The ₹1,000-crore loan extended by the Centre seems to have facilitated the public sector FACT to resume production of fertilisers at full capacity. This is evident from the restarting of production of caprolactam, an organic compound, after a gap of four years.

At a press conference here on Thursday, Jaiveer Srivastava, CMD of FACT, said the caprolactam plant has the capacity to produce 50,000 tonnes and the revenues derived will help the company achieve operating profits this fiscal.

Gujarat State Fertiliser Company is another producer of caprolactam in the country, with a capacity of 70,000 tonnes.

The current caprolactam demand in the country is 1,30,000 tonnes and the gap of 10,000 tonnes is met from Chinese imports.

However, the FACT product is of high quality, meeting all the international standards, said Srivastava.

He added that plans are afoot to go for value addition in the plant to produce nylon chips, which is in huge demand at textile units.

FACT could tide over its serious working capital constraints largely through the loan provided by the Centre, said the CMD.

Referring to production performance in the first half, he said the company could achieve Factamfos production to the level of 3.90 lakh tonnes against the target of 3.30 lakh tonnes set by the Department of Fertilisers.

Ammonium sulphate production stood at 0.985 lakh tonnes, which is 111 per cent of the production target even amidst interruptions in the supply of LNG.

However, he said there are issues to be sorted out with the Centre regarding the relief package, repayment of loans and mobilisation of funds for capacity expansion.

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