SYLHET, May12: Production at Shahjalal Fertiliser Factory in Fenchuganj upazila of Sylhet has remained suspended since March 13 this year after Jalalabad Gas Transmission & Distribution Company Limited (JGTDCL) amid a severe crisis stopped gas supply to the state-run entity.
The situation has arisen due to gas shortage as the country's highest urea producer is yet to pay Tk7,790 million (Tk779 crore) outstanding gas bill to state-run JGTDC, sources informed. None could say exactly when the supply could be resumed.
Starting in 2012, construction of Shahjalal Fertilizer Factory Limited (SGFL) was completed in 2015 at a cost of Tk49.85 billion (Tk4,985 crore) including Tk39.86 billion (Tk3,986 crore) Chinese loan.
A Chinese construction firm constructed the factory and handed it over to the Bangladesh Chemical Industries Corporation (BCIC) in February 2016.
Prime Minister Sheikh Hasina on August 14 in the same year formally inaugurated the factory in presence of the Chinese ambassador.
However, since the very beginning the factory has suffered technical glitches time and again and could never achieved the production target as yet, sources informed.With the capacity of producing 1,760 tonnes of fertiliser a day, the factory can produce 1,450 tonnes of urea while liquid ammonia is produced as byproduct.
But in 2022-2023 the factory could not achieve its target due to various reasons including technical glitches, factory sources said.
Lastly, production at the unit was suspended on March 13 on account of gas shortage in addition two other occasions in the current fiscal (2023-2024).
Against the current fiscal's production target of 380,000 tonnes, the factory produced about 240,000 tonnes till March, while achieving the year's target may not be possible, sources concerned apprehended.
Contacted, Managing Director of Shahjalal Fertilizer Factory Limited Gopal Chandra Ghosh told the FE that fertiliser production has been halted amid suspension of gas supply by the JGTDCL since March 13.
"It's uncertain when they would resume gas supply," the MD said, adding, "We are ready to resume production just with the supply of gas."
Mr Ghosh said that the BCIC has to sell urea at subsidised rates to the farmers.
He said that they produce fertiliser at a cost of about Tk36,000 per tonne but it is sold at subsidised rate of Tk25,000 per tonne.
"We have no other trouble in the factory other than the gas supply problem now," he added.
Meanwhile, the issue of payment of the arrears to the Jalalabad gas company is being discussed at higher level, sources said, adding they have already informed the government of the situation seeking immediate measures.
A senior official in the gas company requesting to be unnamed admitted that gas supply to the fertiliser factory has been stopped amid a short supply.
However, an inter-ministerial meeting would be held soon to settle the factory's debt amounting to Tk7,790 million (Tk779 crore) to the gas company, he added.
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