Fertilisers and Chemicals Travancore hopeful of getting Rs 991 crore revival package in two months

KOCHI: Public sector Fertilisers and Chemicals Travancore ( FACT) is hopeful of getting the Rs 991 crore revival package recommended by the Board for Reconstruction of Public sector Enterprises ( BRPSE) within two months, a top official said.

The BRPSE recommendation is expected to come up before the Cabinet Committee on Economic Affairs for its final approval.

The revival package includes Rs 441 crore loan and interest write off and Rs 550 crore working capital, Chairman and Managing Director Jaiveer Srivastava told reporters here.

He was hopeful of getting the package within two months. FACT had put forth a Rs 8000 crore revival package, which included short-term, medium-term and long-term measures.

BRPSE has for the time being only considered short term package for FACT.

The Rs 8,000 crore package includes Rs 5,300 crore Urea-Ammonia plant, 3 projects at the Cochin division - a new Phosphoric Acid plant with 500 Tonnes Per Day (TPD) capacity, a new Sulphuric acid plant capacity with 2000 TPD capacity and expansion of Factamfos plant at Ambalamedu to 3000 TPD from the present 2000 TPD.

On the escalating prices of LNG, which is now being used as feedstock instead of naptha, he said the company was now getting LNG at $21.57 per MMBTU (Million Metric British Thermal Unit).

The suppliers have said the next consignment would be priced at $23.92 per mmbtu, he said adding this would cause huge financial crisis to the cash strapped FACT.