Fertilisers and Chemicals Travancore Ltd (FACT) is likely to get 'conditional' financial assistance of Rs 1,000 crore as the ailing public sector firm is facing a liquidity crisis.
The amount has already been sanctioned by the government and will be used to meet the working capital requirements of the firm and to pay off a part of outstanding debt.
"The company is facing a severe liquidity crisis as its subsidy payment is also delayed and therefore it is expected that the government will provide Rs 1,000 crore sanctioned aid within next month," a source said.
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The Rs 1,000 crore package has been sanctioned on the condition that the company will mortgage equivalent value of its land to the Centre, the source added.
"So far FACT has been able to pay salaries but now the situation is grim, the firm requires funds as early as possible to pay salaries and to continue its operations," the source added.
The company has 2,000 acres of land at Udyogamandal and Ambalamedu in Cochin.
The company's net worth is in negative due to continuous losses and increasing debts.
The company has also drawn up a medium and long term investment plan totalling of about Rs 8,000 crore in the next five years, including augmenting the capacity of factomfose production to three million tonnes.
