The Hindu : Kerala News : FACT facing major crisis: Karim

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Thursday, Jul 12, 2007
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Kerala

FACT facing major crisis: Karim

Special Correspondent

Sharp increase in sulphur price in international market

Company unable to transfer additional cost to consumers
Centre refuses to compensate company for the hike in price

Elamaram Karim

THIRUVANANTHAPURAM: Industries Minister Elamaram Karim has said that Fertilisers and Chemicals Travancore (FACT) Limited is faced with a serious crisis on account of the sharp increase in sulphur price in the international market.

Replying to a submission by A.M. Yousuf (CPI-M) in the Assembly on Wednesday, the Minister said that the company had been forced to stop sulphur purchases on account of its inability to transfer the additional input cost burden to the consumers by hiking the prices of ammonium sulphate and caprolactum and the Centre’s refusal to compensate the company for the hike in sulphur price by including it in the price concession scheme for Factomphose.

The company has also reoriented the functioning of plants to facilitate optimal use of the available sulphur stock.

It has also temporarily suspended operation of the caprolactum, ammonium sulphate and ammonia plants and brought down drastically the capacity of the sulphuric acid plant.

This should help ensure production of composite fertilizers and minimise the company’s losses.

The company has requested the Central Government to grant it price concession on its average expenditure on account of the recommendations of the Tariff Commission, to compensate it for losses on account of naphtha-based ammonium sulphate production till LNG is made available to it and to allow it to draw LNG from the Petronet terminal coming up at Kochi.

It also sought subsidy for fertilizers containing sulphur, Mr. Karim said.

The Minister said the Government would, in association with the Centre, do everything within its power to find a solution to the crisis gripping the company.

Gem-cutting

Mr. Karim told Babu M. Palissery (CPI-M) that the Government would set up a training centre, quality control establishment and a computerised design and cutting centre as part of the cluster development projects meant for the gem-cutting industry in the State.

It is also proposed to set up a raw material bank and a common marketing centre under the scheme, he added.

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