State-owned Fertilisers and Chemicals Travancore (FACT) near Kochi is expected to revive production in the next 15 days as steps have been initiated on instructions from Prime Minister Narendra Modi.
FACT has scaled down its production following higher price of imported LNG, the feedstock for the plant. Natural gas price accounts for about 60-70 per cent of the total production cost.
A delegation of Kerala MPs from all parties, including Rajya Sabha Deputy Chairman P J Kurien, on Monday met Fertiliser Minister Ananth Kumar and Petroleum Minister Dharmendra Pradhan here.
The Petroleum Minister suggested that heads of GAIL and FACT should meet immediately to sort out pricing and other related issues for gas supply to FACT.
“On instructions from the Prime Minister steps for immediate revival of FACT have been initiated…. After today’s meeting it is hoped that this plant will revive production in about 15 days from now,” an official release said.
Kerala MPs had met the Prime Minister last week in this regard.
Fertiliser Minister Ananth Kumar at the meeting asked MPs to facilitate work for laying gas pipe line from Petronet facility at Kochi up to Mangalore for uninterrupted supply of gas to fertiliser units, the release added.
Kumar asked the MPs impress upon the Kerala government to allow usage of over 1000 acres of free hold land with FACT for development of other industries including a power plant in the region.