Chandy seeks PM's intervention to save FACT

Kerala Chief Minister Oommen Chandy Monday wrote to Prime Minister Manmohan Singh, seeking his intervention to save FACT, the largest central public sector in the state as it is reeling under severe financial crisis.

In his letter, Chandy asked Manmohan Singh to intervene to clear the comprehensive financial relief package worth Rs.991 crores that has already been approved by the Board for Reconstruction of Public Sector Enterprises (BRPSE) and is pending before the Cabinet Committee on Economic Affairs.

FACT, based in Kochi, is the leading manufacturer of complex fertilizers and the only one of its kind producing ammonium sulphate in south India.

"The net worth of the company has already been completely eroded and is in risk of being declared as a sick company.

"The financial crisis is such that the entire operations will come to a standstill in seven days time and it has already exceeded its borrowing limits from banks. If the company is closed down it will have adverse impact on agriculture and it will not only affect Kerala but also south India," said Chandy in his letter.

Meanwhile, the trade unions in Ernakulam district, have announced a shutdown on May 12 in the district to register protest on FACT's precarious position.