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FACT Ex-staffers pooh-pooh bailout

Published: 21st May 2016 06:25 AM  |   Last Updated: 21st May 2016 06:25 AM   |  A+A-

KOCHI: FACT Retired Employees Association claimed that theRs 1,000 crore loan given to Fertilisers and Chemicals Travancore Limited (FACT) would not be able to bail out the company since the total liability of the company would come to Rs  2,500 crore by 2022.

“The amount was sanctioned based on several conditions. Also, 408 acres of FACT land was pledged as collateral. The present loan along with the existing liability of Rs 862 crore at 13.5 per cent  would add up to Rs 2,500 crore in five years. The ailing company will find it difficult to repay this huge amount,”  the association said in a release.

According to K C Mathew, president of the association, if the 408 acres of land of FACT were sold even at the half the prevailing market prices, the company would have been able to fetch Rs 2,000 crore easily. The association represents over 4,000 retired FACT employees .

“As many as 4,000 employees have retired from FACT since 1997. There are 500 widows of retired employees. All are waiting for the pending salaries. FACT had promised to provide medical aid to the retired employees. But it has not been fulfilled. The payments due to retired employees should be made given as early as possible,” said general secretary of the association Devasikutty Padayattil.



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