The Indian government has invited fresh bids for the sale
of 51-per cent equity in Fertilisers and Chemicals Travancore
(FACT), setting a deadline of 26 February 2003 for prospective
companies to submit their expression of interests (EoIs).
revised bid is intended to allow fertiliser cooperatives
of Indian Farmers Fertilisers Cooperatives (IFFCO) and
Krishak Bharati Cooperative (Kribhco) to bid for the Kochi-based
fertiliser public sector unit (PSU), say sources.
Centre had, earlier, invited bids for FACT in November
2002 asking the interested companies to submit the bids
by 4 December 2002.
Touche Tohmatsu India, the advisers of the central Government
in the FACT sell-off, has stipulated that the bidding
companies should have a net worth of Rs 200 crore or above
and sales of Rs 600 crore or above in the last years
revised bid comes after the Centre announcing the dual
pricing policy, whereby the subsidy is different for units
using captive ammonia units and those using natural gas
uses costly naphtha as feedstock for its captive ammonia
unit and will get higher subsidy for the next three years.
Officials expect much better response from companies this
time compared to the earlier EoI announcement, due to
the subsidy incentive.
Birla Group company Indo Gulf Fertilisers and Deepak Fertilisers
had bid for FACT during last time; they are expected to
submit their EoIs this time, too.
the Centre deciding not to relax the total sales turnover
(Rs 600 crore) for those companies interested in FACT,
it is very likely that both IFFCO and Kribhco may join
hands to bid for the 51-per cent stake in FACT.
the companies have gone on record to announce their intention
to bid for all the three PSU fertiliser companies put
on block National Fertilisers, Madras Fertilisers