Dear Shri. Narendra Modiji,
The State Government has given in principle approval for the negotiated purchase of unutilised surplus land belonging to the FACT by the KINFRA, an agency of State Government. The land value has been mutually arrived at and an MOU has already been signed in this regard.
FACT, one of the oldest Central PSUs in the State, is in critical need of modernisation and expansion of its activities. Its revival has been under consideration of the Ministry of Chemicals and Fertilisers. The Ministry had initially decided that the amount so monetized be used for clearing FACT’s books of accounts/balance sheet so as to use the amount for expansion for FACT.
You would appreciate that if the amount realised from the land sale is used for the payment of capital gain and minimum alternative Tax, repayment of 50% of the loan amount to Union Government and for adjusting interest to Government and the bank, then there would hardly be any amount left for its revival. The State Government had agreed to purchase the land from FACT hoping that the amount realised would be fully used for revival of FACT.
I have already written to the Union Minister requesting that the proceeds of the land sale should be used for revival and not for settlement of its dues to Union Government. I would therefore, request your kind intervention so that the entire amount realised from the sale of FACT land to State Government is used for revival of the FACT. I would also request for writing off the debt to the Ministry or converting the debt into the equity so to enable FACT to clear its books of accounts and balance sheet, for its survival.
Shri. NARENDRA MODI
Hon’ble Prime Minister of India
152, South Block,
Raisina Hill, New Delhi-110011.