The Hindu Business Line : FACT ready to spare land for GAIL's petrochem project

FERTILISERS and Chemicals Travancore Ltd (FACT), which has a vast expanse of land here, is ready to hand over 500 acres to GAIL (India) Ltd for setting up its proposed petrochemicals project.

Speaking at a press conference here to announce the company's financial results for 2004-05, Mr S. Balan, Chairman and Managing Director, Rashtriya Chemicals and Fertilisers (RCF), who is holding additional charge of FACT, said that the company has space available, which could be given to GAIL.

But FACT should be made a partner and its equity should be in the form of land. Besides, a substantial compensation must be paid. FACT's infrastructure facilities could also be made available. Thus, the funds received could be used for improving the company's facilities. However, GAIL hasn't decided on the proposal, as a feasibility study is still underway, he said.

On the performance of FACT last fiscal, he said that the company had improved its performance, bringing down the loss to Rs 88.72 crore from 167.22 crore in 2003-04. "These figures are without considering the interest on Government loans amounting to Rs 34.80 crore and Rs 46.26 crore, respectively during the last two years," he said.

With the infusion of adequate working capital to ensure the uninterrupted supply of raw materials, it would be possible for the company to operate plants at their optimum capacities, which would help reduce the losses , he said.

The revival packages put forward by FACT and RCF are still under the discussion stage at the Board of Reconstruction for Public Sector Enterprises (BRPSE), Mr Balan said. "Nothing has been finalised on the revival of the company so far." It is expected that the BRPSE would come out with its recommendations within a month, he said. The role of RCF in the revival of FACT would also be spelt out by the BRPSE.

RCF had provided financial assistance to FACT last fiscal towards working capital. When RCF is lending money, it should have a presence in the management of the company, Mr Balan pointed out. According to him, if the companies move together, both would benefit by combining the procurement of raw materials and the marketing of products.

He said that once the proposed LNG terminal becomes operational here, the company would be able to make profits. FACT is not contemplating any voluntary retirement scheme for its employees now, he added.

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FACT ready to spare land for GAIL's petrochem project