FACT's loss in Apr-Dec period estimated at Rs 168 cr

Company had incurred net loss of Rs 354 crore in the financial year 2012-13

Don't want to miss the best from Business Standard?

State-run fertiliser firm FACT continues to be in the red and has recorded a net loss of Rs 168 crore till December 31 in the current fiscal, on account of high costs of RLNG gas.

Cochin based, Fertilizers and Chemicals Travancore Ltd (FACT) had incurred net loss of Rs 353.9 crore in the financial year 2012-13.

"The major cause for loss is higher cost of production due to costlier RLNG (Regasified Liquified Natural Gas) without compensation," a senior government official told PTI.

The company has also stopped operations of Caprolactum plant due to higher cost of RLNG gas, which has pushed up its financial cost, the official added.

"During the period from April to December in the current fiscal the net loss is estimated at Rs 168 crore," he said.

From October 5 last year, FACT has started using RLNG as feedstock in place of NAPTHA, following which government has stopped giving additional financial assistance to the company.

However the government is considering proposal to extend assistance on RLNG gas also.

"A proposal to extend additional compensation to FACT beyond October 4, last year on account of use of RLNG as feedstock to produce ammonia used in the production of complex fertilisers is under consideration," the official said.

The Cochin based fertiliser firm has annual capacity of about 4,85,000 tonnes per annum of complex fertiliser, 3,30,000 tonnes of sulphuric acid and 1,15,200 tonnes per annum of phosphoric acid.