Lok Sabha Question No. 3241 (UNSTARRED), answered on 2018-08-07
Subject: FACT in Kerala
Ministry: CHEMICALS AND FERTILIZERS
Asked by: P. KARUNAKARAN

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO: 3241 TO BE ANSWERED ON: 07.08.2018

## FACT in Kerala

## SHRI P. KARUNAKARAN:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether the Government has received any representation from the State of Kerala regarding the serious issues of Fertilizers and Chemicals Travancore Limited (FACT) in the State;
- (b) if so, the reaction of the Government thereto;
- (c) whether FACT is one of the oldest central PSU in the State;
- (d) whether  the Government   provides assistance for  the modernization and expansion including financial assistance; and

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERILIZERS

## (RAO INDERJIT SINGH)

(a): Yes Madam, Gol has received representations from Chief Minister, Government of Kerala regarding setting up of LNG based Urea plant & revival of FACT.

- (b): FACT has also approached Govt. with a financial  restructuring proposal which includes waiver of outstanding loan & interest thereon, one-time compensation for the use of high cost LNG & approval for sale of land: InterMinisterial consultations are ongoing and the proposal is under finalization.
- (c) FACT is one of the oldest central PSUs in the State of Kerala FACT was incorporated in the year 1943. It became Public Sector Undertaking in the year 1962.
- (d) & (e): As and when required, necessary financial assistance is being given by the Government of India to FACT. Year-wise details of the same are as under;

## 2001-02

Financial on the OECF loan obtained by the company for its Ammonia Project at Udyogamandal as under:

- (e) if so, the details thereof?
- Waiver of outstanding interest amounting to Rs.226.88 crore for the period from 1998-99 to 2001-02.
- Moratorium on principal repayment upto 31.03.2002 on the balance Ioan amounting to Rs.378.20 crore.
- (iii) Waiving levy of penal interest on past defaults in repayment of principal due and interest accrued and due upto 31.03.2002.

## 2002-03

Financial reliefs sanctioned vide order No.14012/8/2002-FP dated 31.10.2003.

- Waiver of outstanding interest of Rs.87.80 crore on GOI loans of Rs.497.20 crore as on 31.03.2003 along with waiver of penal interest for past defaults upto 31.03.2003.
- Moratorium on repayment of   principal on as on 31.3.2003 amounting to Rs.497.20 crore upto 31.3.2004 to be repaid in 10 equal annual instalments from 2004-05 onwards.
- (iii) Reduction in interest rates on GOl loans of FACT as on 31.3.2003 to 7% with effect from 1.4.2003 from the existing rate of 13.50%-16.00%.
- (iv) Deferment of interest payment on outstanding GOI loans as on 31.3.2003 upto 31.3.2004. on 31.3.2004 and repaid along with outstanding principal as in (ii) above:

## 2005-06

Financial relief package sanctioned by Government of India vide letter No.19047/3/2006-FCA-II dated 28.9.2006 based on BRPSE recommendations as follows:

- Waiver of outstanding interest as on 31.3.2005 amounting to Rs.85.77 crore.
- Conversion of 50% of the outstanding GOl loan of Rs.584.60 crore as on 31.3.2005 (ie. Rs.292.30 crore into equity capital):
- (iii) Write off of the non-plan Ioan of Rs.60 crore given for voluntary retirement scheme
- (iv) Write off of  balance   outstanding of Rs.232.30 crore as on 31,.3.2005.

## 2007-08

During the year Government of India had released a grant in aid of Rs.200 crore to sustain the operations of the company and help restart the shutdown plants.

## 2015-16

To avert immeaiate financial crisis in FACT, a Plan Loan amounting Rs 1000 crore was sanctioned: