National

FACT to reopen ammonia plant

Our Bureau 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 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 will be reopened within four weeks. Once the plant is stabilised, the Caprolactam plant of the company, which has been closed down for about 28 months, will also be restarted, he said.

The production of Factamfos, which at present is only about 60 per cent of the capacity due to shortage of ammonia, will improve considerably when the ammonia plant becomes operational. However, the company will require about ₹7 crore to reopen 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, will help in 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

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.