Govt to incur huge loss if Ashuganj Fertiliser company goes BMRE

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Govt to incur huge loss if Ashuganj Fertiliser company goes BMRE

Production of Ashuganj Fertiliser Chemical Company Limited (AFCCL) a state owned oldest fertilizer factory, is hit hard due to technical glitch and manpower crisis.

The AFCCL is produces less than its 30 per cent production posing a loss of Tk 1.5 crore a day, sources said.

In FY 2018-19, 5.5 million metric tonnes of chemical  fertiliser was used in Bangladesh, with urea accounting for around half of it or 2.55 million metric tonnes.

The government is going to undertake another balancing modernization reconstruction and evaluation (BMRE) of AFCCL with a view to continue its operation for another 15 years. But experts said spending a huge amount of money to undertake BMRE will not profitable for it.

State Minister for Industries Kamal Ahmed Mojumder Thursday said the government will take necessary steps for accelerating production capacity of Ashuganj Fertilizer Factory.

“If we repair the AFCCL, the factory will provide its full production capacity for another 15 years. The BMRE of the factory will be completed within the next two years,” he said.

Kamal Mojumder said the government will also solve the manpower problem within short time.

Bangladesh Chemical Industries Corporation (BCIC) Chairman Md Haiul Quaium and Managing Director of the Ashuganj fertilizer factory Md Habibur Rahman attended the discussion.

Earlier in December 20019 the government signed agreement  to set up a massive urea fertiliser plant at a cost of $1.3 billion, equivalent to over Tk 11,000 crore, by availing the finance as loan from three foreign financial institutions.

The Japan Bank for International Cooperation (JBIC), Bank of Tokyo-Mitsubishi UFJ (MUFG Bank) and Hongkong and Shanghai Banking Corporation (HSBC) will provide the money.

The Bangladesh Chemical Industries Corporation implement the Ghorasal Polash Urea Fertilizer Project.

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