Lok Sabha Question No. 1589 (UNSTARRED), answered on 2019-07-02
Subject: Functioning of FACT
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Hibi Eden

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1589 TO BE ANSWERED ON 02.07.2019

## Functioning of FACT

## 1589\_ SHRI HIBI EDEN:

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

- (a) the steps taken\_by the Government for the sustainable operation of Fertilizers and Chemicals Travancore Limited (FACT), Cochin;
- {) whether any study has been conducted by the Government for the same; and if so, the details thereof?
- (b) the steps taken by the Government for the expansion and capacity enhancement of FACT;

## ANSWER

MINISTER OF CHEMICALS AND FERTILIZERS.

(D V:SADANANDA GOWDA)

(a) & (b): As and when required, necessary financial support has been given by Government of India to Fertilizers and Chemicals Travancore Limited (FACT) operational: Year-wise details of the sarrie are as under: keep

## 2001-02

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

- 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 loan 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 31.03.2003. upto
- Moratorium on repayment of principal on GOI loans as on 31.3.2003 amounting to Rs.497.20 crore 31.3.2004 to be repaid in 10 equal annual instalments from 2004-05 onwards.

- (iii) Reduction in interest rates on GOI 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. The deferred interest shall be converted into loan on 31.3.2004 and along with outstanding principal as in (ii) above. repaid

## 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 GOI loan of Rs.584.60 crore as on 31.3.2005 (ie. Rs.292.30 crore into equity capital).
- Write off of the non-plan loan of Rs.60 crore given for  voluntary retirement scheme.
- (iv) Write of balance outstanding GOI loan of Rs.232.30 crore as on 31.3.2005. off

## 2007-08

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

## 2015-16

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

FACT has identified total 651.479 acres of land for sale to Government of Kerala (481.79 acres) and Bharat Petroleum Corporation Limited (169.689\_ Transaction for sale of land from FACT to Bharat Petroleum Corporation Limited has already been executed.

(c) & (d): NITI Aayog being subject experts\_was entrusted to conduct a drawing board study on the feasibility of merger of FACT and Madras Fertilizers Limitedtwith other fertilizer units. NITI Aayog has submitted its draft study reports for comments.