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G.K. Nair

Kochi, Sept. 20 The Kerala Government may consider taking over the sick central public sector Fertilizers and Chemicals, Travancore Ltd (FACT) into its fold, if the Union Government does not find its latest revival package a viable proposition.

The suggestion has come from Mr K. Chandran Pillai, MP, who has been spearheading a campaign for the revival of the fertilizer plant, which employs around 5,000 people, in view of the uncertainty over a favourable decision from the Union Finance Ministry.

The Finance Ministry is understood to have recently rejected a Department of Fertilizers’ (DOF) proposal for a fresh financial package for FACT saying that it is ‘open ended’ and does not cap the Government’s financial liability from 2007-08 to 2011-12.

The other observation of the Ministry is that “the company is chronically loss-making; it was given revival packages in March 2002, October 2003 and finally in March 2006”.

At the time of the last restructuring, the Finance Ministry had strongly opposed the proposal on the ground that there was little probability of the scheme being successful.

Besides, as far as the time schedule for availability of LNG to FACT is concerned, uncertainty over Petronet LNG’s Kochi terminal prevail, the Ministry is said to have pointed out.

More Stories on : Sick Units | Policy | Kerala | Fertilisers

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