The Hindu : Kerala / Kochi News : Special package sought for revival of FACT

Online edition of India's National Newspaper
Sunday, Jul 15, 2007
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Kerala

Kerala - Kochi

Special package sought for revival of FACT

Staff Reporter

Centre urged to modify technology and pricing policies adopted in the fertilizer industry

Call to ensure availability of gas from Krishna-Godavari basin
Plea to end dependency on naphtha

KOCHI: K. Chandran Pillai, MP, has urged the Union Government to approve the Special Dispensation Package for the revival of Fertilizers and Chemicals Travancore Limited (FACT).

He said the package was now before the Committee of Secretaries after which it would have to secure the approval of the Finance Ministry. He urged the Centre to modify the technology and pricing policies adopted in the fertilizer industry.

He urged the reopening of the closed plants and to ensure the availability of gas from the Krishna-Godavari basin to put an end to the dependency on naphtha as the feedstock for operation of plants at FACT. According to him, laying of pipeline for accessing the gas would take only 18 months.

He was talking at a press meeting convened to announce a seminar on “Indian Fertilizer Industry,” to be held here on Tuesday in connection with the 60th anniversary of the FACT Employees Association. He said the farmers were already complaining of non-availability of fertilizers. Besides, there were also complaints of spurious fertilizers being sold in the market, he said.

He said the revival of FACT could not be associated with the commissioning of the Liquefied Natural Gas Terminal (LNG) in Kochi. He said a review meeting held recently by the Union Petroleum Minister Murali Deora had set 2011 as the date for commissioning the LNG terminal. He said that probabilities of the project getting further delayed could not be discounted, and said that the crisis at FACT could not be let to drift on for such a prolonged period.

He said that FACT was hit by the rise in prices of sulphur in the international market, which had skyrocketed from $75 to $185. He said that FACT did not receive Central subsidy for the sulphur content in ammonium sulphate, one of its major products.

Mr. Pillai said the cost of reviving FACT would be relatively less compared to the cost the Centre would have to incur for importing fertilizers. He said the Centre had to import 50 lakh tonnes of urea last year.

The price of raw materials increased by 400 per cent in the last four years, but FACT was not allowed to hike the price of its products proportionately, association officials who attended the meet said.

Fisheries Minister S. Sarma would inaugurate the seminar to be held at Udyogamandal Club. Prathap Narayan, fertilizer expert and former Director General of Fertilizer Association of India, would present a paper on “Indian Fertilizer Industry - urgent need for a paradigm shift.” M.P. Sukumaran Nair, managing director, Travancore Cochin Chemicals Limited, will present a paper on “Growth of Fertilizer Industry in India — Policy and Technology Perspective.” Mr.Pillai would present a paper on “FACT – Redefining the Growth Trajectory.”

K.N. Raveendranath, State president, CITU, will be the moderator.

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