FACT receives Rs 1000 crore loan for revival

An agreement to release Rs 1000 crore for the revival of the Fertilizers and Chemicals Travancore Limited (FACT) was signed by Dharam Pal, joint secretary, Department of Fertilizers, Ministry of Chemicals and Fertilizers, and Jaiveer Srivastava, CMD, FACT, on March 3, 2016.
 
Ananth Kumar, Minister of Chemicals & Fertilizers said, “The government is committed to the food security of the nation, and fertilisers security is one of its main components. FACT, due to various reasons, had fallen sick and its revival has been one of the priority item on the government’s agenda.”
 
FACT is one of India’s oldest fertiliser company providing employment to over 2,700 persons directly or indirectly and it caters to the needs of lakhs of farmers of South India. Expressing hope that the company will now make start making operational profits, after induction of funds, Ananth Kumar, said “The reduction in gas prices, and benign policy of the Government will help the company in its growth. Over a period of time, the company may add an ammonia plant to produce urea.”
   
As per the agreement, FACT will get a loan of Rs 1000 crore, to be repaid with interest within a period of five years, with a moratorium of one year. FACT, which has been facing severe financial crunch for the last more than a decade, has now got a breather in the form of this loan, which will ease its liquidity crisis. The new resources will be helpful in clearing long pending dues of the company, and facilitate much needed working capital, as well as for augmenting production. This will help FACT to maintain production at optimum level on a sustainable basis in the coming years. The company is initiating steps to enhance the production capacity of complex fertiliser, Factamfos, by setting up a new stream of production of 1000 tonnes per day at FACT’s Cochin Division at Ambalamedu in Kochi.