The Central government will provide a Rs.990-crore revival package for the ailing public sector firm Fertilisers and Chemicals Travancore (FACT), said Union Minister for Fertilizers Ananth Kumar here on Thursday.
Chief Minister Oommen Chandy called on Mr. Kumar at his office here and discussed the revival of FACT.
Mr. Kumar assured the Chief Minister that the Centre, with ‘active cooperation’ of the Kerala government, would chart out a roadmap for FACT’s revival.
“A note has already been prepared for a Rs.990-crore revival package for the PSU,” Mr. Kumar said.
The package includes Rs.300 crore as interest-free loan, Rs.150 crore as grant, Rs.282 crore will be waived off as outstanding loans, and Rs.160 crore will be waived as pending interest amount.
Mr. Kumar said he also discussed with the Chief Minister the matter of tax incentives and the permission for use of FACT land for expansion and other activities.
“We need to expand our capability, add downstream industries. We have over 600 acres of land. The Kerala government has conveyed its readiness, so we have requested for NOC (no-objection certificate),” Mr. Kumar said.
On VAT (value-added tax) rates on liquefied natural gas (LNG) that is used as feed stock by FACT, he said it needs to be reduced.
FACT has requested the State government for exemption of VAT for LNG, which comes to about $3/unit. While some companies are able to get LNG at $4.2 per unit, FACT gets it for over $24.
