NCLT approves resolution plan for FACT-RCF joint venture
This story was originally published at 19:59 IST on 30 September 2025
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HYDERABAD - Rashtriya Chemicals and Fertilizers Ltd. Tuesday informed the exchanges that it has received approval from the Kochi bench of the National Company Law Tribunal for the resolution plan of its joint venture with Fertilizers and Chemicals Travancore Ltd., FACT-RCF Building Products Ltd. Rashtriya Chem holds 50% stake in the joint venture, the company informed exchanges.
Without giving full details of the approved resolution plan, Rashtriya Chem said the tribunal's order does not have any material impact on the company.
FACT-RCF Building Products was set up to manufacture gypsum-based building materials as a by-product using raw material from Rashtriya Chem's plant. However, the joint venture started incurring losses and was forced to shut down the plant in 2019. FACT-RCF Building Products defaulted on loans of INR 220 million. Besides, the joint venture had several other financial obligations.
After lenders approached the Kochi bench of the National Company Law Tribunal, a resolution plan was submitted, which has now received approval. According to reports, the revival plan includes debt restructuring, transfer of assets, including a plant, to an asset reconstruction company, and exploring the possibility of revival of the unit by inducting investors.
Tuesday, Rashtriya Chem's shares ended 0.6% higher at INR 145.82 on the National Stock Exchange while those of FACT ended 2% lower at INR 892.30. End
Reported by Narayana Krishna
Edited by Nishant Maher
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