Public sector Fertiliser and Chemicals Travancore Ltd (FACT) has outlined several expansion and diversification plans through joint ventures with other PSUs, utlising the land and other resources of the company.
The main purpose of diversification is the optimum utilization of available resources of the company particularly land resources and the huge stock of waste Gypsum available to earn revenue on a sustainable basis and to increase the overall profitability of the company. The main diversification projects proposed by the Company are as under:
1. FACT has formed a joint venture company namely FACT-RCF Building Products Ltd., for manufacturing of value added products using Phospho-Gypsum.
2. Setting up of container freight stations in association with Central Warehousing Corporation (CWC) and Container Corporation of India Ltd. (CCI) for which an MOU has been signed.
3. Setting up a free-trade warehousing zone at Udyogamandal.
4. A joint venture company with Indian Oil Corporation (IOC) by demerger of FEDO, the Engineering Division of FACT for which an MOU has been signed.
5. A joint venture with Cochin Shipyard Ltd., by demerger of FEW, the Fabrication Wing of FACT for which an MOU has been signed.
The Government had sanctioned a one-time grant-in-aid of Rs. 200 crore to FACT in March, 2008, in order to enable the company to sustain its operations. The Company was also advised to entrust a study by a reputed consultant to suggest measures for enhancing operational efficiency including cost cutting measures. The recommendations of the consultant are under examination by the Board of Directors of the FACT, Union Minister of State for Chemicals and Fertilisers, B K Handique informed the Lok Sabha the other day.
The main purpose of diversification is the optimum utilization of available resources of the company particularly land resources and the huge stock of waste Gypsum available to earn revenue on a sustainable basis and to increase the overall profitability of the company. The main diversification projects proposed by the Company are as under:
1. FACT has formed a joint venture company namely FACT-RCF Building Products Ltd., for manufacturing of value added products using Phospho-Gypsum.
2. Setting up of container freight stations in association with Central Warehousing Corporation (CWC) and Container Corporation of India Ltd. (CCI) for which an MOU has been signed.
3. Setting up a free-trade warehousing zone at Udyogamandal.
4. A joint venture company with Indian Oil Corporation (IOC) by demerger of FEDO, the Engineering Division of FACT for which an MOU has been signed.
5. A joint venture with Cochin Shipyard Ltd., by demerger of FEW, the Fabrication Wing of FACT for which an MOU has been signed.
The Government had sanctioned a one-time grant-in-aid of Rs. 200 crore to FACT in March, 2008, in order to enable the company to sustain its operations. The Company was also advised to entrust a study by a reputed consultant to suggest measures for enhancing operational efficiency including cost cutting measures. The recommendations of the consultant are under examination by the Board of Directors of the FACT, Union Minister of State for Chemicals and Fertilisers, B K Handique informed the Lok Sabha the other day.