Centre to give Rs 990 cr package to revive FACT: Ananth Kumar

Government will provide about Rs 990 crore revival package for the ailing central PSU FACT, Fertilizers Minister Ananth Kumar said today.
Kerala Chief Minister Ommen Chandy today called on Kumar at his office and discussed about the revival of FACT.
Kumar assured the Chief Minister that the Centre with 'active cooperation' of the Kerala government would chart out a road map for Fertilizers and Chemicals Travancore ltd (FACT's) revival.
"A note has already been prepared for about Rs 990 crore of revival package for the PSU," Kumar said.
The package includes Rs 300 crore as interest free loan, Rs 150 crore as grant, Rs 282 crore will be waived off as outstanding loans and Rs 160 crore will be waived as pending interest amount.

Kumar said he also discussed with the Kerala Chief Minister the matter of tax incentives and the permission for use of FACT land for expansion and other activities.

"We need to expand our capability, add downstream industries. We have over 600 acres of land. Kerala government has conveyed its readiness, so we have requested for NOC (No Objection certificate)," Kumar said.
On VAT rates on LNG which is used as feed stock by FACT, he said it needs to be reduced.
FACT has also requested the state government for exemption of VAT for LNG, which comes to about USD 3/unit. While some companies are able to get LNG at 4.2 USD per unit, FACT gets it for over USD 24.