State promises to fire up work on delayed FACT gas pipeline

: The State government has promised trade union leaders of Fertilisers and Chemicals Travancore Ltd. (FACT) that it would expedite work on the pending natural gas pipeline in a bid to draw the attention of the Union government to the financial crisis plaguing the company. Leaders of Save FACT Action Committee, a combine of trade unions, called on Chief Minister Oommen Chandy, leader of the Opposition V.S. Achuthanandan and BJP State president V. Muraleedharan in the State capital on Thursday to impress upon them the gravity of problems faced by FACT.

A spokesman for the Action Committee said at the end of the meeting with the Chief Minister that the State would help resume laying of the Kochi-Koottanadu-Bangalore-Mangalore pipeline, which has been held up for more than a year. One of the issues that the Union government raised with the State after the new NDA government assumed power last year was the halt in pipeline work. Under utilisation of the LNG terminal in Kochi has also been highlighted and completion of the pipeline work is a must for full capacity utilisation of the gas terminal here. Though the State had offered substantial compensation for the land through which the pipeline would pass, the work has been held up in some north Kerala districts. It is learnt that with the financial crisis deepening FACT production has been reduced. The short-term natural gas supply agreement between GAIL Gas, MMTC and FACT expires towards the end of April and the company management is expected to work out a long-term agreement soon.

Leaders of Save FACT Committee meet Chief Minister

Work on pipeline has been held up for over a year