FACT in the green

Fertilisers & Chemicals Travancore (FACT) was inches away today at Rs.43.20 from surpassing the previous new high of Rs.44.45. The stock remains firmly in the green, up over 6%.

This PSU is attracting attention like all other PSUs on hopes of revival with the Modi Govt taking over. There are reports that the Govt is planning to provide a revival package of Rs.900 crore to the company, of which Rs.300 crore would include interest free loan, Rs.150 crore will come in by way of grant, Rs.282 crore will be waived off as outstanding loans and another Rs.160 crore will be waived off as pending interest amount.

The PSU is also seeking permission from the Govt for some tax incentives as well as the approval to use its land for expanding its capacity. It has some 600 acres of land in Kerala and it is looking at adding downstream projects if it gets the NOC.