Action Forum Raps Centre for Delaying Assistance for FACT

The Save FACT Action Committee has criticised the Central Government for the inordinate delay in disbursing the revival package.

Published: 30th November 2015 05:52 AM  |   Last Updated: 30th November 2015 06:11 AM   |  A+A-

KOCHI: The Save FACT Action Committee has criticised the Central Government for the inordinate delay in disbursing the revival package sanctioned for the ailing public sector major.

“If the financial aid is not disbursed immediately, the crisis in FACT would worsen. The fall in the price of LNG and its better availability, coupled with the conducive market environment, are paving the way for FACT to become profitable. However, the Caprolactam and Ammonia plants are not able to function properly due to lack of working capital. Also, the phosphate and sulphate plants are not utilising their full capacity. FACT authorities have not been able to repay the debt incurred from purchase of LNG, and to sign new agreements,” said Action Committee chairman K Chandran Pillai, adding that it was the duty of the Central Government to pay the amount due to FACT, as the company has been selling fertilisers at rates prescribed by the government. According to the Action Committee, even as import of fertilisers is increasing, the Central Government has failed to promote domestic production, which would have made the country self-sufficient in fertiliser production.

“Non-implementation of recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE) and suggestions in the report by Deloitte have led to the sorry state of FACT,” said the committee, and warned of opposing the move to lease out the Ambalamedu House to private parties. 

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