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Fertilizer Industry Coordination Committee (Attached Office)

FICC is an attached office under the Department of Fertilizers and is headed by Executive Director. 

Background

The Retention Price-cum-Subsidy Scheme (RPS) stimulated indigenous production and consumption of fertilizers in the country.  To achieve greater internal efficiencies and global competitiveness, unit specific approach of RPS was replaced by a group based concession scheme called the New Pricing Scheme (NPS) from 1st April 2003.  The Fertilizer Industry Coordination Committee (FICC) which is an attached office of Department of Fertilizers was originally constituted on 1st December 1977 to administer and operate the Retention Price-cum-Subsidy Scheme (RPS).  It has been reconstituted on 13th March 2003 for administration of the concession scheme under NPS.

Constitution of the Committee

The Committee consists of the following:-

The Chairman of FICC is the Secretary (Fertilizers).

Members:

(1) Secretary, Department of Industrial Policy and Promotion

(2) Secretary, Department of Agriculture & Cooperation

(3) Secretary, Department of Expenditure

(4) Secretary, Ministry of Petroleum and Natural Gas

(5) Chairman, Tariff Commission

(6) Two representatives of the Fertilizer Industry. 

(7)  Executive Director, FICC is the Member Secretary.

The scope and functions of the FICC are as under:

  1. To determine concession rates for units manufacturing nitrogenous fertilizer (Urea);
  2. To maintain accounts, to make subsidy payments to nitrogenous fertilizer companies.
  3. To undertake inspection of the urea manufacturing units.
  4. To undertake costing and other technical functions.
  5. To collect and analyze production data, costs and other related information.
  6. To review the group concession rates periodically and to make adjustments in these rates, where necessary, with the prior concurrence of the Government.
  7. To undertake examination necessary for evolving group concession rates for future pricing periods;
  8. To work out requirement of inputs needed for fertilizer units & to recommend the supplies.
  9. To recommend annual escalation/de-escalation in the freight subsidy rates on the basis of transport index.
  10. To calculate Monthly/Annual Gas Pool Rate.
  11. Assessment of reasonability of profit on P&K Fertilizer Modules.
  12. Release of subsidy for indigenous urea under Direct Benefit Transfer Mode.
  13. To undertake such other functions as the Government may entrust to the Committee from time to time.

ORGANIZATION

The FICC Office comprises following three (3) Divisions i.e. Cost Evaluation (CE) Division, Finance & Accounts (F&A) Division and Administration Division. 

Cost Evaluation (CE) Division handles the following work:

  1. Fixation of Concession rate of Urea for payment of subsidy under New Urea Policy (NUP) 2015 and New Investment Policy (NIP) 2012.
  2. Calculation of Pooling of Gas in Urea Sector based on the Ministry of Petroleum & Natural Gas notification issued on 20.05.2015.
  3. Scrutiny of Reasonableness of MRPs of NPK products:
  4. The scheme related to Ammonia Feedstock Changeover Project.
  5. To undertake an annual exercise for recommending escalation (or de-escalation) of freight rates for transportation of urea from plant gate to farmers on the basis of transport index/composite freight Rates Calculation.
  6. Calculation of revenue sharing for sale of Ammonia Produced due to technical/non-technical reasons.
  7. Mandatory visits by Director/Joint Director to various urea manufacturing units before finalization of financial escalation claim.

The Finance & Accounts (F&A) Division is responsible for:

  1. Settlement of DBT and all Non-DBT subsidy claims for payment to / recovery from fertilizer units manufacturing urea in the country.
  2. Maintenance of subsidy accounts.
  3. Formulation of budget proposals for subsidy payment and compilation of expenditure incurred on such payments.
  4. To undertake inspection of the urea manufacturing units.

The Administration Division is responsible for:

All matters pertaining to administration and establishment of FICC.