3. Procedure for payments

The following procedure shall govern the payments (to be made to the manufacturers/importers) or credits to be accorded to the Government under this Scheme:-

a) All new claimants for concession shall address their request to Joint Secretary (A&M), Department of Fertilizers, Shastri Bhawan, New Delhi, along with the documents mentioned hereunder for recognition/enlistment as manufacturers/importers eligible for availing of payments of concession under the Scheme. The existing list of enlisted manufacturers/importers is at Annexure-I. (Being circulated separately)

Documents to be submitted for consideration of enlistment:-

(i) Copy of valid Registration Certificate under FCO.

(ii) Copy of the Memorandum of Association of the company along with the copy of the latest Audited Annual Report.

(iii) Copy of the Certificate of Incorporation issued by the Registrar of Companies.

(iv) Any other additional information/document as may be requisitioned by DOF for consideration of the request.

b) The manufacturers eligible for 85% 'On account' payment, and importers eligible for 80% 'On account' payment shall submit claims in Proforma 'C'. Manufacturers are also allowed to claim 90% 'On account' payment on submission of Bank Guarantee (BG) on a Stamp Paper of Rs.100/- from any nationalised bank, including an associate bank of State Bank of India, to the Executive Director, Fertilizer Industry Co-ordination Committee (FICC), 8th Floor, Sewa Bhavan, R.K. Puram, New Delhi-110066. Proforma for BG is at Annexure-II. The BG issuing branch of the bank must, however, be located in Delhi. The BG should clearly specify that the issuing branch has full authority to execute the BG in question for the amount specified and also that the branch is fully competent to execute and implement the BG without further reference to its head office. The amount for which BG is to be furnished for the first time and subsequently shall be intimated by FICC on request from the concerned manufacturer.

c) The BG is required to be furnished on or before 1st of April of the relevant financial year during which the concerned manufacturer intends to avail of the facility of 90% 'On account' payment. There is no option available for interchange from 'On account' payment of 85% without BG or 90% with BG after the deadline indicated for submission of BG for a financial year. In the event of non-renewal of BG, FICC shall have the right to invoke the BG on or before 31st of March of the financial year, equivalent to 5% of the concession amount covered under concession claims against which certification of sales in Proforma 'B' are yet to be received from State authorities or to withhold/adjust any payment to that extent against any subsequent payment(s) under this Scheme that might become due to the company.