Question : IMPORT OF UREA BY IPL



(a) whether the Indian Potash Ltd.(IPL) has imported the urea rejected by Pakistan;

(b) if so, whether the Central Fertilizer Quality Control and Training Institute has submitted its report to the Government after doing necessary test with regard to imported urea;

(c) if so, the details of the main points of the said report;

(d) the reasons for importing the urea rejected by Pakistan;

(e) whether the Government has conducted any inquiry into the reported irregularities in this regard; and

(f) if so, the details thereof?

Answer given by the minister


MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)

(a): M/s Indian potash limited (IPL) had imported 32210.160 MTs urea in MV Saint Peter which arrived at Pipavav port on 25.09.2009. On receipt of a complaint, Government of India had taken up the matter with Government of Pakistan. The Pakistan Government informed that MV Saint Peter arrived at Gwadar port on 22.08.2009 and berthed on 24.08.2009. The vessel did not commence discharge of urea. It is also confirmed that no sample was drawn at Gwadar port, however, as per the Pre-Shipment Inspection (PSI) report, the % of grains of urea prill size of 1 to 3 MM was 86% instead of contracted specifications of 90% and therefore the cargo was not accepted.

(b) & (c): Central Fertiliser Quality Control and Training Institute (CFQC&TI), Faridabad had drawn 14 samples from the ship MV Saint Peter during the discharge operations at Pipavav port from 26.09.2009. As per the report of CFQC&TI, the urea loaded in MV Saint Peter conformed to the contractual specification and also met the FCO specifications. After the receipt of a complaint, a team consisting of one officer each from Department of Fertilizers and CFQC &TI (Mumbai) was deputed to further investigate the matter. The team took samples from the urea discharged by MV Saint Peter. This urea was stored at Pipavav port. The analysis of second sample done in CFQC &TI, Mumbai also conformed to the FCO specifications. However, the laboratory report indicated that the second sample did not conform to the particle size specifications provided in the Contract. Against the contractual requirement of 90% (80% under FCO) the particle size retained on 1 mm IS sieve is reported to be 84.15%.

(d): The first report of the CFQC&TI confirmed the quality of urea loaded in MV Saint Peter both as per contractual specification and FCO specification. However, based on the second report, Rs.1,05,53,283/- was recovered by Government of India towards particle size deficiency as per the contractual provisions.

(e) & (f): Department of Fertilizers (DOF) nominated an officer to investigate the matter. The matter is still under examination, however based on the preliminary observations, DOF has stopped accepting floating vessels in future and a committee has been constituted to further improve upon the Quality Check procedure of the imported urea.