FACT Charged Penal Interest of ₹389.5 Crore on Govt. Loan; Seeks Waiver
FACT received communication regarding penal interest charged on a Government of India Loan from April 1, 2018. The total impact is ₹389.5 crore up to March 31, 2026, and ₹48.69 crore for FY 2026-27. The company is seeking a waiver from the Ministry of Chemicals and Fertilizers.
The penal interest amounts to a significant sum (₹389.5 crore) and impacts the current financial year, necessitating engagement with the government for a waiver, which could affect the company's financial health.
The company has been charged penal interest on a government loan, which represents an additional financial burden and potential liability.
Fertilizers and Chemicals Travancore Limited (FACT) has been informed by the Principal Accounts Office, Ministry of Chemicals and Fertilizers, Government of India, that penal interest has been charged on an outstanding Government of India Loan with effect from April 1, 2018. The company had previously disclosed this penal interest for the period from April 1, 2022, as a contingent liability in its financial statements up to March 31, 2026.
The total impact of the penal interest charged for the period from April 1, 2018, to March 31, 2026, amounts to ₹389,50,72,456 (approximately ₹389.5 crore). Additionally, the impact for the current financial year 2026-27 is ₹48,68,84,057 (approximately ₹48.69 crore).
FACT is actively engaging with the Ministry of Chemicals and Fertilizers, Government of India, to seek a waiver of the levied penal interest. The company received this communication via email on September 1, 2026, at 5:10 PM.
A plain-language summary of a public exchange filing by Fertilizers and Chemicals Travancore Limited. Read the original for the full detail.