(a) the details of growth in profit of Fertilizers and Chemicals Travancore
Limited Cochin during the last two years;
(b) whether there has been any downfall in the profit during the said period;
(c) if so, the reasons therefor;
(d) whether the Government have taken any steps to bring improvement in
FACT; and
(e) if so, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
( SHRI RAMESH BAIS )
(a) & (b) : The financial performance of Fertilisers And Chemicals Travancore
Ltd. (FACT) showed a negative growth with loss of Rs.48.26 crore for 1998-99
as against net profit of Rs.53.94 crore for 1997-98. The company has again
projected a provisional loss of Rs.48.00 crore for 1999-2000.
(c): The main reasons for the decline in profits are inter-alia the high capital
related charges of the new Ammonia plant commissioned in March, 1998
(Rs.65.00 crore towards interest and Rs. 35.00 crore towards depreciation),
coupled with increase in cost of petroleum products which resulted in high cost of
Ammonia affecting the profitability of Factamfos, Ammonium Sulphate and
Caprolactam.
(d) & (e) : The Government have provided a budgetary support of Rs.35.00
crore to FACT during 1999-2000 and have made a provision of Rs.40.00 crore
for 2000-01 to enable it to implement essential renewals/replacements and
upgradation schemes directed towards improving the health and overall
performance of its plants.