The Hindu Business Line : FACT revival package may be finalised before Mar 31

THE revival package of Fertilisers and Chemicals Travancore Ltd (FACT) is likely to be finalised before March 31, as the Committee of Secretaries will take up for discussion the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE) on the proposal.

The Committee is expected to go through the recommendations within 10 days and forward them with its comments to the Cabinet Committee on Economic Affairs (CCEA) for its consideration, Mr K. Padmadasan, Company Secretary, FACT, told Business Line on Thursday. He said that indications were that the package would be finalised before March 31.

The Board had recommended the revival package submitted by the management of the ailing central public sector last month.

A positive response from the CCEA is expected since the Fertilisers and Finance Ministries are convinced of the company's prospects, especially after commissioning of the LNG terminal here by the last quarter of 2009, he said.

The company had in its proposal requested the Centre to write off 50 per cent of the total outstanding loan amounting to Rs 574 crore as on March-end and convert the balance into Government's equity in the company. Besides, it had sought waiving of Rs 81 crore outstanding towards interest as on March 31, 2005.

Given the growing demand for fertilisers in the country in recent months coupled with the drop in production, revival of FACT will be in the interest of the industry, Mr Padmadasan said.

Modernisation schemes with low investment and easy payback facility will ensure sustained profits. Besides, he said, new proposals on infrastructure development, expansion etc. would increase profits, while new ventures in different emerging fields would stabilise the organisation and ensure steady growth.