Company sets stiff targets over the next five years
The Department of Fertilisers of the Union government which has taken up the case of financially-troubled Fertilisers and Chemicals Travancore Limited (FACT) on a war-footing has hinted at the prospects of the public sector undertaking (PSU) getting compensation for natural gas for a brief period to help it stand on its feet.
Chairman and Managing Director Jaiveer Srivastava said the Ministry of Chemicals and Fertilisers headed by Ananth Kumar had speeded up work on FACT revival and that the Rs. 999-crore package was likely to be through by August, provided the company management drew up a larger plan for sustained growth.
In keeping with the instructions of the Fertilisers Department, FACT is reworking its long-term strategy and has set itself stiff targets over the next five years.
The medium-term plans include a Rs. 211-crore Factamfos plant; an ammonia storage tank plus a transport barge costing a total of Rs. 217 crore; a urea production unit at Udyogamandal at a cost of Rs. 1,200 crore and five to six barges costing Rs. 50 crore. The total cost of medium-term projects was Rs. 1,678 crore, Mr. Srivastava said.
An ammonia-urea complex at Cochin Division; a 3,000-tonnes-per-day Factamfos plant; a 2,000-tonnes-per-day sulphuric acid plant and augmenting the capacity of phosphoric acid plant from the current 360 to 500 tonnes a day at an approximate total cost of Rs. 6,000 crore are part of the long-term plans. These targets are set to be achieved by 2020.
Mr. Srivastava said that if FACT got compensation for LNG and the financial package recommended by the Board for Reconstruction of Public Sector Enterprises (BRPSE) came through, the books would be clean for the PSU to generate funds for its long-term projects. The State government is also likely to exempt LNG from the purview of value-added tax (VAT).
Meanwhile, FACT had also begun talks with a well-off PSU for the ammonia-urea complex, he said. He added that the talks were in the initial stages.