The Hindu Business Line : Centre to hold talks with FIs for FACT revival

THE Union Government would hold discussions with financial institutions for infusing fresh working capital as a short-term revival package for the ailing public sector company FACT.

The productivity level of FACT can be increased to 140 per cent from the present 70-80 per cent for which working capital had to be infused. It is estimated that about Rs 150 crore would be needed in the first phase to bring out the company from sickness, the Union Minister of State for Chemicals and Fertilisers, Mr Rehman Khan, said at a press conference here on Wednesday.

As a long-term strategy, the Government would consider whether loss should be converted into equity or written off. The package, which FACT had submitted, would be examined in detail so that this should be the last and final package for its revival. The issues with regard to the package would be taken up with the Finance Ministry for clearance. The Minister also assured that the workers interest would be protected in the revival package.

He pointed out that the plant was capable of reaching high productivity level. "I hope that there is a possibility of revival of this public sector and it is possible to bring back the past glory of FACT," he added.

Mr Khan, who was here to study the revival package submitted by FACT, said that the State Government had also come forward by offering various concessions including reduction of sales tax, entry tax, lease rentals as part of reviving the company.

The Minister had detailed interactions with the management, officers and workers unions.

"We have discussed at length the various areas of concern and the reasons for the continued losses and to reduce it by improving efficiency. The workers and management had assured that they would work with full commitment as there is no air of disinvestment any more," he added.

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