• Friday, Nov 15, 2019
  • Last Update : 10:07 pm

KAFCO losses Tk60m a day due to gas crisis

  • Published at 10:04 am June 13th, 2013
KAFCO losses Tk60m a day due to gas crisis

Frequent suspensions of gas supply to Karnaphuli Fertiliser Company Ltd (KAFCO) in Chittagong continue to make a sharp dent in its income.

Halt of gas supply to the fertiliser plant for the last two months for its diversion to increase electricity production forces the company to count as much as Tk60m loss every day, reports UNB.

Petrobangla and Karnaphuli Gas Distribution Company Ltd (KCDCL) sources said there is no possibility of immediate gas supply to KAFCO.

Competent sources said the government is at the moment giving more attention to the production of electricity.

Once electricity crisis is overcome, gas will be supplied to KAFCO. According to the KAFCO authorities, gas supply to the factory has remained stopped from April 4 hampering daily production of 2,000 tonnes of urea and the factory is facing a daily loss of Tk60m.

In 2012, the factory was closed for six months due to absence of gas supply.

KAFCO’s corporate planning wing DGM Kamal Uddin said in 2011-12 and 2012-13 financial years, production of the factory was stopped for 233 days.

As a result, the authorities lost production of about 468,000 tonnes of urea.

The company incurred a loss of about Tk17bn and the government suffered a loss of about Tk10bn from gas bill, revenue and profit.

KAFCO chief operation officer Shafi Ahmed said the factory was established at Rangadia in Anwara upazila in 1990 through joint investment of Bangladesh, Japan, Denmark and the Netherlands.

In 1995, it started commercial production. Bangladesh has the lion share in the company. At present, KAFCO has production capacity of 2,000 tonnes of urea daily.

Sources concerned said the company has given about Tk80bn as gas bill, revenue and profit share to the government.

In the last eight years, KAFCO produced 48,47,312 tonnes of urea. Of the amount, the company sold 32,96,000 tonnes to the government. The government distributed this fertiliser among farmers.

The company exported 15,41,178 tonnes of urea after meeting the demand of the country.

Petrobangla chairman Dr Mohammad Hossain Mansur said the gas supply to KAFCO was stopped at the instruction of the energy adviser.

KAFCO chief executive Salah Uddin Ahmad said due to suspension of gas supply, the company faces huge losses.

Besides, the foreign investors are losing interest in investment due to the government decision, he added.