FACT examining new urea plant proposal

New Delhi: The state-owned Fertilisers and Chemicals Travancore (FACT) is examining the techno-economic viability to set up a urea plant at Udyogamandal, near Kochi.

“The vision plan prepared by FACT envisages setting up a urea plant at Udyogamandal and capacity expansion of complex fertilisers. The company is examining the techno-economic viability and feasibility of the proposed projects,” Chemicals and Fertilisers Minister Srikant Kumar Jena said in a written reply in the Lok Sabha on Thursday.

FACT has two manufacturing plants, at Udyogamandal and Ambalamedu, both near Kochi. It started the Udyogamandal plant in 1947 with the commissioning of a 50,000 tonne per annum (tpa) ammonium sulphate plant. A 900 tonne per day ammonia complex was set up with an investment of Rs 642 crore later on.

The Ambalamedu facility, set up in the 1970s, houses an integrated ammonia urea complex. A large complex fertiliser plant of 4,85,000 tpa was set up in the second phase. The Minister said that following a series of industry-friendly steps by the government, the company is in a good shape as “these measures are having a positive impact on the profitability and viability of FACT”.

FACT had been seeking a loan of Rs 450 crore towards working capital requirements even after the government gave it a one-time grant of Rs 200 crore in 2008 to enable it to sustain operations.

FACT has also been asked to consider forming a joint venture with IndianOil for running the business of FEDO, an engineering and design consultation unit of FACT, he said. — PTI