The Hindu : Kerala News : FACT management hints at harsh measures

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Sunday, Jan 16, 2005

Kerala

Kerala

FACT management hints at harsh measures

By Our Staff Reporter

KOCHI, JAN. 15. Fertilizers and Chemicals Travancore (FACT), which is facing a severe financial crunch, has hinted at a salary cut for employees among other measures to tide over the problem.

According to sources, the Board of Directors of the company will meet here on January 18 to decide on the future course of action even as the fourth round of VRS has elicited poor response. It is learnt that only 15 persons have submitted applications for voluntary retirement. Of these, only eight applications have been accepted as the management has asked the others, mostly from the operations divisions, to wait until a decision is taken. The VRS offer closes on January 24.

The cash shortage is severe and may affect not only salary payments but also production.

During the last season, FACT had set a record of sorts by selling its stock of fertilizer. Under these circumstances, the annual general meeting of the fertilizer company here on December 30 had sought a counter guarantee from the Government for a working capital loan of Rs. 100 crores.

The move was in keeping with a promise made in September by the Union Minister of State for Fertilizers and Chemicals, Rehman Khan, that the Union Government was ready to provide guarantee for working capital loan.

Sources said the company workers had not been issued any official information regarding a possible salary cut.

They said the Cabinet Committee on Economic Affairs would soon decide on the Rs. 700-crore revival package that has received backing from the Union Fertilizer and Agriculture Ministry.

Even the Finance Ministry has partially supported the proposals, it is learnt.

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