Lok Sabha Question No. 497 (STARRED), answered on 2025-04-04
Subject: Expansion Plans for FACT
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Kodikunnil Suresh

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

## LOK SABHA

## STARRED QUESTION NO. * 497 TO BE ANSWERED ON 04.04.2025

## Expansion Plans for FACT

## *497:  SHRI KODIKUNNIL SURESH:

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

- (a) whether  the  Government  has  approved  any  expansion  or  modernization plans for Fertilizers and Chemicals Travancore Limited (FACT);
- (b) if  so,  the details of the proposed expansion including new production units, capacity enhancement and estimated investment;
- (c) whether the Government has allocated any financial assistance or subsidies for FACT's expansion projects;
- (d) if so, the expected timeline for completion of these expansion projects; and
- (e) the manner in which the expansion will impact fertilizer production, employment opportunities and the agricultural sector in Kerala?

## ANSWER

MINISTER FOR CHEMICALS & FERTILIZERS AND HEALTH & FAMILY WELFARE

(SHRI JAGAT PRAKASH NADDA)

(a) to (e): A statement is laid on the table of the House.

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## STATEMENT  REFERRED  TO  LOK  SABHA  STARRED  QUESTION  NO.  *497 FOR  ANSWERING  ON  04.04.2025  REGARDING  'EXPANSION  PLANS  FOR FACT' ASKED BY SHRI  KODIKUNNIL SURESH.

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(a) to  (b):    The  Union  Cabinet  on  24.07.2019  approved  the  proposal  for  sale  of 481.79 acres of land held by FACT to the Government of Kerala and utilization of the sale  proceeds  by  FACT  to  address  its  working  capital  deficiency,  improvement  of balance sheet and enable the company  to enhance physical and financial performance by implementing capacity expansion projects for sustainable growth of the  company.  The  details  of  expansion/  modernization  plans  of  Fertilizers  and Chemicals Travancore Limited (FACT) are as follows:

| Details of Expansion/Modernisation of plants of FACT   | Details of Expansion/Modernisation of plants of FACT                                     | Details of Expansion/Modernisation of plants of FACT   |
|--------------------------------------------------------|------------------------------------------------------------------------------------------|--------------------------------------------------------|
| Sl. No.                                                | Project                                                                                  | Project Cost                                           |
| 1.                                                     | New 1650 Metric Tonne Per Day (MTPD) NPK Plant at Cochin Division.                       | Rs. 417.23 Crore                                       |
| 2.                                                     | 10000 MT Ammonia Storage Tank at Cochin Division.                                        | Rs. 138.73 Crore                                       |
| 3.                                                     | Construction of 2x5900 MT Phosphoric Acid Storage Tanks at Q10 Berth, Willingdon Island. | Rs. 28.16 Crore                                        |
| 4.                                                     | Ammonia Barge for transportation of Ammonia to Production units.                         | Rs. 18.88 Crore                                        |
| 5.                                                     | 2x5000 MT Sulphuric Acid Storage Tank at Cochin Division.                                | Rs. 16.94 Crore                                        |
| 6.                                                     | Reconstruction of Ammonia berth at Cochin Port                                           | Rs. 1.19 Crore (Executed under Sagarmala Scheme)       |

(c)  to  (d):    Fertilizers  and  Chemicals  Travancore  Limited  (FACT)  is  implementing the current projects from its internal resources. However, the Government of India had  granted  a  loan  of  Rs.  1000  Crore  in  the  year  2016  to  restart  plants  for  the sustainable  operation  of  the  Company  and  permitted  to  sell  its  land  generating around Rs. 1400 Crore. The Government of India loan and the proceeds from the sale of land helped the company to revive and support the CAPEX projects.

The expected timeline for completion of the two projects in FACT are related to the work of new 1650 MTPD NPK Plant at Cochin Division and construction of 2x5900  MT  Phosphoric  Acid  storage  tanks  at  Q10  Berth,  Willingdon  Island  are during  the  year  2025-26.  The  remaining  projects  in  FACT  have  already  been completed.

(e): The new 1650 MTPD NPK plant is designed to produce various grades of NPK  fertilizers, including 20:20:0:13 and DAP  18:46:0, catering to diverse agricultural requirements . With the completion of this project, FACT can enhance fertilizer  production  capacity  from  1  Million  MT  to  1.5  Million  MT  per  year.  The expansion project will generate direct and indirect employment opportunities during both construction and operational phases.

FACT,  as  the  leading  fertilizer  supplier  in  Kerala,  plays  a  crucial  role  in meeting  the  State's  agricultural  demands.  The  increased  production  capacity  of NPK fertilizers is expected to enhance the availability and affordability of essential nutrients  for  crops.  This  will  enable  to  better  serve  the  farming  community contributing to improved crop yields thereby supporting higher agricultural productivity and economy in Kerala.

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