KOCHI: Union Minister for Chemicals and Fertilisers Ananth Kumar on Friday said the Centre would take steps to expand, not just revive, loss-making public sector company Fertilisers and Chemicals Travancore Limited (FACT).
“Two years ago, we made a commitment not only to help FACT come out of the red, but also to revive and expand it. We are moving in that direction,” said the Minister while speaking at a meet-the-press programme held at the Ernakulam Press Club here.
“FACT is already on the path of revival, after the Central Government offered the `1,000-crore line of credit. I was told by the FACT management that the company would register a record production of 10 lakh metric tonne of ‘factamfos’ by the year-end. They are also planning to add more fertilisers to the company’s list of products,” he said.
When pointed out that the Centre could not claim credit for sanctioning a package for FACT, but just a line of credit - that too by pledging land owned by the company, Ananth Kumar said there were several components to a package.
“Waiver of interest and penal interest are also part of a package. So is a line of credit and leveraging of the land. We are not taking away any land. It is only a financial technicality, and only a certain area of land is being given as guarantee. Also, it is kept in the public domain so that it could be utilised for other projects. If the FACT land could be used for petrochemical projects to generate more revenue, then that is also part of a package,” he pointed out.
“A package is not all about granting money. Leveraging the assets of a public sector undertaking by keeping it in the public domain, and not surrendering it to the realty sector/private parties, is also part of a package,” added Ananth Kumar.