Operation of the financially troubled Fertilisers and Chemicals Travancore Limited (FACT) will come to a standstill within a week if the government does not immediately intervene to approve a financial package recommended by the Board for Reconstruction of Public Sector Enterprises (BRPSE).
FACT chairman and managing director Jaiveer Srivastava told reporters here that the company had run out of options to raise money for its working capital and the situation was grim. All channels of cash flow had been exhausted though they were optimistic about a government intervention, he told reporters at a press conference on Friday.Conference
He was speaking at the end of the Southern India Regional Conference of the Fertilizer Association of India, held at the FACT Ambalamedu House on the outskirts of the city.
FACT is in no position to raise money for its day-to-day operations and is pinning hopes on the upcoming Union Cabinet meeting, likely to be the last one under the incumbent government, which is likely to take a decision in favour of the company.
The recommendation made by the BRPSE has been before the Union government for over two months now and was expected to be approved before the general election was announced early March. The BRPSE has recommended that FACT be given Rs. 991 crore under various heads to overcome its current financial crisis.