This document provides a quarterly review of performance for the Vijaipur Unit from July - September 2019. Key points discussed include: - Production losses due to a 46 day stoppage of the Urea Plant stream-11 reactor leak. Advice was given on preventative maintenance. - Inaccurate shutdown planning for Vijaipur-II led to a longer than expected shutdown. Better planning was advised. - Annual production targets were revised down due to the reactor problem. Further shortfalls were possible without improvements. - Various key performance metrics and production targets for 2019-20 were reviewed for the Vijaipur complex. Areas of underperformance were highlighted and advice was given to avoid

1. Quarterly reviewof the performance
Period: July - September 2019
Vijaipur Unit
1

2. 2
Regarding Urea production performance during first quarter, Unit
informed that there had been considerable production loss due to
stoppage of the Stream-11 of Urea Plant for around 46 days due to
leakage in Urea Reactor. In order to avoid such incidence in future, Unit
was advised to ensure the following:
1. Contract for this nature of job to be given to a specialized party in this
field to ensure quality job.
Being ensured.
2. Better predictive maintenance so that timely procurement action of the
reactor/associated material could be initiated as per industry norms.
Being done.
3. Confidence level of the Vijaipur Team to be enhanced.
Vijaipur team is confident to conquer the challenges.
ATR-1: Production Performance (Vijaipur-I)

3. 3
4. Unit was further advised that necessary action may be initiated for
procurement of other critical items to avoid any stoppage of the Plant on
this account. In this regard, Unit was advised to constitute a Committee
for Vijaipur I & II to identify and list out the critical items for timely
action of procurement.
Committee was constituted under the chairmanship of GM
(O&M) and list of critical items has been prepared.

4. 4
Unit informed that initially production target for Vijaipur-II was considered based
on a shutdown of 4 days, but due to additional job of replacement of LTS Catalyst
which was earlier planned along with planned shutdown envisaged for ESP-II,
target of shutdown was increased to 13.5 days which was further extended to 19
days due to problems faced during unloading/loading of catalyst and reduction of
LTS Catalyst. In this regard, CMD expressed concern as to why shutdown
planning of the Unit had been so inaccurate. Unit informed that shutdown was
extended due to delay in mobilization of manpower, late commencement of the
job, lack of infrastructure/tools with the contractor.
Unit was advised to ensure that planning of shutdown was done after detailed
deliberations.
Being complied.
ATR-2: Production Performance (Vijaipur-II)

5. 5
Unit further informed that annual production of Vijaipur Complex for 2019-20
had been revised to 19.97 LMT against original production target of 20.92 LMT
due to Urea Reactor problem in Stream-11. Considering the performance up to
August, 2019, planned and unforeseen shutdowns envisaged in the remaining
period, the likely urea production rate of Vijaipur Complex would be around 6250
MTPD during the remaining period and as a result, there could be a further
shortfall of around 28000 MT of Urea over and above the revised target.
Unit was advised to ensure that there was no further shortfall in urea production
beyond RE and might review the shutdown planned in February, 2020 for ESP-II
for 25 days.

6. 6
Annual
Production
Target (BE)
(MT)
Annual *
Production
Target (RE)
(MT)
Annual **
Production
Target (RE)
(MT)
Urea - I 10,00,000
(116%)
9,11,000
(105%)
9,92,000
(115%)
Urea - II 10,92,000
(126%)
10,86,000
(126%)
10,65,000
(123%)
Total 20,92,000
(121%)
19,97,000
(115%)
20,57,000
(119%)
Urea Production Targets 2019-20

7. 7
Production
Target (RE)
(MT)
Actual Prod.
April-Oct.19
(MT)
Prod. reqd.
Nov. 19-
March 20
(MT)
Asking prod.
rate
(MTPD)
Present avg.
prod. rate
(MTPD)
Max.
achievable
prod.
(MT)
Urea - I 9,11,000 5,36,615 3,74,385 2858 3000 9,28,000
Urea - II 10,86,000 5,63,156 5,22,844 3463 3200 10,46,000
Total 19,97,000 10,99,771 8,97,229 6321 6200 19,74,000
Urea Production (up to October 2019)
Asking production rate computed considering :
VP-I
Planned shutdown in Feb. 2020 (ESP-II) = 20 days
Unforeseen shutdown = 1 day
VP-II
Unforeseen shutdown = 1 day

8. 8
Production
Target (RE)
(MT)
Actual Prod.
April-Oct.19
(MT)
Prod. reqd.
Nov. 19-
March 20
(MT)
Asking prod.
rate
(MTPD)
Present avg.
prod. rate
(MTPD)
Max.
achievable
prod.
(MT)
Urea - I 9,92,000 5,36,615 4,55,385 3016 3000 9,88,000
Urea - II 10,65,000 5,63,156 5,01,844 3323 3200 10,46,000
Total 19,97,000 10,99,771 9,57,229 6339 6200 20,34,000
Urea Production (up to October 2019)
Asking production rate computed considering :
VP-I
Unforeseen shutdown = 1 day
VP-II
Unforeseen shutdown = 1 day

9. Unit to issue order for procurement of items related to Mechanical, Electrical and
Instruments for upgradation of GTG-II by 30-11-2019.
Unit also confirmed that order for procurement of spare AVR for GTG-I would be
placed by next week (09-09-2019).
Indent controlled with control no. BEC190753; 23/9/19. M/s BGGTS visited
site on 26.09.2019 to discuss Guarantee/techno commercial issues.
Specifications have been finalised.
9
Unit also confirmed that order for procurement of spare AVR for GTG-I would be
placed by next week (09-09-2019).
PO placed on 20.09.2019 to M/s ABB.
DOD: 12 weeks from drg. approval. Drawings received, under checking.
ATR-3 : Upgradation of GTG-II

10. 10
Serious concern was expressed over the considerable delay in the procurement of
new exchangers for Synthesis Section of Ammonia-I and Make-up Gas Cooler for
Ammonia-II due to poor synchronization and coordination between Production
and TS Departments.
Unit was asked to expedite the same and was also advised to see that before
initiating any proposal for such critical equipment, all concerned departments
must deliberate the proposal jointly so that such delay could be averted.
ATR-4: Replacement of Exchangers with SS tubes
Noted for compliance.
Present status of critical exchangers under procurement is as under:
Ammonia-II Plant
Makeup Gas Cooler (E-3312):
TOD - 25.10.2019, No offer received.
Extended up to 04.11.19. Extended further up to 20.11.19.

11. 11
Makeup Gas Cooler (E1312) :
Tender opened – 13.09.19 (TOD extended thrice)
Three offers recd. (M/s GMM Pfaudler, M/s Aero Engineers and M/s Newton
Engineering). Under technical clarifications.
Syn. Gas comp. 1st stage Inter Cooler (E-1431):
Price bid opened 24.10.2019 . M/s GMM Pfaudler L-1 (Rs197.64 Lakhs).
File sent to CO Noida for approval for PO placement.
Syn. Gas comp. 2nd stage Inter Cooler (E-1432): Tender opened : 13.09.2019.
Three offers recd. (M/s GMM Pfaudler, M/s Aero Engineers and M/s Newton
Engineering). Under technical clarifications.

12. a) Marketing Division to submit the Monthly Rolling Plan of requisition of Bio-
Fertilizers from Vijaipur Unit for remaining 7 months during 2019-20 by next
week.
Target for FY 2019-20 = 680 MT
Rolling plan yet to be received.
b) Unit also informed that bio-fertilizers in new packing would be commenced
after liquidation of old packing material.
12
ATR-5: Bio-fertilizers production & despatch

13. CMD expressed unhappiness over the worsening performance and positioning of
Vijaipur I & II at 12th and 10th position respectively amongst 13 contemporary
fertilizer companies in the country in respect of specific energy consumption per
ton of urea during 2018-19.
In order to improve position of Vijaipur Units, Unit was advised to work out the
plan to reduce energy level below 5.20 Gcal/MT of Urea in consultation with
Technical Department at CO within a period of two months.
13
ATR- 6: Comparison of Specific Energy Consumption at Vijaipur I & II
vs. with Industry Peers
Committee has been constituted on
04.09.2019under the chairmanship of GM
(O&M) to assess/ identify the modifications/
schemes to be implementation based on the
experience of other fertilizer industries
Unit was also advised to obtain information from IFFCO regarding Energy Savings
Schemes implemented at IFFCO, Aonla I & II to reduce the energy consumption.

14. In order to improve dispatches by road, Unit was advised to explore a single
contract for bigger volume of dispatches by road instead of having three
contracts.
It was also advised to the Unit to compare the road transportation rates of the
contracts lined up by other Units.
Comparison of rates for Urea transportation by road of NFL Vijaipur and other
units has been prepared and shared with ZO Bhopal for further action.
ATR - 7: Dispatches of Urea
14
Regarding dispatches of urea from urea silo, Unit informed that material was
being cleared from the silo on FIFO basis. Unit also confirmed the following for
compliance:
 Urea rakes would be sent to the nearest destinations during last two days of
March every year to reduce MIT.
 8 to 10 workable Rail DIs were available with the Unit at any point of time.
 Unit would avoid receiving empty rakes during festivals and keep such rakes
in transit to contain demurrage
Being complied.

15. 15
ATR - 8: Retrofitting of Urea bagging & loading facilities
Unit was advised to expedite the same as it had already been delayed
inordinately.
Party visited site on 17.09.19 with new design methodology/retrofit.
Party has submitted report with estimated expenditure 20.11.19.

16. 16
Unit to provide actual progress of the project vis.-a-vis. schedule against each
critical activity of the project.
Unit was also advised that while proposing any Energy Saving Scheme, Technical
Department at CO might be kept in the loop for their valuable suggestions.
With regard to settlement of pending cases in respect of Energy Savings
Schemes commissioned during 2012-13, Unit informed that out of 63 pending
cases, 29 cases had already been settled and action being taken for remaining
34 cases.
Unit was advised to close the remaining pending cases (34 nos.) on priority.
ATR - 9: Energy Saving Schemes

17. 17
Unit to provide actual progress of the project vis.-a-vis. schedule against each
critical activity of the project.
Unit was also advised that while proposing any Energy Saving Scheme, Technical
Department at CO might be kept in the loop for their valuable suggestions.
With regard to settlement of pending cases in respect of Energy Savings
Schemes commissioned during 2012-13, Unit informed that out of 63 pending
cases, 29 cases had already been settled and action being taken for remaining
34 cases.
Unit was advised to close the remaining pending cases (34 nos.) on priority.
ATR - 9: Energy Saving Schemes

18. i) Revamp/Retrofit of
Synthesis gas Compressor of
Ammonia – I plant (DR).
PO Placed 30.08.18.
Delivery: August 2019
Material dispatched on 16.08.2019.
Expected to reach at site by October 2019.
Revamp/Retrofit of Turbine
for Synthesis gas
Compressor of Ammonia – I
plant (MHI)
PO Placed 30.08.18.
Delivery: August 2019
Material dispatched on 28.08.2019.
Expected to reach at site by October 2019.
18
ii) Installation of Vapor
Absorption machine to chill
PAC Suction air & 3rd Stage
suction of Synthesis Gas
Compressor in Amm.-II
LOI issued 26.03.2019 and accepted by party.
Delivery period : Eight months from date of issue of LOI.
Erection Time: 10 days for erection of each filter house
after handing over site by NFL.
VAM Documentation approval is in progress.
 Total no. of documents: 80
 Documents submitted by party: 72
70 documents have been approved and two are
under evaluation.
 Documents yet to be submitted by party : 8

19. 19
iii) Switch over of steam
drive to motor drives GV
solution and CT pumps along
with installation of Vapor
absorption machine for Gas
Turbine in CPP including
installation of CT cell
1250 KW Motor received on 28.03.19
2 nos. 1450 KW motors:
LOI issued on 13.05.19 to M/s Nahar Engineering,
Bhopal for Crompton Greeves Motors. Due to non
supply by M/s Kirlosakar, alternate action was taken.
Delivery period: 6 months from approval of drawings
(January 2020).
Drawings approved on 09.07.2019.

20. 20
Unit informed that out of total 17 NITs in
respect of procurement of equipment, 11
NITs had already been issued, however, for
lining up the contracts, no NIT (Out of total
6 NITs) had been issued.
Technical, CO to expedite action for
procurement / lining up of contracts with
PDIL.
All NITs for supply of material have
been issued. (Total – 29)
For lining up the contracts:
Total NITs : 04
Issued NITs : 03
v) Switchover of Process condensate stripping process from Low pressure to
Medium Pressure in Amm.-I Plant & other items under M/s PDIL scope
iv) Shutdown of Plants
Unit informed to undertake shutdowns for implementation of energy saving
schemes for Line-II and Line-I plants during January 2020 and March 2020
respectively.
Shutdown planned for Line-I = February 2020
Shutdown planned for Line-II = April 2020 ( Delay owing to poor response
of bidders towards NITs & multiple extensions in bid closing dates)

21. Unit informed that remaining Flame proof and Non Flame proof LEDs would be
installed by January, 2020.
Unit was also advised to encourage all employees at Vijaipur to replace their
conventional lighting with LEDs for which common and bulk procurement could
be undertaken by the Unit.
ATR-10: LED Lights
21
PO’s placed for complete procurement of flame proof lights on
30.08.2019/06.09.2019.
Price bids for non-flame proof procurement opened on 23.09.2019 and in
process for placement of PO.
Circular for use of LED lights at home issued on 30.09.2019.

22. ATR- 11: Testing of Neem Oil & Neem coated Urea
Unit informed that no problem was being faced with regard to testing of neem oil
for different parameters, however analysis of Neem Coated Urea could not be
done due to impurities in the product leading to choking of column of HPLC
Machine.
Technical, CO was advised to take up the issue with FAI for collective
representation of the Industry in this matter.
22
FAI has written letter to Department of Agriculture, Cooperation & Farmers
Welfare dated 11.10.19 to defer the enforcement of revised specifications of
Neem coated Urea.

23. ATR- 12: CO2 Purchase from GAIL
Unit informed that this proposal had been re-examined with respect to H2S
content and additional power requirement in post CDR stoppage scenario and
sought specific information from GAIL.
Unit further informed that the same had been put on hold and would be
reviewed after implementation of ESP-II in actual scenario of steam and power
balance. Unit to see the viability of the purchase of CO2 from GAIL
accordingly.
23
Recommended to put on hold and review in actual scenario of power balance of
complex post ESP-II.

24. ATR- 13: Sharing of Information
Action by HR, Corporate Office.
24
Technical Department at CO informed that information on good practices and
better technical specifications adopted by one Unit were being shared with
other Units.
In this regard, HR CO was advised to develop an online portal so that employees
might upload their request for Inter-Unit transfer.

25. 25
Unit informed that reserve price for both the items had been fixed and NIT for its
disposal had been issued.
Unit was advised to dispose of these items instead of holding them for waiting
increase in scrap price.
Disposal of Naphtha Handling Section
Bids opened on 17.09.2019. Reserve price envelops opened.
TC meeting to be held.
Disposal of old R.O. Section
Bids opened on 17.09.2019. Reserve price envelops opened.
TC meeting to be held.
ATR-14: Naphtha Handling System & RO Plant

26. ATR-15: NABL Labs
Unit informed that new NABL Lab at Vijaipur would be set-up and accredited by
Sept., 2020.
26
Technical CO was advised to closely follow-up with Panipat and Vijaipur Units for
timely accreditation of NABL Labs and collect monthly progress report on the
same from the Units.
Regarding shortage of manpower in lab at Units, it was advised that outsourcing
model for one of the lab at Units might be explored by Technical, CO. Technical
CO was also advised to explore deployment of manpower in laboratory on
contract basis. Technical, CO was also advised to obtain information from Yara
Fertilizers (Erstwhile TCL) regarding their Laboratory set up including manpower.

27. ATR-16 Import Substitution
Materials Department, CO to communicate targets related to import
substitution for 2019-20.
27
Unit was also advised to try/carry out import substitution only for non-critical
items.
Unit to compile actual import substitution job carried out during 2018-19 in
terms of saving in cost.

28. 28
ATR-17: Manpower Requirement
a) Regarding recruitment of workmen as a trainee with on the job training to
them, HR, CO informed that this matter was deliberated with Technical Deptt. at
Corporate Office and it was decided that present system of direct recruitment of
workmen in regular pay scale be continued.
In this regard, HR, CO was advised to review this decision and also a Training
Policy might be prepared for regular workmen.
Action by CO- Matter was deliberated with Corporate Technical Department and
it was decided that present system of direct recruitment of workmen in regular
pay scale be continued.
b) HR CO was also advised to explore recruitment of trainees for workmen
with a stipend.

29. 29
c) Regarding requirement of executives and workmen in different departments
for Vijaipur Unit, HR CO informed that written test had already been conducted
for recruitment of ITI holders for workmen requirement.
d) HR CO was also advised to the Vijaipur Unit about the manpower agreed
by Corporate Office against requirement raised by the Unit.

30. ATR-18: DPS Vijaipur
30
The following actions were decided to be undertaken by the Unit:
a) Submission of a comprehensive proposal to revise the fee structure of DPS.
Data from nearby schools has been obtained. Receipt of DPS fee structure of CPSE based in
MP is pending. On receipt of above, revised fee structure for both NFL and non-NFL wards
will be submitted.
b) Flagging of pending issues.
Pending issue is of regularization of Teachers
c) Execution of lease deed.
Execution of lease deed is under progress.
d) Utilization of funds for DPS from Pupil Account.
Last 5 year record of purchase of fixed assets from Pupil fund has been prepared. Being used
for further development in school.
e) Transfer of funds by NFL to DPS through DPS Society.
License deed will be completed once legal formalities w.r.t bank account by FES is cleared.
f) Closure of Old Society.
As per section 34 under chapter 8, 3/5th of the members of DPS (old) society has to pass
resolution to close the society which will be submitted to Registrar for closure, hence the
matter will taken-up with DPSS.

31. Unit informed that approval for five initiatives i.e. rain water harvesting, Wi-Fi
connectivity, smart traffic management (Blinkers), Bio Composting and E-Vehicle had
been received and NITs were under preparation.
Regarding purchase of E-Vehicle, Unit was advised to contact M/s. EESL also for
purchase of E-Vehicle.
ATR-19: Smart City
31
Rain water harvesting:
NIT under financial concurrence.
Wi-Fi Connectivity:
Work Order under financial concurrence.
Smart Traffic Management (Blinkers):
NIT under preparation.
Bio Composting:
NIT under preparation.
E-Vehicle:
Revised quotation has been asked from EESL for e-vehicle with a capacity of 2 MT.

32. 32
ATR-20: Bio-metric Attendance System
a) Unit informed that requisite data for shift staff had been sent to IT
Department at CO to develop the logic for the employees coming in shift.
b) HR, CO was advised to replicate the changes in the software to be done at
Panipat Unit at other Units.
c) HR, CO also informed that implementation of BAS for workmen would be rolled out
simultaneously in all the Units.

33. ATR-21: Timely payments to suppliers / contractors
33
Unit informed that payment against a total of 46 bills had been delayed. Out of
which 39 cases were attributed to User Departments. Unit informed that this
delay in payment to suppliers/contractors was attributed mainly due to non-
availability of original invoice, late submission of BG, late submission of SRV to
F&A by Stores, non-availability of bank account details for new parties, lack of
documentation etc.
In this regard, Unit, F&A division was advised to put-up these reasons to Unit
Head in a file to take corrective action.
GM (I/C) has been apprised regarding List of Pending
observations causing delay in payment to suppliers with detailed reasons.
As per instructions F&A is taking up each issue with Material/Executing
department for quick resolution
ED (Materials) was advised to issue guidelines to the Unit to ensure timely
payments to vendors.
Yet to be received

34. 34
ATR-22: Capex
Unit was advised to include budgeted targets against each item for the year
from next QRM.
Noted for compliance
ATR-23: Procurement from GeM Portal
Materials Department, CO was advised to obtain a total list of general items
versus actual procurement undertaken by the Unit during the quarter.
Action by CO Material
Unit was advised to increase procurement from GeM portal.
Noted for compliance

35. 35
ATR-28: Internal Audit Observations
Para 6.1.4: Non maintenance of the Centralized Record for the Compliance of Laws
& Regulations applicable to Units.
Unit informed that a Committee had been constituted to look into this matter and
the outcome of the Committee would be intimated to Legal Department at CO.
Committee shall meet quarterly to review status.
Para 6.2.7: Delay in raising the claim for reimbursement of 50% stipend paid to
the apprentices.
Unit informed that for delay in claiming reimbursement of stipend, the matter
had been taken up with the Competent Authority of Board of Apprenticeship
Training, Mumbai for its early release. Unit was advised to submit the claim at
the earliest.
Claim No ST 11911654 has been made on 12.09.2019 online. Documents have
been sent by speed post on 16.09.2019

36. 36
Para 6.2.11: Non clarity on medical coverage under Workmen Compensation
Act.
Unit informed that provision of minimum insurance of Rupees 0.5 Lakh per
workmen had been included in the agreement signed with the contractor. All
the departments at Units had been instructed to comply with the provisions of
medical insurance as per Employees Compensation Act, 1923.

37. 37
Setting up of solar power plant in raw water reservoir based on
floating solar panels.

38. Urea Production
Production
(MT)
On Stream Days Production Rate
(MTPD)
Asking
rate
(MTPD)
(Balance
Period)
Target
(RE)
Actual Target
(RE)
Actual Target Actual
Q-2
2,42,389 2,47,675 80 81.98 3030 3021
Up to
QTR
4,36,370 4,41,656 146 147.49 2999 2994 2858
VIJAIPUR - I
Shortfall in production (up to QTR) = 5286 MT
38
Asking production rate (to achieve prod. target of 9.11 LMT) computed considering :
Planned shutdown in Feb. 2020 (ESP-II) = 20 days
Unforeseen shutdown = 1 days

39. Reasons for shortfall:
39
Leakage in Urea Reactor of Stream 11
Leakage in Urea Reactor of Stream 11 – 05.06.19 to 21.07.19
Prod. Loss hours : Urea = 1103.50
Vijaipur – I Plant
10.06.19: Synthesis Compressor tripped (IS-7) on high exhaust pressure due to
failure of Level transmitter of Surface Condenser.
Prod. Loss hours : Ammonia = 6.42 (Instt.)
Surface condenser LT replaced.
New electronic/buoyancy type Level transmitter procurement is under progress.

40. Urea Production
Production
(MT)
On Stream Days Production Rate
(MTPD)
* Asking
rate
(MTPD)
(Balance
Period)
Target
(RE)
Actual Target
(RE)
Actual Target Actual
Q-2 2,88,050 2,88,080 89 91.02 3237 3165
Up to
QTR
5,02,627 5,02,657 156 158.35 3222 3174 3463
VIJAIPUR - II
Shortfall in production = Nil
40
Asking production rate (to achieve prod. target of 10.86 LMT) computed considering:
Shutdown in Oct. 2019 = 11 days
(Replacement of Synthesis Gas Compressor Intercoolers E-3432 & E-3433B replacement)
Unforeseen shutdown = 1 days

41. 41
Reasons for shortfall:
Vijaipur – II Plant
14.09.19: Primary Reformer tripped owing to tripping of ID Fan turbine due to
false actuation of ‘Low Lube oil Pressure Switch’. ID Fan motor didn’t take auto-
start.
Prod. Loss hours: Ammonia = 12.25 (Inst.), Urea = 15.63
 Faulty turbine Lube Oil Pressure switch replaced.
 PLC Relay checked and found Ok. The relay has been replaced with a new one
as a precautionary measure.
 Electrical relay, contactor checked and found Ok
 Online combined simulation (Instrumentation and Electrical) for auto-start of
motor performed and found working.
To avoid tripping of ID fan steam turbine due to false actuation of Low Lube oil Pressure
Switch, 2oo2 voting logic has been implemented in ESD during shutdown in October
2019.

42. Production Sale
Target
(MT)
Actual
(MT)
Actual
(MT)
Q-2 162 241.77 144.11
Up to QTR 324 418.24 341.57
42

43. 4. Downtime Analysis of Urea Plant
Vijaipur-I
Period Total available Productive Un- Total Shutdown
Productive Planned Unplanned
Hrs. Days Hrs. Days Hrs. Days Hrs. Days Hrs. Days
Q-2 2208 92 1967.50 81.9792 240.50 10.02 0 0.00 240.50 10.02
Up to
QTR
4392 183 3539.71 147.49 852.30 35.51 287.50 11.98 564.80 23.53
43

44. Vijaipur-II
Period Total
available
Productive Un- Total Shutdown
Productive Planned Unplanned
Hrs. Days Hrs. Days Hrs. Days Hrs. Days Hrs. Days
Q-2 2208 92 2184.5 91.02 23.50 0.98 0 0 23.50 0.98
Up to
QTR
4392 183 3800.37 158.35 591.63 24.65 456.50 19 135.13 5.63
44

45. 5. Specific Energy Consumption
Vijaipur-I
Period Norm
(NUP-
2015)
Annual
MoU
Target
(BE)
Annual
Target
(RE)
Actual Required during
remaining period
to achieve the
NUP Norm/RE Tgt
Producti
ve
Un-
Producti
ve
Total
Q-2 5.884 5.770 5.960/
5.980
5.940 0.149 6.089
Up to
QTR
5.889 0.269 6.158 5.774/5.837
Gcal/MT Urea
45
Expected Energy cons.:
Shutdown of VP – 1 for ESP-II in Feb. 2020 = 6.02 Gcal/MT Urea
Shutdown of VP – 1 for ESP-II in April 2020 = 5.99 Gcal/MT Urea

46. Vijaipur-II
Period Norm
(NUP-
2015)
Annual
MoU
Target
(BE)
Annual
Target
(RE)
Actual Required during
remaining period
to achieve the
NUP Norm/RE Tgt
Producti
ve
Un-
Producti
ve
Total
Q-2 5.50 5.380 5.475/
5.520
5.427 0.027 5.450
Up to
QTR
5.457 0.127 5.582 5.383/5.465
Gcal/MT Urea
46
Expected Energy cons. = 5.52 Gcal/MT Urea

47. 7. Dispatches of Urea
47
Movement
Plan
Rail Road Total Closing
stock
Reasons for deviation
April 19 148950 112044 100 112144 11938Shutdown of L-II.
May 19 156980 165491 2538 168029 7103
June 19 168500 136217 5434 141651 6362Stream 11 shutdown.
Q 1 474430 413751 8072 421823 6362
July 19 232280 149254 10150 159404 9902Stream 11 shutdown.
Aug.19 221470 184743 10142 194885 6405Urea prod. restricted due
to leakage in inter-stage
coolers of Synth. Gas
compressor
Sept.19 223250 175024 8193 183217 4611
(MT)
Reasons:
 Less production due to plant shutdown.
 Higher loading time during plant shutdown.

48. 8. Demurrage on Urea dispatch
This Year (Levied) CPLY
No. of
Rakes
Hours Amount
Rs./MT
No. of
Rakes
Hours Amount
Rs. /MT
No. of
Rakes
Hours Amount
Rs./ MT
For the Quarter Up to the Quarter Up to the Quarter
156 615 8.76 286 1276 9.91 243 946 6.54
48

49. 9. Availability of Raw Materials
Input Stock as on
end of qtr.
No. of Days Remarks
FICC
Norm
Actual
Neem Oil (KL)
41.80 30 ~ 9 days
Considering 6500 MT
Urea loading per day
HDPE Bags (lakhs
Nos.)
20.70 +
19.20*
15 ~ 27 days
Ammonia (MT) 6751 - -
* Under testing
As on 30.09.19
49

50. NG Q-2
Contractual (at
actual NCV)
Actual % of
Contractual
Qty.
(Mill Sm3)
APM 206.08 45.56 22%
PMT 46.92 7.00 15%
PMT PSC 5.61 1.55 28%
NON APM 84.64 83.72 99%
RIL 53.76 4.45 8%
Total Domestic
GAS
397.01 142.28 36%
Total 369.33
% Domestic 38.52%
NCV 8347.18
Natural Gas contractual/received quantity:
50

51. Status of ESP-II Schemes
9. Physical status of Major Projects & Schemes of more than Rs. 50 crore
Total project cost :
Vijaipur-I = Rs. 158.83 crores
Vijaipur-II = Rs. 75.77 crores
Revamp/Retrofit of
Synthesis gas Compressor of
Ammonia – I plant (DR).
PO Placed 30.08.18.
Delivery: August 2019
Material dispatched on 16.08.2019.
Expected to reach at site by October 2019.
Revamp/Retrofit of Turbine
for Synthesis gas
Compressor of Ammonia – I
plant (MHI)
PO Placed 30.08.18.
Delivery: August 2019
Material dispatched on 28.08.2019.
Expected to reach at site by October 2019.
ESP II Schemes : VIJAIPUR-I
51

52. 52
Unit informed that out of total 17
NITs in respect of procurement of
equipment, 11 NITs had already
been issued, however, for lining
up the contracts, no NIT (Out of
total 6 NITs) had been issued.
Technical, CO to expedite action
for procurement / lining up of
contracts with PDIL.
All NITs for supply of material have been
issued. (Total – 29)
For lining up the contracts:
Total NITs : 04
Issued NITs : 03
Switchover of Process condensate stripping process from Low pressure to
Medium Pressure in Amm.-I Plant & other items under M/s PDIL scope

53. Installation of Vapor
Absorption machine to chill
PAC Suction air & 3rd Stage
suction of Synthesis Gas
Compressor in Amm.-II
LOI issued 26.03.2019 and accepted by party.
Delivery period : Eight months from date of issue of
LOI.
Erection Time: 10 days for erection of each filter house
after handing over site by NFL.
VAM Documentation approval is in progress.
 Total no. of documents: 80
 Documents submitted by party: 72
70 documents have been approved and two are
under evaluation.
 Documents yet to be submitted by party : 8
ESP II Schemes : VIJAIPUR-II
53

54. 54
Switch over of steam drive to
motor drives GV solution and CT
pumps along with installation of
Vapor absorption machine for
Gas Turbine in CPP including
installation of CT cell
1250 KW Motor received on 28.03.19
2 nos. 1450 KW motors:
LOI issued on 13.05.19 to M/s Nahar
Engineering, Bhopal for Crompton Greeves
Motors. Due to non supply by M/s Kirlosakar,
alternate action was taken.
Delivery period: 6 months from approval of
drawings.
Drawings approved on 09.07.2019.
ESP II Schemes : VIJAIPUR-II

55. 55
Scheme % Progress
Scheduled Actual
VIJAIPUR-I
Revamp of Synthesis Gas compressor
Turbine Vijaipur I
50 50
Revamp of Synthesis Gas Compressor
Compress
50 50
Balance work (PDIL) 51.2 20.3
Overall project 50.8 29.2
VIJAIPUR-II
VAM in CPP and Ammonia II 50 50
Motors 80 54.4
Balance work (PDIL) 74.1 22.8
Overall project 77.1 37.3

56. 56
Procurement of Synthesis Converter Basket S-300 with catalyst:
 LOI issued on 28.03. 19 & P.O. issued on 30.03. 19.
 PO amendment issued on 08.07. 19.
 Delivery period is 52 weeks from the date of acceptance of PO/LC establishment.
 LC likely to be opened this week

57. 10. Capital Expenditure
57
Up to June
2019
Actual
1 Renewals, Replacements & Other Minor
Capital Schemes
629.68
2 Upgradation 14.09
3 Information Technology 0.00
4 Research and Development 12.64
5 Energy Saving Schemes 22.70
6 ESP-2 Project 12.61
7 Others 2.20
8 Statutory obligation 0.00
Total 693.92
(Rs. Lakhs)

58. 12. Revenue Expenditure
(Rs. Crore)
Item Budgeted Actual CPLY
For
Qtr.
For Qtr. For Qtr.
Chemicals & Consumables
Catalyst
Repair & Maintenance
Handling Expenses
(Factory)
Factory Expenses
Administrative Expenses
Total
58

59. 59
13. Monitoring of Timely payments to Suppliers/Contractors
Period
Total Bills
received
from
Suppliers /
Contractors
No. of Bills for
which
payment
released
within
permissible
time
No. of Bills against which
Payment has been delayed
Delay in payment
attributed to
(No. of Bills)
< 1 month
> 1
month
Total
User
Department
F&A
For the
Quarter
Delay due to:
Deficient documents by party
Late submission of Original bill, test certificate, insurance related papers etc.

60. 14. Inventory
(Rs. Crore)
Item Quarter opening Quarter closing
1 Plant spares 13.69
2 General stores 2.86
3 Chemical & catalyst 3.96
4 Packing material 2.34
5 Other 0.81
Total 23.66
6 Non-moved items 10.60
Increase in Plant spares :
60

61. 15. Disposal of surplus/obsolete items
61
Item Quarter
Opening
Quarter
Closing
Remarks
Surplus
items
Obsolete
items
Total

62. Sr. Plant/Office Sanctioned Proposed*
Actual**
As on July 19
1 Production & Process 283 290 250
2 Mechanical & GE 163 135 107
3 Electrical 83 70 63
4 Instrumentation 72 66 60
5 Civil 10 7 8
6 Laboratory 34 29 21
7 HRD 4 1 1
8 Safety 4 5 2
9 IE (IT) 9 9 6
10 Transportation 23 47 11
11 Materials 42 25
12 Vigilance + CGM Office 2 4 4
13 F&A 56 42 41
14 HR+Secretarial staff 128 42 52
15 Hospital 43 31 25
16 Project 1 0 0
Total 957 778 676
18. Manpower Status
62
**Management Trainees - 8
* Proposed-As per IOM dated 24.6.2016.

63. 19. Import Substitution
Spares (Crank Shaft , Connecting Rod & Cross head bushing) of Ammonia
Feed Pump (M/s PERONI MAKE TITANO3140) were considered for Import
substitution.
Mail was sent for comments to sister units. Other units did not agree due to
difference of opinion in view of its criticality in nature.
63
Process initiated for:
Shaft for Boiler Feed Water (BFW) pump for HRU-1/ HRU-2 installed at CPP
plant of NFL Vijaipur (M/s Ebara Japan make).
Imported procurement cost = Rs. 30 Lakhs.
Indigenous cost = ~ Rs. 2.0 Lakhs.

64. 20. Procurement from SMEs as % of total procurement
64
Item Procurement from SMEs CPLY
For the Qtr. Up to the Qtr. Up to the Qtr.
Amt. % MSEs Registered Amt. % MSEs Registered Amt. % MSEs Reg.
Gen. SC/ST Women Gen. SC/ST Women
Goods
Services
Total

65. 65
21. Procurement from GeM Portal
(Rs. Lakhs)
Unit For the Qtr. Up to the Qtr. CPLY (Up to the Qtr.)
Total
Purchase
GeM
Purchase
% Total
Purchase
GeM
Purchase
% Total
Purchase
GeM
Purchase
%
Total

66. 22. CSR ACTIVITIES
66
Schemes Budget Actual
Expenditure
Present Status
Allocated
Construction of 377 Nos.
toilets in Govt. schools in
Guna (M.P.)
253.7 Work awarded on:
120 Nos. - 01.07.19
146 Nos. - 08.07.19
111 Nos. - 11.09.19
Job started at some locations.
Installation of Grid Connected
Solar Power Plant in 10 Nos.
Schools.
21.18 14.83 Job completed.
Net metering yet to be carried out.
Letter highlighting issues w.r.t. net
metering has been written to
Collector, Guna.
Installation of Sanitary Napkin
Vending Machine
1 Sanitary Napkin Vending Machine
received. To be commissioned.
(Rs. Lakhs)

67. 67
23. Proposal pending in CO/MO

68. Sr. Nature of case Opening
Balance
New Cases
Instituted
during the
Quarter
Cases
Disposed of
during the
Quarter
Pending
Cases at
end of
Quarter
Financial
Implication
(Rs. Lakhs )
1 Land Disputes
2 Service / Labor
3 Commercial Disputes /
Recovery Suits
4 Govt. Authorities / Tax
/ Duties
5 Criminal Cases
6 Other Cases
7 Arbitration
8 Disciplinary Cases
Total
24. Status of Legal/Disciplinary cases
68

69. 69
25. Internal Auditors Observations
1) Para 6.1.4. Non maintaining the Centralized record for the Compliance of Laws and
Regulations applicable to Unit.
Internal auditors have stated that the Institute of Chartered Accountants of India has made mandatory compliance of
Auditing and Assurance Standard (AAS) – 21, Consideration of Laws and Regulations in an Audit of Financial
Statements”. It has been provided in the standard that, it is managements responsibility to ensure that entity’s
operations are conducted in accordance with Laws and Regulations. Internal Auditors have observed that Unit is
sending compliance certificate with regard to all the Laws, Orders, Regulations and legal requirement on quarterly
basis to Company Secretary, NFL, C.O., Noida on the basis of declaration received from different departments,
however, the declaration does not contain Act wise Compliance of the respective department. It is a statement
whether they have received any notice from the respective authority or not. Actual compliance is not checked and
certified on the basis of non receipt of authorities notice. Proper non recording/non compliance will lead to Statutory
Violation and invite legal complication.
Auditors have further advised that Unit should maintain a register centrally by P&A
Department for better monitoring and ensure the compliance of Laws/Regulations. These
records may be examined periodically by a committee constituted by Unit Head wherein a
member should be from F&A Deptt to review the impact of non-compliance on the
financial statements of the Unit and ensure compliance of all applicable Laws &
Regulations.
You are requested to record the procedure formulated by the Unit for maintaining the
record centrally by P&A Department.
TO BE UPDATED

70. 70
Action Taken: -
A committee has been formed to review the ccompliance of applicable Laws and
Regulations on quarterly basis.
Compliance certificate is being sent / maintained as per the prescribed format by
C.O. according to existing established practice. As per the existing practice
following steps are being followed:
 All the concerned departments are asked to submit the compliance certificate
with regard to all applicable laws, orders and statutes on quarterly basis.
 After receiving confirmation from concerned department, a consolidated
Compliance report is prepared by Finance Department.
 After getting approval from the Unit Head, this Compliance Certificate is sent
to Company Secretary, Noida for further reporting.
The existing system is being followed as per the circular of Corporate Office
having reference no. NFL/SEC/11000 dated 14.11.2016.

71. 71
2) 6.1.6. Non provision of encashment of un-availed Compensatory Off.
Internal auditors have stated that n terms of the policy circulated vide IOM dated 16.04.19 the last date of availing
Compensatory Offs earned by the eligible employees during the year 2018 was 31.03.19. After completion of
availing period management decided to allow encashment of un-availed Compensatory Off to the eligible employees
vide Inter Office Memo no. NFL/CO/HR/1(298) dated 02.04.19. Auditors stated that the encashment of
un-availed Compensatory Off of the year 2018 made is made in current year against
which no provision has been made. Non provision may lead to disallowance of
expenditure by Income Tax.
You are requested to explain reason for non provision for encashment of un-availed CO
up to Closing of Accounts of the year.
Action Taken: - As per the relevant policy, un-availed compensatory off as on last day of
calendar year is to be availed by 31st March of next year. However the un-availed
compensatory off is encashed on the basis of a separate IOM from CO, generally received
in the month of April of next year.
Accordingly on 31.03.2019, it is not required to make provision for un-availed
compensatory off as per relevant extant policy.
Amount against the encashment of Compensatory Off paid during the last three years is as
follows:
IOM Date (issued for
releasing of payment by CO)
Year Pay Day Gross Amount
Rs. Lakhs
Payment Month
02.04.2019 2018 9539 234.68 May 2019 Salary
16.04.2018 2017 8072 160.36 May 2018 Salary
05.04.2017 2016 6032 113.89 May 2017 Salary

72. 72
3) 6.1.9 Security Deposit from vendors’ bills which are outstanding for more than 3 years
shall be unregulated deposit if retained on the expiry of fifteen days from the date on which
they become due for refund.
Internal Auditors have stated that the recent promulgation of “The banning of unregulated deposit Scheme Ordinance,
2019 (NO.7 of 2019)” as per the gazette Notification dated 21st February 2019, provides inter alia, that any security or
dealership deposited for the performance of contract for supply of goods or provision of services, shall be unregulated
deposit if retained on the expiry of fifteen days from the date on which they become due for refund.
Internal Auditors have observed that Unit is carrying security deposits of various vendors/contractors which is
outstanding for more than 3 years. In cases where there are no business transactions since long, in respect of cases more
than 3 year old they appear to be covered under the above ordinance. ( Annexure – VII).
You are requested to place on record the current status of such outstanding deposits /
securities deposits in the perspective of the recent ordinance on deposits.
Section Outstanding
upto 1 Year
Outstanding
for 1-3 Years
Outstanding for
more than 3 Years
Total
Purchase 138.24 23.43 4.98 166.65
Works 277.79 4.04 0.24 282.07
Action Taken: - Current status of outstanding security deposit is as under: -
Security deposit outstanding for more than 3 Years = 04
The cases are running ones and security deposit outstanding in these cases will be
released only after due recommendation from concerned departments. Hence, “The
banning of unregulated deposit Scheme Ordinance, 2019 is not applicable on above such
cases.
(Rs. Lakhs)

73. 73
4) 6.2.6 No uniformity/non payment of Annual leave with wages to the Labourers hired
through the Contract Labour.
Internal auditors observed that as per the provisions of the Factory Act 1948 para no. 79,
every worker who has worked for a period of 240 days or more in a factory during a calendar
year shall be allowed during the subsequent calendar year leave with wages for a number of
days calculated at the rate of one day for every twenty days of work performed by him
during the previous calendar year. Uniformity is to be brought in payment of Annual Leave
Wages as according to Factory Act 1948. Further it is also recommended that summarized
statement should be available in IR/Administration Department for compliance of Factory Act
1948.
You are requested to explain the steps taken for uniformity in payment of Annual Leave
Wages according to Factory Act 1948, as recommended by the internal auditors.
Action Taken: The payment of Annual Leave with wages is inherent part of labour
compliances in NITs and Work order and it has to be complied in line with other statutory
provisions. All departments have been advised vide IOM dated 16.07.2019 to maintain EL
card issued by the contractor for deployed contract labours for ascertaining payment of
Annual Leave with Wages.
IOM has been sent again on 21.08.19 to all depts. to comply with the provision of Sec. 79
of Factory Act 1948.

74. 74
5) 6.2.7 Delay in raising the claim for reimbursement of 50% stipend paid to the
Apprentices.
Internal auditors have observed that unit paid Stipend to Apprentice but their claim form
Board of Apprentice Training towards reimbursement of stipend was not made and also
accounting of their receivable has not been made. There was delay in raising the claim
against the payment from November 2017 to march 19 raised in current year on 11.06.19
and the accumulated claim is of Rs.12,42,944/-.
You are requested to explain the reason for delay in claim filing for the period Nov-17 to
Mar-19.
Action Taken: The delay in claiming reimbursement of stipends paid to Apprentices has
been taken up with Competent Authority of Board of Apprenticeship Training , Mumbai
for its early release.
It will be ensured that delay as happened in past shall be taken care and no such
inordinate delay will happen in future

75. 75
6) 6.2.11. Non clarity on medical coverage under Workmen Compensation Act.
Internal auditors have observed that as per the terms of most of the work contract, contractors shall
take insurance cover under Workmen Compensation Act with a medical coverage for all personnel
employed by him. NFL has not asked for the details of labourers to whom medical coverage is taken
and matches with the attendance sheet submitted by the contractor. Over and above nowhere in NIT
minimum coverage limit of each labour has been defined. They have further observed that medical
coverage taken varies from 25000 to 100000 in each of the labour contract and specified polices for
the medical coverage to be taken is not specified anywhere. Method of calculating minimum amount
of the insurance coverage to be given is not available so that dispute on the matter may be arise.
You are requested to record the steps taken for incorporating in the NIT the
recommendations explained regarding the calculation of minimum amount of the
insurance coverage, to avoid any dispute on the matter.
Action Taken: It has been ascertained from Insurance companies that as per revised norms
minimum medical coverage of Rs. 50000 and max. up to Rs 200000 is provided under
Employees Compensation Act, 1923. In the past the minimum medical coverage was fixed
at Rs 25000.00.
It is pertinent to mention that Insurance under Employees Compensation Act 1923 is
based on trade, minimum wages (Un-skilled, Semi-skilled, Skilled High Skilled) etc. and
details of labourers are available with the executing depts.
All departments vide IOM dated 21.08.19 has been requested to comply with the
provision of medical insurance.

76. 76
7) 6.4.1 Non-disposal of surplus/obsolete items.
Internal auditors have observed that 31 surplus items amounting to Rs. 1.44 lacs and 40
obsolete items amounting to Rs. 7.13 lacs were identified from the list of non-moving
items as on 31.03.2018 by the Committee on 21.02.2019. However, no action has been
taken for disposal of Surplus/obsolete items till date. Disposal action shall be taken as per
company’s laid down procedure with reference to Para 29.05 of Company’s Stores
Manual.
You are requested to explain the delay in disposal procedure as compared to the
company’s laid down procedure.
Action Taken: Disposal of surplus/obsolete material from the Inventory is a
perpetual exercise. Earlier, the unit had 872 items, valuing Rs. 17.74 Lacs declared as
surplus/obsolete items (791 items as surplus and 80 items as obsolete). In order to
facilitate disposal of the above items, auctioning through MSTC were carried out
repeatedly during the financial years 2018-19 after segregating them into different
homogenous lots. However, as these auctioning could not fetch the stipulated threshold
prices, eventually the above items had to be scrapped following extant procedures, with
the approval of Competent Authority.
At present, the Unit is having only 71 items (both surplus & obsolete) valuing Rs. 8.58 Lacs,
which were newly identified/ declared in the Financial Year 2018-19. The process for the
disposal of the above 71 items shall be completed within a couple of months after
following prescribed procedures i.e., fixation of reserve price, segregation into
homogeneous lots etc.

77. 77
26. Status of Bio-Metric Attendance System (BAS)
Sn. Partculars Remarks
1
Nos. of Employees regsitered /
using in BAS
376
2
Status of exception report from
BAS
Exception report is being generated
daily & attendance status on real time
basis on ESS portal is updated on
alternate days.
3
Stataus of Employees Services
Portal (ESS)
 Officers have started applying
leaves/tour programme approval
through ESS Portal.
 TA Bills and Medical Bills processing
through ESS to be started.

78. 29. Constraint/limitation
Ammonia-I Plant load ~ 1680 MTPD
Ammonia-II Plant load ~ 1890 MTPD
Urea production ~ 6175 MTPD
Plant load limitation owing to:
VP-I
 Leakage in Makeup Gas Cooler (E-1312) and Inter stage coolers (E-1431 &
E-1432) of Synthesis Gas Compressor.
78
VP-II
 Leakages in Makeup Gas Cooler (E-3312) and Inter stage coolers (E-3431A/B) of
Synthesis Gas Compressor.

79. THANKS
79