Is there any legal binding agreement entered into between manufacturer and Department of Fertilisers, Government of India?

The Government does not enter into separate legal agreement with each individual manufacturer for applicable pricing policy. The Policy issued by DoF is a commitment by Government of India (like a sovereign guarantee) for the purposes of subsidy claims and have been in practice in industry efficiently for many years (since 1977). The registration of a manufacturer under a particular policy regime is sufficient to make the benefits of the policy applicable to the manufacturer. The operating principles are governed by notifications issued by the government from time to time and applicable to all manufacturers. A separate division of dedicated officers in DOF look into all subsidy related claims and release of subsidy to the urea manufacturers.