The Cabinet on Wednesday approved sale of nearly 482 acre of surplus land held by fertiliser firm FACT for about Rs 970 crore to the Kerala government, and the amount will be used to cut debt and enhance production capacity.
The Cabinet, chaired by Prime Minister Narendra Modi, approved sale of 481.79 acres of land held by Fertilizers and Chemicals Travancore Ltd (FACT) to the Kerala government.
As per the deal, 150 acres of land will be sold at Rs 1 crore per acre and in lieu of this the state government has agreed to give free-hold right over 143.22 acres of land to FACT. The remaining 331.79 acres will be divested at Rs 2.4758 crore per acre, an official statement said.
"FACT is under debt. But it has potential to increase production capacity and create jobs," Information and Broadcasting Minister Prakash Javadekar said.
The company is being revived to meet fertiliser requirement in southern region of the country, he added.
FACT will utilise fund 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.
"This 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 statement said.
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