KOCHI: J.S. Maini, additional secretary and financial advisor in the Union Ministry of Chemicals and Fertilizers, has expressed optimism that Fertilizers and Chemicals Travancore (FACT) would emerge stronger and make steady profits. He hoped FACT would play a big role in the `second green revolution,' for which Prime Minister Manmohan Singh has given a call.

He suggested the possibility of using coal gas in place of naphtha as feedstock for ammonia production. Mr. Maini said coal gas was available in Australia.

Talking to reporters here on Tuesday on the second day of his visit to FACT, Mr. Maini said he was visiting FACT to take stock of its working and make an assessment about the problems and potential of the fertilizer company.

He said the top management of the company led by its Chairman and Managing Director G. C. Gopala Pillai had briefed him on the history and image of FACT. The Union Government official said he was aware that FACT was the oldest fertilizer company in the country, having been commissioned in 1943. He also said that the fertilizer company had played a role in the Green Revolution.

He also told reporters that there was no proposal for a merger of FACT with any company. It had been reported in the media that the Union Fertilizer Ministry had proposed merging FACT either with Rashtriya Chemicals and Fertilizers Limited (RCF), Mumbai or Krishak Bharati Cooperative Limited (KRIBHCO).

Mr. Pillai who was present with Mr. Maini said FACT continued to suffer because it had no alternative to naphta. LNG is the viable alternative for FACT. The price of naphta is five times more than that of LNG and this was a major drag on FACT's profits, said Mr. Pillai. He also said that certain anomalies in the subsidy provided by the Union Government too affected FACT.

Besides Mr. Pillai, D.N. Pradhan, finance director; A. Asokan, marketing director; George Sleeba, executive director (HRD); and S. Venkitakrishnan, executive director (Finance) were present.

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