Overview of Fertilizer Subsidy Division

The Fertilizer Subsidy Division, previously known as the Fertilizer Accounts Division, is responsible for managing the financial aspects of fertilizer subsidies in India. The division is overseen by a Joint Secretary and supported by a Director (FS). Its primary responsibilities include the disbursement of subsidies for imported and indigenous fertilizers, including urea, P&K fertilizers, and SSP, as well as the management of associated costs like freight, insurance, and customs duties.

Work Allocation

A. Fertilizer Subsidy (Imported) Division

1. Imported P&K Fertilizers

   • Subsidy Payments: Release of 85% (without bank guarantee) or 90% (with bank guarantee) 'On Account' subsidy payments, and the remaining 15% or 10% balance claims.
   • Freight Subsidy Claims: Processed under the Nutrient Based Subsidy Scheme.
   • Post-DBT Scheme: 100% subsidy released based on actual sales made by retailers to beneficiaries.

2. Imported Urea

   • Payment of Import Costs: Covers 100% of import costs, with 98% paid in advance and the remaining 2% as balance claims.
   • Ocean Freight Claims: Settlement of 90% advance and 10% balance claims.
   • Additional Costs: Recovery of cargo costs, debit note settlements, balance customs duty, and inland freight claims.

3. Maintenance of Master Control Register (MCR)

B. Fertilizer Subsidy (Indigenous) Division

1. Subsidy under DBT for Indigenous Fertilizers

   • DBT System: 100% subsidy released based on actual sales by retailers to beneficiaries.

2. Indigenous P&K Fertilizers

   • Subsidy Claims: Release of 85% (without bank guarantee) or 90% (with bank guarantee) 'On Account' subsidy claims, and the remaining 15% or 10% balance claims.
   • Freight Subsidy Claims: Managed under the Nutrient Based Subsidy Scheme.

3. Indigenous SSP Fertilizers

   • Subsidy Claims: Similar process as P&K fertilizers with 85%/90% initial and 15%/10% balance claims.
   • Freight Subsidy Claims: Managed under the Nutrient Based Subsidy Scheme.

C. Miscellaneous Works

1. Budget Preparation

   • Estimates and Outcome Budget: Preparation of Budget Estimates, Revised Estimates, and Outcome Budget.
   • Monthly Budget: Preparation for subsidy releases.

2. Expenditure Reconciliation: Coordination with PAO.

3. Audit and Reports

   • Audit Management: Handling Internal/CAG Audit Paras/ATNs and committee reports.
   • Parliamentary Affairs: Managing questions, assurances, and reports.

4. RTI and Legal Matters

   • RTI Management: Handling Right to Information matters.
   • Court Cases: Managing legal cases.

5. Report Submissions

   • Periodic Reports: Submission of Weekly, Monthly, Quarterly, Half-yearly, and Annual Reports.

6. Coordination

   • Inter-Division Coordination: Working with other divisions of the Department of Fertilizers to submit various reports.

Conclusion

The Fertilizer Subsidy Division plays a crucial role in ensuring that subsidies reach farmers effectively, managing both imported and indigenous fertilizers' financial and logistical aspects. By doing so, it supports the agricultural sector, ensuring that farmers receive the necessary financial assistance and resources to maintain productivity and sustainability.

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