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Government considering lowering interest rate on loan given to FACT
The government is planning to lower the interest rate on the loan of Rs. 1, 000 crore given to Kochi fertilizer firm, Fertilisers and Chemicals Travancore Ltd, (FACT) by the Government of India. The loan was given for the expansion and redevelopment of the production capacity to one million tonnes this fiscal year.

The fertilizer firm is facing a liquidity crunch and produces about 6 lakh tonnes of NPK fertilizers such as aluminium sulphate with an annual turnover of about Rs 2, 000 crore.
Ananth Kumar, Union Chemicals and Fertilisers Minister stated that “FACT is asking for reduced interest rate on Rs 1, 000 crore loan that the Government of India has sanctioned. We are actively considering it.”

FACT has to repay the loan amount along with interest in five years, with a moratorium of one year. The loan is being used for working capital requirement, clearing its pending dues and maximising capacity utilization.

The minister also said the revival package does not mean only providing monetary assistance, but also facilitating many other aspects of the business and ensuring better performance.
FACT is the country’s first fertilizer plant. Its revival and capacity expansion would boost supply in Kochi and entire South India.
Posted on: 2017-06-02 14:48:16





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