ECC approves SNGPL-based fertilizer plants to operate beyond May 31 on indigenous gas

The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has allowed Sui Northern Gas Pipeline Limited (SNGPL)-based fertilizer plants – Fatima Fertilizer (Sheikhupura) and Agritech – to operate beyond May 31 till August 31, 2023 on indigenous gas with no government subsidy requirement.

The approval was given by the ECC in a meeting chaired by Federal Minister for Finance and Revenue Ishaq Dar.

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As per a statement released by the Finance Division, the Ministry of Industries and Production submitted a summary of urea fertilizer requirements for year 2023 and briefed on the commodity’s situation in the country.

“The ECC after detailed discussion allowed SNGPL-based fertilizer plants - Fatima Fertilizer (Sheikhupura) and Agritech to operate beyond May 31st, 2023 till August 31st, 2023 on indigenous gas with no subsidy requirement from the federal government,” read the statement.

During the meeting, the Ministry of Climate Change & Environmental Coordination submitted a summary on participation of Sindh’s Mangroves projects in voluntarily carbon markets and presented that Sindh Forest Department is implementing two Indus Delta Mangrove projects viz Delta Blue Carbon-I(DBC-I) and Delta Blue Carbon-II (DBC-II) to generate carbon credits and trade with international entities on Voluntary Carbon Market(VCM).

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The ECC after discussion approved the proposal of the Ministry that the DBC-I and DBC-II projects as these were initiated prior to the commitment made under NDCs in 2021.

“These projects are expected to generate about $200-220 million till 2043 with additional benefits of creating green jobs,” read the statement.

Moreover, the committee considered a summary of Ministry of Energy (Power Division) on payment mechanism and agreements with Uch Power (Pvt) Limited.

“After detailed discussion, the ECC approved the proposals of the Ministry for a Novation Agreement, Master Agreement, PPA Amendment that would result in savings of Rs33 billion over a period of seven years.”

The ECC also considered and approved the following Technical Supplementary Grants/ Supplementary Grants: Rs2.5 million in favour of the Ministry of Climate Change and Environment Coordination to meet its expenditures; Rs263.98 million in favour of the office of Controller General of Accounts (CGA) for implementation of online billing solution in Federal and Provincial Accountant Generals.

Urea production: Fertiliser plants to get gas till May 31st: ECC

The committee also approved Rs497.26 million in favour of the Ministry of Housing and Works for the execution of a development scheme titled ‘Construction of Railway underpass Gojra, district Toba Tek Singh’; Rs420 million in favour of the Ministry of Information and Broadcasting to meet its budgetary shortfall for information services abroad.

Meanwhile, the ECC approved Rs10.74 billion in favour of Federal Directorate of Immunization (FDI) to procure vaccines and syringes for un-interrupted supply to the provinces. Whereas, Rs20 billion grant was approved in favour of Cabinet Division for Sustainable Development Goals Achievement Programme (SAP).

The ECC also approved a grant of Rs4 billion in favour of Ministry of Defence to meet its expenditures.