Union Fertilizer Minister M.K. Alagiri assured a delegation of trade union leaders from Fertilisers and Chemicals Travancore (FACT) here that the government was earnestly looking into the possibility of waiving Rs.110 crore in interest and providing Rs.450 crore as interest-free loan towards working capital for the company.
A statement from Save FACT Action Committee, a combine of trade unions at FACT, said here on Wednesday that the Union Minister assured the delegation that the government would soon also approve the expansion and development plans drawn up by FACT. If the government waives the Rs.110 crore of interest, the public sector fertilizer company would be able to show a profit of Rs.50 crore for the last financial year, the statement said.
It also said that FACT's operational cost would come down significantly when LNG becomes available in Kochi from 2012 and the company would be able to make substantial profits. FACT management has submitted two major proposals for approval in view of the availability of LNG from 2012. The first of the projects is a five-lakh-tonne urea plant at Udyogamandal costing approximately Rs.700 crore.
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The other proposal is to raise the capacity of Factamfos plant at Ambalamedu to 330 lakh tonnes at a cost of Rs.200 crore. Both the proposals have received preliminary approval, the statement from Save FACT Action Committee said.
The FACT trade union leaders also met the Union Minister of State for Agriculture K.V. Thomas, who promised them that there would be no delay in carrying out two proposals from FACT related to setting up two container freight stations in tandem with the commissioning of International Container Transhipment Terminal on Vallarpadam Island.