Compensating the Fertilisers and Chemicals Travancore Limited (FACT) for the cost of LNG and long-term gas supply contract are issues expected to figure in the ministerial-level meetings scheduled for Monday in New Delhi, P. Rajeeve, MP, has said.
He was addressing a gate meeting of trade unions organised by the Save FACT Action Committee here on Saturday, said a press release from the committee.
Union Minster for Fertilizers Ananth Kumar and Petroleum Minister Dharmendra Pradhan will meet on Monday to discuss the issues related to gas supply to FACT. Senior officials from FACT, Petroleum Ministry and GAIL India, which laid the LNG pipeline to FACT, were expected to be present during the meeting, said a spokesman for the Save FACT Action Committee.
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The two Union ministers will meet also Prime Minister Narendra Modi to discuss these issues.
The developments followed the meeting of a team of Kerala MPs and Save FACT Action Committee members with the Prime Minister in New Delhi last week, said Mr. Rajeeve.
Deal with gas suppliersADVERTISEMENT
With the recent waiver of K-VAT on natural gas for FACT and price ruling low, FACT management has been in the process of drawing up a long-term agreement with the gas suppliers.
The waiver of VAT translates into savings of about $1.87 per mmBtu of gas at the current price of $15.34.
Mr. Rajeeve said though the Prime Minister had emphasised the need to complete the LNG pipeline in the State, completion of the work would not be linked to offering a revival package for FACT.