Kochi: The Union Cabinet on Wednesday has appr-oved the long-pending proposal of the Fertilizers and Chemicals Travancore Ltd to sell 481.79 acres of land held by the company to the Government of Kerala.
The ailing PSU has been allowed to utilise the money from the sale proceeds to its various expansion and growth plans. The decision of the Centre clears the way for the petrochemical park project of the state government.
The Union Cabinet approved the proposals for sale of 150 acres of land at the rate of Rs 1cr per acre (in lieu, the state government agre-eing to give free-hold right over 143.22 acres of land to FACT).
The remaining 331.79 acres is being sold at the rate of `2.4758 crore per acre as assessed by the District Collector of Ernakulam, a release by Press Information Bureau said.
The sale proceeds will be used to address the working capital deficiency, improvement of balance sheet and enabling the company to enhance physical and financial performance by implementing capacity expansion projects for sustainable growth of the company.
A spokesman for the Save FACT Forum said the land sale decision should have been taken in tandem with writing-off the financial liabilities of the company to the centre estimated at nearly Rs 2,000 cr. He said the rate fixed for the land below the market price is detrimental to the interest of the company....