| PYRITES,
PHOSPHATES & CHEMICALS LTD. (PPCL)
Pyrites,
Phosphates & Chemicals Ltd. (PPCL) was set
up in 1960 to exploit the pyrite deposits in India.
It is presently engaged in the exploitation of
pyrites and rock phosphate deposits. Pyrites is
used as a source of sulphur for the manufacture
of sulphuric acid and also as soil amendment material
in alkali soil The Sulphuric Acid is further used
for manufacture of Single Super Phosphate (SSP).
Rock phosphate is used as fertilizer for direct
application as a source P2O5 content in acidic
and neutral soils.
The
paid-up capital of the company as on 31.3.1998
was Rs.94.65 crore. The plan loans and non-plan
loans due from the company to the Central Government
stood at Rs.14.91 crore and Rs.2.55 crore, respectively
as on 31st March, 1998. The non-plan
loans were granted during 1984-89 to meet the
fixed cost of idle Amjhore Mines till the company’s
own plant went into production.
The
company’s activities are of considerable
significance from the point of view of saving
foreign exchange for the country. The production
of sulphuric acid from pyrites reduces dependence
on imported sulphur thereby decreasing outflow
of foreign exchange. The use of Mussoorie Rockphosphate
as straight phosphatic fertilizer effects saving
of foreign exchange by reduction of import of
both sulphur as well as rockphosphate.
2.OPERATING
PERFORMANCE
SINGLE
SUPER PHOSPHATE (SSP)-AMJHORE
During
the year 1997-98, the unit produced 2,05,318 MT
SSP (previous year 2,11,348 MT) and 72,642 MT
of sulphuric acid (previous year 75,004 MT) at
Amjhore (Bihar) and sold 1,64,902 MT of SSP (previous
year 1,87,333 MT). During the current financial
year, the unit produced 48657 MT of SSP upto October
1998. The Budget estimates of 1998-99 (RE) envisages
1,38,000 MT of SSP and 37,625 MT Sulphuric Acid
at Amjhore. Budget Estimates for 1999-2000 is
70,000 MT of SSP based on bought out acid.
SINGLE
SUPER PHOSPHATE (SSP) – SALADIPURA
During
the year 1997-98, the unit produced 67,019 MT
of SSP (previous year 10,003 MT) and sold 31,783
MT of SSP. During the current financial year the
unit produced 25705 MT of SSP upto Oct. 1998.
Budget estimates for 1998-99 (RE) envisages 70,000
MT SSP and 90,000 MT for 1999-2000 (BE).
MUSSOORIE
PHOS
During
1997-98, out of the production from mines (ROM)
of 1,23,311 MT, the production of Mussoorie PHOS
was 1,10,021 MT as against 1,25,096 MT during
the previous year. During the current financial
year, the unit produced 12122 MT of M.Phos upto
Oct.1998. The sale was 1,11,557 MT as against
1,05,403 MT in the previous year. Budget estimate
of M.Phos. for the year 1998-99 (RE) has been
fixed at 25,000 MT. Consequent to discontinuation
of the import substitution incentive as on 31.8.1998
the mining operation has been suspended w.e.f.
01..09.1998. As such, no production has been envisaged
during 1999-2000.
TRADING
ACTIVITY OF IMPORTED FERTILIZERS
During
the year 1997-98, the company has sold 1.56 lakh
MT of imported/indigenous fertilizers. The company
is planning to sell 2.35 lakh MT imported/indigenous
fertilizers during the year 1998-99 and 2.50 lakh
MT during 1999-2000.
The
achievement and target of production are summarised
herein below:
(Qty.
in MT)
|
Year
|
SSP
|
M.Phos
|
SSP-SLP
|
|
Target
(RE) |
Achievement
|
Target
(RE) |
Achievement
|
Target
|
Achievement
|
|
1991-92
|
2,00,000
|
1,71,117
|
1,26,000
|
1,26,039
|
|
|
|
1992-93
|
2,00,000
|
1,77,177
|
1,00,000
|
98,000
|
|
|
|
1993-94
|
1,50,000
|
1,28,600
|
1,05,000
|
1,18,150
|
|
|
|
1994-95
|
1,90,000
|
1,71,171
|
1,20,000
|
1,20,512
|
|
|
|
1995-96
|
1,90,000
|
1,83,181
|
1,27,000 |
1,20,046
|
|
|
|
1996-97
|
2,00,000
|
2,11,348
|
1,27,000
|
1,25,096
|
|
|
|
1997-98
|
2,05,000
|
2,05,318
|
1,25,000
|
1,10,101
|
67,000
|
67,019
|
|
1998-99(R.E)
|
1,38,000
|
|
25,000
|
70,000
|
|
|
|
1999-2000(B,E.)
|
70,000
|
|
|
90,000
|
|
|
4.
Financial requirement of the programme/activities
The
Govt. of India had approved a Plan Outlay of Rs.1.50
crore for the year 1998-99. Subsequently, the
Disinvestment Commission recommended for conversion
from pyrites route into sulphur route for manufacturing
of sulphuric acid at Amjhore. Accordingly, the
company has kept a provision of Rs.2.00 crore
making total plan outlay of Rs.3.50 crore for
the year 1998-99 and sought Rs.15.000 crore for
the year 1999-2000 (Annexure-I)
5.
Voluntary Retirement Scheme (VRS)
As
a part of restructing scheme extra 1936 manpower
are to be given R. Accordingly provision for Rs.30.00
As a part of restructing scheme extra 1936 manpower
& Rs.48.50 crore have been sought during 1998-99
& 1999-2000 respectively.
6. INTERNAL
RESOURCES
| Sl.No.
|
Particulars
|
1977-98
|
1998-99
|
1999-2000
|
|
1
|
Net
Profits/loss |
(53.41)
|
(40.16)
|
(12.05)
|
|
2
|
Depn.&
Development Exp. Written Off
|
6.19
|
6.05
|
4.79
|
| |
|
(47.22)
|
(34.11)
|
(
7.26) |
During
the current financial year the company has incurred
net loss to Rs.23.61 crore upto October 1998.
7. UTILISATION
OF INTERNAL RESOURCES
| S.No. |
Particulars |
1997-98
|
1998-99
|
1999-2000
|
|
1.
|
Repayment
of Loans to Govt. |
--
|
--
|
--
|
|
2.
|
Repayment
of Term Loan to Commercial Banks
|
--
|
--
|
--
|
|
3.
|
Accretion/Decretion
to working capital |
(47.22)
|
(34.11)
|
(7.26)
|
|
Total
|
(47.22)
|
(34.11)
|
(7.26)
|
| Balance
available for Plan Schemes |
NIL
|
NIL
|
NIL
|
The
carry forward losses of the company stand at Rs.76.22
crore as on 31-03-1998. As a result, the company
has not declared any dividend so far.
The
budgetary support proposed by the company during
1998-99 and 1999-2000 are as under :
(Rs.
In Crore)
|
Particulars |
B.E.
1998-99 |
R.E.
1998-99 |
B.E.
1999-2000 |
|
Plan
requirement to be financed as under:
|
1.50
|
3.50
|
15.00*
|
|
Equity
|
0.75
|
1.75
|
7.50
|
|
Plan
Loan |
0.75
|
1.75
|
7.50
|
|
Surplus
available from previous year
|
0.99
|
-
|
-
|
*Subject
to downward revision by Rs.9.50 crore depending
on availability of term loan from financial institution
out of the proposed project cost of Rs.19 crore.
8.
REVIEW OF OVERALL PERFORMANCE
The
company’s product i.e. Single Super Phosphates
(SSP) and M-Phos were under retention pricing
scheme upto 24.08.1992. After withdrawal of subsidy
the products were allowed Import Substitution
Incentive @D Rs.600/MT for M-Phos and @ Rs.850/MT
for Pyrites based production SSP for a period
of five years w.e.f. 1.9.1992 with a provision
of annual review. The incentive so allowed was
far from compensating the gap between cost of
sales and sales realisation, hence the company
continued to incur losses. Even though continuation
of Import Substitution Incentive at a desired
level for both M-Phos & SSP (Amjhore) was
envisaged in Memorandum of Understanding for the
year 1998-99, the incentive in case of SSP-Amjhore
was discontinued w.e.f. 1.9.1997 and continued
upto31.8.1998 for M-Phos at much lower rate of
Rs.230/MT. As a result, the units have become
economically unviable. The cumulative losses as
at 31.3.1998 stood at Rs.76.22 crore as against
equity of Rs.94.65 crore rendering the company
as BIFR case. To avoid reference to BIFR and also
to turnaround for long term viability, the company
has submitted a restructuring scheme which envisages
close down of Dehradun Unit, conversion to sulphur
route at Amjhore Unit at a capital cost of Rs.19
crore with a debt equity ratio of 1:1 to be completed
by June 2000; V.R. to surplus manpower and set
off of accumulated interest on plan loan and reduction
in equity. The scheme is under process.
Statement-I,
Statement-II,
Statement-III,
Statement-IV. |
