Production
at Shahjalal Fertilizer Company Limited (SFCL) in Fenchuganj, Sylhet, has been
halted again just one month after resuming operations. The factory stopped
production around 9:30 pm on Wednesday (September 11) due to a lack of natural
gas, a key raw material for producing urea fertilizer. Jalalabad Gas
authorities reported that the ongoing power crisis in the country has prevented
them from supplying gas to SFCL.
The
Shahjalal Fertilizer Factory began operations in August 2016. However, it never
met its production targets since its construction by the Chinese contractor ‘Komplant’.
Production has frequently been halted due to mechanical issues. Most recently,
on March 13, Jalalabad Gas cut off the gas supply due to unpaid bills. After a
series of exchanges between the two relevant ministries over the BDT 7.79
billion owed, Jalalabad Gas resumed supplying gas on July 25. However, due to mechanical
issues, SFCL could not restart production until August 6.
Since
resuming production, SFCL has been operating at a loss. When asked for comment,
SM Abdul Barik, General Manager (Accounts), declined to speak. However, an
official, who requested anonymity, said that since its inception, SFCL has
deposited about BDT 5.5 billion into the government treasury from fertilizer
sales. In contrast, they still owe BDT 7.79 billion to Jalalabad Gas. The
amount of production in the last fiscal year was insufficient to cover these
dues, indicating that the company remains in financial distress.
SFCL
sources revealed that the factory, which has a daily capacity to produce 1,760
tons of urea, has been producing an average of 1,450 tons per day.
Additionally, it produces liquid ammonia as a byproduct. However, due to
various complications and mechanical failures, the factory failed to meet its urea
production targets in the 2022-2023 fiscal year. It also experienced prolonged
shutdowns during the 2023-2024 fiscal year.
Regarding
the latest production halt, SFCL’s Managing Director (Acting) Gopal Chandra
Ghosh told Bonik Barta, “After nearly five months of being shut down, the
factory resumed production on August 6. However, on September 11, the Ministry
of Energy informed us that they would temporarily stop supplying gas. Jalalabad
Gas authorities also stated that they had received orders from higher
authorities to halt the gas supply. As a result, fertilizer production has been
suspended since 9:30 pm on that day.”
Gopal
Chandra Ghosh added that he could not confirm when the factory would reopen,
stating, “There are no mechanical issues at the factory now. We were producing
between 1,200 and 1,300 tons of fertilizer daily.”
Meanwhile,
Jalalabad Gas Transmission and Distribution System Limited’s General Manager
(Operations), Engineer Md. Abu Bakar, told Bonik Barta, “Due to the ongoing
electricity crisis in the country, gas supply to Shahjalal Fertilizer Factory
has been temporarily halted following orders from higher authorities. Once the
situation improves, gas supply will resume.”