The Hindu Business Line : FACT assets remain unutilised

The infrastructure facilities are so large that it could easily accommodate an engineering college and international training centres. There are 1,000 family quarters, a bachelors' hostel, training centre, clubs, community centre and a world-class guesthouse.

Kochi , May 11

The central public sector Fertilisers and Chemicals, Travancore Ltd (FACT) has large infrastructure facilities that still remain unutilised, and could be productively exploited to enhance the revenue of the ailing fertiliser company.

The company, which the Centre said to have decided to revive by accepting its rehabilitation proposal, has 2,000 acres of land and a self-contained township along with a 200-acre natural lake at Ambalamedu in the outskirts of the city. It is well connected by rail, road and air and linked to the existing infopark and proposed smart city, a senior official told Business Line.

The infrastructure facilities here, he said, are so large that it could easily accommodate an engineering college and international training centres. There are 1,000 family quarters, a bachelors' hostel, training centre, clubs, community centre and a guesthouse (Ambalamedu House) with 80 air-conditioned deluxe rooms. Water sporting and boating facilities are added attractions. Besides, there is a school and hospital with emergency ambulance service facilities.

A 26-MW power plant remains idle. Treated and industrial water is also available at a supply capacity of 10 million gallons a day. This can be utilised to supply water to the ships berthing at Kochi port, said the official.

The existing infrastructure of the now defunct ammonia plant at Ambalamedu can be used for setting up a new plant once the LNG terminal become operational, he said. The infrastructure and utility available can be used if the gas-based petrochemical complex, proposed to be set up here by GAIL, is translated into reality, he said.

In fact, the potential for setting up an infopark extension at Ambalamedu is also high, the source said. Thus, with the existing assets such as land, infrastructure and other resources, the company could diversify its activities and increase revenue substantially, he said.

He said the company had been making losses because of the high production costs owing to the steep rise in the raw material (naphtha) price on the one hand and the pricing policy of the government on the other. Added to this is the interest burden on the high cost loan taken for setting up the new ammonia plant.

The Union Government has accepted the proposal to revive the company under which the Centre would write off 50 per cent of the total outstanding loan amounting to Rs 574 crore as on March 31 and covert the balance 50 per cent into government equity in the company. Besides, it would waive Rs 81 crore outstanding towards interest as on March 31.

The company's performance last fiscal has been good; after implementing the revival package, it is expected to make a turnaround, he said. With this and productive utilisation of its unutilised assets, the company could become a major revenue earner in the public sector, the senior official said.

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