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PLAN PERFORMANCE
CAPACITY
BUILD-UP
5.1.1
The projected evolution of the installed
capacity and production of fertilizers
in the country from the end of Seventh
Five Year Plan to the terminal year
of the Eighth Plan are indicated below:
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Particulars
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At
the end of the seventh five
year plan ( 1989-90)
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At
the end of third year of
Eighth Five Year Plan (1994-95)
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At
the end of the fourth year
of Eighth Five Year Plan
(1995-96)
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Anticipated
at the end of Eighth Five
Year Plan (1996-97)
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FERTILIZERS
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1.
Capacity
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i)
Nitrogen
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81.48
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89.72
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93.06
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100.08
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ii)
Phosphates
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27.50
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28.22
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28.22
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30.13
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2.
Production
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i)
Nitrogen
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67.47
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79.45
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87.77
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90.22
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ii)
Phosphates
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17.96
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24.93
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25.58
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26.80
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5.1.2
The installed capacity of nitrogen
and phosphate in the terminal year
of the Eighth Plan would be 100.08
lakh tonnes and 30.13 lakh tonnes,
respectively. Due to the uncertainty
in the wake of decontrol of phosphatic
fertilizers, no major phosphatic fertilizer
plant has been commissioned during
the Plan period. The production of
fertilizers during 1996-97 is likely
to be around 90.22 lakh tonnes of
nitrogen and 26.80 lakh tonnes of
phosphate. Sector-wise targets and
achievements in respect of production
and capacity utilisation from 1990-91
onwards are given in Annexure-V
& Annexure-VI.
PLAN
OUTLAYS - A REVIEW
5.2.1
An outlay of Rs. 5484 crore was provided
for various schemes to be undertaken
during the Eighth Plan period (1992-97)
by the Department of Fertilizers and
the public and cooperative sector
undertakings under its administrative
control. Out of this, Rs.4466 crore
was to be met out of internal and
extra budgetary resources and the
balance amount of Rs.1018 crore was
to be provided through budgetary support.
The actual expenditure during the
first four years of the Eighth Plan
was Rs. 2762 crore. For the year 1996-97,
a Plan outlay of Rs. 2670.02 crore
was approved by the Planning Commission,
with Rs. 2296.77 crore to be met out
of internal and extra budgetary resources
and the balance amount of Rs. 373.25
crore to be provided through budgetary
support. The details of Annual Plan
outlays are given in Annexure-VIl.
BUDGETARY
SUPPORT
5.3.1
During the year 1995-96, as against
a provision of Rs.5670.42 crore in
the Budget Estimates, (Rs. 205.00
crore under Plan and Rs. 5465.42 crore
under non-Plan), the actual expenditure
was Rs. 6868.19 crore, (Rs.347.33
crore under plan and Rs.6520.86 crore
under non-plan). For the year 1996-97,
a budget provision of Rs. 6967.60
crore (Rs. 373.25 crore under plan
and Rs. 6594.35 crore under Non-plan)
has been made. The details of non-Plan
and Plan expenditure during 1995-96
and the budget provision for 1996-97
are given in Annexure-VIII.
FINANCIAL
PERFORMANCE OF PUBLIC SECTOR UNDERTAKINGS
AND COOPERATIVE SOCIETIES
5.4.1
The Department has nine public sector
undertakings and two cooperative societies
under its administrative control.
One of the undertakings is engaged
in consultancy services in design,
engineering and implementation of
fertilizer projects and production
of catalysts. Another undertaking
is engaged in mining operations of
rock phosphate and pyrites, besides
the manufacture of SSP. All others
are major producers of fertilizers.
5.4.2
While four of the public sector companies
(RCF, FACT, MFL and NFL) and the two
cooperative societies (IFFCO and KRIBHCO)
have generally been making profits,
two public sector companies (HFC and
FCI) have been incurring losses right
from their inception, mainly due to
design and equipment deficiencies
and excess manpower.
5.4.3
Madras Fertilizers Ltd., which had
consistently been recording profits
in the past, incurred a heavy loss
during 1993-94 following the decontrol
of phosphatic fertilizers. During
1994-95, MFL again showed a profit
(Rs.7.53 crore) and in 1995-96, the
company has recorded a provisional
profit of Rs.21.07 crore. PPCL, which
had been making marginal profits upto
1991-92, has been showing losses from
1992-93 due to decontrol of phosphatic
fertilizers. Capital restructuring
of the company was undertaken during
1994-95 and it is hoped that its financial
prospects would improve. During 1995-96,
the company has recorded a profit
(provisional) of Rs. 31.12 lakh. The
PDIL, which is essentially design
and consultancy company) had been
making losses during the past, but
of late, its profitability has improved
with the resurgent in the fertilizer
sector. The loss incurred by the company
during 1994-95 was lower than expected.
During 1995-96, the company recorded
a substantial profit of Rs. 4.19 crore.
PPL, which is a comparatively new
company, had incurred losses in
the earlier years mainly due to raw
material constraints, equipment problems
and heavy debt servicing burden. A
turn around proposal for PPL was approved
w.e.f. 1.4.1994. Thereafter, the company
has shown profits of Rs.47.36 crores
during 1993-94 and Rs. 27.68 crores
during 1994-95. During 1995-96, the
profitability of the company was greatly
eroded due to depreciation of the
rupee vis-a-vis US dollar and the
company could record a modest profit
(provisional) of Rs. 2.22 crore.
5.4.4
Company-wise details( profitability
from 1989-90 onwards are given in
Annexure-IX.
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