CHATTOGRAM, Oct 15: Production at the state-owned Chattogram Urea Fertiliser Company Limited (CUFL) resumed on Monday, eight months after it was suspended for unavailability of gas supply as well as for renovation of the machinery.
The factory resumed its production after receiving a limited gas supply from Karnaphuli Gas Distribution Company Limited (KDGCL), sources in the company said.
KDGCL stopped the gas supply to CUFL on February 7, resulting in the suspension of CUFL's production from that day, the sources said.
CUFL, a leading fertiliser production company in the country, started receiving gas supply on Sunday. With the factory now operational, it is expected to produce 1,200 tonnes of fertiliser per day.
Chief of CUFL Production Department Uttam Chowdhury said, "Urea production at the factory was halted due to a gas shortage and mechanical glitch. However, production has resumed as of Monday. The prolonged closure has led to huge losses."
Production at CUFL, like other state-owned fertiliser factories, is generally suspended during the summer when authorities divert natural gas supplies to priority power generation plants to maintain electricity supply across the country.
According to CUFL sources, the plant could not operate more than three months in a year due to shortage of gas. The plant was in operation only for several months in all the financial years in recent years.
The CUFL has been incurring a loss of about Tk 500 million every month due to frequent shutdowns caused by a gas supply crunch.
According to CUFL sources, the company could turn a profit of Tk 10 million daily if production continues regularly.
CUFL was set up in 1987 at a cost of Tk 17 billion and its guaranteed 20-year operational period ended in 2007. The company has faced losses every year due to inconsistent supply of natural gas.
CUFL's total gas demand is 51 million cubic feet daily; however, the relevant authorities have been unable to provide the required quantity consistently.
As a result of these supply interruptions, CUFL could not achieve its production targets in recent years. Although its design capacity is 561,000 tonnes, this level has never been achieved since its inception. CUFL can produce between 1,650 and 1,680 tonnes of fertiliser per day.
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