Save FACT Action Committee has said it is backing out of a plan to hold a sit-in before the State Secretariat on December 9 in view of a decision by the State government to withdraw Value Added Tax (VAT) on natural gas supplied to the company and the management decision to restart ammonia and caprolactam plants.
However, the Action Committee planned to continue working for a total revival package for the company, said a statement here.
A spokesman for the combine of trade unions at the public sector fertilizer company thanked the State government for the help and appealed to the government to continue lobbying for the revival of the company.
A request has been made to the government to specially take up the case of revival of FACT when an all-party delegation meets the Prime Minister in Delhi during the ongoing session of Parliament.
The government had announced its decision to forego 14.5 per cent VAT on natural gas in order to help FACT get the fuel and feedstock at competitive rates. The decision means that the State will forego about Rs. 100 crore yearly.
However, the loss is notional considering that with FACT and other industries not drawing gas, Petronet LNG’s terminal in Kochi is utilising just about one per cent of its installed capacity.
The trade unions have also welcomed the management decision to revive the ammonia and caprolactam plants.
