The Save FACT Action Committee has decided to meet here on Thursday to draw up future plans to demand the speedy implementation of a financial package for the revival of the company in the midst of a land deal with the State government on Wednesday. Leaders of the Action Committee, a combine of trade unions cutting across political affiliations, claimed on Wednesday that the land sale had left Fertilisers and Chemicals Travancore Limited (FACT) high and dry and its future in peril because the company would be left with little money to realise the plans drawn up for its long-term sustainability.
The Action Committee unanimously called on the government to step in to save the company, which was in serious financial trouble. Trade union leaders met the Managing Director of FACT on Tuesday to discuss the fallout of the land deal, sources added.
The Action Committee sent out an appeal to the State government on Wednesday that it should get an assurance from the Union government that money realised from the sale of around 650 acres of FACT land to Kerala government and to Bharat Petroleum Corporation Limited (BPCL) should be utilised solely for the revival and expansion of operations of the fertiliser company.
The trade unions also said the price being offered for the land was low. Besides, the company has been asked to pay ₹500 crore from the sale proceedings as loan repayment. The fertiliser unit had also been asked to pay the Union government ₹465 crore in capital gains and minimum alternate tax as well, trade union sources said. FACT also owes around ₹170 crore to BPCL. The demands are raised by the government even as FACT is burdened with a financial liability of ₹1,777 crore and cumulative loss to the tune of ₹2,150 crore.
CPI(M) district secretary P. Rajeev, who inaugurated the meeting and dharna of the Action Committee at Udyogamandal Junction on Wednesday, demanded that the sales proceedings should be used solely for the revival of FACT. INTUC district president K.K. Ibrahimkutty presided at the inaugural meeting. CPI district secretary P. Raju and BJP leader N.P. Shankarankutty were among those who spoke.
