Loss-making public sector company Fertilisers and Chemicals Travancore (FACT) has received a loan of Rs 1,000 crore from the Centre. FACT is one of the oldest fertiliser companies of the country, providing employment to over 2,700 people directly or indirectly. It caters to the needs of lakhs of farmers in South India.
The memorandum of agreement (MoA) for the revival of the central public sector undertaking was signed by Dharam Pal, joint secretary, ministry of chemicals and fertilizers, and Jaiveer Srivastava, CMD, FACT, at a function in New Delhi on Thursday.
Under the MoA, FACT will be getting a loan of R1,000 crore, to be repaid with interest within a period of five years, with a moratorium of one year. The company, which has been facing a severe financial crunch for the last more than a decade, has now got a breather in the form of the loan, which will ease its liquidity crisis, the release said.
Speaking on the occasion, Ananth Kumar, minister of chemicals and fertilisers, said that the Modi government is committed to the food security of the nation, and fertiliser security is one of its main components. He said that FACT, due to various reasons, had fallen sick and its revival has been one of the priority items on the government’s agenda.