The Hindu Business Line : Kerala Govt offers help to salvage FACT

THE Chief Minister, Mr A.K. Antony, has said that the State Government was willing to extend its wholehearted cooperation to any move initiated by the Centre for ensuring that Fertilisers and Chemicals Travancore Ltd (FACT) is retained in the public sector.

The State is willing to go the full distance to make this happen, even if this meant testing the limits of its already weakened finances, the Chief Minister informed the Union Minister of State for Petroleum, Fertilisers and Chemicals, Mr Rehman Khan.

The visiting Union Minister met the Chief Minister in his chamber here on Tuesday. The visit was part of the Centre's initiatives to revive the flagging fortunes of FACT, the State's first unit in the public sector.

The Chief Minister said that the State Government would cut, as advised by the Centre, sales tax on FACT products by four per cent, and land cess by half. Entry tax also would be reduced to a level that was mutually agreeable.

However, the Chief Minister said he could not give a commitment on reducing the power tariff applicable, since that was beyond the pale of the State Government. The Tariff Regulatory Commission alone had the right to sit in judgment over this demand.

According to Mr Antony, while the State Government was keen on keeping FACT in the public sector, if, by any chance, the fertiliser giant were to be handed over to the private sector.

The State Government had been very cooperative in the revival efforts, according to Mr Rehman Khan. Tuesday's talks had also agreed to set up a Secretary-level committee for overseeing the implementation of the directives for the purpose.

Mr Tejendar Singh, Economic Advisor to the Union Minister of State for Petroleum, Fertilisers and Chemicals; Mr C. Balan, CMD, FACT; Mr K. Sankaranarayanan, Finance Minister; Mr P. K. Kunhalikkutty, Industries Minister; and Mr N. Chandrasekharan Nair, Chief Secretary, attended the meeting.

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