7.1.1 Overview
Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) was incorporated on 5th April 2002 after segregation of Namrup units in Assam from parent company Hindustan Fertilizer Corporation Ltd (HFCL). It has two operating Ammonia-Urea units namely Namrup-II and Namrup-III situated at Namrup, Assam. Its Corporate Office is also situated at Namrup. The other establishments of the company are Liaison Offices at NOIDA & Kolkata and Marketing Offices at Guwahati, Siliguri& Patna.The authorized share capital and paid up capital of the company as on 31.03.2014 are Rs. 510 crores and Rs. 365.83 crores respectively.
7.1.2 Vision/ Mission
To be a significant producer of nitrogenous fertilizer in an efficient, economical and environment friendly manner and provide a package of agricultural services in Eastern India.
7.1.3 Industrial/ Business Operations
7.1.3.1 Financial performance In Crore Rs.
|
Parameter |
2013-14 |
Actual for 2014-15 upto Dec’14 (Provisional) |
2014-15 (Projected) |
|---|---|---|---|
|
Total Income |
484.37 |
400.93 |
612.60 |
|
Profit before Tax (+/-) |
(-) 158.29 |
(-) 91.95 |
(-) 112.37 |
|
Net Profit (+/-) |
(-) 158.29 |
(-)91.95 |
(-) 112.37 |
|
Dividend |
Nil |
Nil |
Nil |
|
Net Worth |
(-) 603.57 |
(-) 695.51 |
(-) 715.95 |
7.1.3.2 Physical performance In MT
|
Product |
2013-14 |
Actual for 2014-15 upto Dec’14 |
2014-15 (Projected) |
|---|---|---|---|
|
Urea – Namrup-II |
70684 |
72527 |
105602 |
|
Urea – Namrup-III |
235387 |
183295 |
254576 |
|
Urea - Total |
306071 |
255822 |
360178 |
7.1.4 Performance Highlights:
7.1.4.1 The overall performance of the plants was below expectation during the year 2013-14 although the Company achieved key milestones including sustained operation of plants at high load by successfully implementing long pending critical renovation jobs. The performance of the Company has thus improved during the year 2014-15.
7.1.4.2 One of the major impediments in operating Namrup-II Plant at higher load is limitation in Natural Gas supply of 1.72 MMSCMD. This has restricted maximum plant load of Namrup-II to 50%.
7.1.4.3 Further, Namrup-II plant is plagued by obsolete technology, frequent equipment failures and non availability of original spares.
7.1.4.5 The company also produced 27.35 MT and 16.77 MT of bio-fertilizers during the year 2013-14 and 2014-15 (till Dec.2014) respectively. The Company has set up a Neem-coated urea plant at Namrup-III Plant and this plant has started production from November 2014.
7.1.5 Strategic Issues
7.1.5.1 BVFCL is incurring financial losses since inception due to low capacity utilization & high energy consumption. The plants are underperforming due to obsolete technology, frequent equipment failures and shortage of natural gas. The capacities of the present plants are much below the minimum economic size plant making these plants far less efficient than standard size plant. The company is facing acute shortage of experienced and qualified manpower which is affecting its performance.
7.1.5.2 To mitigate the problems and for long term survival of the company, short term and long term measures have been taken.
7.1.5.2.1 Short term measures: During the year 2014-15, following renovation jobs were carried out to improve performance of the plants:
- Replacement of Primary Reformer tubes in Ammonia-III plant.
- In-situ replacement of tubes of condensers of Process Refrigeration Compressor in Ammonia-III Plant. The existing carbon steel (CS) tubes are being upgraded to stainless steel (SS) tubes.
iii. Overhauling/ health check of natural gas (NG) Booster Compressor, Process Air Compressor, Process Refrigeration Compressor and Synthesis Gas Compressor in Ammonia-III Plant.
iv. Replacement of low temperature(LT) catalyst in Ammonia-II Plant.
v. Engaging skilled and qualified retired manpower on contractual basis to man key positions in operations.
- vi. Financail restructuring of BVFCL has also been proposed as a short term measure. The proposal was approved by the Board for Reconstruction of Public Sector Enterprises(BRPSE) in its 117th meeting held on 27/02/2014.
7.1.5.2.2 Long term measures:
Setting up a new brown field ammonia urea state-of-art technology plant of larger capacity( annual 8.646 lakh MT) BVFCL Namrup. site has been found to be most viable option. BRPSE has also recommended for the same.
7.1.6 Human Resource Management
7.1.6.1 Manpower as on 31.12.2014
|
Group |
Total Employees |
Number of Employees belonging to |
||||
|---|---|---|---|---|---|---|
|
SC |
ST |
Ex. Servicemen |
Physically Handicapped |
OBC |
||
|
A |
313 |
29 |
27 |
1 |
- |
94 |
|
B |
317 |
18 |
55 |
- |
- |
111 |
|
C |
244 |
20 |
46 |
- |
1 |
74 |
|
D |
16 |
4 |
2 |
- |
- |
2 |
|
Total |
890 |
71 |
130 |
1 |
1 |
281 |
7.1.6.2 Public Grievances redressal and Welfare Measures
7.1.6.2.1 Welfare of Minorities
BVFCL is taking due care of minorities at the time of recruitment, promotions etc. A representative of the minority community is also included in the Selection Committee for recruitment and promotion.
7.1.6.2.2 Welfare, Development and Empowerment of Women
BVFCL lays emphasis in development of employees without any gender discrimination. Emphasis is given on employing women and many women candidates have been recruited in recent past. A Complaints Committee under the Chairmanship of a lady officer has been constituted to look into any complaint of sexual harassment of women employees at the workplace. There has been no discrimination against any woman at any point of time.
7.1.6.2.3 Welfare of SCs & STs
The matter of employment of persons belonging to SC/ST & other backward classes is taken care at the time of recruitment and promotions. Reservation policy has been followed as per Government guidelines. Out of total employee’s strength of 890, there are 71 SCs and 130 STs on the rolls of the Company (as on 31.12.2014).
7.1.6.3 Recruitment and Training (upto Dec 2014-15)
7.1.6.3.1 Recruitment:
39 Management Trainees were absorbed as regular employees during 2013-14 after successful completion of training. Efforts are being made to fill up the vacancies at middle and senior executive Level.
7.1.6.3.2 Training:
Training programmes for upgrading technical knowledge & skill and Behavioral & Managerial skills were carried during the year 2014-15. 15 internal training programmes/seminars/workshops were organized at Namrup with 187 participants and 5 persons received external training during the year 2014-15 (till December).
7.1.7 Corporate Social Responsibility and Sustainable Development:
7.1.7.1 The Corporation provides educational facilities to the children of employees, contract workers and the wards of the Township & the nearby villages. The Company is running one Higher Secondary School, one KendriyaVidyalaya, one Secondary School and one Primary School. The Company extended its patronage earlier for establishment of Namrup College, one B.Ed College for higher education and establishment of a State Dispensary at Namrup. Recently, the Company also extended its helping hand in promoting two new schools, a Junior College and an Assamese medium school by providing separate building and other infrastructure at nominal charges.
7.1.7.2 A 60 bedded hospital with modern equipments is available to extend medical facilities to employees & their dependents. Residents of the nearby localities and contract workers are also provided treatment at nominal fee.
7.1.7.3 BVFCL also extended various facilities like Drinking Water, Market, Land for Religious / Cultural and other institutions and accommodation for Telephone Exchange, Post Office, Employment Exchange and Civil Defence Office, to the residents of Namrup and adjoining areas.
7.1.7.4 As BVFCL is not making profit, no specific expenditure for Sustained Development(SD) is earmarked. It tries to attain SD objectives through saving / conservation activities. During the year 2014-15, conversion of street lights to energy efficient LED lights are being executed. BVFCL has taken up cleaning jobs under “Swachh Bharat Abhiyan”.