Govt approves additional compensation to FACT
Feb 28 2014 , New Delhi
"The approval has been given by the Cabinet Cabinet Committee on Economic Affairs (CCEA) to extend the additional grant for a period from June 30 to October 4 of the financial year 2013-14," the statement said.
Earlier this policy was applicable initially for a maximum period of two years with effect April 1, 2010.
The company was expected to use LNG gas as feedstock for production of ammonia or start using imported ammonia.
As some of the reasons for delay in conversion of feedstock from naphtha to gas were beyond the control of company, so the Fertiliser Ministry proposed to extend the additional subsidy for FACT.
The period of eligibility for additional compensation was extended to June 2013 in case of Fertilizers and Chemicals Travancore Limited (FACT) only in view of its preparedness for conversion of its feedstock to gas within a definite time frame, it added.
FACT has successfuly migrated to using LNG as feedstock from October 5, 2013. Accordingly, continuation of additional compensation to FACT beyond June 30, 2013 was required and has now been approved by the Cabinet.
These additional funds will compensate FACT for having manufactured and supplied P&K fertilisers to the domestic market by using costlier feedstock (Naphtha) prior to migration to LNG.