Trade unions at Fertilisers and Chemicals Travancore Limited (FACT) under the banner of Save FACT Action Committee have demanded that the Union government take steps to implement the long-promised ‘comprehensive revival package’ along with the sale of around 650 acres of the company’s land that has been finalised.
The Action Committee leadership said here on Tuesday that the quantum of money being realised from the sale of around 650 acres of the company’s land would not be sufficient to ensure the long-term revival of FACT. The land is being bought by the State government for petrochemicals and pharma parks and by Bharat Petroleum Corporation Limited for its petrochemicals complex.
Sit-in protest
The Action Committee will stage a sit-in at the FACT Udyogamandal Junction on Wednesday from 8 a.m. to highlight its demand for a package that will ensure the long-term life of the fertiliser company. The employees also want the government to ensure that FACT finds itself in a position to implement its long-pending projects for expansion and diversification. According to sources in the Action Committee, a total of 650 acres are being sold. Of this, 170 acres are being bought by BPCL while the rest of the land is being bought by the State government for the petrochemicals and pharma parks under the leadership of Kinfra and Kerala State Industrial Development Corporation.
“The price that has been fixed for the land is inadequate,” said a spokesman of the Action Committee. The first 150 acres will fetch ₹1 crore per acre; the rest of the land is being acquired for ₹2.47 crore per acre. BPCL too is acquiring the land at the price of ₹2.47 crore per acre. It is expected that FACT will be able raise around ₹1,300 crore from the land sale, and the MoU for the purpose will be signed on Wednesday. The company has been asked to pay back ₹500 crore to the Union government. It has also been asked to pay capital gains tax on the land sale realisation. The Action Committee spokesman said that FACT would be left with less than ₹350 crore from the land sale, which would jeopardise its long-term sustainability considering its liabilities and future plans for expansion.
The comprehensive revival package was promised on the basis of a report in 2008. The unions have said that the NDA government was instrumental in advancing a ₹1,000-crore loan at the rate of 13.5% per year. However, the step, though helped the survival of the company, has not been adequate in the long-term.
Trade union leaders are expected to meet senior officials of FACT on Wednesday to decide on the future course of action to press for a long-term financial package for the company.
