Call for Centre’s intervention to revive and modernize FACT
MP Hibi Eden has urged the Union Fertilizer Ministry to provide financial support and policy intervention to help FACT overcome its current financial crisis.
Member of Parliament Hibi Eden has formally reached out to Jagat Prakash Nadda, the Union Minister for Chemicals and Fertilizers, calling for urgent intervention to protect the Fertilizers and Chemicals Travancore (FACT). In his appeal, the MP highlighted that the company is currently navigating an unprecedented financial crisis driven by escalating raw material costs and mounting debt, which threaten its long-term operational viability.
The sharp increase in raw material prices has significantly inflated the production costs for phosphatic fertilizers and ammonium sulphate, creating severe pressure on the company’s finances. Eden noted that these economic headwinds are undermining the stability of a company that is critical to both the regional economy of Kerala and India’s broader agricultural and industrial sectors.
Despite these challenges, FACT continues to maintain strong production output. During the previous financial year, the company produced over 1.14 million tonnes of fertilizers and successfully marketed more than 1.1 million tonnes. The company’s operations are vital, as they directly and indirectly support the livelihoods of more than 3,000 employees and workers, underscoring the urgent need for government assistance to ensure its survival.
To address the financial stress, Eden has proposed that the Centre restructure the ₹1,000-crore in loans currently held by FACT. By reducing the interest burden, the company could redirect these funds toward essential modernization and production efforts. The FACT Board has already approved a ₹6,350-crore expansion and modernization plan designed to boost domestic fertilizer production, decrease reliance on imports, and enhance overall efficiency.
Finally, the MP requested that the Ministry expedite the necessary approvals for these growth projects. His recommendations also include introducing a special revival package, adjusting fertilizer subsidy rates to reflect real-time raw material costs, and clearing all outstanding subsidy arrears. Additionally, he urged the Centre to engage with the Kerala state government to secure a full exemption from K-VAT on LNG supplies, which would provide critical relief to the company's operating costs.