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Our Bureau

Kochi, June 27 The board meeting of the public sector Fertilizers and Chemicals Travancore Ltd has given an in-principle decision to set up a urea plant with an estimated cost of Rs 650 crore.

Mr George Sleeba, Managing Director of the Company, said a detailed feasibility report would be prepared before moving ahead with the project. The plant with 500,000 tonne capacity a year could be completed in two years. The company has to generate 20 per cent of the amount, while the remaining will have to be raised from financial institutions.

He was speaking to reporters in connection with the launch of FACT’s two new products ‘Zincated Factamfos’ and ‘Zincated Gypsum’ and inauguration of the SAP Project implementation at a function held at the company premises.

Speaking at the function after the launch of new products, Mr Atul Chaturvedi, Secretary, Department of Fertilisers, said the production of urea would be an ideal option for the company as the country produces only 65 per cent of total requirement of urea and the balance is imported. The deficiency was expected to be wiped out in the next four to five years. The distribution of urea within the State and neighbouring areas would be beneficial for the company from the logistics point of view, he said.

Asking the company to strive for a working model free of subsidy, he said, FACT should concentrate on leveraging its assets by forming joint ventures wherever possible, apart from increasing the productivity. . It should have a business model separated from the subsidy model. The Kochi unit could be converted into a complex production division. The production of NPK, another product, could be doubled. The strategy should be to get better market prices instead of higher subsidy, he said.

Mr Mathew C. Kunnumkal, Additional Secretary, Department of Fertilisers, expressed the view that survival without subsidy could be the ultimate aim. Mr Ranjan Das, Managing Director, SAP, Indian sub-continent, said best governing practices and changes in the style of functioning would lead to better performance.

More Stories on : New Projects | Fertilisers

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