DOF bans use of unapproved rock phosphate for production of subsidized SSP

July 25: The Department of Fertilizers (DOF) has decided to disallow use of unapproved grades of imported rock phosphate for manufacture of single super phosphate (SSP) under the nutrient based subsidy (NBS) scheme.
Specifying grades and sources of rock phosphate for approved usage, DOF, in a office memorandum dated 24th July, says: “any purchase of rock phosphate from sources other than the approved sources as mentioned above will not qualify for reckoning as raw material for production of SSP and the SSP so produced from such rock phosphate will not qualify for subsidy under the NBS scheme.”
8The Memorandum says: “some SSP companies are purchasing imported rock phosphate from sources other than the above mentioned sources on the grounds that they are small units, have limited working capital, or they don’t have resources/capabilities to import rock phosphate in bulk quantities. After purchase of rock phosphate, they submit requests to the Department for regularization of such purchases other than from approved sources.”   Details

MMTC seeks offers for supply of ammonium sulphate

July 25: MMTC Limited has invited bids for prompt delivery of 25,000 tonnes of ammonium sulphate (caprolactum grade) at Tuticorin port.
8The last date for submission of tenders is 4th August 2014.The bidders are required to keep their offers valid till 14th August by which MMTC is likely to take a final decision on the tenders.
8The tender document says: “All bidders except MTPL, a 100% subsidiary of MMTC, & producers shall submit bid bond of USD 1 PMT or equivalent Indian Rupees for the offered quantity including plus tolerance (as per attached format). On award of the contract, successful bidder, except MTPL shall establish a performance guarantee bond in the format prescribed by MMTC at 3% of contract value within ten days from the date of letter of intent.”   Details

Cut in gas supply to P&K Fertilizers: Deepak Fertilizers cries foul

July 24: Deepak Fertilizers and Petrochemicals Corporation Ltd. (DFPCL) is upset by the recommendation of the Department of Fertilizers (DOF) for recommending to the petroleum ministry the stoppage of KG-D6 gas to their fertilizer complex for production of phosphatic and potassic ertilizers.
 8DFPCL has called the action grossly unjust, arbitrary and discriminatory, claiming that this action is in clear contravention to and outside the framework of the EGoM mandate, and hence, should not be acted upon.
 8The DOF has been accused of doing a volte face from its earlier position when it fully supported the claim for gas by Deepak Fertilizers.
 8The company has sent a dissent note to the petroleum ministry, stating that they are constrained to put the ministry on notice for the contravention to the mandate given by the Empowered Group of Ministers (EGOM)
 8The company has further stated that this decision would have a massive impact on the survival of their fertilizer business and people employed in its factory
 8The DOF and the petroleum ministry however are of the view that cheap domestic gas is only allocated for production of urea and not for phosphatic and potassic fertilizers and this was the reason why allocation of D-6 gas is sought to be withdrawn to units manufacturing non-urea fertilizers.   Details

NFL moots TQM study of its urea plant at Panipat

July 24: National Fertilizers Limited (NFL) intends to undertake a total quality management (TQM) study at its urea plant located at Panipat in Haryana.
8In its tendering invitation for the study, NFL says that the selected consultancy firm would carry out TQM study and its implementation at 1500 tonnes per day (tpd) urea plant that is based on “Mitsui-Toatsu Total Recycle ‘C’ Improved Process” of Toyo Engineering Company of Japan.
8The scope of the assignment would include assessing overall management system and understanding its expectations, gauging top management orientation for TQM, creating awareness among shop floor people and promotion of quality circles.
8The study would formulate implement priority initiatives based on the assessment and work out staff training on systematic problem solving. The consultancy firm would do handholding and facilitation for implementation of priority initiatives.
8The study would also focus on aligning the company for higher performance and policy deployment for achieving overall organizational objectives.
8The company operates a gas-based 2,97,000 tonnes per annum (tpa) ammonia plant and a 5,11,500-tpa urea plant at the site.   Details

TCL to set up its 2nd SSP plant at Haldia fertilizers complex

July 24: Tata Chemicals Limited (TCL) has proposed to set up its second single super phosphate (SSP) unit at its fertilizers-cum-chemicals complex at Haldia.
8In an application submitted to the Ministry of Environment and Forests (MOEF), the company has sought approval for terms of reference (TOR) for undertaking EIA studies on the proposed 1000 tonnes per day (tpd) granulated SSP plant.
8TCL says: “Recently there is a large demand in the market for Single super phosphate after the introduction of Nutrient based subsidy which was introduced sometime back and DAP fertilizer have become very expensive.TCL proposes to add a new standalone SSP plant of 1000 Mt/ Day capacity manufacturing Granulated SSP.”
8The plant would be based on “Total H2SiF6 Recycle Process” and its technology would be sourced from an “eminent technology provider.” It adds.   Details

CIL boosts its Q1 net profit by 76.44%

July 23: Coromandel International Limited (CIL) has increased its net profit by 76.44% to Rs 25.32 crore in the first quarter (April-June 2014) of current financial year from Rs 14.35 crore in the corresponding period of previous year.
8The increase in profit was facilitated by decrease in financing cost, increase in other operating income and investment-related other income, apart from increase in sales.
8The net income from operations grew to Rs 1685.41 crore from Rs 1644.08 crore, according to stand-alone results.   Details

RCF gears up for safety audit of Trombay production complex

July 22: Rashtriya Chemicals and Fertilisers Limited (RCF) is seeking offers from appropriate companies for undertaking safety audit of its seven plants at Trombay production complex.
8The company says that the Safety Audit shall be carried out as per IS 14489:1998 (Code of practice on Occupational Safety and Health Audit).
8The plants/facilities to be covered by audit are: Ammonia unit I and Storage, Methyl Amine Plant, Effluent Treatment Plant, Sewage Water Treatment Plant, New steam Generation Plant, Work Shop-Electrical, Mechanical, Auto and Instrumentation and all Stores.
8The scope of the audit would include: 1) Organizational attitude covering safety policy, safety organization, safety committees, safety instructions, work permit system and safety manual. 2) Industrial hazard control methods, safe operating procedures and their application. 3) Hazards control and maintenance of records & verification system. 4) Supervisory involvement, motivation and training - including job hazard analysis, safety training, training for specialized operations, safety promotion and publicity etc. and 5) Accident investigation, record keeping and reporting procedures including previous accident records, methodology of accident investigation, accident analysis records, proper reporting of accidents.   Details

KCFL expects Achche din (good days) for SSP segment

July 22: Khaitan Chemicals & Fertilisers Limited (KCFL) is expecting positive policy initiatives from the Modi Government for sustained growth of the single super phosphate (SSP) industry.
8In its annual report for 2013-14, KCFL says: “the company expects stabilization in raw material prices as well as Government’s policy towards NBS (timely declaration and mopping up) which shall benefit the whole fertilizer industry, including the SSP industry.”
8The Report points out that “the Govt is yet to take final decision on subsidy mopped up on finished goods/works in process on stocks lying as on 31.03.2011 and is yet to declare its mopping up policy.”
8It adds: “We are, however, confident that in a rational subsidy scheme, the SSP industry shall grow considerably resulting in higher availability of this ‘generic customized fertilizer’ for Indian farmers at competitive prices.”
8The company is optimistic about SSP industry’s prospects in the current financial year following emergence of economic and political stability and Government’s resolve to spur economic growth.
8According to the Report, the industry faced crisis of sorts in 2013-14 due to volatile foreign exchange rates, high cost of pipeline inventory of phosphatic fertilizers, late withdrawal of monsoon and general economic slowdown.
8Noting that nutrient-based subsidy policy has resulted in the entry of new companies in the SSP manufacturing and marketing would improve the fertilizer availability, the company says: “however, entry of new entrants in overall bad market conditions has created excess supply in the short term.”   Details

GSPC's DDW field to start production: Fertilizer ministry told to line up consumers

July 21: Gujarat State Petroleum Corporation (GSPC) is finally planning to get production going from its Deen Dayal West (DDW) field in the block KG-OSN-2001/3.
8Earlier, the plans were to produce 5 mmscmd of gas at the beginning but this was pared down to 1.5 mmscmd. What is now coming out from the field is a mere 28 mmscfd (approximately 0.8 mmscmd)
8The petroleum ministry has now asked the fertilizer ministry to line up customers for allocation of gas from the DDW field.
8This is in line with the Empowered Group of Ministers (EGoMs) decision dated August 23, 2013, post which the Department of Fertilizers (DOF) had also requested the petroleum ministry to allocate at least 0.5 mmscmd of natural gas to urea units from new sources so that the supply level of 31.5 mmscmd of domestic gas to the fertilizer sector can be maintained.
8With the news of GSPC commencing production, the petroleum ministry is keen to comply with the EGoM dictat, and has asked the DOF to provide plant-wise requirement of gas by individual fertilizer plants to meet the current shortfall in supply of domestic gas to the fertilizer sector.   Details

MMTC gears up to import 30,000 tonnes of APS complex fertilizer

July 21: MMTC Limited has invited offers for prompt shipment of 30,000 tonnes of ammonium phosphate sulphate (APS) (20-20-0-13) complex fertilizer to Tuticorin port.
8The tender document says that for deficiency in nutrients beyond the limit specified in FCO, the cargo will be rejected. The supplier shall refund the landed cost of the cargo found unfit as well as all the consequential handling and the distribution cost thereof immediately on MMTC’s first demand with value date being date of initial payment to the supplier, failing which penalty @ 17.26% p.a. shall be payable up to the date of actual remittance by the supplier.
8The last date for submission of tenders is 25th July 2014.   Details

NFL solicits bids for supply of 60,000 tonnes of DAP

July 21: National Fertilizers Limited (NFL) has invited tenders for import of 60,000 tonnes of diammonium phosphate (DAP) of black/dark brown/dark grey colour.
8The contracted quantity would have to be delivered at Kandla/Mundra ports during the 2nd fortnight of September.
8According to the tender document, NFL or its authorized representative shall draw samples for determining the quality of cargo at the port of discharge through any state /Central Fertilizer Quality Control Laboratory in India. The quality so determined at discharge port shall be final and binding on the supplier.
8The last date for submission of offers is 5th August 2014.   Details

DSL to hike borrowing limit; to retain the post of CMD

July 18: DCM Shriram Limited (DSL) is seeking shareholders’ approval to increase the limit on its borrowings powers to Rs 2500 crore from the present Rs 2000 crore.
8In the agenda for annual general meeting of shareholders to be held next month, DSL has disclosed that it would also seek their consent to solicit fixed deposits from the public following enforcement of Sections 73 and 76 of the Companies Act, 2013. It stipulates that no Company can invite and accept deposits from public without obtaining shareholders’ nod by way of Special Resolution.
8The company’s management has also proposed to retain the existing post of Chairman-cum-Managing Director (CMD).
8It has thus proposed a special resolution envisaging that “Managing Director and Chief Executive Officer of the Company shall be the Chairperson of the Company.”
8The need for such a resolution has arisen after the enforcement of the new Companies Act.
8DSL says: “Proviso to Section 203 of the Companies Act, 2013 provides that an individual shall not be appointed as the chairperson of the Company as well as the Managing Director or Chief Executive Officer (CEO) of the Company at the same time after the date of commencement of this Act unless the articles of such a Company provide otherwise.”
8It continues: “In view of the above, it is proposed to amend the Articles of Association of the Company as detailed in the Resolution. The Board recommends the Special Resolution as set out at Item No. 17 of the Notice for approval by the shareholders.”   Details