KOCHI: Public sector Fertilisers and Chemicals Travancore Ltd (FACT) has set a target of achieving Rs 2400 crore turnover during this financial year ending March 2020, and announced major expansion plan using the proceeds of the sale of its 481 acres of its land in Ambalamedu to the Kerala government.
Addressing a news conference here, Kishor Rungta, FACT's CMD, said the expansion plan involved reviving its caprolactam plant, which has been lying idle for the last 6-7 years and increasing the capacity of Factamfos (ammonium phosphate sulphate) and ammonium sulphate to 10 lakh MT from about 8.5 lakh MT now. The company produces 6.4 lakh MT of Factamfos and 2.2 lakh MT of ammonium sulphate at present.
Regarding the financial restructuring plan, Rungta said FACT had submitted two set of proposals with the Niti Aayog, one to write off of its accumulated losses amounting to Rs 1200-odd crore, and another for monetisation of its land. There is also an old loan of Rs 282 crore taken from the banks. "The government asked us to first complete the land sale procedures, and see if what progress can be achieved in the expansion and revival plans," explained a senior FACT officer.
With the Kerala government issuing the GO (government order) regarding the land sale, the entire process of the 481-acre Ambalamedu property sale is nearly over with FACT receiving the much-required funds. Rungta said the fertiliser PSU was paying nearly Rs 200 crore per year on interest rates of its old loans.
"Our plea to the central government is to at least write off the interest rate payment accumulated over the years," he said. "Once our balance sheet is cleaned up, we will get better rating which will help us to get funds at cheaper rates," he said, adding that at present FACT was paying high-interest rates of 13.5 per cent for its loans.