Cabinet approves sale of 481.79 acres of land held by FACT to the Government of Kerala and utilization of the sale proceeds by FACT
Posted On: 24 JUL 2019 by PIB Delhi
The Union Cabinet chaired by Prime Minister Narendra Modi has approvedthe following proposals:
1. Sale of 481.79 acres of land held by the Fertilizers and Chemicals Travancore Ltd. (FACT) to the Govt. of Kerala in the following manner:
a. 150 acres of land at the rate of Rs. 1 crore per acre (in lieu, Govt. of Kerala agreed to give free-hold right over 143.22 acres of land to FACT); and
b. Remaining 331.79 acres @ Rs. 2.4758 crore per acre as assessed by the District Collector of Ernakulam
2. Utilization of the sale proceeds by FACT to address working capital deficiency, improvement of balance sheet and enabling the company to enhance physical and financial performance by implementing capacity expansion projects for sustainable growth of the company.
This approval will help FACT to reduce the bank borrowings and to implement projects for enhancing fertilizer production capacity and upgrading logistics / raw material handling facilities.
The revival of FACT will create opportunities for expansion and diversification of the company and this in turn, will help to generate more jobs, both directly and indirectly. The net effect of this will be a boost to the economy of the State of Kerala and improving fertilizer availability to South India. Reduction of dependence on import of fertilizers and chemicals will facilitate resultant savings in foreign exchange to the country and also improve fertilizers and food security. Through inclusion of fixed timelines for monitoring the implementation of the sale of land, the accountability of the management in achieving performance after the sale of land will be ensured. The unit has already switched over to cleaner LNG as feedstock and fuel, which will improve its energy efficiency and environmental friendliness.