| The company has a foreign collaboration approval with 100 per cent foreign equity participation by Tunisia-based Groupe Chimique Tunisien. |
| It had approached the Foreign Investment and Promotion Board (FIPB) for a clarification on the trading condition mentioned in the foreign collaboration approval. The company said confining trading activities to cash and carry wholesale trading was not feasible. |
| FIPB had imposed special conditions in the approval which confined GFCL's domestic trading activities to bulk imports and cash and carry wholesale trading. |
| The company was not permitted to undertake domestic retail trading in goods that were not manufactured by it and were being used as intermediates for fertiliser manufacturing. |
| The company is engaged in the manufacture and sale of phosphatic fertiliser such as diammonium phosphatic and other similar products made from imported ammonia and phospheric acid. |
| "The company had pleaded that this business was not restricted to wholesale trading alone and sales are generally on credit terms," sources said. |
| The existing policy allows fertiliser units to make first point sale to their dealers. Manufacturers are eligible to obtain concession after sale to dealers. |
| The department of fertiliser had in its comments to FIPB recommended that the cash and carry wholesale trading condition cannot be adhered to by GFCL since fertiliser has seasonal consumption and companies extend credit to not only dealers but also state cooperatives. |
| The restriction was therefore imposed only domestic retail trading of phospheric acid and other imported raw materials and intermediates by GFCL. |
Top Section
Explore Business Standard