Fertilisers and Chemicals Travancore (FACT) plans to reopen its ammonia plant, which has been shut for about 11 months, soon.
This follows the Kerala government’s decision to waive VAT on liquefied natural gas (LNG) used by the company. The current VAT rate on LNG is 14.5 per cent
Addressing a press conference here today, FACT chairman and managing director Jaiveer Srivastava, said the exemption of LNG from VAT would help bring down its price to about $13.47 per unit (mmbtu). The ammonia plant would restart within 4 weeks, he said, adding once the plant was stabilised, the caprolactam plant, which has been shut for the last 28 months, would also be restarted.
This would also lead to considerable improvement in the production of factamfos, which at present is only about 60 per cent due to the shortage of ammonia.
Srivastava said about Rs 7 crore was required for restarting the caprolactam plant. There has been a substantial fall in the price of benzene, one of the main raw materials used in the production of caprolactam.
On the government’s request for 150 acres of FACT land for a power plant, he said it was a matter to be decided between the Centre and the state.
