CPI(M) Ernakulam district secretary accuses State govt., MP of inaction over FACT crisis

Communist Party of India (Marxist) [CPI(M)] Ernakulam district secretary S. Sathish on Wednesday accused the State government and Ernakulam MP Hibi Eden of failing to act on the financial crisis facing Fertilisers and Chemicals Travancore (FACT), India’s first public sector fertiliser manufacturer.

Mr. Sathish accused the Congress MP of maintaining a “criminal silence” on issues concerning Central public sector undertakings in his constituency. He said the MP had failed to exert pressure on the Central government to protect workers and central PSUs, citing the closure of Hindustan Insecticides Limited at Eloor and labour issues at Hindustan Machine Tools as examples.

“FACT, which produced more than 1.14 million tonnes of fertilisers and marketed over 1.1 million tonnes during the last financial year, provides direct and indirect employment to more than 3,000 people. The company plays a crucial role in the country’s food security and fertiliser self-sufficiency. Pushing the institution to decline owing to financial crisis would have serious consequences for both the State and the country,” the CPI(M) leader said in a statement.

He cited the sharp increase in prices of key raw materials for phosphatic fertilisers, including sulphur and phosphoric acid, as the trigger for financial pressure on the company.

“The Union government should release fertiliser subsidies on time and immediately clear pending dues. The MP and the State government, who should be exerting pressure on the Centre to secure these funds, have remained mute spectators,” he said.

Mr. Sathish also called for the Centre’s early approval and support for FACT’s ₹6,350-crore expansion projects that have already been cleared by the company’s board of directors. He said the projects would increase production and revenue while creating significant employment opportunities.

MP’s reply

Responding to the allegations, Mr. Eden said he had raised issues concerning FACT in Parliament during the previous session too.

He cited a question to Minister for Chemicals and Fertilisers J.P. Nadda, in which he had pointed out that the absence of a full-time chairman and managing director had been affecting the company which had been making profits for the past four years in a row then.

He said he had also asked the government about measures taken to install a nano urea plant promised earlier. The Minister, in his reply, said he would look into the matter,” the MP said.