Barge ban leaves FACT in fix

Company faces Rs.2-cr. loss a day after suspension of ammonia transport by water

A barge transporting ammonia in the Kochi backwaters.

There seems to be no end to the financial woes of Fertilizers and Chemicals Travancore (FACT), with the ban on movement of ammonia by water causing a loss of Rs.2 crore a day in factamfos production. The ban was imposed by the District Collector following ammonia leakage from a tank that was being transported by a barge on May 20.

A statement issued by FACT said the company now faced the question of its survival with possible disruption in production.

“The very existence of FACT is dependent on the continuing production of fertilizers, for which ammonia transportation by barge is absolutely essential,” it added. The statement also explained as to how the PSU’s troubles deepened after the Motor Vehicles Department had seized three tankers that were transporting ammonia by road. The tankers were seized, as they were found “unfit”. However, FACT sources said the tankers, with Maharashtra registration, had permits, as their operators had paid taxes for the period up to July.

Factamfos production hit

Ammonia shortage hits the production of around 800 tonnes of factamfos daily. The loss for the company has been estimated in terms of the market price of the fertilizer mix, which is in great demand in south India.

Moreover, sales have picked up with rain beginning to settle in. One barge transports 192 tonnes of the total requirement of nearly 500 tonnes of ammonia daily. The rest of the requirement is met through road transport. Uncertainty on the road and suspension of water transport have plunged FACT into deep trouble, even as things are beginning to look up at the company, with the recent infusion of Rs.1,000 crore in loan. The statement said ammonia was transported by road in insulated tankers until a Kerala High Court directive in 2011. The court wanted ammonia transport to be shifted to waterway in a phased manner.

While thanking government agencies and the district administration for helping FACT diffuse the crisis following the ammonia leakage on May 20, the company authorities reiterated that the barge was of robust build, and that it had necessary safety appliances on board.

The company said ammonia movement by water and road were in vogue, and that FACT’s ammonia transportation using bullets tanks on barges had been hailed nationally.