Fertilisers and Chemicals Travancore's revival package under active consideration of Union government: Ananth Kumar

KOCHI: A revival package for the ailing central PSU Fertilisers and Chemicals Travancore (FACT) here was under the 'active consideration' of the Union government, Minister of Chemicals and Fertilisers Ananth Kumar said today. The Centre with the 'active cooperation' of the Kerala government would chart out a road map for FACT's revival, he told reporters at nearby Udyogamandal after visiting the company.

FACT needs Rs 991.90 crore package for its revival. Ananth Kumar said Kerala Chief Minister Oommen Chandy had written to him with regard to the package and had extended the state government's 'full cooperation' in the matter of tax incentives and for permission for further use of FACT land.

"We need to expand our capability, add downstream industries. We have over 600 acres of land. Kerala government has conveyed its readiness," he said. Kerala government has also agreed to sort out the issues relating to storage of ammonia and its transportation in consultation with FACT and the Union government, he said.

On VAT rates on LNG, he said it needs to be reduced. FACT has requested the state government for exemption of VAT for LNG, which comes to about USD 3/unit.

While some north Indian companies are able to get LNG at 4.2 USD per unit, FACT gets it for over US $ 24. Earlier, trade union leaders met the minister, where he hinted at a JV of state, central or other major PSU like RCF for the downstream project. FACT has also requested the Centre to sanction the Rs 5,000 crore Ammonia-Urea plant complex at Ambelamedu.