Chief Minister Pinarayi Vijayan has written to Prime Minister Narendra Modi saying that the proceeds from the sale of land belonging to public sector Fertilizers and Chemicals Travancore Limited (FACT) must be utilised for the modernisation and expansion of the company.
A portion of the land not being used by FACT was being transferred to State entity Kinfra for launching petroleum derivatives park. The Union government had decided that proceeds from the land sale would be utilised for repaying the company’s debt and to pay tax. However, this will leave FACT with little money for its revival. The revival project was already under the consideration of the Union government.
Taking into consideration the development opportunities of FACT and interests of its employees, the Union government must utilise the proceeds from the land sale for the revival of the fertiliser company, the Chief Minister said.
The Chief Minister’s request to the Prime Minister is that FACT’s debt be turned into equity or be written off, said a communication from the Chief Minister’s office.
A memorandum of understanding has been signed between FACT management and the State government for land acquisition.
