Cabinet approves sale of FACT land to Government of Kerala
Union Cabinet chaired by Prime Minister Narendra Modi has approved sale of 481.79 acres of land held by Fertilizers and Chemicals Travancore Ltd (FACT) to Government of Kerala. Cabinet also approved and utilization of the sale proceeds by FACT.
Sale Distribution: 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 Remaining 331.79 acres @ Rs. 2.4758 crore per acre as assessed by the District Collector of Ernakulam.
Through inclusion of fixed timelines for monitoring implementation of sale of land, the accountability of management in achieving performance after sale of land will be ensured.
Utilization of Sale proceeds: FACT will utilise sale proceeds for addressing working capital deficiency, improving balance sheet, enabling company to improve its financial performance by implementing capacity expansion projects for sustainable growth of company.
Impact: Approval will help FACT to reduce bank borrowings and to implement projects for enhancing fertilizer production capacity and upgrading logistics or raw material handling facilities.
Revival of FACT will create opportunities for expansion and diversification of company. This would in turn help to generate more jobs, both directly and indirectly.
Net effect of step taken will be a boost to economy of Kerala and improving fertilizer availability to South India.
It would also lead to reduction of dependence on import of fertilizers and chemicals will facilitate resultant savings in foreign exchange (FOREX) to country and also improve fertilizers and food security.
It is a fertiliser and chemical manufacturing company.
It was founded in 1943 and is headquartered in Kochi, Kerala.
Besides being 1st fertiliser manufacturing company in independent India it is also largest Central public Sector Undertaking (CPSU) in Kerala.
Category: Government Schemes Current Affairs