Union Government on 3 March 2016 signed a memorandum of agreement (MoA) to provide a loan of 1000 crore rupees to the Fertilizers and Chemicals Travancore (FACT) Limited, a Central Public Sector Undertaking (CPSU).
As per this MoA, FACT will be getting a loan of 1000 crore rupees, to be repaid with interest within a period of five years, with a moratorium of one year.
The loan will be provided with an aim to revive the organisation which has been facing financial crunch for more than a decade. This loan will ease its liquidity crisis. The new resources will be helpful in clearing long pending dues of the Company, and facilitate much needed working capital, as well as for augmenting production.
This will help FACT to maintain production at optimum level on a sustainable basis in the coming years.
The company is initiating steps to enhance the production capacity of Factamfos by setting up a new stream of production of 1000 tonnes per day at FACT’s Cochin Division at Ambalamedu in Kochi.
Fertilisers and Chemicals Travancore (FACT) Limited
FACT is a CPSU based in Kochi and has business interests in manufacturing and marketing of fertilizers, caprolactam, engineering consultancy and fabrication of equipments.
Units of FACT include the two manufacturing divisions Udyogamandal Complex-UC and Cochin Division-CD, the consultancy unit FACT Engineering and Design Organization-FEDO, the fabrication division FACT Engineering Works-FEW and the Marketing Division. The Company has also interests in petrochemicals, hydrometallurgy, chemicals and pharmaceuticals.
Incorporated in 1943, by Maharajah Sree Chithira Thirunal Balarama Varma, FACT is one of the oldest fertilizer companies of the country and provides employment to over 2700 persons directly or indirectly, over 30000 families are associated with the Company, and it caters to the needs of lakhs of farmers of South India.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
When: 3 March 2016