Cabinet approves sale of FACT’s 481.79 acres of land to Kerala Govt

Cabinet approves sale of FACT’s 481.79 acres of land to Kerala Govt

Agency News

New Delhi, July 24 : The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, approved the sale of 481.79 acres of land held by Fertilisers and Chemicals Travancore (FACT) Ltd to the Government of Kerala to revive the Kerala-based Public Sector Undertaking.

According to Union I&B Minister Prakash Javadekar, who was briefing the Cabinet decisions, out of 481.79 acres of land owned by the FACT, 150 acres of land at the rate of Rs.1 crore per acre will be sold to the Kerala government."In lieu, Kerala government agreed to give free-hold right over 143.22 acres of land to FACT", he said.

The remaining 331.79 acres will be sold at the rate of Rs. 2.4758 crore per acre as assessed by Ernakulam District Collector. "Utilisation of the sale proceeds by FACT to address working capital deficiency, improvement of balance sheet and enabling the company to enhance physical and financial performance by implementing capacity expansion projects for sustainable growth of the company", the Minister added.

According to the government, the Cabinet approval will help FACT to reduce the bank borrowings and to implement projects for enhancing fertilizer production capacity and upgrading logistics / raw material handling facilities.

"The revival of FACT will create opportunities for expansion and diversification of the company and this in turn, will help to generate more jobs, both directly and indirectly", the government said in an official press release.

They added that the net effect of this will be a boost to the economy of the State of Kerala and improving fertilizer availability to South India. "Reduction of dependence on import of fertilizers and chemicals will facilitate resultant savings in foreign exchange to the country and also improve fertilizers and food security", it added.The government also said that by fixing a timeline for monitoring the sale, the accountability of the management in achieving performance after the sale of land will be ensured. (UNI)