Fert Min moves Cabinet note for Rs 1,000 crore package to FACT

Net worth of FACT as of now is negative Rs 545 crore due to continuous losses, increasing debts

The Fertiliser Ministry has moved a Cabinet note for providing a financial package of nearly Rs 1,000 crore for revival of the ailing public sector firm FACT.

Fertilizers and Chemicals Travancore (FACT) had earlier submitted a proposal seeking Rs 991.90-crore package for an emergency rescue fund and for short-term working capital requirements to the Ministry of Chemicals and Fertilisers.

“We have already circulated a Cabinet note for revival of FACT to the tune of about Rs 990 crore and it is under the active consideration of the government,” Fertiliser Minister Ananth Kumar said.

The networth of FACT as of now is negative Rs 545 crore due to continuous losses and increasing debts.

FACT chairman and managing director Jaiveer Srivastava said: “The company is facing liquidity crunch and our networth has already turned into negative so we had submitted the proposal to the ministry for Rs 991.90 as crore as special fund for short-term period.”

Srivastava added that the company has also submitted Rs 8,200 crore long-term package for the company to the Centre.

A green signal for the package would have enabled the company to raise resources on its own for a slew of expansion and diversification projects.

The company had drawn up medium and long term investment plan totalling of about Rs 8,000 crore in the next five years, including augmenting the capacity of factomfose production to three million tonnes.

The investment plan was drawn up at the suggestion of the nodal ministry to submit a long-term revival package for the company as the short-term financial assistance would not serve to sustain the survival of the company on a long-term basis, Srivastava added.