway freight subsidy of fertilizers . point, point point
- The authenticity of the actual cost claims lies entirely with the party e making the claims; false declaration before the public servant regarding such costs shall attract criminall civil action under appropriate legal provision; Any
- (vi) Movement Division of the Department of Fertilisers will certify the above information provided under point (v) by Movement Division will certify on the basis of notified freight  rates as available in the public domain vide various notifications of   Indian Railways. Movement Division will certify the lead distances using Freight Operations Information System (FOIS):
- (vii) Fertilizer Subsidy division would pay the lesser of actual freight subsidy through multi-modal transportation as given in (iv) above or the equivalent railway charges as given in (v) above and as certified by Movement division as per point (vi) above point point
- 3\_ The claims for release of freight subsidy to the companies, pending with the Department or being submitted by the companies the movement of fertilizers done in pursuance of against

this   Department' s OM of even number dated 13.10.2016 and 29.03.2017 will also be examined/considered as per the above guidelines.

- 4 This issues with the concurrence of IFD vide diary No 3/F dated27.05.2019 and approval of the Competent Authority:

To,

(Vinay Kumar Pandey) Director Tel: 23389839

- 1 Secretary, Dlo Shipping; Transport Bhawan; New Delhi:
- 3 Joint Secretary (PF-II) , DoE, North Block, New Delhi.
- 2 Joint Secretary (INM) , DAC Krishi Bhawan; New Delhi:
- 4 ED FICC , DoF
- 5 \_ Chief Controller of Accounts, DoF, Janpath Bhawan, New Delhi.
- 7 . Director (Alc) , DoF, Udyog Bhawan; New Delhi.
6. Director (Fert) , DoF Shastri Bhawan, New Delhi.
- 8 . Director General, FAI, New Delhi.
- 9 All the manufacturers & Importers of P&K Fertilisers.
10. Technical Director; NIC , DoF, Shastri Bhawan, New Delhi.

## to: Copy

- 1 \_ Chief Secretary/ All agriculture Production Commissioner/ Secretary (Agriculture) of all the state Governments {UTs,
- 2 Commissioner/ Director; Commissionerate/Directorate of Agriculture of all the State Government/UTs.

## also to: Copy

PS to Minister (C&F) PS to MoS(C&F)Sr. PPS to Secretary (FJIPPS to AS & FA IPPS to AS (DPYJS (PSJJS (GSJEA AD-OL for Hindi version/ SO(IT) for uploading on the Department's web site.

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## No. 23011/10/2016-MPR Government of India Department of Fertilizers

Shastri Bhawan, New Delhi

Dated: 18 September; 2019

Sub: Policy for reimbursement of freight subsidy for distribution of Subsidised fertilizers through Coastal Shipping orland inland waterways:

In continuation of this Departments OM of even No. dated 17.06.2019 on the above cited clarification are   being issued in  respect of  secondary freight subsidy on distribution of subsidized fertilizers through Coastal Shipping orland inland waterways:

- If a manufacturer is moving the fertilisers through multi-modal transportation; which includes coastal shipping/ inland waterways, and the manufacturer decides to move the fertiliser from the discharge directly to the destination district by road, then the entire multi-modal freight would be considered as primary movement and freight subsidy would be restricted to the railway charges or the actual freight incurred whichever is less as given in Order No. 23011/10/2016-MPR dated 17th June 2019. In such cases, there is no scope of secondary movement and hence; no scope of secondary freight subsidy payment: port
- In case; the fertilizer' company chooses to transport fertilizers from  unloading to the nearest rake point in destination district by railway and then transports fertilizers further by road; the entire multi-modal transport up to the railway rake would be treated as primary movement and road movement beyond rake would be treated as secondary moveinent: The restriction on freight subsidy for secondary transport of Urea would remain as per extant policies and freight subsidy for secondary movement for P&K fertilizers would continue to be inadmissible as per extant policies in this regard. port point point
- 2 This issues with the approval of Hon'ble Minister (C&F):

## To:

- 2 Joint Secretary (INM); DAC Krishi Bhawan; New Delhi:

Under Secretary to the Govt of India Ph: 23386151

- 1 Secretary, Dlo Shipping; Transport Bhawan; New Delhi:
- 3 Joint Secretary (PF-II) , DoE, North Block; New Delhi:
- 5\_ Chief Controller of Accounts, DoF, Janpath Bhawan, New Delhi
- 4 ED, FICC DoF, Shastri Bhawan; New Delhi.
- 6\_ Director (Fert) , DoF , ShastriBhawan, New Delhi:
- Director General, FAI, New Delhi:
- 7\_ Director (Alc) , DoF UdyogBhawan, New Delhi:
- 9\_ AIl the manufacturers & Importers of P&K Fertilisers.
- 10\_ Technical Director, NIC \_ DoF ShastriBhawan; New Delhi.
- Copyc Chief Secretaryl All agriculture Production Commissioner/ Secretary (Agriculture) of all the state Governments/UTs.
- 2 Commissioner/Director, Commissionerate IDirectorate of Agriculture of all the State

## Copy also to:

PPS to Secretary (FJPPS to AS & FA PPS to AS (DPYJS (PSJJS (GSJEA AD-OL for Hindi version/ SO(IT) for uploading on the Departments web site\_

Geeta Mishra

S-

| Statemennt Showing fertilizcrs transported in the_country through coastal_shipping   | Statemennt Showing fertilizcrs transported in the_country through coastal_shipping   | Statemennt Showing fertilizcrs transported in the_country through coastal_shipping   | Statemennt Showing fertilizcrs transported in the_country through coastal_shipping   | Statemennt Showing fertilizcrs transported in the_country through coastal_shipping   | Statemennt Showing fertilizcrs transported in the_country through coastal_shipping   |
|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
| Company                                                                              | Plant                                                                                | Product                                                                              | State                                                                                | 2017-18                                                                              | 2018-19                                                                              |
| IFFCO                                                                                | Kandla                                                                               | NPK -10-26-26                                                                        | Gujarat                                                                              | 0,000                                                                                | 168.000                                                                              |
| IFFCO                                                                                | Kandla                                                                               | NPK -10-26-26                                                                        | Karnataka                                                                            | 0.000                                                                                | 50,142.850                                                                           |
| IFFCO                                                                                | Kandla                                                                               | NPK -10-26-26                                                                        | Kerala                                                                               | 8,176.000                                                                            | 12,292.000                                                                           |
| IFFCO                                                                                | Kandla                                                                               | NPK -10-26-26                                                                        | Maharashtra                                                                          | 0.000                                                                                | 1,204.000                                                                            |
| IFFCO                                                                                | Kandla                                                                               | NPK -10-26-26                                                                        | Tamil Nadu                                                                           | 2,800.000                                                                            | 28,650.250                                                                           |
| IFFCO                                                                                | Kandla                                                                               | NPK -10-26-26                                                                        | West Bangal                                                                          | 70,588.000                                                                           | 94,639.600                                                                           |
| IFFCO                                                                                | Kandla                                                                               | NPK -12-32-16                                                                        | Gujarat                                                                              | 0.000                                                                                |                                                                                      |
| IFFCO                                                                                | Kandla                                                                               | NPK -12-32-16                                                                        | Karnataka                                                                            | 0.000                                                                                | 7,924.000                                                                            |
| IFFCO                                                                                | Kandla                                                                               | NPK-12-32-16                                                                         | Tamil Nadu                                                                           | 0.000                                                                                | 392.000                                                                              |
| IFFCO                                                                                | Paradeep                                                                             | Ind DAP                                                                              | Kerala                                                                               | 2,802.500                                                                            | 4,940.000                                                                            |
| IFFCO                                                                                | Paradeep                                                                             | Ind DAP                                                                              | Tamil Nadu                                                                           | 20,635.750                                                                           | 44,341.250                                                                           |
| IFFCO                                                                                | Paradeep                                                                             |                                                                                      | Kerala                                                                               | 2,280.0001                                                                           | 4,393.750                                                                            |
| IFFCO                                                                                | Paradeep                                                                             | NPK 20.20.0.13                                                                       | Tamil Nadu                                                                           | 16,115.000                                                                           | 45,956.250                                                                           |
| Total                                                                                | Total                                                                                | Total                                                                                | Total                                                                                | 1,23,397.250                                                                         | 2,97,479.400                                                                         |

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