Companies

FACT to reopen ammonia plant

V. Sajeev Kumar Kochi | Updated on November 27, 2014 Published on November 27, 2014

The public sector FACT has taken steps to reopen its ammonia plant which has been shut down for about 11 months.

This follows the positive decision taken by the Kerala government to waive the State VAT on liquefied natural gas (LNG) used by the company, Jaiveer Srivastava, Chairman and Managing Director, FACT said.

The current VAT rate on LNG is 14.5 per cent. The exemption of LNG from VAT will help bring down its price to about $13.47 per unit (mmbtu), he told reporters here on Thursday.

The ammonia plant would be restarted within four weeks. Once the plant was stabilized, soon the Caprolactam plant of the company, which has been closed down for about 28 months, also would be restarted, he said.

The production of Factamfos, which at present was only about 60 per cent due to shortage of ammonia, would improve considerably when indigenous ammonia plant became operational. However, the company would require about ₹7 crore to restart the Caprolactam plant, he said.

The substantial fall in the price of Benzene, one of the main raw materials used in the production of Caprolactam, also would help reopening of the plant. He expressed the hope that things would soon turn positive for the company.

To a question on the State government’s request for 150 acres of FACT land for putting up a power plant, he said it was a matter to be decided between the central and state governments.

Published on November 27, 2014
This article is closed for comments.
Please Email the Editor