Govt rules out closure of FACT

Govt rules out closure of FACT
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First Published: Thu, Apr 24 2008. 02 45 PM IST
Updated: Thu, Apr 24 2008. 02 45 PM IST
PTI
New Delhi, Apr 24 (PTI) The government has said that it will not close down fertiliser company FACT in Kerala, despite the PSU incurring losses continuously, a announcement that brings relief to its 5,000 employees.
Replying to a supplementary in the Lok Sabha, Fertiliser Minister Ram Vilas Paswan said the government has already promised a Rs200 crore revival package to the PSU and assured the House that the company will not be closed down.
He, however, said the company cannot come into black unless gas was made available to it from the upcoming LNG import terminal in Kochi.
FACT is currently running on liquid fuel, which are at least twice the cost of natural gas. High fuel cost was one of the reason for the company making losses.
Till then (till gas is made available), the government would continue to compensate the company for its losses, the minister stated.
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First Published: Thu, Apr 24 2008. 02 45 PM IST